The Top 5 Economic Benefits of Hiring Multi-Megawatt Power Plants

An increasing number of industrial companies and businesses around the world are looking for various means to streamline their operations, minimize operating costs and improve their bottom line, and at the same time maintain their competitiveness.

One area in their operation that industrial companies and businesses can optimize is their energy supply and usage. It is essential that industrial companies not only manage their power utilization and energy efficiency but also assess the cost of their principal electricity source, be it from the national grid or from their own power generation facility. This is particularly critical for industrial companies operating in locations remote from the national grid, like manufacturing plants, mines, and oil & gas facilities. These companies should keenly evaluate the cost benefits of various available power supply solutions, among which are purchasing their own power generation facilities or partnering with a multi-megawatt temporary power provider.

There are several factors that come into play when choosing an appropriate power supply solution. Aside from cost, there are other considerations like timing, duration of requirement, availability of manpower and know-how, and associated servicing and maintenance. At first, investing in a proprietary power generation facility may seem optimal, but industrial companies and businesses need to closely evaluate the merits of all options available.

Here is a run-down of five of the most notable benefits of renting multi-megawatt power plants:

1. No need for large capital expenditure

When industrial companies and businesses choose to hire multi-megawatt rental power plants, they will avoid making large capital expenditure and will not be constrained to commit a significant amount of their company’s working capital to a fixed asset (in this case, a power plant). This proposition will improve their cash flow and facilitate their financial forecasting because they can pay for the rented electricity from their operating expenditure over a guaranteed payment schedule.

In addition, renting multi-megawatt temporary power plants offers the flexibility to increase or decrease the power capacity, or extend the rental period, if required.

2. Avoid associated costs

Industrial companies and businesses should be aware of the associated costs involved in purchasing a power plant. Among these are insurance, spare parts, and ancillary items, among others. These are unavoidable additional purchases they need to make to ensure that the power plant is efficiently working and delivering the desired amount of power.

In the case of rental power plants, all spares and ancillaries are taken care of by the temporary power provider, making budgeting and financial forecasting easier for industrial companies and businesses. Simply put, when hiring multi-megawatt power plants, everything related to operating and maintaining the plants is the responsibility of the power service provider so the customers can concentrate on running their businesses.

3. No need to hire new engineers or technicians

Power plants should be operated by skilled and trained engineers and technical professionals. In most cases, industrial companies and businesses purchasing their own power plant will also need to hire new staff members to run the power plant. Not only will this represent an associated cost, but hiring engineers and technicians to work in remote locations will have its own share of challenges.

This can be avoided by partnering with a reputable temporary power provider. Rental power companies, like Altaaqa Global Caterpillar Rental Power, have expert, Caterpillar-certified engineers and technicians who will take care of operating and maintaining the power plants throughout the duration of the contract.

In addition, they are also able to provide training to the customers’ own engineers and technicians so the latter can enhance their knowledge of power generation and be able to play vital roles in operating the customers’ own plants, if need be.

4. Complete demobilization

One other distinct benefit of hiring multi-megawatt power plants is that the plants can be completely demobilized when the need for power has passed or when the contract is finished. This means that there will be no customer-owned permanent power facility or equipment left that will require constant maintenance or servicing. This ultimately indicates that when the requirement for prime or supplemental electricity is finished, the expenditure associated with it also stops.

5. Complete power solutions

Rental power companies, like Altaaqa Global Caterpillar Rental Power, offer more than generators: They provide integrated energy solutions. From meeting the customers in order to precisely understand their requirements; to designing the power plants; delivering the required equipment at site; installing the power plants; commissioning, operating, maintaining and servicing them; training the customers’ own engineers and technicians; through to demobilization, multi-megawatt temporary power providers work to provide their customers 100% peace of mind so they can concentrate on growing their business.

Talk to us to find out how multi-megawatt temporary power plants can help you optimize your processes and solve your power supply challenges. E-mail us at info@altaaqaglobal.com or sales@altaaqaglobal.com. Alternatively, you can call us at +971 4 880 8006.


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How to Prevent Electricity Disruption during Peak Summer Months

In many countries around the world, power shortages, blackouts, load shedding and unscheduled electricity interruption are common during peak summer months. There are several reasons why they occur, but perhaps two of the most prominent are the spike in power consumption among residents and businesses, and not having enough power supply.

