OCTOBER 2012
ON THE RECORD
Karl S Fessenden, President & CEO, Power Generation Services, GE Power & Water.
SHORT TAKE
Vincent Guillaumie, EMEA Water Industry Manager, Rockwell Automation.
LED TRENDS
James Chorlton, Business Director, Honeywell Electrical Devices & Systems (ED&S)
SUSTAINABILITY
CHAMPION Decoding Mars GCC’s approach to energy and water conservation HEAD LINES
• GE strengthens localisation commitment in KSA • Abu Dhabi to host renewable energy micro-grid pilot
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CONTENTSOCTOBER 2012 4/EDITOR’S LETTER NEWS 8/ The meter 10/ Round up 14/ In the region
PLUS 42/ Market Place 43/Events 44/ Tenders & Contracts
22/ INDUSTRY NOTES
• Unique range • Global desalination capacity rises by 57% • GE strengthens localisation commitment in Saudi Arabia
25/ SHORT TAKE
Vincent Guillaumie, EMEA Water Industry Manager, Rockwell Automation.
ON THE RECORD 26/ The service proposition
Karl S Fessenden, President & CEO, Power Generation Services, GE Power & Water.
DEMAND SIDE 28/ LED Trends
Q&A with James Chorlton, Business Director, Honeywell Electrical Devices & Systems (ED&S)
28/ Lighting the future
COVER STORY
32/Sustainability Champion
Decoding Mars GCC’s approach to energy and water conservation
With DY Kim, President, LG Electronics Gulf.
PUMPS, COMPRESSORS, VALVES 37/ Design for Energy Efficiency
Best practices can help reduce the large share of energy consumption of pumps and compressors in process industry.
41/ INSIGHT
• MI Graduate presents biodiesel project at Rio+20 • Rough patches on the CSP road
SECTOR REPORT 49/ Looming shortage
A leaner global polysilicon industry is poised for rebound, says Bernreuter Research
FLIP SIDE 49/ A slice of history
Oil & Gas museum at ADIPEC2012
SPOTLIGHT 6/ NYNAS
Specification and maintenance guide for mineral insulating oil
MEGAWHAT/H2O | OCT 2012
3
EDITORS note The search for a role model
I
f you expected the ‘usual’ in this issue, I apologise. This time around, we took a path less trodden with regard to the cover story and decided to profile an end-customer. These days, we often hear utilities talking about Demand Side Management (DSM) programmes that seek to help end-customers control their water and energy demand. But what if the end-customer turns out to be pro-active in reducing their water and energy demand, without waiting for the carrot or stick of a DSM programme or otherwise? I first covered Mars GCC, the Dubaiheadquartered Middle East business unit of the world’s second largest chocolate manufacturer in 2010, in the erstwhile H20 magazine, profiling their water conservation efforts. Even then, Mars GCC was marching step in step with its parent company’s global agenda that called upon all sites to meet absolute targets – short term and long term - for reducing energy and water use and waste. While many companies in the region have adopted a wait and watch attitude when it comes to making their operations sustainable, a few like Mars GCC have ventured forth on their
own, recognising that their responsibility for the future of mankind and the planet we live in cannot wait. What our story highlights is only a proverbial tip of the iceberg of the sustainability initiatives underway in Mars GCC, the objective being to provide a snapshot of the key projects being implemented by the Dubai site to align itself with the absolute targets set by the parent. I would recommend a visit to Mars’ global website to understand the sound reasoning behind these targets and how the company proposes to achieve them. For regional utilities looking for role models at the demand-end to publicise the importance of sustainable water and power consumption, companies like Mars GCC could be great examples. The other highlight in this issue is the expansion of the GE Manufacturing Technology Centre in Dammam, which affirms the trend of global power and water industry players establishing a manufacturing footprint in the region to get closer to their customers and participate in the regional agenda of local value chain development and job creation. Read more on that inside. Until the next issue, au revoir.....
MW/H2O combines the bimonthly legacies of two power and water industry thought-leadership brands into a monthly edition thatprovides an unbeatable, 360 degree perspective of the Middle East& North Africa (MENA) region’s utility and energy sectors.
Publisher
Dominic De Sousa
Associate Publisher
Liam Williams • liam@cpidubai.com
Chief Operations Officer Nadeem Hood
Editor
Anoop K Menon • anoop@cpi-industry.com
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Vedran Dedic • vedran@cpi-industry.com +971 55 8644831
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Production and Circulation James P. Tharian Rajeesh M
USA and Canada
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4
MEGAWHAT/H2O | OCT 2012
5
SPOTLIGHT ADVERTORIAL NYNAS
Specification and maintenance guide for mineral insulating oil Mineral insulating oil is the most widely used insulating
liquid for cooling and insulation in oil-filled electrical equipment. Standard specifications and guidelines are regularly maintained and used for purchasing and supply of virgin unused oil and also for maintenance of in-service oil.
International standard IEC 60296 is used in the electrical industry for purchasing and supply of unused mineral insulating oil. Globally it is the most widely used standard for supply of mineral oil in the electrical industry. Both users and producers realised some weakness in this standard; therefore during IEC TC10 general meeting in 2005, it was decided to revise this standard. As of February 2012 the revised standard is now published. We urge all our customers to ask for these 2012 standards for all future requirements.
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6
Among several improvements the revised standard address lower furfural content of the oil as well as clearer definitions of additives. Demands on testing for sulfur induced copper corrosivity were also finally formalised. For reliable operation of oil-filled electrical equipment, monitoring and maintenance of insulating liquid is essential. The characteristics of the oil, supplied as unused, may change during service life. Therefore, the oil quality should be monitored regularly during its service life. In many countries, power companies and electrical power authorities have established codes of practice for this purpose. In general these cover monitoring guidelines and corrective actions depending on the oil status. If a certain amount of oil deterioration is exceeded then the possibility and risk of premature failure should be considered.
While the quantification of the risk can be very difficult, a first step involves the identification of potential effects of increased deterioration. Physical contaminants such as water and particles can be removed from the oil restoring oil breakdown voltage, however, chemical contaminants cannot be removed by simple filtration/degassing of the oil and requires chemical treatment of the oil. This is particularly important issue for repaired transformers and refilling of these repaired units would be best with new virgin oil. IEC 60422 is a guide for supervision and maintenance of mineral insulating oils. This standard is now under revision to take into account development in oil and equipment technology and inclusion of the best practices currently in
use worldwide. Changes are also made to use current methodology and comply with requirements and regulations affecting safety and environmental aspects. Should you have any questions related to the above aspects, feel free to contact: Hendrik Cosemans (General Manager Nynas Middle East) Emial: heco@nynas.com Tel. No. 00971 4 332 71 25
Need to talk to a transformer oil supplier who understands your business? One who’s local enough to be near you, yet global enough to have the expertise you need. Get in touch. www.nynas.com
7
THE METER
NEWS IN NUMBERS
649 The total number of energy storage projects
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The number of power projects – hydro and gas-based – proposed to be implemented by Kurdistan’s Ministry of Electricity. The ministry has plans to implement three hydropower plants in Deraluk-Rashawa Dam, Mandawa-Kopala and Taqtaq and two 200 MW gas power plants in Qaladze and Harir.
deployed and announced (including inactive projects) during the first half of 2012, an increase of eight per cent from the start of the year. According to Pike Research’s ‘Energy Storage Tracker,’ the number of projects deployed on a global basis increased over those six months from 482 to 514. The region with the largest base of energy storage is Asia Pacific, which has just over 60 GW of cumulative installed capacity.
100MW
The capacity of the Wasteto-Energy facility which will
be jointly developed by TAQA and the Centre of Waste Management Abu Dhabi (CWM) by 2015/16. The facility will be capable of processing up to a million tonnes of municipal solid waste per annum, contributing towards CWM's stated target of 80% diversion of waste from landfill, which falls within the Abu Dhabi Vision 2030 objectives.
Saudi Arabia’s share of world oil reserves, according to the latest report by the Kuwait-based Diplomatic Centre for Strategic Studies (DCSS).
42%
Stake acquired by ACWA Power, the Saudi
water and power developer, owner and operator in a solar photovoltaic (PV) plant located in Karadzhalovo, Bulgaria in partnership with an affiliate of First Reserve Energy Infrastructure Fund and Clean Energy Transition Fund. The plant, rated at a capacity of 60MWp, is expected on average to produce 81,000 MWh per annum and is in operation since March 2012, dispatching electricity to the Bulgarian power grid.
8
MEGAWHAT/H2O | OCT 2012
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9
ROUND-UP
NEWS IN BRIEF
Modern Water commissions FO plant in Oman
M
odern Water has announced the installation and commissioning of its 200 m3/day Forward Osmosis (FO) desalination plant at Al Najdah in the Al Wusta region of Oman. The company was awarded the contract, worth OMR250,000, to build and operate the plant in June 2011 by Oman’s Public Authority for Electricity and Water (PAEW). The plant is
the world’s first commercial forward osmosis desalination plant and the group’s second plant in Oman. The plant Al Najdah is now operating commercially at full capacity and the group has now entered into the 12 month operation and maintenance (O&M) phase. Al Najdah plant is vital to the area as it supplies the local community with a much needed source of clean drinking water.
IFC invests in Aqualyng
water scarcity and also other parts of Asia, producing up to 100,000 m3/day of fresh water. This is IFC’s first investment in China’s emerging seawater desalination industry. Aqualyng and its joint venture partner Beijing Enterprises Water Group recently commissioned the first stage of the Caofeidian desalination plant in Hebei province, which can process 50,000 m3/day of fresh water. The plant is one of the first largescale, commercial seawater reverse osmosis plants in China and is considered a model desalination project in the country. Aqualyng’s equity investment in this project received a guarantee from the World Bank Group’s Multilateral Investment and Guarantee Agency (MIGA).
I
FC, a member of the World Bank Group, has invested $12 million in Norway’s Aqualyng Holding to expand the company’s seawater desalination projects in China. The investment is part of Aqualyng’s recently completed $30 million fund-raising round, which also attracted investments from Clean Resources Asia Growth Fund, in which IFC is also an investor, and Pareto Staur Energy. Aqualyng will use the funds to build new desalination plants in China in areas experiencing
B
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MEGAWHAT/H2O | OCT 2012
S
audi Arabia’s Marafiq Power & Water Utility Company for Jubail & Yanbu has awarded the consortium of ACCIONA Agua and Saudi BinLaden Group the contract for the design, construction and commissioning of the Al Jubail desalination plant which will service the city of Al Jubail and its associated industrial complex in the Eastern Province. This is ACCIONA’s first-ever contract in Saudi Arabia. The desalination plant is expected to come into operation at the end of 2014 and will have a capacity of 100,000m3/ day. This is well over twice the combined capacity of the city’s existing five desalination plants. Currently, Al Jubail industrial city has two Multistage Flash Desalination (MSF) plants, and three RO facilities with a combined capacity of 84,000 m3/day.
German solar installations surpass 30 GWp
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Borouge and Borealis launch Borlink in Asia
orouge and Borealis have launched Borlink, a technology platform that offers a complete global package of power materials, experience, knowledge and support, in the Asian market. The launch took place during the Wire China 2012 exhibition held in Shanghai, China last month. Borlink offers a complete global portfolio of cross-linkable polyethylene (XLPE) compounds, experience, knowledge and support targeted at high voltage direct current (HVDC) cable applications. The technology includes a tailor-made and unique pressure process for the production
ACCIONA Agua bags first Saudi deal
The launch took place at Wire China 2012 in Shanghai
of high purity and super clean low density polyethylene base polymers with superior electrical properties. The whole process from the base polymer production via the cross-linking technology takes place in either a closed and/or controlled production loop (from monomer to final packaging). This enables to avoid any contaminations and delivers world class clean and homogenous and high quality compounds.
ermany installed roughly 320 MWp of solar power in August, according to initial reports. This addition has bumped Germany past 30 GWp, the first country in the world to reach this level of photovoltaic capacity. Total German solar installations make up more than the rest of Europe combined. “Positive market developments and ongoing changes in the industry underscore Germany’s position as the global frontrunner in solar power,” said Tobias Rothacher, photovoltaic industry expert at Germany Trade & Invest in Berlin. As the industry matures, the market segment of homes and businesses that consume the energy they generate is expected to see the strongest growth. Leasing, power trading and plant management are up-and-coming service sector fields driven by the commercial rooftop market.
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www.ingenious-network.com 11
ROUND-UP
NEWS IN BRIEF
New president of CST International
C
Tony Thill
ST Industries, a global leader in the manufacture and construction of factory coated metal storage tanks, aluminium domes, specialty covers and reclaimer systems, has named Tony Thill as President of CST International, the division responsible for operations outside of North America. “Tony’s leadership experience in global business development makes him an ideal candidate to assume this role,” said Declan McLaughlin, President and CEO of CST Industries. “His knowledge of CST’s
products and his experience working with CST’s companies and divisions to develop aggressive growth strategies will be extremely beneficial leading our International group.” Prior to joining CST Industries in 2006, Thill served in multiple executive roles with GE Energy and the former BHA Group, leading the dry filtration business unit, developing international markets, accelerating product development and implementing marketing, sales and corporate strategy worldwide.
Dow, SWCC sign commercial research pact
T
he Dow Chemical Company and the Saline Water Conversion Corporation (SWCC) have signed a commercial agreement for research collaboration. The announcement follows a memorandum of understanding (MoU), in March 2012, between Dow and SWCC to conduct joint research in desalination technologies. Dow and SWCC will partner to test the desalination technologies developed by Dow Water & Process Solutions (DW&PS), evaluating their performance in the Arabian Gulf ’s unique environment, including their ability to effectively handle factors such as high salinity and high temperatures. The tests will be conducted by the Saline Water Desalination Research Institute (SWDRI) in Al Jubail, Saudi Arabia, over a period of one year. SWCC is the largest desalinated water producer in the world with 32 desalination plants responsible for 18% of the world’s desali-
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MEGAWHAT/H2O | OCT 2012
Dr Ilham Kadri
nated water production. “We welcome this opportunity to further prove the effectiveness of DOW UltraFiltration and DOW FILMTEC Reverse Osmosis technologies in the challenging environmental conditions we see in the Arabian Gulf. We are proud to partner with SWCC and confident our innovations will deliver enhanced solutions for the unique needs of the Kingdom,” said Dr Ilham Kadri, General Manager, Dow Advanced Materials, Middle East and Africa, and Commercial Director, Dow Water & Process Solutions (DW&PS), Europe, Middle East and Africa.
