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Ceres Power is a leader in climate technology, enabling the world’s most progressive companies to deliver clean energy solutions at scale and speed.
The company’s purpose is to help sustain a clean, green planet by ensuring there is clean energy everywhere in the world.
Join H2 View as we sit down with our guest speaker Tony Cochrane, Chief Commercial Officer of Ceres Power. Tony is a registered professional engineer and CPA and holds a BScE in Mechanical Engineering from Queen’s University and an MBA from Cornell University.
https://gasworld.tv/2024-h2-in-conversation-with-ceres-power/
Noggers, I don’t think there will be bad news from the company, if you check the last trading update (4th of Dec) they said they are well on track to meet their targets :
“ according to Dennis from the trading update : The first 6 months of the financial year from May to October already paint the early picture of a new ITM, surpassing the full year revenue of each of the last two years by about 50% in just the first half of this year. We are pleased with the improvements achieved across all areas of the company, many of which have a positive effect on how we manage cash and scrutinise capital spend. We look forward to providing a detailed update on our 12-month plan which is nearing successful on-time completion in January, and to giving insight into our longer term strategic priorities at the time of our interim results."
Add to this the high key visits from UK officials , the government green budget announced from ITM Power headquarter in Sheffield and of course last week’s visit from the chairman of Kawasaki heavy industries and his team.
I just topped up , we are only 5% above 52 weeks low so I’m expecting to see share price recovery tomorrow
But the placing shares will only be released to the market on the 28th. Is it allowed for market makers by UK law to forward sell shares which they don’t hold? I though NKD short/selling is only allowed in the US
Dec 15, 2023 Petrofac has initiated the front-end engineering design (FEED) for Neptune Energy's L10 carbon storage infrastructure that will connect to carbon capture, transportation and storage project, Aramis, in the Netherlands.
Neptune, in collaboration with partners EBN, Tenaz Energy, and ExxonMobil, envisions storing up to 5mn tonnes/year of carbon dioxide (CO2) from local industrial emitters. Petrofac's role extends to the first two phases of the L10 project, specifically L10 South (1A) and L10 North (1B), with execution led by its consulting team based in Woking, UK.
The L10-South phase entails the installation of an L10 hub/injection platform within the L10 south storage complex. Additionally, a spur line will be established, connecting the Aramis DHUB platform to the L10 hub platform. Meanwhile, the L10-North phase focuses on installing an injection platform (L10-Y) in the L10 north storage complex (L10-BE) and an inter-field pipeline connecting the L10 hub and injection platform.
https://gaspathways.com/petrofac-starts-feed-for-neptunes-l10-carbon-storage-project-in-netherlands-2445
Petrofac just tweeted:
Our Duqm project wins MEED's project of the year in Oman 2023 🏆
Turning blueprints into benchmarks. Thanks to everyone involved for making this a success. Together, we're not just building projects; we're building the future 🌍
https://x.com/petrofacgroup/status/1727624331839021230
Are you bidding for more such projects in the UAE and other Gulf states?
Having secured new work with ADNOC we continue to bid on a number of future projects, with a diverse pipeline of opportunities in Petrofac’s core MENA region. It’s an increasingly active market.
We have an extensive track record here, with exceptional capabilities to deliver and strong customer relationships.
There is a tendency by many countries in the Middle East to take on environment and climatic projects...how do you see the project outlook for Petrofac in the region...In other words, where does the company stand among major firms vying for a share in the region?
Decarbonisation is a key driver for the region’s energy sector and with the UAE hosting COP28, the focus continues to grow. At Petrofac, everything we do is connected, in one way or another, with the energy transition.
We see it as a clear opportunity for innovation, value creation and differentiation. There are many dimensions – decommissioning aging assets, reducing the intensity of existing assets, designing, and building a new generation of lower intensity hydrocarbon assets, and creating the assets of the future in areas like wind, hydrogen and carbon capture.
It is not a niche issue or a future issue and it’s companies like Petrofac that are needed to transform the theory of decarbonisation into a reality.
In early October, state-run Abu Dhabi National Oil Company (ADNOC) awarded a landmark carbon capture, utilisation and storage (CCS) project to the UK-based Petrofac, a leading international service provider to the energy industry.
