thought leadership presentation - cdm media€¦ · thought leadership presentation january 2014 ....
TRANSCRIPT
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Contents
Mining in Africa: Overview
Power Consumption in Mining: Key requirements and trends
Power Solutions by Sterling & Wilson
Sterling & Wilson and SP Group: Overview
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Mining in Africa: Overview (1/2)
Africa has the largest or 2nd largest reserve
worldwide for minerals like bauxite, industrial
diamonds, manganese, phosphate rock, platinum
In early 1990s, Africa was receiving only ~5% of
the global exploration and mining development
investment
However due to changes like a need for
infrastructure, stable legal systems, profit
repatriation guarantees etc., in 2012, Africa
received 15% (USD 99 bn)of the global exploration
and mining investment
Distribution of select minerals in Africa Introduction
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Mining in Africa: Overview (2/2)
Mining and quarrying of ~60 minerals represents around 20% of Africa’s economic activity
Minerals are the continent’s second-largest export category (~10% of the continent’s total exports)
Summary: The immense ore deposits and the continually improving political and economic
environment implies that the future is bright for mining in Africa
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Contents
Mining in Africa: Overview
Power Consumption in Mining: Key requirements and trends
Power Solutions by Sterling & Wilson
Sterling & Wilson and SP Group: Overview
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Mining is a significant consumer of energy; Electricity costs have increasing at much faster rate than
other cost items in the mining industry
1 ‘Towards and energy efficient mining sector’ (Eskom) 2 ‘Cost control and margin protection in the South African mining and metals industry’ (E&Y)
Cost inflation affecting South African mining industry,
average annual increase in costs (2007-2012)2
Mining sector is a large consumer of electricity in South Africa, taking about 15% of Eskom’s annual
output1
For minerals like gold & coal, electricity account for ~8%-10% of the total mining costs
Power Consumption
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Requirements for power (incl. temporary power) in mining
During mine construction
Grid supply is unavailable / unreliable (remote areas)
Before grid supply or power plant is installed
Supplemental power during expansion of mine
Emergency breakdown
Power requirements
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Key trends mining related to power in Africa
• Increase in power requirement • Mines are getting deeper and resources
are becoming more difficult to find
TRENDS IMPLICATIONS ON POWER REQUIREMENTS/
SOLUTIONS
• Use of temporary power supply for a few years
until full-scale operations; development of own
power plant later on
• Production at the mine is being started
while it is still at small operation and then
working up to full-scale mining
• Need for temporary power, as it is not worth
their while to build a power plant that will not be
used all the time.
• Ability to move power generators in and out at
a customer’s request
• Need for flexibility while mining certain
commodities like nickel, gold and copper
(mining operations undertaken only when
trading price reaches a certain level and
shut when price reduces)
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Options available for mining companies
Ownership; Tax incentives
Assured connectivity
Outright purchase of power
equipment / own captive plant
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Assured connectivity
Speed of deployment
Scalability
Lease payments are tax
deductible
Flexible terms
Reduced capital outlay
Rental power 3
Low cost Purchase from grid 1 Not available in areas
without grid connectivity;
may be irregular
Advantages Challenges
High capital expenditure
No ownership
Solutions offered by Sterling & Wilson
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There is tremendous potential for solar energy generation in Africa due to high solar irradiation. Mining
sector can leverage the opportunity available
Source: ‘The rising sun’ (KPMG 2011)
Global solar radiation map (figures in kWh/sq.m./day
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Contents
Mining in Africa: Overview
Power Consumption in Mining: Key requirements and trends
Power Solutions by Sterling & Wilson
Sterling & Wilson and SP Group: Overview
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Power Solutions by Sterling And Wilson
1. Co-gen with Diesel (cooling or heating loads, if required)
2. Conventional Diesel based solution
3. Hybrid Diesel + Solar
Technical solutions by S&W for power requirements in mining
1) Joint investment in energy plant (partnered energy supply)
2) Fuel sourcing jointly
3) Temporary power solutions (containerised)
4) Conceptualizing energy optimization
5) Maintenance solutions
S&W’s Value Proposition
1
2
3
Co-generation
• Co-generation is simultaneous production of Power and heat / cooling
from a single fuel source being burnt in a Diesel / Gas engine / Turbine.
• While the engine will deliver power for mining, exhaust can be used to
generate cooling / hot water requirements of the campus.