Jukka-Pekka Mäkinen, President and CEO of The Switch
New business model
J
ukka-Pekka Mäkinen, President and CEO of The Switch, called for the adoption of an industry-wide networked model to overcome the rigidity of the vertical integration that still stifles the entire wind power industry. Industries that have embraced networking are better prepared for fluctuations in the market that can come from business cyclicality, market volatility or even geographical shifts. “In the wind power industry, we have all witnessed the fallout from the global economic downturn and the significant geographic shift from Europe and the US towards China and emerging markets. Now, we’re finally seeing signs of this industry opening up to the benefits of networking, with large turbine manufacturers selling off component manufacturing operations to other specialist players to better compete by concentrating on their core strengths,” said Mäkinen. Networking within entire industries is not new. The automotive or telecommunications industries have been operating in such a manner for years, leading to deeper specialist expertise, the ability to add scale where necessary and faster time to market. Companies in the wind power industry now need to focus on being good at their chosen core competences, believes The Switch CEO. Through specialisation, they can tap into cumulative experience, which leads to significantly improved quality, ensuring a world-class solution with bigger and better wind turbines.
13
IN THE REGION
NEWS MENA
Saudi electricity sector to be privatised by 2014 The largest electricity market in the Middle East will see demand rise to 120,000 MW in 2030
S
audi Arabia aims to liberalise its power industry beginning with the privatisation of the electricity sector by 2014. The privatisation moves aims to create a competitive market for electricity generation in Saudi Arabia, where currently the government-owned Saudi Electricity Company (SEC), produces, transfers and distributes electricity on a national basis. “We are working at establishing four generation companies and one distribution company by 2014,” said Amer Al Swaha, head of SEC’s IPP programme while speaking at the Saudi Mega Infrastructure Projects Summit held in Riyadh last month.
“The four generation companies will have similar capacity and technology and will not be based on geographic regions. They will all have the same starting point which will allow us to compare their relative performance.” The restructuring will involve the division of SEC’s electricity generation business into similar companies that will compete with each other and SEC’s independent power providers (IPPs). The SEC will also set up a single buyer of electricity from the four electricity generation companies and the IPPs. A single separate transmission company has already been established and
has been in operation since January 2012. Al Swaha continued: “We will have a single buyer model to buy the power from all those companies and pay a transmission fee to the transmission company and distribution fees to the distribution companies.” A liberalised power sector is expected to help ease increasing electricity demand in the Kingdom, which rose by 8.9% to 51,000MW in 2011. “Demand is rising strongly and we expect it will be significantly higher than 120,000 MW in 2030,” added Al Swaha. At the Saudi Mega Infrastructure Projects Summit, experts forecast over $300 billion worth of projects in various sectors to be awarded over the next three years. “The investment in several ambitious projects will have a major impact on Saudi Arabia’s economic and social fabric; and will make it a truly regional financial, leisure and industrial hub of growing international importance,” said Edmund O’ Sullivan, chairman, MEED Events, organisers of the Saudi Mega Infrastructure Project Summit.
Passavant-Roediger bags sludge digestion deal in Iraq Drake & Scull subsidiary continues Iraqi expansion with major waste water & water treatment ventures
P
assavant-Roediger, a wholly owned subsidiary of Drake & Scull International, has been selected by the Iraqi Ministry of Municipalities as the turnkey contractor for a waste water treatment plant (WWTP) located in the city of Kerbala. The project was awarded by Al Hanan Contracting Company and the contract value of Passavant-Roediger is Dh86 million. Under the terms of the contract, Passavant-Roediger will design and build the sludge treatment system of the WWTP based on anaerobic sludge digestion, including energy recovery and generation from biogas. It will install 12 sludge digesters each with a capacity of 3,400m³ all equipped with the propriety Passavant-Roediger Sequential Gas Lance Mixing System. Passavant-Roediger’s patented anaerobic sludge digestion technology reduces sludge volumes and renders it harmless for safe
14
MEGAWHAT/H2O | OCT 2012
discharge. It also allows the recovery of energy from the organic matter it treats. The process involved can generate up to 80% of the power requirements of a WWTP. Commenting on the award, Dr Mazen Bachir, Managing Director of Passavant Roediger said, “Our global experience and patented technology will allow the implementation of an optimal treatment process tailored to the sophisticated requirements of this high- scale project. Our modern digesters will guarantee energy saving operations and less consumption of chemical substance required for the treatment process while ensuring efficiency and long term profitability for the client. We are currently gearing up to mobilise on site shortly and we expect the project to be delivered in 2013”. DSI acquired Passavant-Roediger in 2009 to enhance its capabilities in the region’s water and wastewater sector. Pas-
Dr Mazen Bachir
savant-Roediger is a leading global developer of wastewater, water and sludge treatment technologies, with operations across Europe, Africa, Asia and the Middle East and has portfolio of several ongoing and completed projects in Iraq including Ramadi Sa’ad 21 Industrial Complex ETP, Arbil WWTP, Baquba WTP and Salahudin Refinery ETP as well as more than 20 other projects in the water and wastewater treatment sectors ranging from full scale plants to package plants. The company delivers comprehensive in-house solutions for the design, supply, build, operations and maintenance, wastewater and water treatment facilities and is one of the leading Engineering, Procurement and Construction (EPC), Wastewater and Water Treatment (WWT) and Re-Use Design and Build Contractors Worldwide.
NEWS MENA
IN THE REGION
Pact to bring biofuel production to the region The plants will convert used cooking oil into environmentally friendly biodiesel.
S
S Lootah international has partnered with Germany based Arndt to offer solutions for fully-automated biodiesel plants in the region. The locally manufactured plant with integrated automation and remote control monitoring will optimise the conversion of used cooking oil into environmentally friendly biodiesel with minimum human intervention. The partnership agreement was signed between Abdullah Bin Saeed Al Lootah, CEO of SS Lootah International, and Klaus Dieter Arndt, General Manager of Arndt, in Dubai. The agreement framework will
Abdullah Bin Saeed Al Lootah, CEO of SS Lootah International and Klaus Dieter Arndt, General Manager of Arndt GmbH after signing the MoU.
allow SS Lootah International to combine its local knowledge and engineering talent with Arndt’s global expertise in setting up biodiesel plants with safe automation. Commenting on the partnership, Abdullah Lootah said: “As we move towards a sustainable future, introducing technological and infrastructural solutions to the region’s energy requirements is crucial. We are confident that this partnership will take Biodiesel production in the region to the next level.” Klaus Dieter added: “Having set up auto-
mated biodiesel plants across Europe, we are glad to cooperate with SS Lootah International to bring the knowhow to the Middle East and North African (MENA) region. Our high quality equipment and sensors together with automation and computer remote control help achieve highest plant safety and product quality in reduced time. With the increased demand for turning waste materials into commercially viable and environmentally friendly products, we hope that our partnership will open up a niche market for biofuel production and its application.”
15
IN THE REGION
NEWS MENA
Saudi Arabia puts energy efficiency on radar Lack of awareness amongst end users poses a major challenge to the market, notes Frost & Sullivan.
T
he construction boom and rising investments in real estate in the Kingdom of Saudi Arabia (KSA), have resulted in phenomenal growth for building technologies such as heating ventilation and air-conditioning (HVAC), lighting, and mechanical-electrical-plumbing (MEP) systems in recent years. As all these systems operate on electricity, KSA’s energy consumption has inevitably surged rapidly over past few years. Additionally, economic growth across sectors such as petrochemicals and plastics, power, water and wastewater, infrastructure, and metals and mining, has contributed to increased energy consumption. According to Frost & Sullivan, in 2011, the energy consumption pattern in KSA was dominated by its residential sector with 54% of total energy consumption, followed by commercial sector with 29%, and industrial sector with 17%. KSA is projected to account for over 50% of the Gulf Cooperative Council’s (GCC) district cooling operating capacity and 33% of overall revenue by 2016, at a compound annual growth rate (CAGR) of 21.7%. KSA is highest waste generator in the GCC, which was recorded at approximately 22 million tonnes in 2011. Availability of cheap fossil fuel and low landfill rates, however, have been hindering growth of waste-to-energy and recycling market in the country. However, the rise in energy consumption must be addressed by developing new techniques for energy efficiency. Frost & Sullivan has recommended upgrading existing systems including controls, sensors, building management systems, and performance contracting models, along with harnessing energy-efficient products and systems to help rationalise energy con-
16
MEGAWHAT/H2O | OCT 2012
sumption in the country. Some techniques that can support energy-efficiency measures are HVAC, lighting, integrated building management systems KSA offers over $1.35 billion of energy-saving potential (IBMS), performance contracting, and recycling. Phasing out inefficient lighting systems grammable thermostats, energy-efficient with energy-efficient compact fluoresHVAC equipment, and other associated cent lamp (CFL) and light-emitting diode services and solutions is expected to in(LED) lights is further expected to reduce crease,” said Frost & Sullivan Environmenannual electricity consumption by 3.2 Twh tal and Building Technologies Industry and CO2 emissions by 2.4 Mt. Manager, Kumar Ramesh. KSA is spearheading the region’s emergAccording to Frost & Sullivan’s study on ing trend towards adoption of alternative ‘Energy Efficiency in KSA’, a critical chaland renewable sources of energy. With lenge to development of the Saudi Arabian strong renewable energy resource base and energy-efficiency market is lack of awareconstant technological developments, ness amongst end users. To address this, KSA has ambitious plans to improve Frost & Sullivan recommends that KSA energy efficiency by effectively using should implement mandatory regulations existing systems and encouraging use of on energy management and incentives for energy-efficient products. energy-efficient investments in order to In 2010, the Government of KSA estabgenerate awareness. It is also essential to lished the Saudi Energy Efficiency Board include efficiency standards for new air(SEEC), as energy efficiency was identiconditioning appliances, along with acfied as a national priority. Amongst others, tions on replacing inefficient models and one objective of the SEEC was to propose regulation on maintenance. a national energy-efficiency plan in order KSA needs to incentivise implementato rationalise energy usage in the countion of new technology to reduce energy try. Thus, KSA’s first grid connected solar consumption, provide more autonomy to power plant was inaugurated in 2011. KSA energy-related organisations to work tooffers over $1.35 billion of energy-saving wards efficiency, create awareness about potential and out of this about one billion the need to conserve energy, and educate dollars is an immediate addressable market end users with respect to increasing energy potential for energy efficiency. Currently, prices. As ongoing massive industrial dethe KSA accounts for $1.44 billion of unvelopment in the Kingdom is expected to tapped energy-saving market, which transraise the energy demand further, Frost & lates to about 37.1 bn kWh of energy saved. Sullivan recommends implementation of “Greener equipment should start maka transparent building model, showcasing ing inroads into the KSA market. If Saudi periodic reduction in operational costs for Arabia implements energy-efficiency pronew constructions as well as existing buildgrammes as proposed by the electricity ings, ensuring energy-efficiency. advisor, demand for products such as pro-
NEWS MENA
IN THE REGION
Successful odour control
BioAir claims that its odour control project for Ashgal continuously exceeded the 99% H2S removal guarantee.
B
ioAir Solutions, a leading USbased provider of biological odour and emission control solutions for wastewater treatment plants, which had recently established a presence in the Middle East region, has reported encouraging results from its odour control project in Qatar. Operating more than 190 pumping stations to handle sewage to the city’s wastewater treatment facilities, Ashghal, Qatar’s public works authority, was looking for a better way to handle odours at their Pumping Station 11, which services the Najma Al Mansoora region and is located beside the Holiday Villa hotel in Doha. BioAir helped Ashghal assess the odour situation at the pumping station, establish suitable design criteria, and develop
a solution using the company’s EcoFilter biotrickling filter technology. A high-performance EcoFilter EF52 biological odour control system, which is capable of handling H2S concentrations in excess of 750 ppmv while achieving removal efficiencies of greater than 99.5%, was installed at the station. The BioAir EcoFilter technology uses bacteria to remove odours without using chemicals or activated carbon. The solution also functions continuously without the need to remove or replace the media. Ashghal was interested to see how well the EcoFilter technology would operate in the peak summer heat, which reaches ambient temperatures of up to 55°F (131°F). Upon delivery and installation, the EcoFilter unit eliminated the odours almost immediately and demonstrated its efficiency
BioAir’s EcoFilter technology uses bacteria to remove odours.
regardless of the ambient air temperature. The company has further claimed that system performance has continuously exceeded the 99% H2S removal guarantee that BioAir Solutions specified when the unit was installed.
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IN THE REGION
NEWS MENA
The project will tap the expertise of Masdar Institute in the design and simulation of micro-grids
Abu Dhabi to host renewable energy micro-grid pilot The project will be implemented as a public private partnership (PPP) between GGI, MI and RIST
G
lobal Green Growth Institute (Chairman, Lars Rasmussen, former Prime Minister of Denmark), an intergovernmental organisation committed to promoting green growth in the developing world, is joining hands with Masdar Institute (MI) and the Research Institute for Industrial Science and Technology (RIST) in Pohang of South Korea to design a robust and cost-efficient microgrid operating on 100% renewable energy. The project is supported by approximately $1 million from GGGI and POSCO, the world’s fourth largest steel producer. The announcement of this innovative collaborative UAE-South Korea research project, which is led by the UAE Ministry of Foreign Affairs’ Directorate for Energy & Climate Change and coordinated by the GGGI, was made in Abu Dhabi last month. During the event, the joint Project Team between MI and RIST revealed a conceptual design for an island-based renewable
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micro-grid. The conceptual design consists of a control system, energy storage, and a high efficiency DC distribution system. It is designed to incorporate renewable energy sources such as solar PV, small wind power and biofuel production from waste and algae. The micro-grid system can be linked to local seawater desalination and electric powered boats for island access. The Public Private Partnership project is coordinated by GGGI and will tap the expertise of Masdar Institute in the design and simulation of micro-grids with renewable energy, and the RIST team’s established expertise in commercialising technologies demonstrated by the project on Jeju Island, South Korea. The project island in the UAE will become a ‘sister’ island, featuring advanced micro-grid and ‘smart renewable’ technologies. Dr Scott Kennedy, Dean for Research, Masdar Institute, said: “Micro-grids are gaining increasing popularity as a key
Micro-grids are gaining increasing popularity as a key enabler of smart grid infrastructure
enabler of smart grid infrastructure and an important technology in expanding electricity access to areas with weak or non-existent power infrastructure. Such grids are essentially small, low to medium voltage power systems that can operate in isolation or connected to a larger transmission system. Featuring advanced control systems that allow them to operate in grid-connected or isolated mode, they can also include up to 100% renewable energy, therefore providing zero-carbon power.” The Joint team already conducted a preworkshop in Pohang, Korea in July, 2012 and visited a potential demonstration site in Abu Dhabi, the UAE in August, 2012 to set up the conceptual design. The team will develop a UAE tailored micro-grid model and an action plan for a subsequent implementation project until March, 2013. The developed micro-grid model will be highlighted during the World Future Energy Forum in January 2013 in Abu Dhabi.