During the hottest days of the year, it is not uncommon that residents, businesses, and industrial operations use air conditioning more often. In homes and offices, multiple air conditioning units usually run all at the same time at full power to cool the temperature and keep a healthy living or working environment. In addition, in many countries schools are on break during these months so children are likely staying at home and consuming electricity as they watch TV, play with their game consoles or surf the Web on their computers. These are just a few of the reasons why power consumption notably increases during summer months.

On the other hand, in some countries, especially those that rely on hydropower, the summer months also see a reduced availability of electricity supply due to drought, prolonged absence of rain and the drying up of water reservoirs. When electricity consumption went up while the supply gradually decreased, one could imagine that what would follow are more frequent power interruption, longer blackouts, and unplanned load shedding. This would, in turn, result in massive inconvenience among residents, hampered business operations and lower levels of industrial production.

Good thing interim power supply solutions are available. Many power utilities prevent the occurrence of widespread blackouts and power disruption during the peak summer months by hiring multi-megawatt temporary power plants.

For instance, in the summer of 2013, the Sultanate of Oman hired a 24 megawatt (MW) rental power plant through the leading global temporary power provider Altaaqa Global Caterpillar Rental Power to boost its electricity supply. As the country needed an immediate solution to supplement its existing power supply, Altaaqa Global delivered the project in record-time, completing the installation, powering on and supplying electricity in just 96 hours. Altaaqa Global offered a complete turnkey power solution comprising power generators, transformers, fuel tanks, distribution panels, electrical accessories, and manpower – certified power engineers who will operate, manage and maintain the temporary power plant.

In 2014, Eneo, the integrated power utility provider of Cameroon, opted to partner with Altaaqa Global in installing a 50 MW natural gas power plant in Douala to increase its electricity supply and decrease the instances of power outages and load shedding in the city. Altaaqa Global’s gas power plants, comprising state-of-the-art power generation equipment, started supplying electricity after only 21 days from when the equipment arrived at the site. Till date, the gas power plants have been consistently producing reliable electricity to the residents, businesses, and industries of Douala.

Even as some countries may experience power supply limitation during the summer months, temporary power generation technologies are available to boost their electricity supply so they can prevent power outages and instances of load shedding. Temporary power plants are swiftly delivered, reliable and fuel-efficient, and does not require a huge capital investment. Power utilities can conveniently pay for the rented electricity from their operating expenses over a regular contracted period. Once the need for supplemental electricity passed, rental power plants could be easily demobilized, so no permanent power facility would be left unutilized or would require constant maintenance.

These are just some of the general benefits of choosing to rent power plants in times of short- to medium-term multi-megawatt power requirements. We invite you to talk to us to find out how temporary power plants can help solve your electricity challenges. Call us at +971 4 880 8006 or e-mail us at info@altaaqaglobal.com.

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How Mentorship Can Be Valuable to One’s Engineering Career

Mentorship is a two-way street, where the mentor engineers reap as much benefit as their protégés

Engineers spend years learning the fundamentals and complexities of their craft. They strive to amass knowledge to become experts in their fields and productive in their jobs. Unfortunately, not all engineers are able to apply the majority of what they have learned in their present functions. Most engineers find themselves in jobs that only require a fraction of what they actually know. Owing to this, a significant part of their knowledge becomes unutilized or forgotten, and learning opportunities start to slow down and eventually cease.

Many companies that employ engineers, like manufacturing firms Concepcion Industries or the National Steel Corporation in the Philippines, recognize that one of the foremost motivators of engineers is the prospect of continuous learning. Be it through continuing professional development (CPD) courses or industry-specific seminars and conferences, engineers welcome opportunities to acquire additional knowledge or share their expertise. In line with this, many companies are nowadays discovering the benefits of mentorship, not only to the protégés but also to the mentor engineers.

Mentorship allows experienced engineers to take apprentices under their tutelage, imparting the same knowledge and skills that allowed them to scale the heights of their careers. Through mentorship, protégé engineers can learn about best practices in engineering design, project management and equipment operation & maintenance. They can also learn about professionalism and company culture, which can come handy once they embark on their own engineering careers.