• This would result in reduced power demand for cooling / fuel savings on
hot water.
• For power demand in excess of 5 MW, heat can be also utilised for
additional power generation through ORC / combined cycle
1
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Co-generation technology options
Technology
• Gas Turbines from 4 MW
onwards (Dual fuel)
• Reciprocating engines from
0.4 MW onwards
Fuel Options
• Natural gas
• Diesel
• Heavy oil / Crude oil
• Bio-gas (from waste)
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Conventional Diesel based solutions
• Supply of Diesel engines
from xxx to 3000 KVA
• Full turnkey solutions with
power on tap
• Proven and tested for
continuous operation
• 400 / 6300 / 10500 KV
options
• Containerised 1 MW gen
sets
• Day tank / Radiator within
container
• Additional container for
electrical / HT systems
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Product Drawing of Containerized DG
Product Drawing of Containerized DG
Diesel Gen-Set Solar PV Module
AMF Panel Inverter Station
Inverter/Transformer/HT
Panel etc.
11KV
Fuel
Saver
Compact Sub-Station
Load
Hybrid Diesel + Solar
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Solar PV Power
System
Solar PV
Module
Solar
Inverter
AC Switch
gear Load
• Solar PV Power system consists of Solar PV module which converts Incident
solar radiation to
DC power.
• The no of Array strings will be connected to Solar Inverter which converts DC to
AC power.
• AC switchgear units will be sized to supply maximum reliable power according to
load.
Some of Technology Partners:
PV Module(Tier-1): Canadian Solar, Hanwha-Qcells,
Jinko etc
Solar Inverters: SMA, ABB, AEG, Power-One etc.
AC Switchgear: ABB, SCHNEIDER, SIEMENS etc.
Typical Case Study
5 MW Hybrid Solution with
3 MWp PV Solar
• Location: Sample Africa
• Radiation (kWh/m2): 2210.9
• DC Capacity of PV : 3MWp
• AC Capacity: 3 MW
• PV Module: 300W-Poly
• Inverter : 1000kW
• Mounting: Ground Mounted, South facing ,Shadow free
• D.G Capacity
• 5*1550 KVA + 1550 KVA ( Spare )
• Power Factor 0.8
Case Study: Assumptions
• System: Solar PV +D.G hybrid system
• Operation time : 24hours
• 6am to 6pm ( Solar PV +D.G @100% load)
• 6pm to 6am (D.G runs at constant load i.e, 2MW (Part
load)
Sample Day
• The Max. PV load sharing for sample day will be approx. 48%
Assumptions
0%
20%
40%
60%
80%
100%
120%
0:00 4:48 9:36 14:24 19:12 0:00 4:48
Load sharing pattern for sample day
% LOAD sharing of DG % LOAD sharing of PV
Load Sharing Pattern for a sample
day
Load Sharing Pattern DATE TIME % LOAD sharing of DG % LOAD sharing of PV
00:00 100% 0% 01:00 100% 0% 02:00 100% 0% 03:00 100% 0% 04:00 100% 0% 05:00 100% 0% 06:00 92% 8%
07:00 79% 21% 08:00 66% 34% 09:00 58% 42% 10:00 53% 47% 11:00 52% 48% 12:00 53% 47% 13:00 56% 44% 14:00 62% 38% 15:00 72% 28% 16:00 85% 15% 17:00 98% 2% 18:00 100% 0% 19:00 100% 0% 20:00 100% 0% 21:00 100% 0% 22:00 100% 0% 23:00 100% 0%
• System: Solar PV +D.G hybrid system
• Operation time : 24hours
• 4157hours, 6am to 6pm ( Solar PV +D.G @100% load)
• 4603 hours, 6pm to 6am (D.G only @50%, 2MW)
• The minimum DG load sharing for a year will be approx. 50% (day
time)