The second edition of Water Leakage Summit Middle East will once again bring stakeholders from the region’s water sector to explore and discuss current issues, best practices and regulations for leakage reduction.
Join us for a two-day summit packed with
presentations, panel debates, and workshops to discover practical approaches suited to the region’s specific requirements. Learn about innovative financing models, while celebrating the sector’s achivements.
21-22 November The Address Dubai Marina Dubai, UAE GOLD
SILVER
SPONSORS SEMINAR SPONSORS
PLATINUM
ASSOCIATE SPONSORS
MEGAWHAT/H2O | OCT 2012
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INDUSTRY NOTES
Unique range
Sub-1GHz wireless sensing, tracking and monitoring technology and solutions can deliver significant cost savings to the region’s power and water industry.
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ounded in 2010, Dubai-headquartered Orion Systems’ offering centres on systems of its own invention that leverage the unique properties of the 433MHz radio frequency together with other complementary sub-1GHz frequencies. In fact, the company claims a nonline-of-sight transmission range of up to seven kilometres without repeaters, which it asserts could greatly reduce the cost of sensing and monitoring pipeline installations and refurbishments. “Orion Systems is an unusual company – one that combines innovation with vast practical project experience, to develop truly cost-effective answers to longstanding problems,” says Martin Saville, Chief Executive of Orion Systems. “The technology and solutions that we develop meet important operational challenges that could not be addressed before – and do so
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quickly, economically and with minimal disruption. Most importantly, they pose no threat to humans or animals.” He continued: “Because we have the strongest possible focus on engineering and use only the very best componentry, our solutions are more reliable, with greater compatibility and lower power consumption than others. Our Orion Radio-Control Application (ORCA) takes the real-time data from accurate, highlysecure longer-distance transmissions, even through concrete walls, and turns it into real-time information for the purposes of monitoring, alerting, remote control and management reporting.” Saville noted that his company’s solutions are ideally suited to the region’s power and water sectors: “The wireless delivery of encrypted real-time information from end-devices, with up to three levels of transmission redundancy,
which may previously not have been viable due to additional cabling requirements or the substantial limitations of higher-band mesh and multi-hop wireless networks, enables 100% dependable, earlier and more specific alerts than previously possible,” he said. “In addition, scalability and flexibility are built-in, so the fast implementation of additional monitoring and control systems to support the expansion of a desalination plant or a pipeline, for example, is easily catered for. Our technology has been formally tested in extreme conditions, so we know it stands up to the special environmental conditions prevalent in the Middle East, both onshore and offshore.” Orion has on board experts of the like of radio technology innovator and VP of Research and Development Dr Jean-Louis Hygounet, technical consultancy, design and delivery principals John Greaves (an
INDUSTRY NOTES
Orion Systems demonstration and services centre showing real time data collected wirelessly.
international authority on wireless, radio and data capture technologies and standards) and Grahame Edwards (a leading authority on control and security solutions for ports, airports and buildings) and the local market knowledge of Chairman Tony Durnford (founder of long-established UAE solutions company Cimac) and other key employees. The company’s strategy is to lead with its technical consultancy to evaluate and analyse big, complex and expensive operational challenges for organisations in major sectors, including utilities, airports, ports, buildings and facilities, security and the environment, and to deliver a comprehensive statement of requirements on which to base the development or adaptation of a solution to meet a client’s specific needs. In addition to the considerable experience and expertise of its key personnel, in-
terested parties are reassured by being able to view live updates of the development and test installations. Grahame Edwards said: “Our demonstration and services centre features our ORCA software driving a bank of monitors displaying data from a range of devices collected wirelessly in real time over long distances, and enabling the data to be manipulated on-screen. This provides our potential clients with invaluable ‘hands-on’ experience of the power and flexibility of our systems.” Saville noted that Orion Systems is well aware of major challenges posed by existing in-place systems: “Our modular systems provide almost unlimited options but they have one thing in common: intelligent design. Their conformity to international standards means that they can integrate with and extend existing hard-wired or wireless infrastructures and SCADA or
other monitoring systems, including CCTV and audio installations, or can be standalone. They also enable the provision of accurate enhanced management information to rapidly identify problem areas and to support programmes of continuous improvement.” By Max Tuttle
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INDUSTRY NOTES
DEWA plant: An integrated desalination and power plant. Historically, large scale desalination has mainly been built in the Gulf region.
Global desalination capacity rises by 57%
By 2025, the UN expects 14% of the world’s population to be encountering water scarcity.
Desalination industry enjoys growth spurt as water scarcity starts to bite, notes IDA/GWI data
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he past five years has seen a 57% increase in the capacity of desalination plants on-line according to the latest data published by the International Desalination Association (IDA) and Global Water Intelligence (GWI). The installed base of desalination plants around the world now has a capacity of 78.4 million m3/day compared to 47.6 million m3/ day at the end of 2008, according to the latest edition of the IDA/GWI Worldwide Desalting Plant Inventory. The growth of the market for desalination reflects the fact that coastal communities are increasingly turning to the sea to meet their drinking water needs, while inland there is a tendency for groundwater to become increasingly brackish over time. Around 60% of desalination capacity treats seawater; the remainder treats brackish and less saline feed water. Historically, large scale desalination has mainly been built in the Gulf region where there is no alternative for public water supply. The combination of lower cost membrane desalination and growing water scarcity means that big desalination plants are
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now being built outside the Gulf. The largest membrane desalination plant in the world – the 444,000 m3/ day Victoria Desalination Plant in Melbourne Australia – came on line last month, but it will be soon surpassed by the 500,000 m3/ day Magtaa plant in Algeria, and the 510,000 m3/day Soreq plant. The largest thermal desalination plant in the world is the 880,000 m3/ day Shoaiba 3 desalination plant in Saudi Arabia, although this will be displaced in 2014 as the largest desalination plant in the world by the 1,025,000 m3/day Ras Al Khair project in Saudi Arabia, which uses both membrane and thermal technology. Christopher Gasson, publisher of Global Water Intelligence said, “At the moment, around one per cent of the world’s population are dependent on desalinated water to meet their daily needs, but by 2025, the UN expects 14% of the world’s population to be encountering water scarcity. Unless people get radically better at water conservation, the desalination industry has a very strong future indeed. Seawater desalination is the only additional renewable source of freshwat er available on this planet.”
“In the short term, however, it is likely that there will be a lull in the market because it will take a bit of time for demand to catch up with the amazing build-out of desalination plants we have seen over the past five years,” he added. “Growth in desalination is not linear, and it is tied to many other factors including the cost of oil, prices of certain commodities, and availability of financing. However, the underlying factors that have driven the growth of desalination remain in place, including population growth, industrial development, pollution of traditional water resources, and climate change. At the same time, the desalination industry has done much to lower the cost of desalination by developing technologies that lower energy requirements, implementing practices that achieve greater operational efficiency, and adopting measures to enhance environmental stewardship,” said Patricia A Burke, Secretary General for the IDA. Desalination is now practiced in 150 countries, from Australia to China and Japan, the United States, Spain and other European countries, the Middle East and North Africa.
INDUSTRY NOTES GE strengthens localisation commitment in Saudi Arabia Invests USD1 billion in innovation, healthcare and energy initiatives; announces expansion Manufacturing Technology Centre and launch of new Pressure Control Facility in Dammam.
Signing of the agreement with Saudi Aramco’s Wa’ed to develop SMEs.
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uilding on eight decades of partnerships in Saudi Arabia, GE announced a slew of measures aimed at strengthening its manufacturing and localisation commitment in Saudi Arabia together with an investment plan focussing on three main areas central to the Kingdom’s current developmental thrust - innovation, healthcare and energy. The USD1 billion (SR 3.75 billion) investment plan announced by GE is in line with the Kingdom’s Vision 2020 and Ninth Development Plan to diversify the economy, strengthen manufacturing capabilities, and build human resources. Under this, GE will partner with public and private sector leaders to roll out path-breaking projects in innovation, healthcare and energy focusing on localisation and driving the growth of Saudi human capital. GE’s Vice Chairman John Rice said: “With this investment, GE will promote innovation and human capital development, which in turn strengthens the country’s manufacturing capability and supply chain in healthcare and energy. We are committed to work in partnership with key ministries and customers to support the Saudi Vision of boosting the country’s competitiveness and building a knowledge-based economy. Today, we live in a world where multi-way partnerships can better unlock potential; empower a strong local workforce and stimulate the SME sector to build local technologies and solutions that address pressing challenges.” The USD 1 billion investment focussing on innovation, healthcare and energy will help double GE’s workforce in the Kingdom to over 2,000 by 2015.
At the ground-breaking ceremony for the phase 2 expansion of GE Manufacturing Technology Centre, Dammam.
Bringing innovation to market
The new GE Innovation Centre, which will come up in Dhahran Techno-Valley in the Eastern Province, will focus on cocreating local solutions, with customers, universities and industry organisations, to address the Kingdom’s priorities in driving cleaner and more efficient energy solutions, as well as sustainable and affordable healthcare solutions. The setting up of the Centre follows a strategic agreement signed by GE and King Fahd University of Petroleum & Minerals (KFUPM) in 2011 to build a full-fledged GE technology centre and office in Dhahran Techno-Valley. Planned for inauguration in early 2013, the Innovation Centre will seek
to cultivate a culture of home-grown innovation and R&D led by Saudi talent. In addition, GE will work with strategic partners to bring its renowned global ecomagination Challenge to the region. The ecomagination Challenge is an innovation platform where businesses, entrepreneurs, innovators and students share their best ideas, and here, the focus is on how to create and build energy efficiency solutions for a desert environment. GE also announced the first global roll-out of new energy efficient technology programme to enhance heavy fuel oil (HFO) conversion to meet Saudi’s growing demand for electricity while localising capabilities in the power generation and oil and gas sectors.
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INDUSTRY NOTES
GE Chairman & CEO Jeffrey Immelt with the first group of technologists trained at the Manufacturing Technology Centre under a joint programme with the Technical & Vocational Training Centre (TVTC).
Boosting manufacturing
GE also announced the ground-breaking of the second phase of the company’s Manufacturing Technology Centre and the inauguration of a new and advanced Pressure Control Facility, both based in Dammam. These are expected to further contribute to localisation in the energy sector and boost domestic manufacturing capabilities. Currently over 170,000 sq ft in area, the second phase expansion of GE Manufacturing Technology Centre will more than double its area to about 390,000 sq ft. The facility recently completed its first year of operations, and serves more than 50 customers in the Kingdom, the Middle East, Africa and Europe. In the first year, the Centre extended service support to drive the efficiencies of over 450 gas turbines. After the expansion, the technology centre will feature five key components: a modern manufacturing facility of highend equipment for the power, water and oil and gas industries; a service and repair centre for advanced turbine equipment; a training centre that offers the latest technology and managerial courses for college students, field engineers and other power industry professionals throughout the region; a Repair Development Centre; and a state-ofthe-art high-speed balance facility. Being the first company to manufacture oil and gas vibration systems in the Kingdom puts GE in a position to provide close product management and engineering support to customers and also involve them in the design and assembly process. The direct benefits to the industry include the provision of local fabrication and machine shops, and boosting the supply chain for feeder industries in addition to reducing cycle time for customers. The new Repair Development Centre will
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focus on core engineering to develop new repairs procedures by collaborating with international and regional partners. The Centre will be strategically aligned with the needs of the Kingdom and the wider Middle East and North Africa region, focusing on power, water and oil and gas repair development processes. The high speed balance facility is envisaged to be the only facility of its kind in the Kingdom. With an installed fleet of more than 500 GE gas turbines supporting over half the power generation in the Kingdom, the facility will provide advanced repair services that extend the life of the equipment, and boost safety and reliability. The construction of the high-speed balance facility as well as office space expansion will be completed next year with the rest of the components slated to be completed in phases by 2014. Steve Bolze, President & CEO, GE Power & Water, added: “One of the significant advantages offered by our new investment is our ability to offer localised design, engineering and repair services for all sectors of the energy industry through active collaboration with our partners. This is of critical value in driving the overall operational efficiencies, and now our partners can benefit from significant time-savings with local cutting edge repair and technical expertise. Additionally, by investing in talent, GE will play a key role in developing a pool of skilled technologists who can partner in meeting the energy sector growth requirements of the Kingdom.” The Manufacturing Technology Centre currently employs over 350 technologists and is training more than 100 others under an agreement with the Technical & Vocational Training Centre (TVTC). The participants are being trained in key areas
of maintenance and repair of gas turbines, electrical motors and generators that are critical to the efficient generation of electricity in the Kingdom. Over 50% Saudisation has been achieved to date at the Centre. The new Pressure Control Facility, located in second Industrial City, will manufacture key equipment such as wellheads, and valves that support the upstream oil and gas sector. The facility, which is API and ISO certified, employs over 75 Saudi professionals in addition to offering training programmes for young Saudis.
