Divide and Conquer: How Decentralized Power Generation Can Alleviate Sub-Saharan Africa’s Electricity Challenges

Decentralized power facilities, sources that generate electricity much closer to the consumers, are touted to be vital in improving Sub-Saharan Africa’s power supply situation. We take a close look at their benefits.

It has been highlighted, time and again, that Sub-Saharan Africa is home to close to a billion people without access to reliable electricity. The region’s electricity challenges may be attributed to several factors, most notably to insufficient connectivity particularly in rural areas, and intermittent power supply.

A recent study by Afrobarometer, a pan-African research network, illustrates that only 45% of rural areas enjoys access to the electric grid across 36 African countries considered. In fact, countries like Burundi, Burkina Faso, Sierra Leone, Niger, Guinea, Liberia and Mali have extended the electricity grid to only a third or less of their territories. The inadequate grid extension and connectivity is stark in the West and East African countries, and in a number of Southern African countries, including Zimbabwe, Namibia, Zambia, Mozambique and Malawi.

But, even as various areas in Sub-Saharan Africa are connected to national power network, they are still not guaranteed to receive a constant reliable supply of electricity. For instance, 14% of grid-connected consumers in South Africa, 44% in Zimbabwe, 33% in Zambia, 23% in Botswana, 19% in Namibia and 15% in Kenya, say they still suffer from regular power outages and load shedding. This can be largely attributed to inadequate power generation, high transmission losses, and limitations in power distribution.

A case for Decentralized Power

Decentralized power generation systems can help countries in Sub-Saharan Africa alleviate their present power generation and transmission challenges. Several technologies can be implemented as a decentralized power generation system, including solar, wind, hydro, and temporary power plants running on diesel or gas.

Courtesy www.gineersnow.com

Decentralized power generation systems will prove beneficial on several levels to Sub-Saharan African countries. Below are some of the highlight advantages of decentralized power generation technologies:

Flexibility

Decentralized power generation systems, like rental power plants, can be easily mobilized, installed and operated anywhere in the world, even in the remote areas of Sub-Saharan Africa. They can even be installed in areas without sub-stations, and can be directly connected to the grid regardless of its quality or age.

They can be completed and powered on in a matter of days, and can be rapidly demobilized once the area of service is already connected to the permanent centralized power plant. They do not require a huge upfront investment, and as such, do not have long payback periods. Instead, governments or power utility providers can pay for the rented electricity in regular intervals over a contracted term.

An example is Altaaqa Global’s natural gas temporary power plants in Douala, Cameroon, which were installed and powered on in as little as 21 days from the time the equipment arrived at the intended sites. The power plants, because they comprised modular and containerized power equipment, were easily delivered from the point of origin in the Middle East, to the port in Douala, to the power plant sites, and were successfully installed despite space limitation.

The power plants have been consistently producing a combined 50 MW since they were turned on, easing the pressure on the main grid and reducing electricity demand at peak times. They have been instrumental in lessening the power supply deficiency and reducing the instances of load shedding in Douala.

Scalability

Temporary power plants, as a decentralized power generation system, are highly scalable in that their output can be increased or decreased depending on the prevailing requirement. The power provider can simply add or subtract generators to or from the power plants to customize their output. The result is that the rental power plants generate the exact amount of electricity as demanded, so the power plants do not inefficiently run on part-load, and that the governments or the power utility providers do not pay for unutilized capacity.

Diversity

As above, there are several technologies that can be implemented as decentralized power generations systems. The good news is these technologies may complement each other to ensure their efficiency and reliability. For example, temporary diesel or gas power plants can support solar or wind energy sources at times when sunshine or wind is insufficient to produce the desired amount of electricity. Rental power plants can also take up the electricity load during low-rain or dry seasons, when the hydropower systems have limitations in producing electricity.

Efficiency and Reliability

The US Energy Information Administration reports that up to 7% of the electricity generated by central power plants is lost in transmission and distribution. Turning to decentralized power generation technologies, like temporary power plants, can reduce the transmission and distribution losses because they are installed nearer to the consumers.

Moreover, rental power plants are regularly serviced and maintained by trained and qualified service engineers and technicians, and monitored and evaluated by competent certification bodies so their optimal energy performance and reliability is guaranteed.

For instance, Altaaqa Global’s 50 MW natural gas power plants in Cameroon have recently been awarded an ISO 50001:2011 certification for energy performance, making Altaaqa Global the first and only rental power company to have received the recognition. The plaudit was a testament to the power plants’ energy efficiency, cost-effectiveness and environmental stewardship.

In addition to the above, decentralized power generation technologies can support various environmental initiatives in vigor in several Sub-Saharan African countries due to their environmental conscious operations. As a case-in point, temporary power plants running on natural gas comply with worldwide emission standards, while solar or wind power sources are completely renewable and contribute in conserving natural energy resources.

For example, Altaaqa Global’s natural gas temporary power plants in Cameroon was handpicked by Eneo to support its existing power facilities, owing to their reliability, energy efficiency and environmental consciousness, which perfectly fits Cameroon’s sustainable energy initiatives.

Electricity and Africa’s Development Agenda

As an emerging region, Sub-Saharan Africa needs electricity to support its economic priorities and other development areas. At present, even as the economic focus of governments in Sub-Saharan Africa are in areas directly related to basic issues of livelihood (employment, healthcare, water supply and agriculture), they are gradually working on various initiatives to ensure the region’s energy future. While their long-terms plans are coming to fruition, decentralized electricity technologies, like rental power plants, can supplement existing centralized power facilities to provide the electricity when and where needed.