A good illustration of this is Altaaqa Global’s Customer Development Program in Cameroon, where the company mentored the local engineers and technicians. The locals were intensively taught theories on modern engineering best practices and were allowed to assume key roles at the company’s power plant sites. They were also given complete access to on-line learning platforms so they can study or review at their convenience.

As of today, the local engineers and technicians are already operating their city’s power plants and are helping deliver electricity to more than 2,500,000 residents and businesses in their country.

As stated above, mentorship is a two-way street, and the mentor engineers reap as much benefit from it as the mentees. For example, through mentoring budding engineers, more experienced engineers can activate the knowledge and skills that they don’t usually apply at work. They are able to brush up on their skills in essential subjects like Physics, Calculus and Trigonometry and refresh their memory of vital engineering formulas. At times, they also learn from their mentees’ innovative thinking, fresh approaches to old problems and knowledge of updated technologies.

Mentorship also allows both parties to expand their professional networks. Mentors and protégés can introduce each other to their respective networks of engineers or groups of engineering professionals. This can prove beneficial in gaining access to more learning opportunities in the form of industry events and educational seminars, or even to progressive career opportunities.

Mentoring also develops leadership, communication and supervisory skills on the part of the experienced engineers. As technically inclined professionals, most engineers find transitioning to management roles challenging because of the deficiency in key communication and people skills. Mentorship partially bridges this gap by exposing seasoned engineers to select functions relating to people management.

Have you ever tried taking an apprentice under your wings? Tell us your experience.


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Towards a New Reality: A Perspective on the Future of the Oil & Gas Industry

With the green shoots emerging, the oil & gas industry may have reasons to hope for, and perhaps foresee, better times ahead.

Optimism is gradually creeping in the oil & gas industry.

Background image courtesy www.gineersnow.com

Towards the end of 2016, the industry witnessed developments that herald a promising future for oil & gas. For instance, OPEC members and a number of non-OPEC producers have agreed to cut production, rig counts were steadily rising and the US natural gas sector continued to claw as it spurs the US’ rise as a global LNG exporter. M&A and divestiture activities have also started picking up.
With the green shoots finally emerging, the industry may have reasons to hope for, and to some extent foresee, better times ahead.

The general confidence, however, does come with caution. The industry and allied stakeholders admit that the recent downturn will leave long-term effects on a number of aspects of the oil & gas sector. Therefore, the collective opinion is that moving forward, the industry will be defined by the way it adapts to the changes and responds to the salient issues confronting the sector.

Below, we take a look at a few talking points (on partnerships, shortening project cycles, and manpower) and shed light on certain business and operational strategies that oil & gas companies may espouse.

Strategic partnerships with specialists

The industry is increasingly seeing new forms of business alliances. The industry once dominated by generalist companies (or those that discover, develop and operate an oil or gas field and provide all other allied services) is evolving into one that features partnerships among specialists in specific aspects of the operating environment. Such a collaboration offers the opportunity to leverage the specialties of the various entities involved. It furthermore ensures that each relevant process within the operation is looked after by companies most able to manage them.

Courtesy www.gineersnow.com

This is exemplified in the partnership of international oil companies and specialists, like British Petroleum (BP) and exploration company Kosmos to seek assets in Mauritania and Senegal. Then, there are oil-field services providers, like Schlumberger, Halliburton and Petrofac, which aligned with various oil & gas producers to offer their integrated field management services.

Oil & gas entities are also partnering with power services provider to ensure the continuous supply of electricity to their operations wherever they may be. The importance of electric power in oil & gas facilities cannot be understated, and by collaborating with reputable power providers, oil & gas companies can increase their production, avoid downtime and enhance operational efficiencies while minimizing operational expenditure.

A shift to shorter-cycle projects

At the height of the downturn, the industry saw a staggering USD 620 billion worth of projects through 2020 deferred or canceled. This fact epitomized the real risks of operating within the industry amidst the prevailing market situation. This, therefore, prompted oil & gas companies to train their sights on more viable shorter-cycle projects.

Courtesy www.gineersnow.com

For oil & gas companies, dealing with shorter-cycle projects entailed a new mindset, a heightened attention to capital allocation and more innovative ways of doing business. For example, in shorter-term projects, it may no longer make sense to devote a large chunk of capital to permanent facilities, like power generation systems, which will only serve for a limited time. In this case, instead of building their own power plants, oil & gas companies can choose to rent temporary power plants for the duration of the project.