Encouraging SMEs in the energy sector Another key aspect of GE’s investment is a focus on developing a Saudi-based supply chain that promotes the manufacturing sector of the Kingdom, which has been ranked as the 17th most competitive nation by the World Economic Forum Global Competitiveness Report 2011-12. GE has signed an agreement with Saudi Aramco’s Wa’ed to develop and identify opportunities in the Kingdom for small and medium enterprises. With access to funding and training, Wa’ed and GE will provide new growth opportunities for young Saudis and establish a supply chain for manufacturing in energy and oil and gas in the Kingdom. This partnership could also potentially lead to stronger international collaborations and knowledge transfer that will benefit the Saudi entrepreneurs. GE Chairman & CEO Jeffrey Immelt said: “The expansion of the landmark GE Manufacturing Technology Centre in Dammam will contribute significantly to enhancing manufacturing and localisation in the power sector of Saudi Arabia. Through the second phase investment and the opening of the Pressure Control Facility, we are delivering on our promise to strengthen our investment and partnership commitment to our valued customers in the Kingdom. It will also create jobs for young Saudi professionals and promote the Kingdom’s human capital through advanced training on cutting edge technologies. We are delighted to join hands with our long-term partner Saudi Aramco to further develop a Saudi-based supply chain in the manufacturing sector that will promote entrepreneurship among young Saudis.”
SHORT TAKE
Vincent Guillaumie EMEA Water Industry Manager, Rockwell Automation
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t Rockwell Automation, our value proposition is quite straightforward– first, we want to help customers reduce their project lifecycle cost – in other words, help them implement projects at the right price, at the right time and deliver to expectations. Delivering a project at the right time is critical. For example, if your oil field is ready for production in February, but if your water desalination plant will be ready only in May, then you are in trouble. Second, we want to help customer improve the operational performance of their assets. In the water sector, the plant lifecycle tends to be very long. Apart from treatment plants, operators have to manage huge networks whether it is for water distribution or sewage collection. The key challenge in the region, in the case of water networks, seem to be leakage which is range of 15-40% depending on the country followed by energy efficiency. So we work with our customers to help them reduce leakage, improve energy efficiency and manage their assets more efficiently and in a sustainable manner. The third part of the value proposition is about regulatory compliance by giving people the right data or the right level of
management at the right time. Increasingly, the water sector is being subject to greater regulation and water quality norms are becoming stricter. The people who manage the water infrastructure need to be able to know how their plants and networks are performing. Even if the existing infrastructure doesn’t have our products, we can still pull data from all the points into a dashboard for them to take decisions, whether it is about plant efficiency or process consistency or plant security. At Rockwell Automation, we believe that we provide the best integration of every asset in a global architecture. Unlike some of our competitors, we don’t believe that everything has to be supplied by us. Rather, we believe in partnerships. There are companies like Cisco and Endress + Hauser out there, who possess state of the art technologies and equipment. We believe we can add value by co-operating with them so that we can integrate their products into our architecture and propose best in class solutions to customers. Our selling point is easy integration, which is easy for the project people, easy for the operation and maintenance people. Our consultants work with partners to advise customers during the early stages of the project about the best architecture,
Unlike some of our competitors, we don’t believe that everything has to be supplied by us. Rather, we believe in partnerships.
best in class solutions and best practices. The emphasis is on helping the customer address issues like operational efficiency, optimising plant design and the like than on selling specific Rockwell equipment. We also educate the customer on the need to drive specifications so that he doesn’t end up with a jigsaw of different suppliers. Without that, project costs could go up and operations may turn out to be a nightmare. The fact that we are an approved supplier worldwide for global water companies like Veolia Water, in this case for control and power solutions, has helped established us as a serious player in the water industry. In the Middle East, we also have partnerships with local distributors and system integrators for supplying, installing and commissioning our solutions because that’s how market prefers to work. Our partners have been qualified and trained by us, have references in the specific industries and can deliver all the value of Rockwell Automation solutions in the specific local market, equipped as they are with knowledge of local rules, language and environment. We believe that we have to bring best in class partners to define the best in class solutions for the customer.
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ON THE RECORD
The service proposition Karl S Fessenden, President & CEO, Power Generation Services, GE Power & Water is responsible for developing and delivering a global services strategy that offers electric utility customers the technology, knowledge and insight they need to manage the entire lifecycle of their power plants. Power Generation Services is a USD7-billion business with about 7,600 employees in more than 100 countries globally. Karl, who joined GE Energy in 2005, has more than 27 years of engineering, operations and leadership experience. He also played a key role in establishing the GE Manufacturing Technology Centre in Dammam, Saudi Arabia, the most advanced technology centre of its kind in the region and also the largest such GE facility in the world today. At the sidelines of an event launching the Centre’s phase two expansion, Karl spoke to Anoop K Menon on the role it will play in advancing GE’s localisation commitment in the Kingdom, and the benefits the centre brings to customers in the region and at large. Could you give us a brief overview of your business and your role in the context of setting up the Manufacturing Technology Centre in Dammam? We operate the service business around the world in terms of part fulfilment, field service, craftwork as well as major service and repair activities. Power Generation Services provides full support to GE’s global installed base of gas turbines, steam turbines and generators. I spend my first 10 years in GE with the aviation business in a variety of roles including General Manager of Aviation Parts, and Managing Director of the engine overhaul facility in Wales. In 2005, I joined GE Energy as General Manager of Parts & Repair Services. Around this time, we began to develop new Centres of Excellence (CoE) around parts and repair services globally. Given the technological advancements, we felt that it made sense
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to put major CoEs around the world where we could invest in the latest technologies, more plant and equipment and reap the benefits of mass and scale. In Saudi Arabia, the service side was looked after for a long time by the Middle East Engineering Ltd Saudi Arabia (MEELSA) facility, set up in partnership with Ali A Tamimi & Sons. Four years ago, we started the journey of investment in the GE Manufacturing Technology Centre. In that sense, it is my baby.
How did you put your aviation business experience to use in the power generation services business? How critical is your business to GE Power & Water’s overall growth? The aviation side, because of the nature of the industry, has a lot of structure and focus on quality and execution. Growing up in that industry, I learned a lot about the
importance of quality, timeliness and using advanced technologies to push the envelope for the customers. This background proved really useful when I moved into the energy business. GE’s leadership development is often the case where they move people across different industries. The concept of scale, investment in technology and best practice sharing was something I leveraged from what we did in the repair and overhaul side of aviation business. Of course, the service business is a critical aspect of GE’s industrial business portfolio, be it aviation, energy or transportation. It’s a key reason why a lot of our customers buy our products in the first place; they expect us to assist them in ensuring that their assets are operating at highest reliability, availability and efficiency. Typically, the thermal business will sell and install the turbine unit with our projects team. We would be a partner through that process and thereafter, carry on with a long term service contract with the customer. Most of our multi-year agreements are contractual service agreements (CSA) where we manage the interval, the maintenance and the overhaul of the turbine through its life. We also introduce new technologies, like technologies to do repair development (like we did in Dammam), so that we can refurbish parts and save the customer the cost of investing in new parts. Thus, we are a partner, right from installation all the way through to the product life-
ON THE RECORD cycle – it could be a traditional plant where we would come in at different intervals, do combustion inspection, hot gas path or other major inspections. In many cases, we refresh the technology and bring in new technology that extends the life of the plant. Thus, my business not only manages, operates and maintains on behalf of our customers and partners with them, we also infuse new technologies in the plant. For example, we have Dry Low NOx (DLN) combustion systems for gas turbines that lower emissions and increase flexibility. The DLN systems extend the interval life of our inspections, which means more uptime for customers and significantly lower NOx emissions. That’s a big advantage we provide to our customers who have to do it for regulatory reasons or even do it because it is the right thing to do as it gives the plant more flexibility and extends the interval.
You seem to operate in a business environment where you have a lot of independent players offering similar services at competitive rates. So how do you differentiate your business? Obviously, as the OEM, we have scale, breadth and knowledge of our technology. As GE, we have invested over $10 billion over the past few years in developing new technologies, not only for turbines but also for repair development, inspection capabilities. No one else has the level of technology, understanding of the whole system, of the turbine and the power plant and a 125 year legacy as we do. That’s what we bring to the table when a utility partners with us.
How did GE Power and Water arrive the a decision to set up its largest ever service centre in the Kingdom? The idea of this centre literally started with a phone call to my desk at 7.00 am in Atlanta from John Krenicki, the vice chairman and CEO of (erstwhile)GE Energy. John said that we really need to invest in the Kingdom and bring in our repair and service capabilities. GE has 500 gas turbines in the Kingdom and 50% of the power generated in this country is provided by GE technologies.
Our decision to invest in service and repair CoEs globally is guided by several factors. We look at our installed base in the country and the region, our ability to do business and partner with customers, and the competitive nature of the workforce, the level of their capabilities. We have been very happy partnering with the Saudi government through TVTC and KFUPM, and these partnerships helped us get great Saudi talent that we put through local training as well as our own technical, leadership and management training. I was thrilled to see some of the students we hired three years ago presenting to the GE Chairman and doing a fantastic job at that. Also, we have been partnering with Saudi Electricity Company (SEC) and Saudi Aramco for many years, and they were vocal on the need to develop local capabilities as well as the capabilities of the country. For instance, SEC had been talking to us for a high speed bunker for a long time, and the one that we have here in Dammam will provide capabilities to cover 90% of our installed generation base in the Kingdom. We are very happy with the support extended by the Saudi authorities and getting clear directions on what their expectations are.
turnaround times and cost competitiveness of the repairs that we do here. And as you succeed in that, stand behind your work, and get very high quality levels, and as customers come here and see a centre that rivals any service centre of any OEM or capability in the world, they become convinced. In fact, what matters is meeting their Critical to Quality (CTQ) parameters. The Fulfilment Five - Safety, On-time Delivery, Productivity, Quality, Cost - are the key five metrics we drive our teams to. These customer-facing metrics helps ensure we meet all the customer requirements and earn their business again.
GE had announced earlier that the Dammam facility will have a global service footprint. How would you explain this level of confidence? We have been doing business for eight decades in the Kingdom, so we understand the issues, the challenges and the opportunities. As we refreshed our service centre network over the past five years, we looked at developing major global centres of excellence that provided advanced technology repair, shorter cycle times, more cost competitiveness and better quality. When we invest in CoEs, we look at the investment for the installed base – country, region and globe. The Dammam centre, because of modern logistics, can and does support Europe, the Middle East and Africa. We had a dialogue with our customers, especially with the ones in Europe, over our investment plans. We also brought people to Dammam as we developed the centre. I think it is really about working out how to maintain the quality, technology,
When we invest in Centres of Excellence we look at the investment for the installed base – country, region and globe.
MEGAWHAT/H2O | OCT 2012
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LED
TRENDS Q&A:
James Chorlton, Business Director, Honeywell Electrical Devices & Systems (ED&S) What is Honeywell’s positioning in the LED Lighting segment?
Honeywell has a 40-year heritage in developing LED lighting technology and its aim is to be the best supplier of LED solutions, where the customer is fully aware of the total cost of ownership. Even before any product is evaluated, Honeywell ED&S can offer advice on the feasibility of implementing LED lighting and on how to get the best from the solution. The additional investments made by the Honeywell ED&S business into skilled people, internal resources and services means the customer will receive exemplary service from start to finish. Our global consulting service includes site surveys, devising bespoke lighting schemes, producing detailed energy and cost saving calculations to arm facilities managers with proof that an investment in LED lighting will reap a good return on investment; this is important when trying to get buy-in from Board members.
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How would you classify or categorise the market (users) for LED lighting today? Where do you see the biggest opportunities in LED lighting applications?
LED lighting is now drawing huge interest because of its tangible energy-saving benefits, in light of new, enforced energy efficiency targets. Some key areas where we’re seeing the fastest uptake include infrastructure projects – such as tunnels – and public utility spaces such as airports. LED technology is also being used in architectural lighting for residential, commercial, hospitality and mixed-use developments. Commercial applications are also increasing in areas such as warehouses, cold storages, with a focus on high-bay and panel lighting for these applications.
What are the benefits of embracing LED Lighting? Do you believe that LED technology will replace traditional lighting in general lighting applications? Fifty per cent energy savings provides a concise business case! There are many benefits that LED can provide, with environmentally friendliness, lower maintenance costs and longer lamp life being the key ones. With a Honeywell ED&S LED
lamp, for example, we have a unique external driver design that allows us to offer a 60,000 hours warranty – that equates to 10 years of normal usage. We are also seeing customers report better quality of lighting, especially in retail environments and commercial offices, where colour representation and contrast is important. LED technology will replace traditional lighting once price parity and the ROI are recognised by users. The question is when. Honeywell ED&S believe the answer is now.
LED is perceived as costing 10 times more than incandescent and fluorescent lighting. Why this cost difference? Has this affected LED’s market potential?
In the residential lighting market this maybe the perception, but in the commercial market the initial costs are much closer and over time can be much, much cheaper. LED lighting technology from Honeywell ED&S can offer a 50% energy saving when compared to traditional lighting. Capex costs for new technology will command a premium, but these can be alleviated by looking at the payback period. LED is so efficient that payback can occur within two years, so while the
What are the technology trends you see in LED lighting?
suit our customers, to address this problem. Our target audiences According to McKinsey & Company, LED lighting has are varied and the potential to be the dominant technology in domestic and commercial lighting by 2015. Key trends include healththat we are seeing in the LED lighting market as care, education, the technology develops include a move towards retail and comhigher output LED chips (lumens per watt), mercial. enhanced IP ratings, a choice of form facHowever, one of tor and application and greater lighting our main focuses is system intelligence. on high-bay lighting for warehouse applications and panel lighting for commercial applications. Both these areas consume a large amount of energy, and the business initial investment is not low, the overall case is typically easy to demonstrate. long-term benefits and savings are significant. As more and more businesses are educated in these benefits, adoption Could you share with us your growth is rising with increasing speed. plans? For the Middle East, we are actively pursuing opportunities in warehouse and cold What do you consider most imporstorages, car parks and shopping malls. tant and exciting projects/products The region presents strong potential for for this year for your company? growth in all these areas, and LED lightOur LED offering is designed to meet the ing alone can bring substantial savings. needs of any facilities or energy manager We have found that when we combine looking to reduce energy consumption and LED lighting with good sensor control, meet energy reduction targets, in all buildsavings can exceed previous expectations, ings and facilities. Energy consumption is a which leads to best practices adopted worldwide problem and Honeywell ED&S even in non-LED environments. recognise that we need to align products to
What do you consider the major challenges in the LED lighting industry in the years ahead? It is important for us to make sure that we are helping customers with their business cases and not taking the short-term view. According to McKinsey & Company, LED lighting has the potential to be the dominant technology in domestic and commercial lighting by 2015 so choosing the right supplier and ensuring it is implemented correctly is the key in this adoption process. Honeywell ED&S has a vested interest in delivering top-rate solutions, which is why a dedicated consulting team will work with the customer to prove the benefits, not just present them. For example, we offer pilot installations so that our customers can experience these benefits first hand.