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A Defiant Stance: MENA’s Continued Investment in Oil & Gas

Amidst concerns of superfluity and suppressed prices, approximately USD 294 billion of oil, gas and petrochemical projects are said to be underway across the MENA region

The persistently low oil prices, not helped by the observed conflict in certain parts of the region, has weighed heavily on the economic prospect of the Middle East and North Africa (MENA). The International Monetary Fund forecasts the overall growth of the region for this year and the next to be in the area of a mere 3.2%.

Courtesy www.gineersnow.com

But, amidst the depressing economic projection, concerns of superfluity and stubbornly suppressed prices, approximately USD 294 billion of oil, gas and petrochemical projects are said to still be underway across the MENA region.

Spotlight: Select Regional Developments in the Oil & Gas Sector

Investment in oil & gas operations remains to be a crucial focus of oil producers in the MENA region to meet exponentially rising energy demands and to replace consumed or depleted natural resources.
As a case in point, let us take a close look at major oil & gas developments brewing in the region.

Driven by its objective to expand is gas capacity, the UAE is now looking to develop new sour gas reservoirs. This is said to include major projects in the Bab and Hail fields, as well as the expansion of the Shah gas field.

Courtesy www.gineersnow.com

Saudi Arabia is home to two of the region’s largest oil & gas projects underway: Sabic’s oil-to-chemicals project and Aramco’s integrated refinery and petrochemicals development, both in Yanbu. Additionally, Aramco is said to be planning to pour in USD 334 billion into its oil & gas activities by 2025. The world’s largest oil & gas company is reportedly keen at looking at expanding its gas capacity, which includes the development of non-associated gas fields in the Gulf and expanding shale gas production in the north.

Saudi Arabia is also reportedly planning to list Saudi Aramco in the stock market, with an IPO that values the company at a staggering USD 2 trillion.

For its part, Kuwait is expected to invest USD 115 billion on energy projects over the next several years to help enhance crude production capacity, keeping in mind its target of four million barrels a day by 2020.

A Time of Conviction with Caution

It is clear that oil producers and allied stakeholders in the MENA region remain undaunted by the bleak market outlook and the headwinds blowing against the global oil & gas sector. Looking at the slew of oil & gas projects in the pipeline, it is not difficult to see the region’s conviction to satisfy domestic and international energy demands, achieve energy production objectives, and maintain its role as the world’s premier energy resource provider.

Courtesy www.gineersnow.com

But in these economically trying times, it is essential for oil & gas companies in the MENA region to practice caution by controlling costs while capitalizing on expansion prospects and profitable opportunities. Oil & gas companies in the region, the likes of the UAE’s Emirates National Oil Company (ENOC) and Abu Dhabi National Oil Company (ADNOC), should ensure the efficient utilization of their working capital while the industry is still on its way to recovery.

One area of operation where oil & gas companies can make significant adjustments to their capital expenditure is power generation.

While electricity remains one of the most important components of an oil & gas operation, regional oil producers do not have to confine themselves with devoting a significant portion of their scarce capital to a major expenditure, like a permanent power plant. Instead of building their own power generation facility, oil & gas companies can choose to hire temporary power plants.

Courtesy www.gineersnow.com

By turning to rental power, oil & gas companies can have a consistent, dependable and sufficient supply of electricity throughout the lifecycle of their operations without the need to strap a large portion of their funds to a permanent facility. Temporary power plants can adequately provide for the power needs of various processes of an oil and gas operation, from exploration and extraction, through to development and processing.

Aside from savings in capital expenditure, renting power will also have an impact on the allocation of funds for an oil & gas project. Regional oil majors, such as the Iraq’s North Oil Company and Kuwait Petroleum Corporation, will welcome the fact that payment schedules for the rented power are fixed and regular over a contracted term. This will help them in formulating accurate financial forecasts.

Moreover, a complete rental power service includes all ancillary and spare parts, as well as expert on-site engineers and technicians. This means that oil & gas companies will be shielded from additional costs that come with building a permanent power plant, and that they no longer have to hire, train or re-allocate staff members to manage the power plant.

For more information on rental power for oil & gas operations, visit: http://www.altaaqaglobal.com/industries/oil-gas

Bucking the Trend

In defiance of growth forecasts and of the impacts of global oversupply that prompted a sharp fall in oil prices since 2014, oil producers in the MENA region have been continuously investing in the oil, gas and petrochemical sector. While global oil & gas spend is expected to continue to decline, oil producers in the MENA region are looking to buck the trend and to continue pouring funds into the industry to maintain capacity and fulfill ambitious production targets. But while the oil & gas sector is still regaining its old glory, regional industry stakeholders are expected to restrain their aggression with a bit of caution.

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PRESS INQUIRIES
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Tel: +971 56 1749505
rbagatsing@altaaqaglobal.com


Sources consulted:

http://timesofoman.com/article/103194/Business/Energy/Middle-East-to-invest-$294b-in-oil-and-gas-projects

https://www.forbes.com/sites/dominicdudley/2016/10/19/middle-east-economic-prospects/#8be515c1d7bb

http://www.investopedia.com/articles/investing/101515/biggest-oil-producers-middle-east.asp

http://oilprice.com/Energy/Energy-General/Middle-East-Oil-Gas-Investment-Surges-To-294-Billion.html

http://altaaqaglobal.blogspot.ae/2017/01/the-latest-mining-industry-trends.html

Temporary power solutions touted as cost-effective option for mines

The global mining industry is enduring a period of great uncertainty. In the face of extreme market volatility, stagnant commodity prices, weak demand and suppressed levels of economic growth in established markets, many mining companies are striving to remain buoyant, says temporary power solutions provider Altaaqa Global chief commercial officer Majid Zahid.