The Engineering, Procurement and Construction (EPC) contract was awarded by ADNOC Gas for its Habshan Carbon Capture, Utilisation and Storage project, which has the capacity to store up to 1.5 million tonnes a year of carbon dioxide.
Prior to that, in June, Petrofac had won another project from ADNOC, which involves EPC of a new gas compressor plant to increase gas output.
“Having secured new work with ADNOC we continue to bid on a number of future projects, with a diverse pipeline of opportunities in Petrofac’s core MENA region….. It’s an increasingly active market,” said Khaled Al-Shrouf, Senior Vice President – Operations at Petrofac.
“These two strategically significant ADNOC projects see us extend our credentials in one of our home markets and deepen our relationship with one of our longest-standing clients,” he told Zawya Projects in an interview.
Excerpts
Regarding the ADNOC project awarded in October, how long will it take to be completed? What are the costs involved?
Petrofac’s legacy in the UAE dates back to 1991 and we have developed a large workforce here supporting projects in Abu Dhabi, the other Emirates, and internationally.
Our most recent award in-country is an Engineering, Procurement and Construction (EPC) contract from ADNOC Gas for its Habshan Carbon Capture, Utilisation and Storage (CCUS) project.
It is one of the largest carbon capture projects in the Middle East and North Africa and a sign of the at-scale new opportunities across energy transition for the region.
The project will be able to capture and permanently store up to 1.5 million tonnes a year of carbon dioxide within geological formations deep underground and is expected to be commissioned in 2026. The contract is valued at $615 million.
In June 2023 we were selected by ADNOC Gas to undertake another significant new project for its Habshan Complex.
That contract is valued at approximately $700 million and involves the EPC of a new gas compressor plant to increase gas output.
These two strategically significant ADNOC projects see us extend our credentials in one of our home markets and deepen our relationship with one of our longest-standing clients.
“Meanwhile, the $1.5 billion Algerian contract, being delivered as a joint venture with China Huanqiu Contracting and Engineering Corporation, is the first major petrochemicals project for both Sonatrach and Petrofac. For Sonatrach, it diversifies operations and reduces its reliance on hydrocarbon exports. For us, it extends a relationship with a key client, strengthens our downstream credentials, and demonstrates our ability to expand into adjacent sectors.”
While the bidding pipeline remains busy, and extends to Asia, Europe, and India, as well as the MENA region, Kawash says that Petrofac is taking a disciplined and selective approach. The aim is to play to Petrofac’s strengths, zero in on the most strategically significant projects, and ensure margins are protected.
An exciting and meaningful future
As it delivers on the new awards, Petrofac is on a concerted talent acquisition drive. But, with the entire sector in an upcycle, the war for talent has rarely been more intense.
“When it comes to attracting new engineers, I believe we are outperforming the wider market, especially here in the Middle East,” asserts Kawash. “Petrofac is deeply woven into the fabric of the region’s energy sector. We have been here for decades, we have an emphasis on hiring and developing local country nationals, and we care deeply about inclusion and diversity — insisting that all colleagues, clients, and suppliers are treated with respect.”
Like its peers, Petrofac has faced recent headwinds, but its employer reputation remains strong. “By helping clients to meet the planet’s evolving energy needs, we are making a positive contribution to the world around us and doing it in a positive way — with a local delivery model that enriches communities, a people-based approach that cares about personal and professional development, and a client-centric ethos that nurtures innovation and values creative problem-solving. Our success in landing prestigious projects and growing the workforce suggests that the message is resonating,” he says in conclusion.
Petrofac will be needed to turn theory into reality,” Kawash points out.
Strategically significant contract awards
With the EPC sector now in an upcycle, Petrofac has announced a string of large awards. Alongside the carbon capture facility mentioned above, these include a gas compressor station for ADNOC in the UAE, a petrochemical facility for Sonatrach in Algeria, and a multi-year framework agreement for o"shore HVDC platforms and grid connections for TenneT in the North Sea. As well as being so sizeable, they are all strategically significant, but for di"erent reasons, explains Kawash.