By renting power plants, oil & gas companies, like ConocoPhillips, EOG Resources, and Anadarko, will no longer need to invest a huge amount towards the construction and operation of a permanent facility, and will no longer have to grapple with substantial upfront costs. Oil & gas companies can conveniently pay for the rented electricity from their operational profits, and can easily plan for their financial allocation throughout the project because payment schedules are fixed and regular over a contracted term.

Once the project is over, the rented power plants can be rapidly demobilized by the power provider, thus leaving no permanent power facility not utilized or that will require further maintenance and service.

An encouraging manpower landscape

At the height of the downturn, oil & gas companies had to streamline operations to survive the recession. This resulted in massive job cuts, estimated to have affected more than 100,000 through November 2016.

Courtesy www.gineersnow.com

On a positive note, the layoffs have ebbed in recent months, and encouraging numbers of oil-related postings for oil-producing states have started to manifest. But, despite the gradual increase in manpower requirements within the energy industry, most oil & gas companies remain lean and conservative in recruiting new employees.

This is another area where renting power can prove to be advantageous. A full temporary power service includes expert manpower to install, operate, maintain and service the power plants throughout the project. This means oil and gas companies will not need to hire, re-train or transfer employees to manage the power plants.

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

Marching on to the future

The oil & gas industry has proven time and again that it has the ability to reinvent itself in the face of challenging times. The tough last couple of years has prompted the oil & gas sector to tighten its belt in order to thrive in an environment of low oil prices. Looking to the future, the emerging oil & gas industry will largely depend on how it reacts to its new reality. With the appropriate business strategies and responses to prevailing industry issues, a more resilient sector can emerge from the rubbles of the downturn.

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Sources consulted:

http://www.strategyand.pwc.com/trend/2017-oil-and-gas-trends

http://www.epmag.com/2017-outlook-optimism-abounds-oil-gas-sector-1454786#p=full

http://deloitte.wsj.com/cfo/2017/01/04/the-slow-road-back-oil-gas-industry-outlook-for-2017/

https://www2.deloitte.com/content/dam/Deloitte/us/Documents/energy-resources/us-er-2017-oil-and-gas-industry-outlook.pdf

https://www.forbes.com/sites/rrapier/2016/08/08/the-top-10-u-s-oil-producers/#31a8e4e76d20

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
Altaaqa Global
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

How Can Rental Power Plants Support the Predicted Growth in Electricity Demand?

We now live in a world where virtually everything requires energy, and where a momentary interruption in its supply can throw economies and societies into disarray. And as the world will need more of energy, industry stakeholders should, therefore, keep a close watch on its efficient production and utilization to ensure that it will be sufficient for the coming generations.  

Experts predict that global energy demand will continue to grow through 2050. In a recent article, McKinsey and Company, a global research and information firm, revealed that the global requirement for energy will grow by an average of 0.7 percent a year through 2050. This growth rate is notably lower than the current two percent, owing to digitization, slower population and economic growth, greater efficiency, the decline in demand in Europe and North America, and the global economic shift toward services, which use less energy than the production of goods. Despite this decline, it cannot be ignored that there is still a critical need to meet the future demand if the world is to have a continuous and reliable supply of energy.

Electricity will account for a quarter of all energy demand by 2050. McKinsey predicts that more than 75 percent of new electricity capacity will come from wind and solar. Thus, wind and solar power generation are expected to grow four or five times faster than every other source of electrical power.

As a global temporary power solutions provider, we see this as a welcome development in increasing the availability of electricity in areas that require it, and in diversifying the energy mix to encourage long-term energy security.

Multi-megawatt temporary power technologies are primed to work in tandem with renewable energy sources to help surmount issues of power supply unpredictability and intermittency, especially in power-intensive industries like oil & gas, construction, and utility power generation, transmission and distribution.

Temporary power plants can also provide supplemental power to renewable energy facilities during planning, manufacturing, installation, commissioning, operations and maintenance. Temporary power plants can help ensure that renewable energy plants are constructed and delivered on time and as planned, and that they remain efficient, reliable and in optimum condition at all times.