Speaking on the sidelines of the 2017 Investing in African Mining Indaba, in Cape Town, he noted that in miners’ quest to emerge victorious from the recession, many of them had implemented cost-cutting initiatives aimed at ensuring maximum customer value with fewer resources.

“Others have chosen to be cautiously proactive and embarked on exploration programmes in a bid to boost long-term profitability. Some have turned to technology to optimise processes and facilitate existing methods,” Zahid added.

Zahid commented that “going lean” had become a significant trend in the industry, as mining companies sought to concurrently reduce workforce numbers, capital and energy intensity; exploit growth opportunities and ensure maximum value for their products and services.

He believes that power generation and supply choice is a part of mines’ operations that could significant alter the profile of their capital expenditure.

“Electricity remains the life-blood of mine sites worldwide. However, with the current economic situation, mine operators cannot afford to devote a large portion of their scarce capital to a major expenditure, like building a permanent power plant. Considering this, mine operators can instead choose to hire multimegawatt temporary power solutions,” Zahid said.

He noted that a consistent, dependable and sufficient supply of electricity was of vital importance throughout the life cycle of a mine operation. “Temporary power plants can adequately provide for the electricity needs of a mine site. They can power camp sites during prefeasibility, feasibility and exploratory stages and support the establishment of the mine operation after a successful exploration,” Zahid highlighted.

He added that temporary power plants could also provide power to a mine’s machinery and the processing plants, as well as its temperature-control equipment.


Ends


*The article is originally published in www.miningweekly.com (http://www.miningweekly.com/article/temporary-power-solutions-touted-as-cost-effective-option-for-mines-2017-02-09)


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rbagatsing@altaaqaglobal.com

Africa’s Mining Industry Preps for Coming Growth

The year 2016 was a breakout year for mining, as the industry witnessed the advent of the initial signs of its recovery. The industry marches on to 2017 with renewed energy and confidence, all set to ride the coming growth wave. Is the cycle of uncertainty really over for mining? Majid Zahid, Altaaqa Global, in a free-wheeling conversation.

Majid Zahid, Chief Commercial Officer, Altaaqa Global

The year 2016 was a pivotal year for the global mining sector. 

Last year, the industry saw nascent signs of recovery and growth, spurred by strengthening commodity prices, revitalized exploratory activities, and re-engineered operational and financial strategies. 

The industry, therefore, rings in 2017 with heightened optimism and a fervent hope that the much-anticipated next growth wave finally comes. 

The wait may be over, as the green shoots are gradually emerging: Commodities has returned to a bull market and many mining companies are seeing a consistent recovery in value. In fact, 2017 is touted to be an encouraging year for mining stocks, buoyed by increased free cash flow, positive earnings momentum and the prospect of distributing excess capital to shareholders. 

Indeed, mining’s recovery was never a question of “if”, but rather of “when”. And for many mining industry players, the “when” starts now. 

“From the standpoint of a power solutions provider”, says Majid Zahid, Chief Commercial Officer of global multi-megawatt temporary power provider Altaaqa Global Caterpillar Rental Power, “we observe that the industry, together with its allied stakeholders, is actively preparing for the growth cycle at hand. 

“For example, an increasing number of mining companies have resumed funding new and expansion projects in the interest of capitalizing on the expected upturn. Investors are once again enticed to finance various segments of the industry, riding high on its impressive showing in 2016.”

Zahid also notes that governments have ramped up their support for mining companies in terms of exploring local and cross-border opportunities by allocating significant funds for mining activities and eliminating obstacles in doing business.

“Looking at the trend,” says Zahid, “the next few years may see the establishment of new mines and the expansion of a number of existing mines. Then, more than ever, electricity will be essential in powering their operations.

“Be they nascent mine sites or established mine operations looking to grow, our multi-megawatt temporary power plants will be able to satisfy their power demands. Our power plants are scalable so they can provide the exact amount of electricity needed by mine sites of any size.”

Zahid says that temporary power plants also represent an excellent choice for mining companies looking to explore new opportunities in remote sites. “Rental power plants can be delivered and installed anywhere in the world, so mining companies can rest assured that wherever they are, we can provide them power.” He says that the latest rental power systems have cutting-edge technologies that allow them to shift operational mode in minutes, and to directly connect to the grid even if sub-stations are absent. 

He, however, sounds a caveat. “Though the industry appears to be on its way to recovery, mining companies should still, to a certain extent, practice caution, especially in terms of utilizing their capital.”

Zahid endorses the view that turning to temporary power plants cushions mining companies from making huge investments in permanent infrastructure, like power generation facilities. “For a mining company, it may not make sense to make an outright investment in a permanent power plant, especially during the formative stages of a mine or the initial phases of a mine development or expansion. These are crucial times in a mine operation when its future of is still uncertain.” 

