thought leadership presentation - cdm media€¦ · thought leadership presentation january 2014 ....

Thought Leadership presentation

January 2014

http://www.jbic.go.jp/en

http://www.jbic.go.jp/en

2

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





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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)

9

Options available for mining companies

Ownership; Tax incentives

Assured connectivity

Outright purchase of power

equipment / own captive plant

2

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

10

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





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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

14

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

2

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

3

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)

30

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


12 Mva , 1Kv, 50 Hz Power Plant at International

Housing Group Doha


Solar EPC: Illustrative projects (1/3)

33

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)

34

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)

35

DPS International School, Tema, Ghana

Seat of Government, Ghana SIAB Headquarters in Lome`, Togo

National Assembly of The Gambia

36

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

38

SP AFCONS was involved in the development of infrastructure for the

mining and evacuation of iron ore in Liberia (4/4)

39

Contents


Power Consumption in Mining: Key Requirements and Trends



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

40

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)

42

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

43

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.

44

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

thought leadership presentation - cdm media€¦ · thought leadership presentation january 2014 ....

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