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CCME.NEWS, covering the regional and global HVACR industry with an unwavering commitment to providing in-depth news and analyses on policy, business and technology

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MEED announces Arabian Power and Water Summit 2010

Industry leaders will analyse trends, opportunities and effective policies

Industry leaders will analyse trends, opportunities and effective policies

MEED, the region’s business intelligence provider announced that the second Arabian Power and Water Summit will take place on March 30 and 31 at the Fairmont Bab Al Bahr, Abu Dhabi, under the patronage of the Abu Dhabi Water & Electricity Authority (ADWEA). H.E. Abdulla Saif Al Nuaimi, Director of Privatisation Directorate of ADWEA, will deliver the keynote address.

The event is expected to provide key intelligence on the industry with a comprehensive analysis of the current projects in the regional power and water market, with facts, figures and forecasting. Angus Hindley, Research Editor, MEED, will update delegates on the progress of power and water restructuring programmes of key countries.

The Summit will be preceded by the Alternative Energy Forum, which will be held on March 29 at the same venue, and will also provide critical information and insights into trends within the GCC and discuss the possible implications of the Copenhagen Climate Change Conference for the region. Also under discussion will be the creation of effective and workable energy conservation policies in addition to identifying the ideal portfolio for the future generation of GCC.

According to MEED, the region’s power and water industry faces increasing pressure to generate increasing energy and water supply due to its rapid population growth in the last few years, nudging key clients and developers to act and prepare for future demand expectations. MEED estimates that new power capacity requirement up to 2015 is 7,500MW and new desalination requirement up to 2015 is 310 million gallons per day, which calls for substantial investment.

“The power and water industry is vital to ensuring the economic success of the region. So it is of critical importance that companies and individuals have their fingers firmly on the pulse of industry developments and the opportunities within it,” said Edmund O’Sullivan, MEED Events Chairman.

“Our second Arabian Power and Water Summit will host an unprecedented gathering of industry leaders and encompass prime intelligence and real facts.

Ahmed Gumatti, General Desalination Corporation, Libya, will speak on the ambitious power and water plans inhis country. Kamel Sid from Sonelgaz will provide an update about developments in Algeria. Senior representatives from Mubadala Development Company and International Power are expected to join the programme. Wartsilla, a lifecycle power solutions provider for the marine and energy markets, is the gold sponsor.


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Empower To Expand District Cooling Infrastructure

Rise in demand in Dubai attributed to increase in awareness about district cooling as an alternative to conventional AC systems.

Rise in demand in Dubai attributed to increase in awareness about district cooling as an alternative to conventional AC systems.

Empower has announced expansion plans to meet the rising demand for district cooling. The plans include bidding for more projects which want to benefit from the advantages offered by district cooling, including its environment-friendly features.

Ahmad Al Shafar, CEO of Empower

Ahmad Al Shafar, CEO of Empower

According to Empower, the announcement comes at a time when the total square footage committed to district cooling provided by it has reached 40 million square feet, covering 80 buildings in 2009, as the demand for district cooling has increased rapidly in the last decade.

In this context, Ahmad Al Shafar, CEO of Empower, said: “We succeeded in building world-class district cooling infrastructure that is considered an ideal economic and environmental solution for residential and commercial units, offices and hotels.

In Dubai, residential units are becoming increasingly aware of the importance of using district cooling system as an alternative to conventional AC systems, leading to energy saving and environment conservation, as well as lower operations and maintenance costs. This is in sharp contrast to lower awareness of its importance in other parts of the Middle East.”

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DC Breakthrough

Zamil Industrial signs Murabaha facility with NCB for one of its subsidiaries

Zamil Industrial signs Murabaha facility with NCB for one of its subsidiaries

Eastern District Cooling Company, a wholly-owned subsidiary of Zamil Industrial Investment Company (Zamil Industrial), has signed with The National Commercial Bank (NCB) the first non-recourse project financing done in the region for a district cooling project.

Zamil Industrial had signed in November 2007 a 22-year energy performance contract with Saudi Basic Industries Corporation (SABIC) for the complete outsourcing of process and comfort cooling including the building of a central cooling plant to supply 20,000 TR within the premises of Saudi Iron & Steel Company (Hadeed) in Jubail Industrial City.