Zahid says that by choosing to rent power during these stages presents a win-win situation for mining companies. “When the operations grow, they can choose to add modules to the temporary power plant to increase its capacity. In case the project proves unsuccessful, the rental power plants can be easily demobilized, leaving no permanent system unutilized or that will need constant maintenance or repair.”

Altaaqa Global Caterpillar Rental Power is presenting the latest technologies in rental power generation at the 2017 Mining Indaba – the world’s largest mining investment conference. The company’s executives welcome you to booth 924, from the 6th through the 9th of February.

The Indaba, held at the Cape Town International Convention Center in South Africa, has attracted participation from heads of states, high-ranking government officials, global mining companies, technology and service providers and other significant stakeholders. 

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The Latest Mining Industry Trends: An Analysis for 2017

‘Mining will not recover; it will evolve’

Being cyclical, the revival of the mining industry was never a question of ‘if’, but rather of ‘when’ and, more importantly, of ‘what’. When will the industry emerge from the downturn in the face of lengthening cycle times? What kind of mining industry will resurface from the ruins of the recession? In an exclusive interview, Majid Zahid, Group President of the Zahid Group's Energy Division, under which is temporary power provider Altaaqa Global, discusses the crucial role that electricity and technology played in the industry’s observed gradual resurgence.

The mining industry is enduring a period of great uncertainty. In the face of extreme market volatility, stagnant commodity prices, weak demand for products, and suppressed levels of economic growth in established markets, many mining companies around the world are striving to remain buoyant.

In their quest to victoriously emerge from the recession, many miners have implemented cost-cutting initiatives aimed at maximizing customer value with fewer resources. Others have chosen to be cautiously proactive and embarked on exploration programs in a bid to boost long-term profitability. Some have turned to technology to optimize processes and facilitate existing methods.

Part 1: Streamlining operations

Going lean has now become one of the central trends in the industry, as mining companies seek to concurrently reduce manpower, capital, and energy intensity; exploit growth opportunities and maximize the value of their products and services.

“In a highly volatile market”, says Majid Zahid, Group President of the Zahid Group's Energy Division, under which is leading global temporary power provider Altaaqa Global Caterpillar Rental Power, “it is essential for mining companies to strike a balance between controlling costs and capitalizing on growth prospects and profitable opportunities. It is, therefore, imperative for them to ensure the efficient utilization of their working capital.”

Majid Zahid, Group President, Energy Division, Zahid Group

Zahid is of the view that power generation and supply represents an area where mining operations can make significant adjustments to their capital expenditure. “Electricity,” he says, “remains to be the life-blood of mine sites anywhere in the world. However, with the present economic situation, mine operators cannot afford to devote, rather strap, a large portion of their scarce capital to a major expenditure, like a permanent power plant. Considering this, mine operators can instead choose to hire multi-megawatt temporary power solutions.”

A consistent, dependable and sufficient supply of electricity is vital throughout the life-cycle of a mine operation. “Temporary power plants,” says Zahid, “can adequately provide for the electricity needs of a mine site. They can power camp sites during pre-feasibility, feasibility and exploratory stages, and support the establishment of the mine operation after a successful exploration. They can provide power to the machinery and the processing plants, and also to the temperature-control equipment. Obviously, they can also provide the necessary power for expansion.”

“Multi-megawatt temporary power plants could not be more relevant to the mining industry than in these times,” says Zahid, and adds that renting power is a logical decision for any miner looking to effectively streamline its operations.

“For instance, in this economic climate, one cannot overstate the importance of precise allocation of funds and of better management of financial resources. A key benefit of renting power is that payment schedules are fixed and regular over a contracted term. This can help mine operators formulate accurate financial forecasts.”

“Along this line, mining companies should also be mindful of associated costs that come with building or purchasing a permanent power plant.” He calls to mind the cost of spare parts and ancillary, which, he says, are indispensable to the continuous operation of a permanent power plant. “When a mine operator goes for the rental option, all spares and ancillary will be provided by the temporary power company.”

Zahid says that renting multi-megawatt power plants can also prove beneficial for mining companies seeking to optimize their manpower resources. “Mine operators will be happy to know that in hiring power plants, they will no longer need to employ new operators or allocate or re-train existing staff members to manage the plant. Temporary power providers will provide the necessary expert engineering services to ensure the faultless operation of the power station.”

Temporary power plants can also assist in reducing the energy intensity of mine operations. “Hiring power plants will preclude the chances of generators being under-utilized because the capacity of rental power generation equipment can be increased or decreased with respect to the demand of specific mine processes.”

Zahid says that as conventional power plants are usually specified to meet the peak demand of a particular site, they are left under-utilised when the power requirement decreases. “When a power plant is running at part-load, it consumes fuel less efficiently. This will no longer be the case with rental power plants on board, thanks to their flexibility and scalability.”

Part 2: Refocusing on exploration

At the peak of the industry recession, many mining companies dramatically slashed their exploration budgets in the interest of making quick cost savings. SNL Metals and Mining, a global provider of mining information and analysis, supports this observation as it reports that global exploration expenditure declined by 26% in 2014, while exploration budgets nosedived to USD 11.4 billion from USD 22 billion in 2012.

However, industry insiders, like Deloitte, a global provider of financial advisory services, caution that huge cuts in growth CapEx and exploration budgets may have extensive adverse consequences for the miners and the industry at large. Sustained exploration, they say, position mining companies for growth once the market turns. Thus, they warn that foregoing the opportunity to stake early claims may be counter-productive to long-term profitability.