As a global player in the rental power industry, we recognize the ever-important role that electricity plays in the promotion of progress and development in countries around the world. As such, we continuously work on innovating and engineering power generation systems that efficiently responds to the energy needs of the times. For more information on rental power plants and how it can help power your industry, please visit http://www.altaaqaglobal.com

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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.

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How Much Do You Know About Renting Electricity?

You know that you can rent a car, a flat, or even songs and movies. But, have you heard about renting power?

Renting affords numerous advantages, particularly to transient users, or those that use a particular item for a limited period of time. Think about renting flats, cars, movies or costumes. When you don’t see yourself living in a city for a long period of time, will you still invest in buying a home? When you expect to sparingly use a car, will you still spend on acquiring one and shell out for servicing and maintenance throughout its lifetime? For someone who simply likes to watch a new movie and does not fancy collecting films, will it make more sense to rent it than to actually buy a copy of it? Would you like to wear that Dracula costume every year to a Halloween party? I guess not.

There are many things that you can rent, but have you any idea about renting electricity? Yes, electricity can be rented, and it is a viable solution to energize numerous communities around the world that still lack access to reliable electricity. So, how does that work?

Basically, when a power utility company, a manufacturing firm, a mine operator or a government chooses to rent electricity, what they actually get is a complete, temporary power plant, designed, tailored, delivered, installed, operated, managed and serviced by a temporary power provider. All the equipment are owned by the provider, and the customer does not have to nvest in anything related to capital. Similar to renting any other item, the customer only has to pay for the product or service while he is using it – or in this case, for the electricity generated during the contract. This means that the customer can simply pay for the services of the rental power provider from his OPEX or operational expenditure.

Rental power plants are unlike permanent power plants. They are made up of modular power equipment, generators, transformers and other ancillaries, and can be simply connected “plug-and-play”-style. Because of this, they can be easily delivered from and to anywhere in the world, and can be made operational within days. Customers need not wait for years or decades obtaining approvals, financing and waiting for the completion of construction. Remember when you rented a car? The car was ready and was immediately handed over to you, right? And when you rented a flat? Did you have to wait for years for the building to be built before you could move in? No. Upon making the first tranche of payment, the keys to the unit were readily given to you.

When the need for supplemental electricity passes, a rental power plant can be simply uninstalled and demobilized, of course, by the temporary power provider. This means that there will be no permanent infrastructure left behind that will need constant maintenance and servicing. Simply put, the utility provider, the mining company, the manufacturing firm or the government stops spending when the need for supplemental electricity is no longer there.

To summarize, here is an illustration of what is involved in renting electricity:

We said above that renting electricity is a perfect option for energizing communities around the world that still do not enjoy the benefits of reliable electricity. Turning to temporary power solutions is a fast, efficient, safe and cost-effective way to gain access to consistent electricity. As governments, utility providers and allied stakeholders implement long-term energy plans, temporary power plants, working alone or in tandem with other sources of electrical power, can urgently provide the required electricity anywhere and anytime it is needed. 

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Pros and Cons of Different Fuel Options for Power Plants

In our previous article, we discussed lifecycle costs associated with the operation and maintenance of power plants, be they temporary or permanent. We said that though fuel represented the highest lifecycle cost, it was also the easiest to predict and calculate. In this article, we will look into some of the fuel options available for power plants, and identify some of their advantages and disadvantages.

Different fuel options are important in designing systems that respond to individual energy needs, budget concerns and fuel availability. Each fuel type has its benefits and drawbacks, so it is essential to take some time and research on the best fuel option during the system design process. Some fuel options available include natural gas, diesel, HFO and renewable fuels, such as vegetable oils, animal fats, and bio-diesel.

Natural gas is gaining ground as a cost-effective fuel solution, because it burns cleaner, and lengthens maintenance intervals and component lifetimes. There are multi-megawatt temporary power plants composed of natural gas generators that are designed for low-emission operation and fast set-up. Running on natural gas, these generators comply with worldwide emission limits even without after-treatment. Some observed disadvantages of natural gas are its limited availability and high costs of installing safe and reliable fuel delivery infrastructure. These, however, are gradually being solved owing to the increasing availability of gas and the opportunities in bigger and longer-duration projects opening up for gas power plants.