• The Max. PV load sharing for a year will be approx. 48%
Assumptions
Commercial: Diesel
Base Case Parameter Assumption
Size 6 MW ( 6*1500 kVA)-5 W+ 1 S
Capex 2 MUSD
Spares cost /year 0.3 MUSD average over life cycle
O & M Cost/year for the system 0.15 MUSD
Fuel consumption (1 MW base load) 242 lit/hour
Fuel Consumption- 5 working
sets/day
29040 lit /day
Fuel consumption (75% of base
load)
237 lit/day
Fuel consumption (50% of base
load)
162 lit/day
Lub oil consumption and refill- 5
working sets/day
118 lit/day
Commercial: Solar
Base Case Parameter Assumption
Size 3 MW
Capex 4.8 MUSD
Interest Rate 12%
Loan Duration 10 Years
Salvage Value 25%
De-mob Cost 5%
PLF 18%
Details of Diesel Consumption
Annual Diesel consumption at continuous load in
litre 93,78,425
Diesel consumption after installing 3 MW Solar in
litre 74,79,493
Diesel Saved in litre 18,98,932 Per Litre Diesel Cost 1.5 USD Diesel Saved 2.84 MUSD Capex for 3 MW Solar ( USD) 4.8 MUSD Payback ( Years) 1.7 Year
Co-Generation Business : Illustrative projects
Alausa Power Limited, Nigeria Shoreline Power Company Limited, Nigeria
Neptune Magnet Mall, Bhandup - Mumbai Sri Venkatramana Paper Mills Pvt. Ltd., Tamil Nadu
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Diesel Generators Business: Illustrative projects (1/3)
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Angelique International, Mali –7 nos. 2750 kVA & 3
nos. 2000kVA
Income Electrix, Sierra Leone, Africa – 8 nos. 2000
kVA
8 nos 2750Kva, 6.6 Kv Gensets Supplied , Installed and commissioned at
Mali , Africa
Diesel Generators Business: Illustrative projects (2/3)
12 Mva , 1Kv, 50 Hz Power Plant at International
Housing Group Doha
Diesel Generators Business: Illustrative projects (3/3)
Solar EPC: Illustrative projects (1/3)
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5.5MW – NW Energy Rajasthan
Best Performing Plant in India 1MW – NDPL, Delhi
Largest Roof Top Project
25MW - Visual Percept, Surel,
Gujarat
125 MW Solar Thermal – Areva, Rajasthan
Scope: Electrical Work
3MW – Tata Power, Mulshi
Solar EPC: Illustrative projects (2/3)
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5.5MW – Welspun, Kadapa, AP
5.5MW – Viraj Renewable Energy, Phalodi,
Rajasthan
36MW – BAP, Rajasthan
41MW Solar Park, Rajasthan (Under
construction)
SP in Africa : Illustrative Projects (1/4)
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DPS International School, Tema, Ghana
Seat of Government, Ghana SIAB Headquarters in Lome`, Togo
National Assembly of The Gambia
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Les Pailles Exhibition Centre, Mauritius
Mass housing project, Xpone, Ghana
Mass housing project, Setif, Algeria
Mass housing project, Oran, Algeria
SP in Africa : Illustrative Projects (2/4)
SP AFCONS was involved in the development of infrastructure for the
mining and evacuation of iron ore in Liberia (3/4)
For Internal Use Only
DSO Phase-
Iron Ore Mining Project, Liberia
Client Arcelor Mittal
Consultant SNC Lavalin
Scope Commissioning of Iron Ore crushing
units at Tokadeh
Material handling system
Rehabilitation of existing Iron Ore
Handling Wharf
Installation of Wagon unloading and
ship loading facilities.