And the industry appears to have heeded their advice, as mining companies and governments have gradually re-focused on exploration activities and identification of new potential assets.
“Exploration”, says Zahid, “is the growth stimulus of the resources sector. Hence, having sufficient power to sustain this crucial activity is fundamental.”

Zahid says that renting power during the exploration stage of a mining operation yields myriad advantages. “By hiring temporary power plants, mining companies will have the freedom to start with a small power plant, and then grow as operations expand. When the long-term prospect of a project is still uncertain, it may not make sense to invest in permanent facilities. Renting power, therefore, protects companies from the uncertain future of mining projects at the exploration stage.”

He also speaks about the latest temporary power technologies which make rental power plants operable anywhere in the world.  “Rental power plants are highly suitable for exploration activities in remote areas because they are containerized and modular, so they are easily transported and installed. The latest-generation temporary power plants have state-of-the-art switching and transformation systems that give them the ability to connect to any location’s grid, regardless of its age, quality or condition. This is possible even without a sub-station, as the same systems allow the power plants to assume the role of a sub-station and connect to available overhead lines or transformers.”

“Temporary power plants also have cutting-edge electric power control and protection systems, which allow them to switch operational mode, from grid to island, to base load or to standby at a push of a button in mere minutes. This is particularly useful for mining companies whose exploration activities take place in areas unconnected to the grid.”

Part 3: Embracing Innovation

In recent years, the mining industry has seen a slew of technological innovations. Technologies once regarded as tangential to the industry are now being tailored to respond to the needs of mining companies. Many of these innovations revolve around automation and the technological optimisation of established processes, primarily in response to the industry’s need to reduce costs and ramp up operational efficiency. And while some mining companies have opted to remain conservative in terms of uptake, many miners are gradually embracing the available technologies in a bid to future-proof their operations.

In a recent interaction with GineersNow, a global engineering magazine, Jean Savage, Chief Technology Officer and Vice President for Innovation and Technology Development at Caterpillar, affirms the crucial role that equipment manufacturers play in shaping the future of mining operations: “Caterpillar has spent over 90 years committed to innovation and technology that help our customers succeed. Most of this innovation has been “in the iron”. Now, our focus has to be on making the iron ‘smart’.”

“Making the iron ‘smart’ means bringing digital solutions designed to improve productivity, efficiency, safety and profitability to our customers. This is not technology for technology’s sake. It is technology that’s focused on solving, and even anticipating, customer problems. We are taking the machines, locomotives, engines and parts we’re so well known for and making them smarter, while also equipping the people who operate them with data that makes them more productive, enhances their safety and improves sustainability.”

Zahid concurs: “Caterpillar believes that be an innovator, a company must be working directly in the service of its customers. As part of the Caterpillar family, we at Altaaqa Global are proud to be well positioned to offer our clients in the mining industry the latest technologies in temporary power generation.”

“For example, it is now possible for our engineers to monitor the status and performance of our engines from any location through Cat Connect. This gives us, temporary power providers, relevant insights on the go, so we can better manage our equipment, optimize their performance or perform preventive maintenance, if necessary.”

“There is also the Cat MicroGrid Solutions, which now allows renewable solar and wind power systems of any size to be delivered to and installed in literally any location on earth. In tandem with our temporary power plants, the solution guarantees a reliable, sufficient and sustainable power supply to any mining operation anywhere in the world.”

“There are also allied technologies gaining traction within the industry. Among these are drones, which can now be used to survey mining sites before breaking ground; 3-D printers, which can now print replacement parts; and augmented reality, which can now be used by technicians to simulate repair cycles. As these technologies are developed in the coming years, we at Altaaqa Global will definitely look into possible ways of integrating them into our systems and processes to further improve our products and enhance the service we deliver to our customers.”

“The list of technologies on offer goes on. And as equipment manufacturers and service providers continue to closely work with their customers to learn more about what they need to drive the growth of their businesses, the number of available technologies will continuously increase.”

The Bigger Picture

Just as the industry went tumbling down on the heels of the boom, industry insiders believe that it is poised for a gradual recovery in the coming months. The green shoots are emerging: Commodity prices are strengthening across the board, commodities has returned to a bull market, and many mining companies are seeing a consistent recovery in value. While the market remains cautious, it welcomes the early signs of the industry’s revival.

But perhaps, ‘recovery’ does not aptly define mining’s next cycle. The recent downturn pushed the industry to redefine itself. In the face of adversity, many mining companies adopted a fresh take on how they operate, allocate resources, engage with technology and seize growth opportunities. What were originally corporate strategies implemented to survive the so-called winter have disrupted the industry and, to a large extent catalyzed its transformation. With miners rising from the downturn stronger and smarter, the next cycle of the mining industry will not only be a recovery – it will be an evolution.


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Sources consulted:
1. “Top 10 Trends for Mining in 2016”. www.australianmining.com. 17 August 2016.
2. “Caterpillar: More than Just a Business”. GineersNow. Issue 9. November 2016.
3. “Big Data for All”. www.caterpillar.com.

Why Do Mines Consume Enormous Amounts of Electricity?

Mines require copious amounts of electricity to support various functions. In fact, owing to the huge amount of work and processing that go into production, mining is one of the most energy-intensive industries in the world, accounting for approximately 5% of the global electricity consumption.