Diesel’s trump card has always been its availability, safety and economy, and ease of installation of power generation systems running on diesel. Diesel power generation systems are known to be reliable and flexible and are equipped with state-of-the-art technologies that allow them to run on a variety of fuels. Some noted disadvantages of using diesel as a fuel are the observed fluctuation of its price and environmental stewardship issues. The good news is that with cutting-edge power technologies made available by global temporary power providers, these observed issues can be mitigated.

Heavy fuel oil or HFO is available worldwide and engines running on this fuel are relatively common, but HFO has been observed to contain contaminants that increase component wear. Recognizing this, temporary power plant providers are making sure that they have intermediate systems that refine the fuel, reducing the contaminants and further enhancing the quality of the fuel. When choosing a power partner to run an HFO power plant, it is vital to make sure that the provider has these technologies available in order to lower the chances of reduced component life and higher maintenance costs.

Dual-fuel engines are another option to be considered. Though these engines are observed to have higher initial costs compared to single-fuel engines, they have the capability to provide the high-level of fuel flexibility that operators specifically require. Global temporary power providers can offer bi-fuel technologies that are specifically engineered to reduce fuel costs. For instance, there is a technologically advanced power system that uses a combination of 70% gas and 30% diesel, which will have a positive impact not only on fuel costs but also on emissions.

Alternative, reliable fuel options like vegetable oils, animal fats, and bio-diesel can also be utilized, but these require fuel treatment equipment. It may be helpful to note that the additional equipment may increase the initial capital costs and maintenance costs.

Different fuels have characteristics that influence their applicability. Depending on the location, budget, energy requirements or available technology, one fuel may be preferred over another. Experts say that it is still best to go with the clean fuel option, as this will result in longer component life and less performance degradation. But, thanks to the cutting-edge auxiliary technologies introduced in today’s power generation technologies, even the less clean fuels become viable options in specific situations.

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Reference:

Steffens, David. “Lifecycle Cost Considerations when Choosing a Power Generation System”. Caterpillar Power Generation Systems. February 2013.

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Some Insights on Lifecycle Costs Related to Power Generation Systems

One cannot overstate the importance of electricity in people’s lives today. We all rely on electricity for a wide range of reasons, and we expect nothing but an uninterrupted supply of electricity that meets our power requirements. Thus, power utility providers strive to produce electricity not only consistently, but also efficiently in order to provide the most cost-effective solutions to their customers.

Even as power plants, temporary or permanent, differ according to several factors, they all need to be designed, operated and maintained properly, because even a minute irregularity in their operation will result in a dramatic change in their overall output. Poor power output, then, leads to lower efficiency, which in turn, brings higher lifecycle costs.

A close look at lifecycle costs

Any costs related to the operation and maintenance of the power plant during its lifetime are included in the lifecycle costs. Part of this are expenses related to fuel, scheduled and unscheduled maintenance, labor, and lubricant oil, among others. It is advisable to have a thorough upfront planning for the aforementioned costs in order to effectively mitigate the risk of the occurrence of any unplanned costs.

Several factors contribute to the lifecycle costs of a power generation system. Costs, like operation- and maintenance-related expenses, can be anticipated and, thus, must be taken into consideration at the nascent stages of the project. On the other hand, unanticipated costs are harder to predict, so proper planning is required to minimize their impact. Having a proper preventive maintenance program, conducting regular emergency training and setting solid contingency plans are vital to preparing for both anticipated and unanticipated costs of power generation systems.

Fuel Costs

Experts agree that even as fuel constitutes the highest lifecycle cost, it is the easiest to foresee and calculate. Fuel costs are related to the specific fuel oil consumption (SFOC) at different loads, the operating profile of the plant and the fuel price. Other factors that affect fuel costs include efficiency degradation and the wearing of engine components.

Maintenance Costs

Another important lifecycle cost is maintenance. It is helpful to note that some engine and auxiliary equipment parts, like fuel injection nozzles, piston rings, and bearings, are designed to be wear components. Thus, they need to be replaced based on the standard component life or, in some cases, if wear limits have already been exceeded. Therefore, close monitoring of such components is vital, because when a component’s useful life has been reached, the risk of system failure notably increases.

Equipment operators and maintenance specialists have to be aware of notorious contributors to premature component wear, which include dirty lubricant oil or fuel of inferior quality. In this light, it is important to have a proper predictive maintenance program to early detect problems.