What is the role of the government in driving LED adoption?
Sustainability is a topic of growing interest both in the Middle East region and worldwide. Governments are increasingly turning their attention to the ‘green buildings’ concept – and LED is a key building block of such important initiatives. There is also growing awareness among corporations and customers themselves to look at LED as a positive step towards corporate responsibility. This awareness continues to grow with the sustained educational efforts that Honeywell ED&S and others are promoting throughout the industry.
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LIGHTING With DY Kim
President, LG Electronics Gulf
R
ecently, LED lighting has been placed in the spotlight – no pun intended – as more and more people have become aware of the advantages LEDs offer. Already, LEDs have witnessed dramatic market growth. This growth isn’t temporary either. The global LED market is expected to grow another 13.4% (or $10.1 billion) in 2012 and about 40% within a few years. The impressive rise of LEDs is being driven by the technology’s superior energy efficiency. Increasingly sophisticated designs are hitting the market, and consumers are lining up to buy lights that use less electricity, cut down on utility bills and ultimately help pave the way toward more eco-friendly buildings. In terms of technology, Asian LED lighting manufacturers in particular have jumped out in front. This is large part due to the booming demand in Asia for lighting solutions as well as the massive investments on the part of manufacturers to better meet that demand. Recent research on the LED market and predicted that companies in South Korea, Japan and Taiwan would take more than 60% of the global LED market in 2012. To reduce the constant increase in energy consumption, their respective governments have enacted several regulations
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regarding energy consumption to support companies and individuals who purchase high priced energy efficient products such as LED lighting. With that in mind, it is worth taking a closer look at these Asian manufacturers to gain insight into how the industry has transformed itself and what might be expected in the years to come. One South Korean company in particular is demonstrating an uncanny knack for coming up with lighting solutions to meet an array of architectural needs. LED lamps have long garnered attention as eco-friendly alternatives to conventional lamps due to their remarkable energy efficiency. They have also earned praise for having longer lifespans. Less frequent replacements translate to less waste and less expenditure. Lifespans aside, energy efficiency is a key priority for consumers, particularly in large scale projects. Conventional fluorescents use a lot of energy and contribute to burdensome electricity bills at the end of the month. LEDs use solid-state technology, which requires less energy to operate. LEDs make eco-conscious consumers happy in other ways, too. Conventional lamps contain mercury and an inert gas. The mercury in particular constitutes an
environmental hazard when the lamps are being disposed of, and they need to be disposed of more frequently than LEDs. LED lamps, on the other hand, don’t use mercury. With respect to the latter advantage, LEDs are truly eyeball-friendly. In technical terms, the PAR16 and MR16 deliver a high light output and a high color rendering index (CRI) providing better presentation for exhibits without flickering or hazardous wavelengths that deteriorate valuable items. In non-technical terms, they produce just the right amount of light, and the right quality of light, to help the human eye pick up the colors of various objects more naturally and with less eye fatigue. In other words, the PAR16 casts light that is as natural as sunlight, while the MR16 provides clean and bright light, creating a stylish atmosphere. Both are ideal for a variety of interior spaces where people are more reliant on accurate eyesight – department stores, art galleries, cafés, photography studios, offices and so on. Specifically, as for LED Lights, LG’s Flat Light is an easy to install option that is roughly the same size as ceiling textiles, while LG’s Downlight has the same dimensions as conventional down-light.
21-November 2012
7:30 pm onwards The Address Dubai Marina Dubai, UAE
Celebrating the oustanding achievements of the MENA Water Sector. The third edition of the H2O Water Awards will be presented to outstanding nominations in the following categories:
PROJECT CATEGORY
• Best Water Project • Best Wastewater Project • Innovative Use/Application of Technology • Water Efficiency Leader • Water Communications & Marketing
PRODUCT CATEGORY
• Best Water Product • Best Wastewater product • Water-Efficient Product of the Year • Most Innovative Product/Technology of the Year (Industrial & Commercial)
To submit your nominations, please visit: www.h2ome.net/awards
For sponsorship enquiries, contact: Deep Karani Business Development Manager Email: deep@cpidubai.com Tel:+971 4 440 9158 / M+971 50 858 5905
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31
COVERSTORY
Sustainability Champion
Decoding Mars GCC’s approach to energy and water conservation By Anoop K Menon
T
he targets are bold notwithstanding the muscle and firepower of the world’s second largest chocolate company behind them - zero fossil-fuel energy use and zero greenhouse gas emissions (GHG) by 2040, with similar commitments hinted for water and waste reduction as well; the short term targets that Mars Inc has set for itself on that road are no less daunting reduce direct fossil-fuel energy use and GHG emissions, and also water use by 25% each by 2015; achieve zero waste to landfill by 2015. More important, these targets are applicable to Mars sites all over the world including the Dubai site, which serves as the chocolate major’s Middle East headquarters. Mars GCC, based in the Jebel Ali Free Zone (JAFZA) in Dubai, was established in 1993 with the chocolate factory starting operations in 1997. The latter has a capacity of 45,000 tonnes of chocolate per annum. Mars’ approach to business, as the company’s website notes, is guided by the five principles of Quality, Responsibility, Mutuality, Efficiency and Freedom. Thus, from a sustainability standpoint, the company aims to create lasting, mutual benefits for all those involved in its business success by creating positive social impacts, minimising environmental impacts and creating economic value. In fact, the message from Mars’ CEO Paul Michaels (which kicked off the presentation that supplied the basis for this article) lays to rest any doubts on that front: ‘We will make a difference in the lives of people and the future of our planet because this company has decided to make sustainability a core value in how we run our plants, design our processes, support our supply chains, in fact, in every way we do business.’ “Sustainability has become an integral part of our operations because the more we grow, the more we are able reduce our impact on the environment” says Christine Greaves, Corporate Affairs Manager, Mars GCC. Globally, Mars has identified its operations (factories and offices) as the second-greatest area of impact on the environment, after its supply chain. To improve operational performance and mitigate environmental impact, Mars has developed Sustainable in a Generation (SiG) programme comprising long-term commitments and short term set targets for fossil fuel energy use, GHG emissions, water use and waste reduction. Except for waste, the baseline for all areas is 2007 across all Mars sites worldwide. The responsibility for meeting these commitments at the Dubai site lies with Mansoor Mohammed, Safety, Environment and Security Manager, Mars GCC. The 2040 goal of zero fossil-fuel energy use, he said, will be realised by reducing the site’s energy consumption by three per cent every year and replacing fossil energy with renewable energy, which he feels will be easier for the Dubai site due to ample sunshine.
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Solar Garden
PHASE 1 Year of implementation: 2008 • Solar panels: 117 • Storage tanks: 3 • Expansion tanks: 5 Benefits • Saving on diesel costs: AED 230,000/Year • Saving on diesel consumption: 100,000 litres /year • Reduction of CO2 emissions: 200 tonnes/year PHASE 2 Solar panels: 97 (Integrated to the old system to maximise energy usage) Expected benefits • Savings on diesel consumption: 85,000 litres/year • Reduction of CO2 emissions: 180 tonnes/year
COVERSTORY Though the short term target for water use reduction is 25% by 2015, the long term commitment is still being defined. “In the area of water use, our target is to reduce consumption by three per cent every year. We haven’t set a long term target as chocolate production consumes a lot of water; we also have to meet food safety requirements, clean our machines on a regular basis and all of this require water.” However, Mars’ long-term objective is to achieve zero degradation of water quality. In other words, the quality of water entering and leaving any of its sites should be the same. Mansoor claimed that Mars GCC is on track to achieve its 2015 energy and water saving goals. However, with zero waste to landfill turning out to be a “bit of a challenge”, the company is striving to achieve this goal by 2014 with internal efforts geared towards achieving it by 2013.
Induction Lighting
Projects in parallel
To cut down on its carbon footprint, Mars GCC has replaced diesel powered boilers with solar panel arrays to heat the water used in the chocolate manufacturing process. “Chocolate needs to made at a certain temperature, otherwise it will not flow through the pipe,” explained Mansoor. The factory has managed to progressively reduce dependence on diesel-fired boilers, except during the night, but even here, insulated storage tanks are being used to keep the water warm for a longer period, helping cut down diesel usage. (See BOX SOLAR GARDEN). Today, solar energy supplies four per cent of the Dubai site’s energy consumption. “While the first two phases of the solar garden catered to the moulding line, phase three, which was launched this year, will cater to the fill-bar line,” said Mansoor. Also, a flash steam recovery system implemented last year has helped the factory to reduce the energy needed to heat the water in its boilers. “We used a flash recovery system to collect the return steam from the boiler and send it into the boiler’s feed water tank. Normally, the return steam escapes into the atmosphere. Since the steam is already heated, less energy was required to heat the water,” explained Mansoor. To reduce electricity consumption, the company equipped its factory with energy efficient induction lighting. “Halide lighting emits more heat, which drives up air-conditioning requirements. So we switched to energy efficient induction lighting last year as they are brighter and emit less heat,” said Mansoor, adding that induction lighting was found to be better suited to the factory environment than LED. Mars GCC has also installed solar parking lights in its car parking area. In recognition of the fact that the bulk of region’s power consumption is driven by cooling needs, Mars GCC has installed wind ventilators and ammonia chillers to save electricity. “In 2007, Environment, Health and Safety (EHS), which is the environmental regulatory body for Jebel Ali Free Zone Authority (JAFZA) advised to replace our Freon chillers as Freon is a Green House Gas (GHG). Ammonia chillers are environment-friendly and consume 40% less energy compared to Freon. Also, the protection systems for ammonia chillers have improved a lot. So we put in 1,839 tonnes of ammonia refrigeration in two phases between 2010 and 2011. Though ammonia chillers consume more water,
• Number of lights replaced: 628 • Energy savings: 544 MWh/year • CO2 emission reduction: 290 tonnes/year • Savings on energy costs: AED208,000K/year
Switching to Amonia Chillers
Years of Implementation: 2010 & 2011 Benefits • 30% reduction in carbon emissions • 1,839 tonnes of refrigeration • 50% saving on electrical power • Ammonia chiller drain water is used for flushing of toilets
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COVERSTORY we have achieved net saving of 30% in water and energy consumption.” This year, the company has embarked on a pilot project for solar air-conditioning. While sustainability projects initially target low hanging fruits or small initiatives before upping the ante, Mars GCC doesn’t make such distinctions. Thus, apart from the big ticket initiatives like solar arrays and ammonia chillers, the Dubai site has also implemented smaller initiatives like solar tubes and also waterless urinals and sensor taps on all faucets that have reduced water consumption by 600,000 litres/year and 200,000 litres/year respectively. Mansoor continued: “Our capex and opex sustainability projects have always been implemented in parallel. Capex projects calls for investment while opex projects are mainly team driven. We have a budget allocated for sustainability projects every year by the global team. In addition to that, we also have local budgets.” “At the end of the day, it is not only about how much it costs, it is also about reducing our impact on the environment,” added Greaves. “We get best practice recommendations from the global team but it is our call to take up what is relevant for our site.” Ongoing capex projects include wastewater treatment process upgrade to enable treated water to be re-used for irrigation and a Reverse Osmosis (RO) system to polish the treated effluent for re-use in ammonia chillers. “We plan to reuse 100% of the wastewater,” said Mansoor. Mars GCC is also putting in around 50-60 water meters in the steam lines and other areas. These will supplement the bulk consumption readings from the utility meters to help understand consumption patterns and pinpoint problems.
Zero waste?
To tackle the goal of achieving zero waste to landfill by 2015, Mars GCC has set up team-driven initiative called G-transformers. “By 2040, we want to eliminate waste completely from upstream and downstream activities,” said Greaves. “Our strategy is to reduce scrap waste, packaging waste and waste from indirect processes, reuse waste from direct and indirect processes and increase waste recycling in that order.” The core team of G-transformers meets once a week to chalk out strategies. While each team owns the work streams in their areas of expertise, much of the effort is centre around changing mindsets, noted Greaves. Some of the steps implemented to reduce waste include removal of trash cans from the desks, installing separate bins for plastics, paper and landfill, replacing all plastic cups with re-usable ceramic glasses, giving every employee a personal water bottle and setting up of a recycling area within the site, where employees are encouraged to bring in waste from homes. Within the offices, the company has implemented a pooled printing system which has reduced paper use by 50%. Under this system, print jobs sent from the computer are triggered in the printer only after personal identification. Moreover, all the printers have double side printing option. To deal with plastic waste, Mars GCC recently signed a contract with Dubai-based Ecoplastic Industries which converts plastic into a wood substitute. “Before this, we were stuck with our plastic waste. With Ecoplastic, we have solved the problem,” said Mansoor. To deal with food waste, the company has implemented a Bokashi system on trial basis. The system uses microorganisms to ferment
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Solar Parking & Garden Lights
Year of Implementation: 2010 • Solar garden lights: 11 • Total number of solar panels: 11 • Total number of lights connected: 33 • Number of energy efficient external flood lights: 35 Benefits • Energy savings: 162 GJ/year • CO2 emission reduction: 25 tonnes/year
Natural Wind Ventilator
• Number of fans: 10 • Energy savings: 182 MWh/year
COVERSTORY the organic waste in a special Bokashi bin. The end- product, which looks similar to the waste originally put into the bin, is directly buried in the ground near the trees inside the premises to serve as their fertiliser.