To further illustrate, in Chile, considered as the world’s largest copper producer, mining is responsible for more than 20% of the country’s total power consumption. In Zambia, mining accounts for a whopping 50% of the country’s power utilization.

Obviously, no mine can operate without electricity. And without mining, the world will see no houses, skyscrapers, vehicles, airplanes, mobile phones, laptops, computers and a gazillion other things. But, have you ever wondered just how much electricity is required to power a mine throughout its lifetime?

Let’s have a quick look at some of the energy-intensive work that takes place in a mine. There is blasting open the earth, crushing and grounding millions of tons of ore, and chemically processing the ore prior to export. Round-the-clock. Throughout the year.

Then, there are the electricity-gobbling pieces of machinery, like rope shovels. Rope shovels alone are said to require an average of 11,000 KW throughout its 20-hour operation.

There are also additional energy-consuming factors which vary from mine to mine. Let us say, the presence of underground water. Do you know that pumping out millions of liters of water every day consumes an amount of electricity so huge that it is reported by some mining companies as the largest component of their energy costs?

Electricity is vital to almost every function of a mine that having sufficient power at the site is non-negotiable. Unfortunately, many mine sites across the globe have to cut back on power consumption because of power shortages, load shedding or a limited access to a reliable power supply. Though it should be possible to reduce power consumption in some of the perceived “non-essential” areas, this can only be done for so long before it begins to affect the entire operation and, thus, the production levels.

In response to this risk, many mining companies are deciding to invest multi-millions in building their own power generation or transmission facilities. But obviously, building one’s own energy infrastructure is tremendously expensive, and this can easily jack up the capital cost for a new project. And given the current volatile market condition, and the uncertain future of nascent mines, making such a huge non-core investment may not make sense altogether.

Here, then, lies the conundrum for mine operators: Do they build their own power facility to potentially provide ample electricity to their sites but, in doing so, make a huge capital investment; or be content in reducing electricity consumption in their sites and save money, but miss out on maximizing the site’s production levels?

The truth is, mine operators are not limited to just these two choices.

For example, they can choose to rent power plants instead of building their own. In doing so, they will not have to devote, rather strap, a huge part of their working capital on a non-core investment.

During the feasibility and exploration stages, renting power plants will give them the freedom to start with a small power plant, which they can grow as their operations expand.

Can temporary power plants support mine operations even in remote areas? Sure.

Rental power plants are easily transported from and to anywhere in the world and can function in any site no matter where on Earth it is situated. Temporary power plants can directly connect to any site’s grid even without a sub-station. They can also switch operational modes from grid to island, to base load or to standby at a push of a button in mere minutes, so they can function in mine sites either as the sole source of power or in sync with the grid.

Bottom line, going for the rental option will significantly reduce a mining project’s estimated capital cost and will cushion mining companies from the impact of making a huge non-core investment in this highly volatile mining market.

So, mines consume colossal amounts of electricity because of the number of energy-intensive functions that go into their operations. And, even as the industry faces risks relating to electricity supply and access to reliable energy sources, there are power generation technologies available, like temporary power plants, which can help mine operations sustain profitable levels of production.


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Sources consulted:
“Why mines consume such large amount of electricity”. Zambian Mining Magazine. www.miningnewszambia.com. 16 October 2016.

Altaaqa Global Achieves ISO Recognition for Energy Performance

The company is the first and thus far the only temporary power provider to have its projects certified in accordance with ISO 50001:2011 standards 

After months of rigorous process alignment and extensive audit, Altaaqa Global Caterpillar Rental Power, a leading global provider of multi-megawatt temporary power solutions, has achieved ISO 50001:2011 certification from TÜV NORD, the ISO-accredited certification body headquartered in Hanover, Germany.

ISO 50001:2011 specifies requirements for establishing, implementing, maintaining and improving an energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement in energy performance within its operations and projects.

“ISO 50001:2011 is applicable to any organization wishing to ensure that its products and services conform to its avowed energy policy”, said Shibu Davies, General Manager for Certification, HSD & Lab at TÜV NORD. “This certification awarded to Altaaqa Global, the only rental power company in the world to have achieved the feat to date, is a testimony to the company’s steadfast dedication to delivering multi-megawatt power generation projects that efficiently use energy, conserve natural resources and help in combatting climate change.”

Meghana Millin, Quality and HSE Officer of Altaaqa Global, described how the company ensures that its energy policy is implemented and adhered to across its processes. “We train our sights on providing the most energy efficient and environmentally responsible power solutions to our clients. Thus, we remain committed to our energy policy from the selection of the power equipment, to the designing of the power plants, to transport, through project installation, commissioning and maintenance. Furthermore, we regularly upgrade our current installations to further improve on their energy performance.”

Majid Zahid, Altaaqa Global’s Chief Commercial Officer, shed light on how the company guarantees customer satisfaction in all its multi-megawatt rental power projects: “We ensure that our power plants maintain the highest level of efficiency by having their performance monitored and evaluated by reputable global certification bodies. This way, we assure our clients that our power projects do not only supply uninterrupted reliable electricity, but also offer cost savings and minimal operational expenditure.”

For his part, Peter den Boogert, CEO of Altaaqa Global, called upon the rental power industry to take up the cause of energy responsibility. “Being in the business of providing electricity, the onus is upon us, temporary power providers, to conscientiously mitigate the environmental effects of our operations. That is why we at Altaaqa Global are continuously developing and optimizing our power generation solutions, so they ultimately promote real economic, social and environmental benefits. We are proud to have blazed a trail in energy performance and fuel efficiency in the IPP industry.”