Labor

Labor is another lifecycle cost to be considered. Labor costs vary according to local labor rates and regulations, operation profile, plant availability requirements and required skill level. Whoever is in-charge of plant staffing should take these factors in consideration in preparing a manpower strategy. Experts suggest that the planning team should keep abreast of current local standards and practices to correctly forecast labor costs.

While some costs are inevitable over the course of a power generation system’s lifecycle, an efficient predictive and preventive maintenance program is key to reducing unnecessary costs. But lower costs is not the only benefit of properly planned and implemented maintenance programs: They can also reduce the risk of a major system failure while increasing system efficiency. As the experts say, the goal of a power plant operator is simple: Operate effectively for as long as possible while reducing costs and maximizing profit over the duration of the power generation system’s lifecycle.

End

Reference:
Steffens, David. “Lifecycle Cost Considerations when Choosing a Power Generation System”. Caterpillar Power Generation Systems. February 2013.


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How Caterpillar is Capturing the Imagination of its Customers

What do Snapchat and Caterpillar have in common? You could argue that both have unmistakably established their brand with that familiar yellow. However, one particular trait the social media phenomenon and the heavy equipment manufacturer share may not be as obvious: their unique uses of Augmented Reality to enhance and ultimately transform a user’s experience.

In simple terms, AR allows virtual objects to appear in front of you, as though they are in the real world. So, what’s the benefit for Caterpillar?

This technology is being deployed as a new way for operators to receive and communicate critical information and standardize complex processes through the use of sensory inputs such as sound, video and graphics.

While wearing a pair of AR glasses, job site information delivered becomes interactive and able to be digitally manipulated by an operator.

“Just think about sitting in your car, and no longer having a physical dashboard. Then, when you put on the AR glasses, all of that information – dashboard gauges, radio, switches, etc. – appears along with the ability to interact with it,” says Lonny Johnson, a senior engineer at Caterpillar.

By superimposing the right information in the right place at the right time, Caterpillar can simplify the overall electrical complexity of a machine’s cab. AR glasses also allow the operator to customize his or her machine interface.

For less experienced operators, a pictorial map can be especially helpful. “It allows operators to experiment with radically different interfaces, and receive guiding commands about those interfaces,” Johnson said.

By investing in this technology, Caterpillar is able to reduce costs, increase efficiency and enhance job site experiences.

“Caterpillar embraces parts, pieces, and products that are part of 21st-century life. In doing so, we are no longer confined to the area of the display,” Johnson said.  

Whether you are using Cat® yellow iron to move dirt, or just snapping yourself next to it, AR technology is dramatically changing the landscape of its respective industries.

*The article was originally published in Caterpillar's website: http://www.caterpillar.com/en/company/chi/ciw-ar-cab.html?utm_source=facebook&utm_campaign=CaterpillarInc&utm_term=sf50356728&utm_medium=social&utm_content=innovation_Customer/Dealer/Product&sf50356728=1

For more information on temporary and rental power technologies: http://www.altaaqaglobal.com

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Temporary Power: Keeping the Cold Chain from Breaking

The cold chain plays a vital role in the global production, trade and delivery of food and pharmaceutical commodities. The increasing market demand for safe, quality food and pharmaceutical products has heightened the importance of keeping them at the optimal temperature, from manufacturing to consumption. Food and pharmaceutical companies strive to ensure the integrity of their refrigerated products, yet real instances of temperature abuse along certain points of the cold chain threaten to compromise their safety and quality.

In the food industry, keeping products in refrigerated storage facilities is one of the most extensively practiced methods of controlling the growth of microbes in perishable or potentially hazardous foods. Although the microbial flora of food products is affected by many factors, the length of storage time and the temperature at which food commodities are kept have been proven to have the greatest impact on their safety and quality. Therefore, food manufacturing and storage companies, together with their allied entities like grocery stores and hypermarkets, have to constantly monitor and maintain the required temperatures throughout the food continuum – from processing to storage and distribution.

Over at the pharmaceutical front, manufacturers and health professionals around the world have striven to develop the pharmaceutical cold chain to ensure that critical medicines and vaccines, among other essential health-related requirements, are safely and readily available. Medical and pharmaceutical products, just like food, require constant temperature control throughout the production and distribution chain. Vaccines, for instance, are sensitive to both heat and cold, so they need to be kept at precise temperatures from manufacture to the point of use. Blood has to be properly refrigerated and stored to remain usable, while HIV rapid test kits, pediatric ARV drugs and other testing reagents must all be stored in climate controlled conditions to remain effective.