The total project size is valued at approximately SR 300 million and is expected to go on stream during 2010. NCB acted as Sole Mandated Lead Arranger for a 13.5-year Murabaha facility for an amount of SR 206 million. The sponsors will bring the remaining amount as equity. The project is being developed by Energy Central Company, and advised by Gulf International Bank (GIB).

The loan agreement was signed in Dammam on January 27, 2010 by Abdulla Al Zamil, Chief Executive Officer of Zamil Industrial, and Mansoor Durrani, Head of Project Finance, NCB, in the presence of Khalil Issa, CEO of Energy Central, and other representatives from Zamil Industrial, NCB and GIB.

Al Zamil stated: “We are delighted to achieve this major milestone towards the completion of this very challenging project. The strong teamwork of advisors and financiers supporting our project developer is greatly appreciated.”

Durrani added: “We are privileged to be a part of this wellstructured Islamic project finance deal. We anticipate that there will be a number of similar district cooling projects to be financed with similar structures in the GCC, and are pleased that Zamil is the first Saudi entity to close such a transaction.”

Drake & Scull International, together with Zamil Industrial, are building the project. Zamil Cool Care will be the Operator of the various facilities.

Baker & McKenzie acted as Lender’s legal counsel, CJR Consulting as the borrower’s counsel and FVB Energy as the Technical Consultant.

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Saudi Tabreed Bags Saudi Aramco Project

Utility provider to develop district cooling system for Dhahran area

Saudi Tabreed has signed an agreement with Saudi Aramco to develop and operate a district cooling system to cool all the buildings of Saudi Aramco in the Dhahran area. Under the agreement, Saudi Tabreed shall design, construct, finance, own, operate and maintain a centralised cooling plant and a network to supply chilled water to the Saudi Aramco buildings with a cooling capacity of 27,000 TR. The agreement is for a 23-year term.

Commenting on the occasion, Mohammed bin Abdullah Abunayyan, Chairman of the Board of Directors of Saudi Tabreed, said: “This project reflects the keenness of Saudi Aramco to maintain the environment by using a district cooling system, which consumes half the electrical energy consumption as compared to that for traditional methods of cooling.

Abunayyan said that it was a matter of immense pride for Saudi Tabreed to be working on developing the project for an internationally acclaimed company such as Saudi Aramco. The representatives of Saudi Aramco showed immense professionalism during the discussions and finalisation of the project, he added. This, he further said, reflected the keenness of Saudi Aramco towards the participation of the private sector in the development of current and future projects planned by the company.

During the occasion, Nabeel Abdullah Al-Jama, Executive Director for Community Services, Saudi Aramco, said that the deal emphasises Saudi Aramco’s concern with regard to energy conservation as well as to giving a chance to the private sector to invest and work in Saudi Aramco projects, which will reflect positively on the national economy.

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Tweak, Tighten, Optimise

The mind goes back to the Summer of 2006, when we launched Chill, the bi-annual supplement for the district cooling sector.

The mind goes back to the Summer of 2006, when we launched Chill, the bi-annual supplement for the district cooling sector. Little did we anticipate at the time that the supplement would come to enjoy the goodwill and faith of the HVAC sector, in particular. And for that we are grateful.

With this issue, we are launching another supplement, called Retrofit News and Chronicle. A monthly, the supplement will track the retrofit activities in the region, including in its scope the HVACR, power and water industries.

As the name suggests, the supplement will contain news relating to ongoing retrofit projects in the region, the people involved and the products and services infrastructure available. In addition, it will feature case studies of marquee projects in the region and elsewhere and chronicle the evolutionary stages of ongoing projects. This may be a case of stating the obvious, but the aim of chronicling the projects is to get a feel for the progress being made, the challenges encountered along the way and the expertise and solutions that are put to work to surmount the obstacles.

While the focus will largely be on the building sector, be it from an energy efficiency, water efficiency or IAQ point of view, Retrofit News and Chronicle will also concern itself with industrial facilities and water and power plants. For example, a turbine inlet air chilling (TIAC) retrofit is certainly within the scope of the supplement.