In 2014, Altaaqa Global has also achieved ISO 9001:2008 (Quality Management System), ISO 14001:2004 (Environmental Management System), and OHSAS 18001:2007 (Occupational Health and Safety Management Systems) certifications, making it part of an elite list of global companies to have ever completed a triple audit and received all certifications in its first year of evaluation.

Ends

About Altaaqa Global
Altaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc. to deliver multi-megawatt turnkey temporary power solutions worldwide. The company owns, mobilizes, installs, and operates efficient temporary independent power plants (IPP’s) at customer sites, focusing on the emerging markets of Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South East Asia, the Middle East, and North Africa. Offering power rental equipment that will operate with different types of fuel such as diesel, natural gas, or dual-fuel, Altaaqa Global is positioned to rapidly deploy and provide temporary power plant solutions, delivering electricity whenever and wherever it may be needed.

http://www.altaaqaglobal.com

About Zahid Group
Zahid Group represents a diverse range of companies, offering comprehensive, customer-centric solutions in a number of thriving industries. Some of those include construction; mining; oil & gas; agriculture; power, electricity & water generation; material handling; building materials; transportation & logistics; real estate development; travel & tourism; waste management & recycling; and hospitality.

http://www.zahid.com

About TÜV NORD
TÜV NORD International GmbH & Co. KG has established business relationships in more than 70 countries of Europe, America, Asia and Africa and is now represented in all major world markets. The TÜV NORD Group has combined its acknowledged competence, versatile innovative talent and also many companies who are leaders in their market segments under the umbrella of TÜV NORD International. Now, know-how developed over many years and a dedicated, 8,400-strong workforce worldwide ensure that “TÜV NORD” is accepted as a global name for safety, quality, competence and trust.

https://www.tuv-nord.com/en/tuv-nord-worldwide/

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Altaaqa Global
Tel: +971 56 1749505
rbagatsing@altaaqaglobal.com

How Can Rental Power Help Grow Mining Operations?

The mining industry has played an integral part in the history and progress of countries and communities where it exists. Many mines sites, however, are in remote locations, where power infrastructure may not exist or are still developing, or where a reliable connection to national grids can still be improved. This poses a challenge to mine operations, established and developing alike, particularly in light of the fact that without access to a sufficient or reliable source of electricity, mining companies run the risk of losing on profit, valuable production time or opportunities for growth.

Temporary power and the Mining industry

It is most advantageous to specify temporary power during the pre-feasibility/feasibility stage of mining operations, when mining companies are applying for finance. This could help them secure financing for the project.

Temporary power solutions can support the growth phase of mine operations, because they provide flexibility, scalability, risk mitigation and cost minimization. Specifying the services of temporary power providers during this stage will preclude the need for mining companies to spend scarce CAPEX in procuring their own generators or building permanent power facilities. With temporary power, mines can opt to start small, then add power capacity as their operations grow. They can pay for the rented electricity from their operational profits.

As mine operations develop and become established, mining companies will eventually find benefit in building their own permanent power plants, which, however, may take a substantial amount of time to complete. While the permanent power plants are being constructed, temporary power can sustain the mine operations. As soon as the permanent facilities are constructed and fully operational, mining companies can simply end the contract, and the temporary power plants will be immediately demobilized. This way, mining companies will not have surplus equipment, because everything was only rented.

Temporary power solutions are also beneficial for ongoing mine operations, in times of power shortage or emergency situations. When mine operations need additional power to sustain production, temporary power providers can easily deploy and install temporary power plants at their sites in a matter of days to supply continuous and reliable electricity.

As commodity prices remain depressed, and full economic recovery continues to be elusive for developed and emerging countries alike, mining companies are in the midst of challenging times. In these times, mining companies cannot afford to subject their operations at risk, owing to lack of funds or long project lead times. Renting power does not require spending scarce CAPEX that is usually related to building permanent power plants. Temporary power plants can also be tailored to any power or voltage, so there is no longer a need to build support power infrastructure to run the rental plants. Additionally, installing temporary power plants will only take days, whereas constructing a permanent power infrastructure may span longer periods of time. This means that in a short time, mine operations can be up and running, and producing.

Hiring electricity can prove advantageous for both established and nascent mine operators. It can provide operational flexibility, enhance a site’s productivity and help optimize its processes without the need for a long lead time and a sizeable capital expenditure. As mining companies realize the benefits of hiring power, it will no longer be uncommon in the coming years to see larger temporary power plants being hired on a longer-term basis within the mining industry.

End 

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rbagatsing@altaaqaglobal.com

Powering Douala: The 21-Day Installation of a 50 MW Natural Gas Power Plant that Added Reliable Power to Cameroon’s Grid

*On August 24, 2016, Altaaqa Global CEO Peter den Boogert presented at the Power-Gen Natural Gas conference in Ohio, USA. He spoke about the technology and innovations of the company's 50 MW natural gas power plant project in Douala, Cameroon. Here are the highlights of his talk.*

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Altaaqa Global’s project in Douala, Cameroon is the fastest completed 50 MW natural gas power plant (in two sites, combined capacity) in the history of the energy industry. Installed, commissioned and powered on in only 21 days, the project was completed and delivered ahead of the target 30 days.