Change challenges
“In Europe, environmental focus is embedded in people’s lives,” said Greaves. “It is a different story here. A lot of the work is around changing people’s mindset. For example, to tackle the challenge of waste, we rely on mass communication as well as one-to-one meetings through volunteers” Messages regarding new sustainability initiatives go out from the top management at Mars GCC. “Before we implement any change, our management communicates to the employees why it is being carried out,” explained Greaves. “Additionally, we have external partners and internal experts from the global team visiting us every year to talk about sustainability.” The company also organises ‘Lean and Green’ workshops to identify and eliminate waste, whether it is water, energy or office management. “We had a workshop for reducing water coming into the wastewater treatment plant,” said Manoor. “We have held similar workshops to identify areas where energy is being wasted.” “This is not just about fixing a problem, but also addressing it at source. We want to look at front end as well as back end,” added Greaves. Beyond employees, the company is also roping in its suppliers to participate in its sustainability initiatives. From a 2007 base line, Mars GCC has managed to reduce energy use by 28% and water use by 17% compared to 2010. In terms of internal benchmarking, the Dubai site is ranked among the top Mars sites in the world for energy and water usage reduction. “The Dubai site is serving as the role model for Mars’ new factory coming up in Saudi Arabia, which is being built to Gold LEED standard,” revealed Greaves. “Also, EHS uses us as a role model for their sustainability forums and workshops as we were one of the first companies in JAFZA to embrace sustainability in our operations.
Waterless Urinal
Waterless urinals in the factory premises are expected to reduce water consumption by 600,000 litres /year.
“The Dubai site is serving as the role model for Mars’ new factory coming up in Saudi Arabia”
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TRENDS
Design for Energy Efficiency
Pumps and compressors account for a large share of energy consumption in the process industry. Best practices can help reduce consumption by this type of equipment.
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e have now gotten used to hearing that many things have ‘intelligence.’ We have intelligent pumps and controls and even smart materials. The meaning of the term ‘energy intelligence’ is far more coherent, and also, it takes a considerable amount of human intelligence to achieve it. So how do we identify opportunities to save energy? One approach for achieving quick results is to scrutinise and optimise individual components (pumps, valves, heat transfer media and compressors) or specific subsystems (compressed air supply, chilled water supply). A study conducted by the Fraunhofer Institute for Systems and Innovation Research shows that this is undoubtedly an important first step for many users. Fluid flow machinery such as pumps, fans and air compressors are particularly ‘energy hungry.’ It is considerably more difficult to take a holistic approach and perform opti-
misation at the system level. This approach results in the largest energy savings. Users also benefit from enhanced process stability and improved product quality.
Energy intelligence on pumps
Realistic estimates (Motor Challenge Programme, Hydraulic Institute) indicate that pumps consume 20% to 25% of the electricity which is produced worldwide, and the process industry accounts for a quarter of that total. An estimated 490,000 pumps are installed in the German chemical industry alone. The majority of all pump systems currently in operation are equipped with centrifugal pumps. The figure worldwide is estimated to be around 73% and can be as high as 85-90% in specific industries like the chemical industry. Very well engineered pumps and optimal configuration of the hydraulic system appears to offer the best route to maximum energy efficiency. Ongoing maintenance
can also reduce energy consumption, because wear and aging reduce the efficiency of all types of equipment. Corrosion and deposits increase flow resistance in pipe networks. Leakage in valves and fittings causes pressure losses in the system. A study conducted by the FfE Research Centre for Energy Economics indicates that the energy efficiency of poorly maintained pumps can decrease by as much as 15%. In practical application, diaphragm pumps are often twice as efficient as centrifugal pumps. However, the efficiency levels which are theoretically possible with displacement pumps are not always achievable, with friction losses being a particular problem. Friction losses can be broken down as follows: gear unit (5% to 40%), plunger packing (1% to 20%), bearings (up to 3% depending on the oil level), churning losses (up to 3%) and hydraulics (2% to X%). Possible solutions are:
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TRENDS • Higher efficiency gear units (toothed gearing, belt transmissions) •Improved bearing efficiency (no gaskets, lean lubrication, optimal viscosity) •Lean lubrication with the lowest possible viscosity to minimise churning losses •Selection of the shortest possible seals with small seal faces Effective pulsation management on displacement pumps reduces losses by more than one per cent. Under normal conditions, pulsating flow increases pressure losses. Continuous flow saves energy and reduces stress on all system components.
ErP guideline sets minimum efficiency standards
The European Ecological Design Directive (ErP) requires manufacturers to improve the energy efficiency of their equipment over the entire lifecycle and reduce the environmental impact. Pumps are of course no exception. The motor regulation (EC640/2009) applies to nearly all motors rated between 0.75 kW and 375 kW as follows: • Stage 1: as of June 16th 2011 all motors must be IE2-compliant. • Stage 2: from January 1st 2015 all electric motors rated between 7.5 kW and 375 kW must either be IE3-compliant or IE2-compliant with a frequency converter. • Stage 3: from 2017 all electric motors rated between 0.75 kW and 375 kW must either be IE3-compliant or IE2-compliant with a frequency converter. Minimum efficiency standards have been in effect in the US for years and the proportion of high-efficiency motors (IE2) is significantly higher than in Germany/Europe. The ErP Directive is based on the simple realisation that not using energy is the best solution from both the ecological and economic point of view. A study carried out by the German DENEFF energy-efficient business initiative indicates that energy savings by businesses and households could eliminate the need for electricity generation equivalent to 10 nuclear power stations. The standard principles of good pump design (working point close to the optimal pump operating point, hydraulically correct pipe dimensioning) and the technologies which are currently available to reduce energy consumption (efficient motors,
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frequency converters for speed control, hydraulics designed for optimum efficiency, reduction of losses in the coils and bearings) must be exploited to the fullest extent possible. FfE Research Centre for Energy Economics has provided some figures for 2009. The investment costs are comprised of the cost of the frequency converter (€100 to €200/kW pump rated power) and installation costs of around €2000 per pump unit (these are guideline figures only). Impeller modification is another method which can be used to adapt centrifugal pumps to the specific application and reduce pump energy consumption. Reduction of pump and motor power ratings can cut energy consumption by between 10% and 40%. Modification can cost up to €1,000 depending on impeller size.
Interactive-enabled e-pumps
Variable speed drives not only save energy and money, they also provide interactive capability. Pumps with sensors and microelectronics become actuators which can ‘intervene’ and affect the process flow.
Communication-enabled pumps with parameterisation features can ensure that a desired pressure level and volume flow are available in the reactor at a certain point in time or that exactly the right mixture of two substances is added at precisely the right moment. Compared to mechanical control with butterfly valves, etc., flow rates can be controlled far more accurately and reaction times are shorter when variable speed drives are used. E-pumps adjust the flow rate to match actual demand much faster and with greater precision in response to demand fluctuations. Variable speed pumps are more energy efficient, and they also help stabilise the process.
Overcoming obstacles
Why have users not taken advantage of all optimisation options? There are a number of possible explanations: •Decisions are based on payback time: At many companies, the maximum payback period is two to three years. The payback period however is basically a risk management tool, but says nothing about ROI. NPV is the
TRENDS
method to use for that purpose. • Lack of a basic technical understanding: The people responsible for energy management cannot present the information in a way that managers without engineering expertise can understand. •Spending constraints: Approval is not given for any investment that is not absolutely necessary. •Lack of human resources: Opportunities to save energy are understood, but no one has time to take the appropriate action. •Investment only when faults occur: Reinvestment is often only considered when systems actually fail. In such situations, the new system must be available quickly and cost as little as possible. No thought is given to lifecycle costs. •Failure to allocate costs: Many companies only know what their overall energy consumption is. No consumption data is available for individual equipment. In many cases, personnel costs for maintaining old equipment is not allocated to the specific items. Without information on energy consumption and labour costs for the existing equipment, there is no way to
identify inefficient equipment, and a financial evaluation of equipment optimisation is not possible.
Energy efficiency on compressors
Industry uses compressed air similar to the way it uses electricity from a power socket. Compressed air is a very important source of energy in many production applications. Because compressed air is safe, reliable and easy to use, cost is a secondary consideration for many users. In some cases, a lot of money literally leaks off into thin air. Loss rates of 15% are the rule rather than the exception, and losses can be as high as 70%. All major manufacturers now offer a compressed air audit service to identify leaks, poorly dimensioned compressed air lines and mismatches between supply and demand. Maximising the energy efficiency of every single compressed air component is necessary, but even more is needed to optimise the overall system. With the exception of continuous flow production in the process industry, analysis reveals fluctuations in the demand profile. If that is the
case, it can make sense to invest in variable speed compressors. A higher-level controller is recommended on larger systems, so that multiple compressors at a station can be operated in a coordinated fashion. For example, splitting the load between different size compressors can increase load response efficiency. A central compressed air station has advantages, but extremely long compressed air lines can make distributed supply the better option. Service and maintenance are easier if the compressors are consolidated in one place. Compression generates heat, and a heat recovery system can further reduce energy costs. As much as 96% of the energy which is supplied to a compressor can be reused as waste heat (for example, for heating purposes).
Compressed air contracting on the increase
More and more companies are choosing the contracting option which allows them to install a new, energy-efficient compressed air system without tying up capital. A compressed air profile (maximum,
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TRENDS average and minimum consumption) should be created before the compressed air contracting model is agreed with the customer. It is important to understand the consumption dynamics, in other words the magnitude of the fluctuations in volume flow and pressure which occur in a minute/hour/day. What are the compressed air quality requirements? Does the customer operate one shift or multiple shifts? In essence, customers who decide to purchase compressed air have better cost transparency. High-precision metering ensures that customers are only charged for the amount of compressed air that they actually use. Besides cost transparency, ongoing optimisation of compressed air costs is the main advantage of the contracting system.
Identifying leakage
Users know that compressed air is an expensive energy source and leakage should be prevented. Compressed air that is “lost” has to be regenerated using energy-intensive compressors. Nevertheless, sufficient attention is not always paid to this aspect in practical application. There are many reasons why leakage can occur in very long compressed air lines that have many branches. High-sensitivity thermal flow sensors (turn down ratios as high as 1:1.000) can be used to detect leaks. Using this approach, electricity consumption by a battery manufacturer was reduced by 563 MWh/yr, a 21% savings (roughly 327 MT of CO2) according to ZVEI (German association for the electrical and electronics industry).
Energy efficiency on valves and fittings
Following the explosion on the oil platform in the Gulf of Mexico, there has been enormous pressure to come up with innovative solutions in the oil and gas sector. A number of manufacturers have unveiled LDAR (Leak Detection and Repair) systems. Pilot-operated safety valves (POSV) have a long, proven track record in the US and the Middle East. These valves have only been approved in Europe since the introduction of harmonised standard DIN EN ISO 4126-4. These valves have the advantage that the sealing pressure increases
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up to the set pressure, and as a result the user can operate the valve near the set pressure. Also, the backpressure can be higher with POSVs compared to spring-loaded safety valves. Rather than spring force, the system pressure holds POSVs closed. These valves are used in the chemical, refinery and offshore industries.
Automation reduces operating costs
It is important to distinguish between two different requirements profiles for valve automation. One is open/close control, where the valve merely needs to be moved to the end stop. The other scenario is control mode, where a valve is adjusted to control the flow based on a set value. Valve automation costs depend not only on the actual valves that you select, but also on the mode of activation (manual, electrical, pneumatic or hydraulic). Different combinations result in different capital investment, operating and energy costs. There is also another aspect to consider. Lower activation force is needed for 90°-valves (flap, stopcock) compared to linear valves (butterfly, gate). The drives are smaller and less expensive. A number of partners offer the standardised Opos Interface which supports reliable, efficient solutions that combine intelligent positioners with pneumatic thrust or swivel drives. The attractive features of this interface include low-cost installation, lower spare part inventory costs, increased reliability and stability and safe positioner replacement during ongoing operation due to built-in shutoff. The advantages are particularly evident in safety-related applications. The non-proprietary interface gives users a wider choice of products. Inadequate maintenance on control valves can have a very negative impact on process reliability. Complex analysis and the manufacturer’s expertise are required to assess the actual condition of a control valve in the production process. FDT/ DTM can be used to provide connectivity to a monitoring console or plant asset management system. The production team can keep valves and positioners under constant surveillance. The goal of suppliers is to provide predictive, preventive diagnostics rather than drawing attention to symptoms. The emphasis is on the condi-
tion of the valve and not on alarm messages. The root cause of the problem is identified and recommendations are issued concerning what action to take to extend the functionality of the valve and the entire production process. Can automated valves contribute to improved energy efficiency? ZVEI has determined that this is indeed the case. Valves with electro-pneumatic positioners can be used to optimise flow control. Control systems can react much more quickly in high-speed process applications in the chemical and petrochemical industries. Less primary energy is needed to produce larger volumes of product. Product yields increased three per cent simply by installing an intelligent electro-pneumatic positioner and a suitable pneumatic circuit in an OLEX process to separate butane and butene. Acoustic sensors can be used to detect leaking valves and prevent creeping product loss. If wear on a flare valve with a DN 150 nominal diameter and an upstream pressure of 20 bar results in three per cent leakage (which equates to a leakage loss of 800 kg/h), product losses can be as high as €10,000/day. Compared to conventional equipment, state-of-the-art positioners consume only a 1/10th as much instrument air, significantly reducing consumption of auxiliary energy. Conventional positioners consume around €200 to €250 of instrument air per year and device. At a medium-size plant with say 100 positioners, the savings can be as high as €20,000. Compressed air consumption in the system can be managed more efficiently. Manufacturers of pumps, compressors and valves often have to compete on price rather than on the operating cost of their equipment. Everyone involved should reach a consensus that NPV provides a better basis for decision-making than the payback period only. (Source: DECHEMA - www.achema.de. Disclaimer: The trend reports are compiled by specialised international journalists. DECHEMA is not liable for incomplete or inaccurate information)
THE HUB MI Graduate presents biodiesel project at Rio+20
R
asha Abd Rabu, Master’s graduate Mechanical Engineering and a Research Assistant at Waste to Energy Laboratory, Masdar Institute, showcased her project titled ‘Dual Chamber Tubular Reactor for Continuous Transesterification of Waste Cooking Oil’ at the Rio+20 Sum-
mit. Her study showed that biodiesel produced from waste cooking oil (WCO) can provide a platform for sustainable resource consumption and bring down the five-tosix million tons of waste oil produced annually in Abu Dhabi. Providing details on her research, Rasha Abd Rabu said: “Environmental protection and conservation depend on reducing emissions and waste. Biodiesel, which has comparable physical and chemical properties to petroleum diesel, can reduce the presence of GHG and
Rough patches on the CSP road
I
n the wake of Chinese export restrictions on rare earth metals, the dependence of some renewable technologies on scarce materials has gained attention. Several players in the wind and PV industry are struggling to get away from excessive use of restricted elements, such as indium or rare earth metals. Meanwhile, there has been a shared notion amongst solar scientists and industry that Concentrating Solar Power (CSP) would ‘probably’ be less exposed, since the plants are built using commonly available commodities like steel and glass. According to a study by Chalmers University of Technology, CSP does indeed seem to be largely unrestricted, viewing the material requirements compared to the global reserves. In theory, enough solar plants could be built to cover – at the very least – five times the current global electricity demand.