This issue also is a curtain-raiser to The Climate Control Conference (C3), in Saudi Arabia. This will be our first ever conference initiative in the Kingdom. Besides the new location – so far, we have held the event in Dubai and Abu Dhabi – another reason for being excited is the mix of topics, which took a while to arrive at. While the district cooling track will feature sub topics to provoke discussion and birth ideas and solutions, the topic that has us licking our lips in anticipation is ‘Large central chilled water plants and an integrated approach to district cooling, TIAC and industrial applications’. To our knowledge, this has never been discussed, and we are eager to know the outcome.

Coming back to Retrofit News and Chronicle, I hope you enjoy reading the articles. Please do send in your comments to surendar@cpi-industry.com; the feedback will help us evolve the supplement into better shape.

B Surendar

Premium Story

2010 Edition of Climate Control Guide & Directory

Download the 2010 Edition

While this edition may appear similar to the previous edition, which incidentally received an overwhelming response, it is quite a ramp-up. For one, it contains several new products and services categories. For another, it contains a new section, called Market-Watch, which is substantial in nature and attempts to explain the market for some key HVACR components.

Download the 2010 edition of the Climate Control Guide & Directory HERE.

 

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If you would like to download the Directory to your desktop, you may right click on the link (above) or image (on the right) and click on “Save Target As …” in Internet Explorer.

Please note that you will require Adobe Reader software in order to access the download. Click the icon below to download the same.

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Pit Stop

Paul Saville, Vice President of Engineering, Stellar, shares his thoughts on engineering challenges in the region and talks with equal verve about his love for music, cars and the smell of lubricating oil in a machine shop …

Paul Saville, Vice President of Engineering, Stellar, shares his thoughts on engineering challenges in the region and talks with equal verve about his love for music, cars and the smell of lubricating oil in a machine shop …

MY BACKGROUND

I was born in Romford, east of London, in 1956. I went to the Church of England Comprehensive School, in Romford. After graduating from school, I attended The City University, London, where I earned a degree in mechanical engineering.

THE METAL WORKSHOP

There was no engineer in the family, but my parents knew from my toddler days that I would be doing some sort of engineering role. The joke in the family was that while other children were taking toys apart, I was taking them apart and putting them back together. I was good at it from a young age and, moreover, enjoyed doing it.

At 10, I started playing classical guitar and enjoyed it immensely. I liked it so much that I considered music as a career option. At 18, I had to make a decision – to go into engineering or into music. It was my high school experience that eventually prompted me to choose engineering.

The high school I attended was excellent from an academic perspective and rather unique. It focused heavily on the practical side of education. It was the only school I knew that had a metal workshop, with forge, lathes, milling machine and everything you could think of. Naturally, I was attracted to it.

For seven years, I worked with my hands in addition to studies. At 15, I was building go-karts with my mates. We even built a hovercraft. It wasn’t finished when I left, but it was a solid piece of engineering – two and a half metres in width and four metres in length.

The metal workshop helped me gain a practical knowledge of engineering before I got into a higher level of engineering.

At first, I found university to be too academic and too theoretical, but I soon managed to move on to a sandwich course set-up. It came about after I took a summer job in the engineering department of a chemical manufacturing company – Bush Boake Allen – in London. They must have liked my work, for they offered me the sandwich course, where I had to work six months with them and, then, attend six months of university. In this fashion, I alternated between the workplace and the campus till the time I graduated, in 1981.

After university, it was natural that I join Bush Boake Allen, which I did. I would have preferred to join the automobile industry, given a fondness for cars from childhood, but the fact of the matter was that the car industry in England was in decline, and many people were being made redundant. Obviously, they were not looking for new recruits. And so I went into the chemical processing industry.

FROM SOUPS TO NUTS

After three years at Bush Boake Allen, I transferred to a competitor, International Flavours and Fragrances. As the name suggests, the company made fine chemicals and fragrance chemicals.

