The Evolving Role of Temporary Power Plants

Temporary power plants are among the most popular solutions to provide electricity to communities, events, businesses and industries around the world. Temporary power plants can be quickly delivered, installed and powered on, and they do not require a huge capital expenditure on the part of the customer. They are efficiently managed and maintained by the engineers and technicians of the temporary power provider, and can be completely demobilized at the end of the contract.

It is easy to think of temporary power plants in short-term projects of a few megawatts, like in sporting events or concerts. But while temporary power providers cater to such requirements, their scope is more extensive than just “temporarily” providing electricity.

In recent years, the role of rental power plants has transcended being merely “temporary”. The industry is now witnessing projects with contracts of longer duration and of capacities that, at times, can make up a sizable fraction of the grid’s demand. Rental power plants are increasingly being utilized in baseload operation, and modern rental power plants are now able to perfectly integrate with the existing permanent power infrastructure. In certain applications, rental power generation technologies are supplying electricity to entire cities or provinces, or even countries, and are powering thousands of businesses and millions of people.

Rental power suppliers, like leading global rental power company Altaaqa Global Caterpillar Rental Power, are primed to serve projects with longer contract durations and of multi-megawatt capacities. They are able to cater to multi-year, larger-scale requirements from a wide range of industries, including utilities, oil & gas, mining, and manufacturing, to name a few. They are able to supplement a country’s grid capacity; provide on-site power for oil & gas and mining facilities; and supply electricity to process industries, for example.

Let us take a close look at utilities. Utility providers around the world partner with rental power providers for a variety of reasons. They seek the assistance of rental power suppliers when they need a speedy supply of supplemental electricity. Utility providers also collaborate with rental power companies in times of significant power supply constraint, like in hydropower-dependent countries or cities in times of drought or low-rain seasons. Utilities also avail of rental power services while waiting for permanent power plants to be completed, or when they are still in the process of raising capital for the construction of facilities or the expansion of existing grid supply. There are also utilities that hire power plants in times of seasonal shifts in electricity demand, for instance during summer.

On the other hand, mining and oil & gas facilities, being remote from the national grid, hire power plants to provide electricity at every stage of their operations throughout their lifetime. Rental power plants support the electricity needs of mining and oil & gas facilities from the nascent stages up to the most power-intensive processes. Thanks to the scalability of rental power plants, their capacities can be increased (or decreased) according to the needs of the sites.

Process industries, like consumer and industrial manufacturing, turn to rental power not only to provide electricity to their facilities during peak production season but also to ensure the reliable supply of electricity, especially in areas where load shedding is implemented and power outages are frequent. With rental power plants consistently power their operations, manufacturing companies can fulfill their production commitments and delivery obligations to their customers.

As the world’s economies grow, electricity demand will continue to increase and electrification efforts will only intensify. In recognition of this trend, rental power providers, like Altaaqa Global, are continuously working to further improve the technologies of their systems in order to cater a wider range of power requirements of varying contract duration and capacities.

If you have a multi-megawatt rental power requirement, talk to us to find out how our rental power plants can work for you. E-mail us at info@altaaqaglobal.com or at sales@altaaqaglobal.com. Alternatively, you can call us at +971 4 880 8006.

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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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Tips to remain confident at work without appearing arrogant

To be a full-fledged engineer is a feat achieved only by a select few. Being a certified engineer entails continuous dedication, persistence and tenacity, on top of limitless creativity, imagination and ambition. As such, engineers take much pride in their profession.

Many engineers exude a “can-do” attitude, swag if you may, which they bring with them everywhere they go – including their place of work. Years of intensive education and myriad surmounted adversities have armed engineers with the confidence that they hold the solution to any perceivable problem. At times, however, this beaming confidence can come off as arrogance, especially on the part of their non-engineer peers or line managers.

Being confident is an essential trait of employees, because it is one of the factors that drive their performance at work. On the other hand, being arrogant is frowned upon, and is usually the quality that rubs other employees or a company’s management the wrong way. There is a sea of gap between confidence and arrogance, and in an office setting, where perception can spell the difference between career advancement and stagnation, engineers better walk on the right side of that gap.