However, the report also highlights some issues that are likely to pose challenges to the industry. The main point of concern is that silver, today extensively used for reflecting surfaces, will most likely be in short supply in the coming decades even without demand from a booming CSP industry. CSP mirror manufacturers might have to look at other reflective surface materials, such as aluminium, to secure cost competitiveness. “The prospects for strong growth for CSP over the next few decades seem good, but would cause a stir on the global commodity markets,” said Dr Erik Pihl, lead author of the scientific article. Following a Greenpeace/IEA SolarPACES/ESTELA growth scenario where CSP reaches 8000 TWh/year in 2050, the solar plants would consume up to 50-120% of today’s yearly nitrate salt production, and 5-15% of several common materials such as
bring down harmful emissions. Through this process, I have discovered at the Masdar Institute laboratory that it is possible to minimise the negative impact on environment, while establishing world class waste management systems.” Rasha, who is the winner of the best thesis award in the Mechanical Engineering program at Masdar Institute, also participated in the Women Leaders’ Forum on ‘Gender Equality, Women’s Empowerment and Sustainable Development.’
glass, nickel, magnesium and molybdenum. The report has used data directly from plant manufacturers Cobra and eSolar for trough and tower plants. These plants have somewhat different characteristics when it comes to material use. “Parabolic trough plants tend to use a lot of concrete and iron, while the concept of small heliostat tower plants involves higher use of aluminium and stainless steel,” said Pihl. “The common design of a parabolic trough plant also requires more molten salt per MW than a saltreceiver tower plant, even when the former has fewer storage hours. So trough plants appear slightly more sensitive than tower plants to possible salt production bottlenecks, unless other storage techniques can be employed.” Pihl expects material demands decreasing as plants aim for higher steam temperatures and increased efficiency. He continued: “We see that clearly when comparing a mature design to a novel concept. That does not automatically mean that all material restriction problems will be solved. We might trade a large use of common materials for small quantities of scarce elements. It comes down to what alloys we use in pipes, receivers and turbines.” Higher temperatures means more use of high quality steels, but alloy materials such as molybdenum and niobium have restrictions in both stock and production. “There might be enough for CSP alone, but there are many other uses,” said Pihl. “That could be a problem in the more distant future. In the short term, substituting silver and increasing nitrate salt production should be the first priority.”
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MARKET PLACE Xylem
CST Covers
Bell & Gossett Snap Zone Valve
New Flush batten aluminium dome
C
ST Covers, a division of CST Industries, launched its new dome design called OptiDome at WEFTEC 2012 in New Orleans. An innovative flush batten aluminium geodesic dome design, OptiDome features a Double Web I-Beam and an optimised patent pending batten seal technology, which the company press release claims, eliminates environmental exposure and UV degradation. The new hub cover technology, the release continued, removes the need for exterior sealant at the nodes, eliminating routine maintenance and inspection requirements. “OptiDome builds on the premium features of CST Covers’ present aluminum domes and the heritage of the Temcor
and Conservatek brands to deliver a new benchmark in cover technology,” said John Delaney, Vice President of CST Covers Industries. “We are extremely excited because OptiDome immediately sets a new standard in design and aesthetics that provides customers in all the markets we serve with the high quality and reliability they have come to expect from CST Covers.” OptiDome features an enclosed gasket design that protects from UV and sealant degradation, reduces sealant use and eliminates ponding, the press release noted. The new OptiDome design from CST Covers is compliant to Euro-Code, Aluminum Association Design Manual 2010 and International Building Code 2012.
Omicron
Other features of the Snap Zone Valve include: • Soft close technology suppresses water hammer • Silent actuator operation • 360-degree actuator installation • One-handed actuator installation • Valve in-pipe serviceable • Suitable for 50/50 glycol mix and retrofit installations • Solar heating application • Union connections enhance quick installation
New GIS testing package
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ccording to standards such as IEC 62271-203, a voltage withstand test is necessary during the commissioning of gas insulated high-voltage switchgear (GIS). To date, the test was performed by connecting a high-voltage test transformer and a heavy control unit to the GIS. OMICRON has combined its multifunctional primary test system CPC 100 with a newly developed CP RC package, consisting of the components CP TR8 and CP CR4 resp. CP CR6 – depending on the required inductivity - for testing GIS, which the company claims, eliminates the efforts associated with transport and handling of high-voltage test transformer and heavy control units required for traditional way of testing. According to the press release issued by the company, the package is connected to a voltage transformer, which is specially designed for this purpose and already installed in the GIS. Together, they form a
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MEGAWHAT/H2O | OCT 2012
X
ylem has launched the Bell & Gossett Snap Zone Valve for residential and light commercial HVAC applications. The Snap Zone Valve is a compact four-wire thermoelectrically operated on/off zone valve designed heating and cooling systems. According to a press release issued by the company, the new snap zone valve features a compact design and adapter ring that allows for the actuators to be installed in any 360-degree position enabling the snap zone valve to fit under baseboards or in other tight spaces. The press release further notes that a push-button actuator facilitates one-handed installation and permits wiring in any direction, while a visual indicator provides quick and easy recognition of which valves are energised. A replaceable plunger assembly allows for internal removal without removing the valve from the system.
resonant circuit. As a result, the release claimed, no additional test transformer needs to be transported, and the space previously required for the test transformer is no longer necessary. Also, for conventional external voltage withstand tests, the SF6 gas has to be drained and re-filled. By testing with the CP RC package, this time consuming task is redundant, claimed the press release. The combination between CPC 100 and CP RC package provides the user with voltage withstand testing with a maximum test voltage of 200 kV for GIS which are rated up to 123 kV. Each unit of the package weighs less than 30 kg.
The Snap Zone Valve is made with a forged brass body for high temperature and high-pressure applications. Operating specifications of the Snap Zone Valve are: • Operating temperature range for fluids of 0°C –100°C • Ambient temperature range of 0°C –50°C • Maximum operating pressure of 240 PSI • Maximum differential close-off of 60 PSI • Shutoff speed of 3 min. • Opening speed of 3 min. • Electrical rating of 24V 60Hz • Power consumption of 1.8W
EVENTS 8-10 OCTOBER ABU DHABI Power + Water Middle East 2012 Power + Water Middle East 2012, held in partnership with Abu Dhabi Water & Electricity Authority (ADWEA), co-located with INTERMAT Middle East 2012 and with ADCCI as a strategic partner, is a premier event for showcasing power and water related products and services. It provides a platform for professionals from these industries to interact with a number of the world’s leading companies and organisations. Sectors represented in the exhibition include Power Generation, Transmission & Distribution, Automation & Controls, Research & Technology, Energy Efficiency, Water & Waste Water Treatment, Water Management & Distribution, Instrumentation & Process Control and Water Conservation. Highlights from 2011 include over 3,500 registered visitors, 52 visitor countries, 121 exhibiting companies and 26 exhibiting countries.
Contact: Latha Ravi Tel: 971 4 4072611 Fax: 971 4 335 3526 E-mail: latha.balasubramanian@informa.com URL: www.powerandwaterme.com/
November 26-28, 2012, Abu Dhabi Middle East Water & Waste water Conference MEED’s annual wastewater conference is recognised as being the best event of the year for all those involved in water, sewage treatment and wastewater reuse. Speakers from across the GCC and the wider MENA region will be supported by experts drawn from the water industry of the wider Middle East region and the world beyond. Key speakers include Abu Dhabi Sewerage Services Company (ADSCC), BESIX Concessions, Corodex, Drake & Scull, Kharafi National, and Regulation and Supervision Bureau (RSB) A new feature for 2012 will the pre-event focus day designed to explore the growing opportunities across the project supply chain for those who service the industrial wastewater sector.
Contact: Jubida Kulangarath Tel: + +971 4 390 0699 E-mail: Jubida.kulangarath@meed-dubai.com URL: www.meedconferences.com/wastewater/
NOVEMBER 19- 20, 2012, ABU DHABI
Geosynthetics Middle East
Under the Patronage of the Municipality of Abu Dhabi city, the conference has turned out to be the leading event on geosynthetics throughout the Middle East and marked Abu Dhabi on the world map as an excellent meeting place for geotechnical and environment specialists to exchange knowledge, conduct business and build strategic partnerships. Organized by SKZ the German Plastics Centre, the conference is taking place in November 2012 in Abu Dhabi at the Rocco Forte Hotel. With a main focus on the region’s Transportation Infrastructure as well as Greening Solutions, this event will provide a platform for international geotechnical and environmental specialists to exchange their knowledge and experience. Key industry experts will present applications & case studies on geosynthetics used in: Railways, Roads, Airports, Seaports, Bridges, Tunnels, Landfills, Environmental Protection and other related topics. The conference will be associated with a technical exhibition, where national and international companies are showcasing their products and services in: Geosynthetics, Geotextiles, Geomembranes, Waterproofing Membranes, Geosynthetic Clay Liners (GCL), Geogrids, Geonets, Geocomposites, Geofoam, Geocells, Geopipes, Water Management Systems, Leachate Collection Systems, Irrigation Solutions, Erosion Controls and many more.
Contact: Fabian Beermann Tel: 971 4 8845001 Fax: 971 4 8845002 E-mail: fabian@bmc-gulf.com URL: www.geosyntheticsme.com
DECEMBER 2-4, 2012, JEDDAH Saudi Water & Power Forum (SWPF) Saudi Water & Power Forum 2012 (SWPF) is a premier power and water event in the Kingdom, connecting stakeholders and helping set the agenda for sustainable growth. Focus areas for this year include Sustainable Energy-Water Nexus, changing policies and strategies determining the future of power and water in the Kingdom, solutions to a sustainable energy-water nexus and opportunities for partnerships. The SWPF Award for Innovation and the Marafiq Award for Sustainability will be presented at the Forum Inauguration Ceremony. The event will be held at Hilton Jeddah.
Contact: Chris Hugall Tel: +44 207978 0084 E-mail: chugall@thecwcgroup.com URL: www.ksawpf.com
MEGAWHAT/H2O | OCT 2012
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TENDERS
PROCUREMENT UPDATES
PROJECT NAME TRANSACTION ADVISORY DESCRIPTION
CLOSING DATE POSTING DATE TENDER TYPE TERRITORY CLIENT
STATUS LAST UPDATED TENDER CATEGORIES REMARKS
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SERVICES-1 Provision of transaction advisory services for the Al-Abdaliyah Integrated Solar Combined Cycle (ISCC) Project. October 7, 2012 July 12, 2012 Tender Service Kuwait Company Name: Partnerships Technical Bureau (Kuwait) Address: Touristic Enterprises Co. Bldg., 2nd Floor, Al-Jahra Street Pin: City: Shuwaikh Country: Kuwait Phone: (+965) 2496 5901 Fax: Email: infor@ptb.gov.kw Website: http://www.ptb.gov.kw New Tender July 12, 2012 Power Plants & Alternative Energy Request for Proposal (RFP) This tender service is at AlAbdaliyah in Kuwait. The scope of the work involves development of an ISCC plant to generate power with a capacity of 280MW of which solar contribution will be equivalent to 60MW. The transaction advisor must have successful and variable experience in doing similar transactions regionally and globally. The advisors are expected to have, as a minimum, expertise in the following: • Technical aspects and requirements comprising site plan and general layout arrangements, plant capacity and equipment configurations for ISCC facilities • Project EIAs (environmental Impact Assessments including full mitigation plans and final approvals from the appropriate authority). • Review of feasibility studies and financial analysis. • Evaluation of project viability analysis including detailed risk analysis • Preparation of project technical documentation including tender
MEGAWHAT/H2O | OCT 2012
specifications, drawings, etc., • Design of competitive procurement processes and preparation of tender documents. • Preparation of all required legal documentation (including contracting agreement) and negotiation of contractual frameworks • Negotiation support and transactions closing • Project Management. Tender documents can be obtained from: Partnerships Technical Bureau Safat, Kuwait. Tel No: (+965) 2496 5900 Prior to receiving the RFP, a letter of intent shall be submitted not later than 12:00 pm on July 29, 2012 identifying members of the consortium (if any) interested in purchasing the RFP. Companies intending to purchase the RFP should provide a certified cheque from a local bank with a value of KD 1,500. Letter of intent and bankers checks are to be submitted in hard copy of the attention of: Partnership Technical Bureau Touristic Enterprises Company Building 2nd Floor, Shuwaikh, Administrative Area, Al Jahra Street, Kuwait. And in soft copy to E-mail: a.safar@ptb.gov.kw The RFPs are expected to be issued on August 05, 2012.