My role at Flavours and Fragrances was that of a Project Engineer. I was responsible for finding out what production needed, produce preliminary designs and budgets, get approval for capital expenditure, do the detail design, contracts and supervision, construction, commissioning and training. It was what they call in the US as ‘from soups to nuts’.

FROM PERFUMES TO CHILLERS

I worked with Flavours and Fragrances for six years. I left the company, because I got bored. Also, there simply was not much of a career path for a mechanical engineer in a chemical factory.

I applied for and bagged a job with York International as Senior Projects Manager. This was at the company’s facility in Basildon.

A year later, I rose to the position of Contracts Manager, where I really grew from a career point of view. That was when I got involved in work in the Middle East, working on refrigeration equipment for the petrochemical industry for clients all over the world but mainly in the UAE, Kingdom of Saudi Arabia, India, Africa and Europe. That was also the period when I worked on water chilling plants for the British Navy.

In 1995, York transferred me to Texas to look after engineering and project management in the petrochemical refrigeration business. I worked on that assignment for four years, after which I got transferred back to the UK.

STELLAR TURN

I left York in 1999 and moved to work for FES Systems, again a petrochemical refrigeration equipment manufacturer, and a part of the GEA Group of Germany. I worked as Operations Manager and was responsible for engineering project management, quality assurance, purchasing and manufacturing. In 2001, I found Stellar, and it’s been a very exposed and high-profile position.

At the time of my joining – in June 2001 – Stellar were in turbine inlet air cooling (TIAC) in a fantastically fast-growing market in the US. And then September 11 happened, and the whole world economy took a bit of a hit. The power generation industry declined, and we decided to go into the district cooling market.

We did our first international job, which was a TIAC project in Saudi Arabia – the PP8 in Riyadh. In a way, it was like stepping into the past, for I had briefly worked on the PP3 in Riyadh in 1999. I was with York, then, and was transitioning back to the UK, just before quitting the company.

Stellar has meant a lot to me, because it is a family-oriented business. It still has got an entrepreneurial spirit about it, and so it is an exciting environment of constant opportunities and challenges. Somebody once said to me, “You’d never be bored here in Stellar,” and he was absolutely right.

THE UAE

With Stellar, I have had the opportunity of once again working in the Middle East. Personally, it’s been exciting breaking into the market in the UAE. There is so much happening out here.

I remember standing on the Palm Jumeirah two and a half years ago with my boss, Kurt Leibendorfer and watching the place take shape. We were on one of the fronds of the Palm. I couldn’t help thinking, “This is something exciting to tell the grandchildren.”

CHALLENGES, ISSUES

Naturally, there are challenges and issues in the UAE, considering the spurt of development. One of the challenges is the fast pace of construction. Everything is being done in a hurry. So there are frequent changes, frequent delays. Owing to the pace of construction, the infrastructure is having problems keeping up.

A lot of the problem has to do with concurrent engineering. If you work on a development, and somebody does conceptual design and size of the building and, then, they go with load requirements, we quote on the plant. But the problem is those load requirements change. It is something that is out of our control.

A possible solution to this would be to build a relationship with customers and be able to quickly respond to changes. So the stronger the relationship with clients and suppliers, the easier it becomes to face.

So yes, there is a human element to the solution. At the same time, we as a company have developed a modular approach to constructing these plants, so the building infrastructure can go in initially, but the major capital cost – the chilling equipment installation – can be phased to suit the rate at which the loads increase. At the same time, I do believe the client needs to understand how long it takes to add these pieces of equipment.

The other element we have achieved with the modular approach is to reduce the footprint of the unit and also the construction time by manufacturing the units in a fabrication facility while the building is being constructed. The skid-mounted equipment is manufactured in the US, but we want to set up a Stellar fabrication facility in the Gulf region.

Another challenge or issue in the region is again owing to the pace of construction. It is the lack of qualified and experienced people to do engineering work.

We have attempted to overcome the challenge by looking externally. We have scouted for and hired people that want to live and work in Dubai. We have, then, trained them at our base in Jacksonville, Florida, and brought them over here. Three such engineers started their assignment with Stellar in Dubai in August. The three personnel have not only received technical training and an understanding of our way of doing business but also have developed a relationship with engineers in Jacksonville. Thanks to the relationship they can call our engineers in Jacksonville at any time and get their questions answered. So this approach of hiring and in-house training has enabled us to establish core competency.