Here are some tips to be confident at work without appearing as arrogant:

1. Never fake it

Some people swear by the adage ‘fake it till you make it’. Well, we say that it is a trap.
Engineers who are trying to fake confidence at work are the ones who often come across as arrogant, because what they show is not what real confidence looks like. For example, they will raise their voice in a meeting, because that’s what they think confident people do. Or they will want to push their opinions and choices despite contrary empirical data, because they think confident people ought to make a grand stand.

As engineers, you no longer need to fake confidence to impress people at work. You already have it. It will come out in the way you think, express your thoughts, or present your designs or engineering solutions. You do not have to fit the mold of whatever you imagine confident people to be, because as an engineer you have an air of confidence that is uniquely, naturally yours.

2. Recognize that you are not the best in everything

Engineers, with their natural talents and educational formation, have the ability to invent or derive solutions to many challenges. They have the facility to come up with innovative methods of doing things faster and better.

To say that engineers are important members of any company’s workforce is the understatement of the century. They oftentimes hold the most crucial positions in any company! For example, in a manufacturing firm, product development engineers play the biggest role in turning concepts into products that people actually buy and use. Electrical engineers, on the other hand, make sure that facilities have enough electricity to continue manufacturing and achieving production and delivery targets.

But sometimes, no matter how good engineers are, they have to take a step back and let their colleagues shine in certain situations. Some engineers have to learn to recognize their limitations and acknowledge the capability of others.

Engineers have to understand that conceding the stage to other employees does not, in any way, diminish his experience, value or talents. Confident engineers see their colleagues as collaborators and, as such, are always ready to see the best in them. Confident engineers do not regard their co-employees as competitors in a race but as teammates in a relay towards achieving their company’s goals.

3. Embrace vulnerability

Confident engineers do not resist vulnerability. Engineers who are truly confident in themselves admit to their mistakes, acknowledge their accountability and welcome responsibility.

Being confident is not tantamount to being perfect. In fact, confidence is the foundation that makes it okay for engineers to drop the ball a few times and still know that they will be fine. Confident engineers do not put the blame on others or on the system to save themselves from a predicament. Confident engineers trust themselves that no matter how challenging a situation is, they can resolve it and emerge as better, stronger people.

Our engineers, as our other employees, take pride in their contribution to bringing reliable electricity to key parts of the world. They are guided by our shared principles of integrity, respect and tolerance, trust, professionalism, competence and commitment to excellence. For more information on our company, services and values: http://www.altaaqaglobal.com/about-us/about-altaaqa-global


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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

The Electricity Rat Race (Part 1): Strategies of the Middle East Power Sector to Keep Pace with the Energy Demand

The Middle East power sector has been striving to satisfactorily match the region’s power demand. And while the requirement is exponentially growing, investment in the sector is observed to remain incremental. Altaaqa Global, a leading global provider of multi-megawatt temporary power solutions, shares its thoughts on the current regional power market and sheds light on some of the region’s strategy to stay in, or even win, the so-called “race”. 


The demand for electricity in the Middle East has been steadily increasing in the past several years. It can be ascribed to several general factors, including constant population growth with the arrival of tourists and new residents, rapid urbanization, a remarkable spike in consumption during peak summer months, low electricity prices and gradual improvements in income levels among households and businesses. As the demand is expected to continue rising in the coming years, the need to expand the region’s current generating capacity is growing ever more urgent.

In order to satisfy the projected power demand from now till 2020, the GCC alone, which represents 47% of 148 GW of the current power generating capacity of the region, needs to ramp up its power capacity by an average of 8% year on year. This will entail an investment of USD 85 billion to add 69 GW of generating capacity, on top of USD 52 billion to construct transmission and distribution facilities.

A close look at the region’s power demand

To better understand the state of the region’s power market and the scale of expansion that needs to be done in the near future, let us throw the spotlight on the current power situations of the major countries that comprise it.

The power consumption the United Arab Emirates has more than doubled in the past 10 years. According to estimates, the UAE’s gross domestic electricity consumption will reach 141 TWh in 2020, up from 103 TWh in 2014. The considerable growth in power consumption in recent years can be largely attributed to the country’s preparations for the World Expo in 2020, during which about 25 million tourists are expected to visit the UAE.