PROJECT NUMBER MPP2655-E PROJECT NAME SUEZ POWER PLANT CONSTRUCTION PROJECT TERRITORY Egypt CLIENT Name : Power Generation Engineering & Services Company - PGESCo (Egypt) Address : 41 El-Salam Avenue, Central District City : Cairo Country : Egypt Phone : (+20-2) 2617 6497 Fax : (+20-2) 2617 6519 eMail : aamostaf@pgesco.com Contact Persons /Website: http:// www.pgesco.com
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TENDERS
PROCUREMENT UPDATES
DESCRIPTION Construction of Suez power plant TENDER REMARKS
TENDER CATEGORIES TENDER PRODUCTS
with capacity of 650MW. New Tender This project is in Egypt. It will replace an ageing plant of a smaller size. Client, a joint venture between Electricity & Energy Ministry, US’ Bechtel and Egypt’s Commercial International Bank is procuring equipment for the scheme. it is in talks with France’s Alstom and Italy’s Ansaldo Energia for the main components of the project. Power Plants & Alternative Energy Power Generation Plants
REMARKS to be incorporated for the IWPP,
the remaining equity will be held by the client. The project will comprise: 1. Purchase, ownership, operation and maintenance (O&M) and financing of certain existing assets of Mirfa Power Company 2. Ownership, development, financing, construction, operation and maintenance (O&M) of a 1,000MW Greenfield power generation plant and a 30-million gallon-a-day reverse osmosis desalination plant 3. Installation of four 100MW open cycle gas turbines and integration of certain existing assets (3X7.5 million g/d desalination units) into the new plant. Last date to submit Expression of Interest will be on July 15, 2012. After Eols has been received, a request for qualification will be provided, with additional details regarding the project and the bidding process. Deadline for statements of qualification will be on September 10, 2012.
PROJECT NAME MIRFA IWPP PROJECT DESCRIPTION Build-Own-Operate (BOO) con-
POSTING DATE PERIOD TENDER TYPE TERRITORY CLIENT
CONSULTANTS
STATUS LAST UPDATED TENDER CATEGORIES REMARKS
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tract for the design and execution of an independent water and power plant (IWPP) in Mirfa. December 6, 2009 2015 Project Abu Dhabi Company Name: Abu Dhabi Water & Electricity Authority (ADWEA) Address: ADWEA Building, AlFalah Street Pin: 6120 City: Abu Dhabi Country: United Arab Emirates Phone: (+971-2) 627 1300 / 694 3333 Fax: (+971-2) 626 7725 / 626 6089 Email: Website: http://www.adwea.gov. ae Financial Consultant Company Name: HSBC Bank Middle East Limited (Abu Dhabi) New Tender July 8, 2012 Power Plants & Alternative Energy Updated On : July 8, 2012 Client has issued an Expressions of Interest (EoIs) to provide a developer partner on this scheme. A developer or developer consortium is sought 40 per cent of a special purpose vehicle
MEGAWHAT/H2O | OCT 2012
PROJECT NUMBER ZPR754-O PROJECT NAME TIBAT POWER PLANT CONTERRITORY CLIENT
DESCRIPTION PERIOD STATUS REMARKS
STRUCTION PROJECT Oman Name : Oman Power & Water Procurement Company S.A.O.C Address : Muscat International Centre, 2nd Floor, Suite 504 City : Ruwi PC 112 Postal/Zip Code : 1388 Country : Oman Phone : (+968) 2482 3028 / 2482 3000 eMail : ahmed.busaidi@omanpwp.com Contact Persons /Website: http:// www.omanpwp.co.om Construction of a gas fired power plant with capacity of 125180MW in Tibat. 2014 New Tender This project will be located at Musandam in Oman. Purpose of the project is to meet the increasing national demand for electricity. It is currently under planning stage. Schedule of the project has
PROCUREMENT UPDATES
TENDERS later date. Germany’s Lahmeyer is advising on the project. Updated On : July 4, 2012 It is understood that client has moved the location of the scheme from Abdeli to Shagaya. According to client, the Shagaya site is deemed preferable because it has less dust exposure. Scope of the project will remain same, which comprise a 10MW photovoltaic solar plant, a 10MW wind farm and a 50MW concentrated solar power facility. Each of the facilities will be tendered separately. Tender process is expected to be launched in October 2012, which was originally planned in September 2012 delayed due to Ramadan and Eid holidays.
not yet been determined. TENDER CATEGORIES Power Plants & Alternative Energy TENDER PRODUCTS Power Generation Plants
TENDER PRODUCTS SHAGAYA RENEWABLE ENDESCRIPTION
POSTING DATE TENDER TYPE TERRITORY CLIENT
CONSULTANTS
STATUS LAST UPDATED TENDER CATEGORIES REMARKS
ERGY COMPLEX PROJECT Engineering, procurement and construction (EPC) contract to build a 70MW renewable energy complex at Shagaya. November 3, 2011 Project Kuwait Company Name: Ministry of Electricity & Water (Kuwait) Address: Ministry of Electricity & Water Bldg., South Al Surra Street, Ministries Area Pin: 12 City: Safat - 13001 Country: Kuwait Phone: (+965) 2537 1000 Fax: (+965) 2537 1420 / 1421 / 1422 Email: webadmin@energy.gov.kw Website: http://www.energy.gov.kw Financial Consultant Company Name: Fichtner Gmbh & Co. KG (Germany) Main Consultant Company Name: Lahmeyer International GmbH (Germany) New Tender July 4, 2012 Power Plants & Alternative Energy This complex will be developed in north of Kuwait, near the Iraqi border and comprise a 10MW photovoltaic solar plant, a 10MW wind farm and a 50MW concentrated solar power facility using trough technology. The project is being implemented in joint venture with Kuwait Institute for Scientific Research (KISR). A tender for the EPC contract will be launched by the end of 2011 or early 2012. Contracts may be awarded for separate components of the scheme or as a single contract for the 70MW project in its entirety. The 10 million square metre site at Abdeli has potential to be expanded to 500-1,000MW of renewable energy capacity at a
PROJECT NUMER MPP1965-SA PROJECT NAME SHUQAIQ THERMAL POWER TERRITORY CLIENT
DESCRIPTION
STATUS REMARKS
TENDER CATEGORIES TENDER PRODUCTS
PLANT PROJECT Saudi Arabia Name : Saudi Electricity Company - Western Region (Saudi Arabia) City : Jeddah 21430 Postal/Zip Code : 9299 Country : Saudi Arabia Phone : (+966-2) 650 0005 Fax : (+966-2) 653 4139 Contact Persons /Website: http:// www.se.com.sa Engineering, procurement and construction (EPC) contract to build a thermal power plant in Shuqaiq with capacity of 2,400 MW. New Tender Updated On : June 20, 2012 Client has invited bids for the EPC contract on this scheme. Contractors have until October 2012 to submit technical bids. Technical bids will be assessed before financial offers are invited. This project is in Saudi Arabia. Client is planning to invite expression of interest (EoI) by the end of May 2012. Bids will then be invited for EPC contract. Power Plants & Alternative Energy Power Generation Plants
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TENDERS
PROCUREMENT UPDATES
PROJECT NAME ABQAIQ, HAWIYAH & RAS DESCRIPTION
POSTING DATE PERIOD TENDER TYPE TERRITORY CLIENT
CONSULTANTS
STATUS LAST UPDATED TENDE CATEGORIES REMARKS
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TANURA ELECTRICITY & STEAM PLANTS PROJECT Build-own-operate-transfer (BOOT) contract for the construction of three greenfield gas-fired steam plants with capacity of 770 MW of power and 2.95-million pounds an hour in Abqaiq, Hawiyah and Ras Tanura. March 4, 2012 2016 Project Saudi Arabia Company Name: Saudi Arabian Oil Company (Saudi Aramco) Address: Saeed Tower, Dammam-Khobar Highway Pin: 151 City: Al Khobar 31952 Country: Saudi Arabia Phone: (+966-3) 872 0115 / 810 6999 Fax: (+966-3) 873 8190 Email: Website: http://www.saudiaramco.com Financial Consultant Company Name: Fichtner Gmbh & Co. KG (Germany) Financial Consultant-1 Company Name: HSBC Ltd. (Saudi Arabia) Legal Consultant Company Name: White & Case LLP (USA) New Tender July 23, 2012 Power Plants & Alternative Energy This project is at Eastern Province in Saudi Arabia. The facilities are likely to have following capacities: Abqaiq – 320MW and 1,2000 thousand pounds an hour, Hawiyah - 130MW and 550 thousand pounds an hour, and Ras Tanura - 320MW and thousand pounds an hour. Each of the projects will convert fuel gas and feed water provided by client into electricity and steam for sale under an energy conversion agreement. Client has issued a request for qualification (RFQ) to developers to build
MEGAWHAT/H2O | OCT 2012
the plants. Developers have to respond to the RFQ by March 11, 2012. Each of the consortium members will be required to hold at least 20 per cent of the voting and economic rights held by the applicant in the project company upon its formation. Selection of qualified applicants is expected by April 22, 2012 followed by issue of request for proposals (RFP) on April 23, 2012. Bids are expected to be submitted by September 01, 2012 and award for three projects expected by December 31, 2012. The selected developer will be required to construct the projects to meet the following commercial operation dates: Hawiyah in November 2015, Abqaiq in January 2016 and Ras Tanura in March 2016. Companies have been responded to the Statements of Qualifications (SOQs) on this scheme. They include: Saudi Arabia’s Acwa Power; UK/France’s IPGDF; South Korea’s Kepco and Samsung C&T; Japan’s Marubeni, Sumitomo, JGC Corporation, Itochu and Sojitz Corporation; Saudi Arabia’s Saudi Oger and Powertek Berhad; Qatar’s Qatar Electricity & Water Company, India’s Tata Power; Malaysia’s Tenaga Nasional Berhad; Singapore Sembcorp; Kuwait’s Kharafi National; UAE’s Taqa and Saudi Arabia’s National Power Company. Updated On : July 23, 2012 Client is now planning to issue a Request for Proposals (RFP) to qualified bidders on July 25, 2012, due to the slight delay. The revised RFP is expected to be submitted on November 13, 2012.
SECTOR REPORT
Bernreuter Research
Looming shortage A leaner polysilicon industry is poised for rebound, says Bernreuter Research
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fter a shakeout of nearly 40 manufacturers, the polysilicon industry will slowly recover from oversupply by 2014, while 2015 could be the harbinger of a new polysilicon shortage. This is one of the conclusions of the new market research report The 2012 Who’s Who of Solar Silicon Production, presented by Bernreuter Research during the 27th European Photovoltaic Solar Energy Conference in Frankfurt/Main, Germany. Polysilicon, the feedstock for the semiconductor and photovoltaic (PV) industries, glutted the market in 2011 when the annual production volume of 255,000 metric tonnes
(MT) exceeded demand by 25,000 MT. The manufacturers, most of them small and medium enterprises in China, suspended or abandoned production. The scenario of future demand which Bernreuter Research has developed is more aggressive than forecasts of other analysts. “Several indicators we investigated point to new PV system installations of up to 37.5 GW in 2012,” said Johannes Bernreuter, head of Bernreuter Research and author of the new report. The market researcher examined 72 analyst forecasts made about global PV installations from 2008 through 2011. He found that the forecast average
remained more than 30% below the actual results. In the Basic Edition of ‘The Who’s Who of Solar Silicon Production (2010),’ Bernreuter Research thoroughly assessed the progress of 10 polysilicon production methods including the standard Siemens process. While most of the new approaches will not make it into commercial production, monosilane-based technologies show promise as serious rivals to the established Siemens process. Another alternative is upgraded metallurgical-grade (UMG) silicon, but this technology is yet to prove its value proposition. “The sweet spot of sufficient silicon quality at low cost is very small,” said Bernreuter.
MEGAWHAT/H2O | OCT 2012
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FLIPSide Production Unit Das Island 1969 Total Archives
A slice of history at ADIPEC2012
T
he 15th edition of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) this year includes a unique feature: a UAE oil and gas museum. The ADIPEC museum, which will remain open during the exhibition from November 11-14, is set to provide visitors with an interactive journey exploring the discovery, extraction and production of oil in the UAE. Comprising exhibits loaned by local and multinational energy companies, plus personal contributions, the museum will be a chronological study of the UAE’s oil and gas industry, and will include an interactive timeline from 1928 to the 2000s. The ADIPEC Oil and Gas Museum will comprise a wide variety of exhibits, many of them on public display for the first time, including archive photography, film, plans, engineering components and machinery, as well as the testimonies of former and present-day oil executives. In addition, the museum will feature a tribute to the vision of the UAE’s founder, His Highness Sheikh Zayed bin Sultan Al Nahyan. A number of exhibits have already been received with the support of contributors and sponsors (which include Partex Oil
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MEGAWHAT/H2O | OCT 2012
Inauguration of ABK 1 July 1974 in the presence of Sheikh Zayed René of Lilliac Granier and president of the French Petroleum Company (PSC), Total Archives
& Gas, ExxonMobil, TOTAL and Shell). To date, the organisers have received interesting exhibits which include a copy of the original Abu Dhbai concession agreement dating back to 1939 as well as a geological map of the hinterland of Abu Dhabi drawn in 1935. Among the images received for inclusion in the museum include that of the late ruler of Abu Dhabi, Sheikh Shakhbut bin Sultan, pictured with Dr Macpherson of BP and N Barnonty of Khanaqin Oil Company, dating back to 1953, and a photo of a water distillation plant for fresh drinking water dated 1963. The equipment section will have some of the original tools and paraphernalia used to aid the extraction of oil, such as hydraulic power tongs, monitoring systems used for ADCO and ADMA-OPCO
fields, and crude oil loading pumps dating back to 1966. Three cars which were used during the oil boom in the UAE, and have been in the Emirates for more than 60 years, will also be on display at the ADIPEC museum. These include a Chevrolet 3100 pick-up, a Land Rover and a Dodge Power Wagon. The ADIPEC Museum will also feature a running documentary about the history of oil and gas in the UAE. In the video, industry professionals who have served in the sector for many years will recall their experiences. Contributors to the documentary to date include David Heard, H.E. Mohammed A.J. Al Fahim, Peter Hellyer, H.E. Ahmad Rahma Al Masaood, Ahmed Tamim, Murshed Al Romaithi, Saqar Muharibi and Martin Calouste Gulbenkian.
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and he likes the fast and easy process provided by MPD 600 and UHF 620! Using the combination of MPD 600 and UHF 620 products, Dad can easily perform partial discharge (PD) measurements on gas-insulated switchgear (GIS). These unique products help him determine the
condition of insulation in a greatly simplified way. The UHF 620 provides different, freely selectable, bandwidths for PD measurement enabling quick configuration possibilities or, for example, easy filtering of interferences.
As Dad can now also measure in the ultra-high frequency range, the system is sufficiently sensitive that it gives brilliant results – perfect for on-site and commissioning tests. Now that‘s exciting!
World Leader in Innovative Power System Testing Solutions
www.omicron.at | info@omicron.at
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