The three are, of course, mechanical engineers. In a similar fashion, we need to build up electrical engineers, civil structural engineers and CAD operators.

We have adopted this method with the knowledge that we have resources of head office while we are building core competency here. So that way, there is a back-up. For some tasks, we don’t feel the need to recruit people here. Water treatment is a case in point. We don’t have specialists for water treatment here, but we most certainly do in Jacksonville, where we have a water treatment business. So we don’t feel the need to hire people here, as Jacksonville supports us on this.

This kind of arrangement gives us breathing space, and we can build up size and competency of the engineering group here at a pace that we want to.

Yet another challenge we face, as an EPC company, has to do with energy efficiency.

We have the wherewithal to meet the challenge. If somebody can give us a load profile, we can design a system that has the balance between first cost and energy efficiency. We can design a system that has the best lifecycle costs – a balance of capital and operating costs. As an individual, I have a responsibility towards the environment.

While working on a project, I always have it on the back of my mind to further the cause of energy efficiency, water conservation, waste disposal and emissions.

TIAC is the other aspect of our business where we can improve operating efficiency of gas turbine generators. We can help utilities produce more power at a higher efficiency. Broadly speaking, the endeavour is to get more power out of the existing power plants.

We would also like to look at areas where we can use waste heat to produce chilled water for air conditioning or TIAC. The other area is to focus on plant design to improve plant efficiency. I am talking of more cooling capacity for less power. A combination of equipment selection and plant controls will do the trick.

MENTORS

My high school mentor was my metal work teacher. Though not an engineer, my father also played a role in shaping my career. My father was a very clever and handy practical person. I learnt a lot of hand skills by simply watching him at work.

My uncle was the engineer in the family. He was my godfather. If I ever needed career advice, I turned to him. From a work standpoint, I listened to older and experienced engineers. I let them talk and asked questions. That way, I did learn a lot. This approach is something that’s helped me in my managerial life – I realised the importance of sharing information with younger engineers.

MY FAMILY

I have been married for 24 years and have a 17-year-old daughter. I can say with certainty that she is not going to follow in my footsteps. She is arty, and in that way, she takes after her mother. She is in university earning a degree in International Business. My family is probably the most important aspect of my life. I say this, because it is only in the last two to three years at Stellar that I have spent travelling and being away from the family for a certain period of the year.

CARS

As far as I can remember, I have always been fascinated by cars. It was not mere fascination but an urge to work on them. I love the smell of lubricating oil in a machine shop. As a boy of 14, I used to work on cars, servicing and repairing them for family and friends. In a way, it was a sort of an exchange for use of my dad’s car!

My passion for cars helped in that it was the only way I could buy a car. That’s how I bought my first car. I picked it up as a wreck, repaired it and had it running. It was a 17- year-old Ford Cortina. I was 21, then, and in university.

My favourite cars were the Aston Martin and Jaguar. Today, I finally own a Jaguar.

FROM THE BEATLES TO CHRISTINA AGUILERA

I am very interested in music. At a young age, I learned to play the classical guitar. In my boyhood days, I was a massive fan of The Beatles. Today, I listen to classical, jazz and modern pop. My daughter says that I must be the only father that listens to Christina Aguilera. But I listen to any music if it is good music.

GENEALOGY

I am interested in genealogy and, in fact, have a family-tree maker on my computer. I collect photographs of family and of old places I have lived in. Speaking of which, I am interested in photography, as well.

I don’t remember the first camera, but my second was a Yashica SLR with which I would take black & white and colour photographs and slides. In addition to taking photographs, I also developed them, specifically the black & white ones. I got rid of the developing equipment while moving houses, but I still own the camera. It’s 30 years old but still works and takes good photographs.

PEOPLE

I like interacting with people and experiencing different cultures, which makes working in Dubai very interesting. I mean, wherever in the world would you see a 100- odd nationalities working together happily?