He reveals, “The two ADNOC projects, which have a combined value of more than $1.3 billion, see us extend our credentials in one of our home markets and deepen our relationship with one of our longest-standing clients. They are both decarbonisation related, one by increasing the production of lower-intensity gas, and the other by capturing emissions from operational assets. Also, a key factor is the Petrofac approach to in- country value, with a commitment to maximise local delivery, invest in the local supply chain, and develop local teams.
“The TenneT framework agreement, being delivered jointly with Hitachi Energy and valued at approximately $13.7 billion, is the largest in our history. So, it is significant for its scale and firmly positions us as a global leader in renewables and new energies. It also has an innovative approach to contracting and collaboration, which brings significant benefits to the client in a highly constrained supply market. This gives everyone forward visibility, and enables the delivery teams to plan ahead, secure resources accordingly, and implement a true ‘design-one-build-many’ methodology.
Broad, balanced, and immediate view of the energy transition
As the energy transition picks up pace, Kawash expects the scale of the decommissioning market to grow. But he is also clear that the energy transition won’t be linear, that the world needs a di"erent mix of energies than it has today, and that these need to be produced in a less carbon- intensive way. Hydrocarbons will remain part of this mix for decades to come, and they will coexist comfortably alongside many other energy sources.
“Many people talk of the energy transition as though it’s some future notion, which is simply about the like-for-like replacement of hydrocarbons with green energies,” says Kawash. “My perspective is very di"erent. I say the energy transition is already well underway. It is multi- faceted, and it is already central to almost everything we do — whether that be decommissioning ageing assets, reducing the carbon intensity of existing assets, building a new generation of low-intensity hydrocarbon facilities, or complementing them with renewable and alternative energy solutions, such as wind and hydrogen.”
“You must remember that a large proportion of the lifecycle emissions of hydrocarbons — up to 40% of them — emanate from the construction and operation of upstream facilities. So, as well as introducing renewables and other new energies into the mix, there is also significant scope to reduce the intensity of hydrocarbon assets. This is an area where we can make a real di"erence,” he adds.
Kawash also points out that, for several years, a large proportion of the firm’s work has involved decarbonisation. Examples include a series of major refinery upgrades, as far afield as Kuwait, Thailand, and Lithuania. In each case, the new world-class facilities enable their clients to dramatically improve the environmental performance and quality of their fuels, while also increasing their refining capacity and diversifying their business away from pure hydrocarbon production.
Meanwhile, the firm has worked in o"shore wind for over a decade. It has also been actively developing the engineering for alternative fuels such as hydrogen and its derivatives. In addition, with many years’ experience in gas handling, one of its most recent and high-profile project awards is for ADNOC’s Habshan Carbon Capture, Utilisation and Storage (CCUS) project, right here in the heart of the region.
“The MENA region’s largest energy firms are really picking up the pace,” Kawash continues. “Aside from the decarbonisation of their traditional businesses, there is real enthusiasm for alternative and complementary fuels. And, with COP28 coming to the UAE, momentum is only going to Build
“Make no mistake, I see the energy transition as an opportunity for Petrofac to innovate, di"erentiate, and meet client needs in new ways. As the transition gathers pace and more new solutions come online, proficient and proven energy services firms like Petrofac
From concept to decommissioning
Kawash is also keen to point out that, before joining, he had underestimated the true breadth of the Petrofac o"er. “Like a lot of other people here in MENA, I thought of Petrofac primarily as one of the region’s leading EPC players. We are that, of course, and have built many of the region’s most prestigious energy facilities. But we are also much more than that.”
He adds, “With a full suite of operations, maintenance and engineering consulting services, we work with clients from concept development to design, construction, commissioning, maintenance, late-life strategies and, ultimately, into decommissioning. We also train local workforces to run energy facilities, operate facilities on behalf of their owners, and o"er a full range of commercial models.
“The more integrated the approach, the more value we can bring. A great example is how we aim to drive more integration between late life asset management and decommissioning — so the former becomes more productive, the latter becomes more predictable, and everything becomes more carbon e!cient.”