With its current electricity demand, Saudi Arabia needs to invest at least USD 140 billion by 2020 to uplift its generating capacity from 51.5 GW to 71 GW. The persistent rise in power demand in the country is attributed, to a large extent, to its continuous investment in several sectors, including public infrastructure, utilities, healthcare and education, to name a few. Thus, the sustained construction and industrial activity, coupled with an increasing electricity demand from its residents and businesses, cause the country’s power requirements to grow.

Qatar is experiencing a period of heightened construction activity, as the country gears up for the upcoming FIFA World Cup 2022. The related infrastructure development (building of eight new stadiums, renovation of three existing stadiums, and the establishment of Lusail City), expanding transportation network (building of Doha Metro Rail and expressways), surging public and private investments, and booming hospitality sector are driving the growth of the electricity requirement in the country.

According to a recent report released by the Oman Power and Water Procurement Company (OPWP), Oman’s peak average annual growth in power demand for the next seven years will be approximately 8%, rising from 5,565 MW in 2015 to 9,529 MW in 2022. OPWP ascribed the increase in demand for power to continuous residential growth, overall economic expansion, and the rapid development in industrial estates or free zones and tourism projects.

Kuwait’s peak electricity requirement is set to almost double by 2020. From the current demand of around 15,000 MW, Kuwait’s Electricity Ministry estimates that in 2020, the country’s electricity requirement will jump to 17,000 MW. The Ministry attributes this notable growth trend to the country’s harsh weather conditions, particularly during the summer months, and the highly subsidized energy tariffs. With one of the highest rates of energy consumption per capita in the world, meeting electricity demand has become a growing concern for Kuwait.

Amidst population growth and industrial expansion, Bahrain’s electricity demand is continuously increasing. Bahrain’s available generation capacity at the moment is 3,922 MW during peak summer months, with around 600 MW of spare emergency import capacity through GCC’s interconnected grid. For the country to satisfy the projected rise in power demand, its power generation capacity needs to be expanded by an average of 6%.

It is worth noting that electricity demand is also projected in increase in other countries in the region, like Yemen, Iraq and Syria, as they embark on infrastructure rebuilding and rehabilitation, and re-establishment of a reliable power connection. As the governance and the economic climate in these countries become more stable in the coming years, their power consumption is expected to exponentially rise.

The outlook of the region’s power market

Amidst the current economic challenges experienced not only in the GCC but also in the entire region, the governments are looking towards the development of new cost-effective and efficient sources of electricity, and sustainable opportunities and approaches to reduce overall energy consumption.

For instance, countries in the GCC have set an objective that a minimum of 10% of their overall power production by 2020 should come from renewable sources of energy. A vital component of the region’s overall renewable energy mix is solar, with sunshine available across the region for the most part of a year. Industry experts estimate that 85 to 90% of the region’s investment on renewable energy is poured into the development of solar power facilities, with UAE, Saudi Arabia, and Kuwait leading the way.

Alongside the intensive drive to harness renewable energy sources is the push to develop “Smart Cities” – urban projects that capitalize on digital technology and information and communication technologies to improve the quality of life of the citizens and better manage public services, such as power, water, transportation, healthcare and waste management.

In essence, in the face of decreasing revenues from oil, governments are realizing the benefits of partnering with the private sector and independent power producers (IPP) to boost the region’s available electricity capacity. Industry experts estimate that IPPs can contribute as much as 20 GW to the region’s power supply. At present, countries in the region are rolling out various initiatives within the power sector, which aim to allow competition at the power generation level, establish separation in the market to introduce more competition, and liberalize domestic energy prices over the medium-term.

In Part 2 of this feature, we will zero in on the available power generation technologies that respond to the current requirements of the governments in the Middle East. We’ll take a close look at how these innovations can satisfy the region’s demand for reliable power, support its current drive to harness renewable energy and contribute towards the minimization of initial costs and related expenses.


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PRESS INQUIRIES
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Sources consulted:

“GCC Power Market Report 2017”. Ventures Onsite for Middle East Electricity.

“Saudi Arabia’s Unstoppable Utilities Market”. www.utilities-me.com.

“Oman forecasts annual power demand growth at 8% until 2022”. www.timesofoman.com.

“Bahrain’s Power Sector Embarks on a New Era of Development”. www.startupmgzn.com

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.


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*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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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.


-Ends-


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.

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.

End

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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”

End

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