Tokadeh
Buchanan
Tokadeh
Buchanan Completed in 2011, ahead of the
schedule 37
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SP AFCONS was involved in the development of infrastructure for the
mining and evacuation of iron ore in Liberia (4/4)
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Contents
Mining in Africa: Overview
Power Consumption in Mining: Key Requirements and Trends
Power Solutions by Sterling & Wilson
Sterling & Wilson and SP Group: Overview
Over the last two decades, the Group has grown
significantly, through both organic & inorganic means
Commenced several new business lines
Grew within India
Expanded our overseas presence
One of the oldest professionally managed construction
companies in India – established in 1865
Until the 1970s, predominantly a Mumbai-centric
construction contractor; built several iconic buildings in
Mumbai
Later increased geographic footprint to the rest of India
and overseas
First Indian construction company to venture into the
Middle East - built the palace for His Majesty, Sultan
Qaboos, in Oman (1971)
The Shapoorji Pallonji Group has a rich legacy of over
148 years of business
Taj Mahal Hotel, Mumbai
Palace of the Sultan of Oman, Muscat
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Reputed construction company in
India and overseas, providing
services to Industrial, Commercial
and Residential sectors
Leading provider of water purification, cleaning
products / systems and water projects
Leading Mechanical Electrical &
Plumbing contractor, solar and
HVAC service provider &
manufacturer of DG sets
Infrastructure developer with
presence in power, roads and ports
Leading real estate company in
India, with presence in residential
and commercial (including IT/ITES)
segments
Businesses spanning Engineering,
Shipping & Logistics and Automation
Leading provider of construction
services to the infrastructure industry
Group revenues of ~USD 2.5 billion; leaders in our chosen
lines of business (1/2)
Engineering, Procurement and
Construction solutions for
Minerals, Metals & Power sectors
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Amongst India's largest interior fit- outs
company
One of the leading facades
company in India
Manufacturer of textiles including
industrial yarns, fabrics and
garments
Agricultural company focusing on biodiesel
feedstock and other agricultural commodities
Group revenues of ~USD 2.5 billion; leaders in our chosen lines of
business (2/2)
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1 KSA: Kingdom of Saudi Arabia
Philippines
Kenya
Ghana
Algeria
Indonesia
Oman
Libya
Malaysia
Thailand UAE KSA1
Vietnam
Ethiopia
Nigeria
South Africa
Qatar
Kuwait Iraq
Note: List of countries depicted is not exhaustive
The Shapoorji Pallonji Group has a presence across several countries; with
~15% revenue from international operations and >25,000 employees across the
globe
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Currently Shapoorji Pallonji Group has the following presence
in Africa
TUNISIA
MOROCCO
SAHARA
ALGERIA
MAURITANIA
MALI NIGER
LIBYA
CHAD
Mediterranean
Sea
Sea
EGYPT
SUDAN
ETHIOPIA
DJIBOUTI
ERITREA
SOMALIA KENYA
TANZANIA
DEMOCRATIC
(ZAIRE)
CENTRAL
RWANDA
GABON
EQUATORIAL
ANGOLA
CONGO
NIGERIA BENIN
DTVOIRE SIERRA
SENEGAL
GHANA
THE
GUINEA
LIBERIA CAMEROON
SOUTH AFRICA
MALAWI
ZAMBIA
MOZAMBIQUE MADAGASCAR
ZIMBABWE
BOTSWANA
SWAZILAND Indian
Ocean
Indian
Ocean
LESOTHO
NAMIBIA
ANGOLA
WESTERN
Red
UGANDA
OF THE CONGO
REPUBLIC
BURUNDI
GUINEA REP. OF
TOGO COTE
BURKINA
GUINEA
LEONE
GAMBIA
BISSAU
Walvis Bay
SOUTH
REPUBLIC
AFRICAN
THE
AFRICA
AFCONS
SP Engineering
& Construction
SP – BD office
Ambatovy Port
MAURITIUS
Oil Jetty
Cruise Berth facilities
Iron ore mining project
Fuel Quay Repair works
at Buchanan Port
S&P Energy
Bio-fuel Project
Ebene Cyber Tower
Les Pailles Exhibition Center
Seat of Government,
Ghana
Delhi Public School
Mass Housing Project
New National
Assembly
Société InterAfricaine
de Banque HQ
The Hilton Cape Sierra
Hotel
Sterling & Wilson
Mass housing project, Setif
Masshousing Project, Oran
Hospital Project
Data Center, IBM
25 MW Gas
Power Plant
Eureka Forbes Ltd.
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Electromechanical (MEP) and Power Solutions company
since 1927
• Solar
• HT / LT Electrical system
• HVAC
• Plumbing
• Fire fighting & Fire alarm
• Manufacturer of DG sets & panels
• Started operations in 1927
• Provides complete Mechanical, Electrical & Public Health & Safety
(MEP) solutions
• Among the largest solar EPC contractors in India with a portfolio of >
300 MW
• India’s largest Electrical contracting company and third largest HVAC
service provider
• Leading manufacturer of DG sets up to 3000 KVA
• Offers Co-generation: Gas based Combined Heat & Power (CHP)
turnkey solutions
• International offices (in Dubai & Lagos) aimed at catering to GCC, North
African & sub- Saharan African countries
Overview
Areas of business
Sterling and Wilson
• Cogeneration Solutions
• Security systems
• Structured data cabling
• Building Management
Systems
• EPC (EHV sub-stations) 46
End of Presentation