The real threat of power interruption and consumption limitation
The demand for electricity has been steadily increasing all around the world. Owing to the continuous growth in population, expansion of industrial activities and improvement in the standard of living, many countries have been seeing a remarkable spike in energy requirements, particularly during months of extreme temperatures and/or peak industrial production. While a surge in power demand may be indicative of an active and growing economy, it can rein in the economic and industrial progress of a country if the existing power infrastructure is not able to keep up with the electricity requirement – a scenario usually witnessed in emerging regions. When the electricity demand consistently outstrips the supply, power facilities may become overburdened, and, as a consequence, load shedding, electricity outage or total blackout may ensue.

The cold chain will be adversely affected by load shedding and regular power interruption. Without a constant and reliable supply of electricity, food and pharmaceutical manufacturing, storage and distribution facilities will find it challenging to maintain the optimal temperature required to deliver safe and quality products. Procedures carried out in the manufacture and storage of food and pharmaceutical products involve highly precise temperature requirements that even a momentary power outage will render an entire batch unsafe and unusable. When the quality and integrity of food and pharmaceuticals have been compromised, they will have to be disposed of than pose health risks to consumers, resulting in financial and operational losses in the area of millions of Dollars.

Food and pharmaceutical manufacturing, storage and distribution facilities have attempted to lobby for the exemption of their industries from load shedding or peak lopping. However, in light of a highly limited power supply, governments and utility providers have found it difficult to grant them their request, since any additional power supplied to the food and pharmaceutical industry would be at the expense of households or other industries.

Several food and pharmaceutical entities have endeavored to work around the problem by employing local electricity generation systems within their facilities. Unfortunately, the local power sources were not always able to sufficiently produce for the extent of the production load, and are thus incapable of supporting the operations of large-scale manufacturing, storage and distribution facilities.

Instances of load shedding, power interruption or consumption limitation can occur at any time, hence food and pharmaceutical facilities will need large-scale supplemental or back-up power systems that will be able to generate the required electricity at any given moment. They will find benefit in employing power generation systems that will seamlessly supply power to their industrial operations as soon as the electricity from the grid is interrupted, so temperature abuse at any point of the cold chain can be averted. When the safety and integrity of food and pharmaceuticals are ensured, consumers will be spared from health risks, and companies will be able to run operations as usual and avoid losing millions in revenue.

The benefits of rental power to the cold chain
When the power supply is unstable, and when instances of power interruption are unpredictable, food and pharmaceutical companies can find huge benefits in espousing a proactive stance and hiring the services of temporary power providers. Electricity plays an undeniably vital role in the climate control of production, storage and distribution facilities, and rental power plants can provide the necessary electricity without the need for food and pharmaceutical companies to spend scarce CAPEX. Instead of pouring a sizeable initial investment in permanent power infrastructure (which can take several years to complete) or in local power generation systems (which cannot always guarantee the precise amount of electricity required by large-scale facilities), food and pharmaceutical companies can pay for the electricity produced by hired power plants from their operating revenues. During peak production seasons, food and pharmaceutical companies will also be able to add power modules that will increase the rental power plant’s generation capacity.

The large-scale rental generators that make up the temporary power plant are modular and containerized, and can be rapidly delivered to and installed anywhere in the world, and can support the requirement of even the largest production, storage or distribution facilities. They are fully able to function even in remote locations, and in sites where traditional power infrastructure is outdated, damaged or absent.

The investment required to set up a rental power plant has been proven to be marginal compared to the cost of foregone opportunities, wasted man-hours, discarded products or lost lives.

Keeping the cold chain intact
The safety and quality of food and pharmaceutical products largely depend on the integrity of the cold chain. Instances of temperature abuse at any point of the cold chain could bring about serious health risks to consumers and calamitous financial and operational losses to food and pharmaceutical companies. In times of load shedding, peak lopping or unpredicted blackouts, rental power plants, either as a stand-alone solution or support to conventional or local power systems, can guarantee a reliable and continuous supply of electricity, so food and pharmaceutical manufacturing, storage and distribution can conduct business as usual.

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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”

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