Event 22nd May 2014 Prince Philip House London Delivering the Future Caterpillar Established 1925 by Benjamin Holt and Daniel Best Worlds leading manufacturer of Construction and Mining equipment Diesel and natural Gas engines and industrial Gas turbines ID: 235309
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CHP/District Heating Conference & Networking Event, 22nd May 2014 – Prince Philip House, London.
Delivering the FutureSlide2
Caterpillar
Established 1925 by Benjamin Holt and Daniel Best
Worlds leading manufacturer of Construction and Mining equipment, Diesel and natural Gas engines and industrial Gas turbines.
Turnover: 60 Billion US Dollars (2011) – GBP 37.8 Billion
Profit: 4.9 Billion US Dollars (2011) – GBP 3.1 Billion (8.2%) Employees: 125,099 Route to Market: Independent Worldwide Dealer Network Dealer Employees: 127,000 Caterpillar Dealers Worldwide: 188Slide3
Finning and Caterpillar
Established 1933 By Earl B Finning
Exclusive Dealer For Caterpillar
Western Canada (Alberta, BC, NW Territories & Yukon),
UK & Ireland, Argentina, Chile, Bolivia, Uruguay Turnover: 5.9 Billion CAN $ (£3.8 Billion Pounds) in 2011Canada 50%, South America 36%, UK 14% EBIT: 380 Million CAN $ (244 Million Pounds) in 2011 (6.4%) Employees: 11,900 of which 5,300 are skilled technicians
World HQ in Vancouver, Canada.
Toronto
Stock
Exchange FTT.TO World’s Largest Caterpillar Dealer If its CAT we sell it and maintain itSlide4
Global Locations
Who Are Finning ?
Vancouver
Edmonton
Fort McMurray
Santiago
Antofagasta
Finning
South America
Finning UK
and Ireland
Finning
Canada
Cannock
Revenue £2.4bn £1.3bn £0.5bnSlide5
Finning in the UK and Ireland
Finning (UK) LtdHeadquarters in Cannock
23 Branches
About 1600 people
Major business units:Equipment SolutionsPower SystemsProduct SupportTurnover about £525m in 2011Businesses: Cat, Diperk, Rollo, Damar Group , Murray ControlsSlide6
Power Systems
Equipment and Installation Business700 Employees
Power &
Energy, CPCT
Commercial Marine & Offshore Petroleum Pleasure Craft Industrial & EP Retail Diperk, Rollo (Damar, MCS) Turnover GBP 220 Million£180 Million – New & Used Equipment
£40 Million – Parts &
Service
International experience – 43 countries Lifecycle support 24/7 operation Manned telemetry
Parts logisticsSlide7
Specialist EPC Contractor
Global Turnkey EPC Solution provider
Infrastructure, Power Generation, Mission Critical, Renewables, UtilitiesSlide8
Green Park Energy Mines Gas – Fully Risk Transferred
Landscape, building, fencing, engines generators, power, connection CAT finance £20m – 12 x 3520, 24 MWe, over 6 sitesSlide9
Canary Wharf
4 x 3516, 1.8 MWe at 11kV, on acoustics floor cast in place, above directors offices, standbySlide10
Thames Water – 1. Biogas CHP 6 MWe 2. Biodiesel
Finning sponsored research student at Brunel into biodiesel. Not as simple as it sounds. 5 x 3516, 8 MWe
Biogas plant currently being fitted with steam boiler for
Cambi
plant designed and installed by FinningSlide11
Silent Valley Landfill and Biogas
Prototype 3520 joint development CAT and FinningSlide12
BNHJV Mission CriticalSlide13
BNHJV Energy Centre
Complete turnkey energy centre 6 x gas engine chps 3516 1.2 MWeSlide14
Green Energy and CHP
Southern Water Biogas to powerSlide15
Process CHP
Natural gas chp for process heat and power – pharmaceuticals – 3516 1.2 MWeSlide16
Digester Technology
New food waste digester for Wessex Water, including waste
reception,
maceration, hammer milling
etcSlide17
Caterpillar 3408 turbocharged 255 kWe gas engine gasifier for wood chip
Obtained 220 kWe from natural gas engine – 1990Slide18
Waste cooking oil derived fuel to power 10 x 1820kWe diesel engines
CAT 3516BHD diesel
sets developed and optimised by Finning for the purpose of running on the
bespoke fuel
EPC by Finning, Gensets by CAT, all works inc civils and M&E by Finning or Finning owned companies, risk transfer for availability and outputFunded by CAT finance and 7 year O&M BY FinningSlide19
Other engine based projects Finning are pursuing with clients
Some of the planed
projects
in which Finning
CPCT is taking full EPC responsibility:wood to gas engine power via gasifier Waste incl. RDF to gas engine power via pyrolysis tallow to power via diesel engine Slide20
How To Procure CHP that works (1)
Initially use a third party consultant to monitor in detail your plant and to scope out likely size of power plant , fuel, vendor options etc based on detailed monitoring and
modelling, a not insignificant task
Its then essential to then let each engine or chp supplier to design, spec and quote for the total design – buildings, pipes, civils, electric and the power plant including say any
gasifier etc and provide overall wrapDo not involve third parties between you the client and the vendor as this will add unnecessary cost, and provide wriggle room in any subsequent dispute – you want responsibility to rest solely with the vendor – if a third party produces a spec to quote against the vendor may always revert to “ …well your design was wrong….” (and third party designs are often wrong)Slide21
How To Procure CHP that works (2)
Instead force vendor to accept all liabilities
for his design
, installation and any subsequent non performance ( loss of output,
non-availability, maintenance costs, efficiencies etc)Ask him to provide both a purchase offer and a full EPC funding option ( ie some kind of p/kWh offer) with the possibility of outright purchase at a later dateThe choice of supplier shuld then be made solely on the fully funded cost of providing heat and power ( ie the p/kWh offer) and
therefore in large part on the cost of having the funded offer – NOT merely the cheapest offer.
Further the Bank or funder, will perform diligence on the vendor, and secure vendors with a good track record will get low cost of funds and the bank’s own technical experts will also ensure the bid is of the correct standard
. This is all revealed by the p/kWh cost.Slide22
How to Procure CHP that works (3)
You
want vendors who are financially secure and who can be held to account for non performance – only these will be able to get funds at reasonable costs
and this is inevitably reflected
in the p/kWh cost.The above points will ensure that vendors do not cut corners on installation to offer an initially cheaper price (inevitably resulting in a higher lifecycle cost) - vendors know better than any third party advisors what is necessary, and by offering a 10 year guarantee on performance will be forced to design to a correct standardWhen you have picked the cheapest funded offer, (p/kWh) you may take the buy out if ultimately you prefer to fund it yourself and if necessary after an initial proving runSlide23
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