Tuesday 21.11.2023
In an industry known for its volatility, 2023 marked something of a turning point. Following a decade of underinvestment, the oil and gas upcycle is well underway and simultaneously, the wider sector is doubling down on its commitment to deliver secure, a"ordable, sustainable energy. Petrofac’s innovative approaches continue to fortify its position as part of the solution to this energy trilemma, making it an invaluable ally in powering the region’s future.
This dedication is further illuminated by the appointment of Tareq Kawash as Group Chief Executive in April 2023. Bringing over three decades of rich experience, including tenures at McDermott and CB&I, Kawash’s appointment was followed by a succession of prominent contract awards. His hands-on approach has seen him actively engage at various operational sites, fostering relationships with teams, clients, and key suppliers, thereby embarking on a comprehensive journey to steer Petrofac towards a path of sustained growth.
So, what are his perspectives on Petrofac, the wider sector, and its prospects for the future?
“Before even walking through the door, I already had a good feel for Petrofac. The company had always been a key competitor; I had always seen it as a formidable execution machine, and, as a joint venture partner, I had met many of the people and been impressed by their client-centric culture. Since joining the company, these initial impressions have been validated, and I have been struck by two things in particular.
“First is the multiculturalism. Although Petrofac was originally founded 40 years ago in the USA and is listed in the UK, it’s not seen as American, or British, or any other nationality. Instead, it’s a bona fide case of global expertise with local delivery, with an emphasis on establishing long-term local operations, nurturing local talent, and drawing on local supply chains. That is a definite asset, especially in our core MENA markets.
“Second is the can-do attitude. As well as having deep expertise, Petrofac people tend to be remarkably entrepreneurial and goal-oriented. The sense you get is of a knowledgeable team, eager to devise and implement viable solutions.”
Friday 17.11.2023
In a significant move towards sustainable energy solutions, British multinational energy company BP and UK-based ITM Power are making substantial investments in Western Australia, particularly in the Kwinana region. These ventures aim to contribute to Australia’s decarbonization efforts and establish the country as a renewable energy superpower.
BP’s H2Kwinana project, located at the Kwinana Energy Hub, has achieved a crucial milestone by entering the front-end engineering & design (FEED) phase. With support from the Australian government’s Regional Hydrogen Hubs program, the project involves the deployment of a 100 MW electrolyzer, with potential expansion to 1.5 GW in subsequent phases.
The project also includes the installation of hydrogen storage, compression and truck-loading facilities, as well as upgrades to BP’s existing on-site hydrogen pipeline system. Once operational, the facility is expected to produce over 14,000 tons of green hydrogen annually for industrial use and heavy transport. The Kwinana site, a former oil refinery, is being transformed into an energy hub to produce green hydrogen and other renewable fuels, including renewable diesel and aviation fuel.
BP’s commitment to the region extends beyond the H2Kwinana project. The company has secured land for a proposed 10 GW wind and solar generation project and acquired a stake in the 26 GW Asian Renewable Energy Hub (AREH) project in Western Australia’s Pilbara region.
Simultaneously, ITM Power, in collaboration with German Linde Engineering, has conducted a business case study proposing the establishment of an electrolyser manufacturing facility in Western Australia. The facility, capable of producing 2 GW of electrolyser capacity annually, is recommended to be located at the Latitude 32 industrial zone near Fremantle Port.
The study suggests that such a manufacturing facility could add $200M annually to the state economy through associated services. Additionally, the creation of a local electrolyser system maintenance sector could generate $50 million in revenue each year, further contributing to the economic growth of the region.
The business case emphasizes the urgency for Western Australia to develop its electrolyser manufacturing capability to remain competitive against other jurisdictions in Australia. ITM Power estimates that the facility could be delivered in a 28-month period, provided there is government support, including renewable hydrogen targets, an initial co-investment of up to $50M , and ongoing electricity rebates or carbon offsets worth $5M annually.
The H2Kwinana project and the proposed electrolyser manufacturing facility have the potential to not only boost the state’s economy but also contribute to Australia’s position as a global leader in renewable energy. The proximity of the Kwinana Energy Hub & the Latitude 32 industrial zone near Fremantle Port creates a strategic synergy, fostering collabo