Background of the Project:

Douala, Cameroon’s largest city, was facing challenges in meeting the electricity demand of its residents, businesses, and industrial operations. Douala’s existing power infrastructure was unable to cope with the increased demand for electricity in the city. As a result of this, long hours of load shedding was implemented in the city, bringing inconvenience and health & safety risks to residents, and financial & opportunity losses to businesses and industries. 

In recognition of the urgency of the situation, the government of Cameroon and Eneo, the country’s integrated utility provider, sought for immediate solutions while long-term energy plans were being carried out.

Altaaqa Global, together with global natural gas supplier Gaz du Cameroon (GDC, a subsidiary of Victoria Oil and Gas) approached Eneo and presented a case for temporary power solutions. Recognizing the potential of the proposal to immediately resolve the power shortage in the city, Eneo decided to hire the services of Altaaqa Global.

Innovations

The natural gas power plants had to be operational within 30 days from the time the equipment and engineering teams arrived at the site. In order to meet this deadline, installation procedures had to be done right at first instance, and the power plants had to be urgently installed and directly connected to the existing grid. 

Here are some of the highlights of the project:

Power plant design

For the power plant sites, Eneo provided locations that were already confined and that had specific dimensions and area limitations. Owing to this, the power plants should be specially designed to fit in the constrained space at the indicated sites. 

One of the major factors that contributed to the success of the power plant designs was the use of containerized, compact and modular power equipment. The fact that the equipment only required a minimal amount of space made it possible to provide ample clearance for the natural gas piping in the designs. 

Owing to this, we were able to fit the 20 MW and the 30 MW natural gas power plants in spaces approximately 30% smaller than the usually required. 

Logistical and manpower management

As the project involved the simultaneous installation of two separate power plants (one in Ndokoti (Bassa), and another one approximately 25 km away in Logbaba), it naturally required two contemporaneous shipments of equipment and deployment of two teams of personnel.  

It called for concurrent shipments of large-scale power equipment, including generators in 20- and 40-ft containers, transformers, switchgears, and medium-pressure gas trains. Two separate engineering teams comprising in-house and local engineers also had to be assembled and deployed. 

Despite the aforementioned complexity and the large number of equipment and personnel, the materials and the people safely arrived at the sites at the desired time, thanks to the collaboration among the different project stakeholders and support from different Cameroonian government agencies.

Connection to Douala’s grid

In order to work around Douala’s ageing power infrastructure, the power plants had to be able to directly connect to the grid despite the latter’s age, condition or quality. This was made possible by the technologically advanced transformation and switching equipment used in the project. 

Furthermore, the power plants did not require the construction or refurbishment of any sub-station before they can function. The power plants were able to “assume” the role of a sub-station, and directly connect to available overhead lines or transformers, particularly advantageous if sub-stations are not available. 

Environmental stewardship

The natural gas generators installed for the project comply with Caterpillar’s worldwide emission standards.  

Scalability and flexibility

Eneo required that the power plants should be able to uninterruptedly produce according to the changing electricity demand during the dry/low-rain seasons. Temporary power technologies proved to be the perfect solution to this requirement. 

Comprising high-efficiency generators, the installed temporary power plants were able to be ramped up or scaled down as the power demand increases or decreases. Owing to this, Eneo could easily choose to add or subtract power modules to the plant as necessary. 

Fast completion and urgent operation

Eneo set a strict delivery time of 30 days after the equipment and the people arrived at the site. In order to meet the deadline, the project had to be installed following a precise three-shift schedule that allowed for a 24/7 operation at both sites. The project management team, and both in-house and local engineers ensured that installation procedures were done right at first instance, to avoid redundancy and wasted man-hours. They, moreover, paid extra attention to the safety of the work area, in order to prevent injuries/casualties and, thus, lost man-hours.

The generators used for the project were configured as plug-and-play, and can be simply connected like Lego pieces. This allowed the engineering team to proceed to commissioning and testing, and power-on, ahead of schedule. 

Constant communication was also maintained with Gaz du Cameroun to guarantee the prompt delivery of the natural gas that would power the two power plants.

Impacts of the Project

Environmental impact

•Natural gas project in Douala, Cameroon is sustainable and energy efficient 

Economic impact

•Completed on budget and ahead of schedule

•Eneo did not need to spend scarce financial resources on capital expenditure or building or refurbishing permanent power infrastructure

•Utilized and monetized Cameroon’s unused natural gas reserves 

•Project represented a major gas supply contract to GDC

•Businesses and industries were again able to operate for longer hours, contributing to their productivity and profitability

Social impact

•Douala residents were supplied with electricity to carry on with their normal daily activities

•Schools, hospitals, clinics and other establishments were able to continue providing services to the people of Douala

•Job opportunities for local engineers and technical professionals

•Training for the locals, transferring valuable engineering knowledge and know-how through Caterpillar University

Summary

The project has set a standard in the energy industry by proving that large-scale power plants can be installed and delivered in record time with technical expertise, appropriate technologies, and military-precise project execution. It has furthermore demonstrated that power plants can be both reliable and environmentally friendly. Altaaqa Global believes that the project will continue to be an industry benchmark, as more emerging markets require sustainable and environmentally conscious large-scale power solutions.  

The power plants have been consistently delivering electricity to Cameroon’s national grid. Such a boost in the electricity supply allowed Eneo to bridge the power supply deficit in Douala, benefitting its residents and businesses.

“Our services may be called temporary, 

but the effects of what we do last for generations”

End

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Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com