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SHV ENERGY 2014 SUSTAINABILITY REVIEW 02 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 03 OUR COMPANY OUR ENERGY As part of SHV Holdings N.V., SHV Energy belongs to a family owned Dutch organisation that has supplied energy to businesses and consumers for over 100 years. Well-known brand names include Primagaz, Calor Gas, Liquigas, Gaspol and Ipragaz. SHV Energy operates in more than 20 countries. Globally, SHV Energy employs 15,000 people, has a turnover of over €6 billion and provides decentralised energy sources LPG, LNG and biomass to tens of millions of customers. SHV Energy is the largest dedicated global LPG distributor. As a lower carbon, low polluting fossil fuel, LPG can make a substantial contribution towards improved indoor and outdoor air quality and reduced greenhouse gas emissions. LPG is widely available and is becoming more so due to the increase in natural gas fields around the world. LPG can be used for hundreds of commercial and domestic applications. SHV Energy is proud to lead the way in developing existing and new markets for LPG around the world through effective innovation, education and promotion strategies. We believe that lower-carbon gaseous fuels like LPG and LNG still have a considerable role to play, both now and in the foreseeable future. People and businesses can reduce pollution today by switching from high-polluting, carbonintensive fuels such as oil to these forms of energy. They are clean, available now and do not need major financial support of governments . Sustainability is key in our strategy. We believe we can contribute to a cleaner planet, by working together with our stakeholders thereby building a better performing business. Better – Cleaner – Together will guide us in reaching our ambition to become a leading, global and sustainable brand for the off grid energy market. Over 30 million customers in Latin America, Asia and Europe use our energy for hundreds of applications, including cooking, heating and powering low-polluting vehicles. SHV Energy is proud to have market-leading LPG companies on these three continents. Throughout our history, the demands of customers and society have always defined our energy approach, rather than any one specific fuel. We are therefore also active in the area of other decentralised renewable energy sources like biomass and solar technology. SHV Energy experts help clients reduce their energy consumption and find unique energy combinations, going far beyond their remit of simply supplying energy. Whatever energy solution our customers choose, they can rely on our commitment to excellence in client service and safety. Our energy solutions include a range of fuels ranging from LPG to LNG as well as bio-based fuels and solar power. 04 I SHV ENERGY 2014 SUSTAINABILITY REVIEW LPG in Numbers LPG LPG’s volume is Power of gas, convenience of liquid. LPG is a natural by-product from the extraction of natural gas and oil, and from refining crude oil. At room temperature, LPG is gaseous, but it becomes liquid when cooled or pressurised. In liquid form, the gas can be easily transported and stored on-site in tanks of varies sizes, including small cylinders. LPG is particularly suitable fuel for rural areas that are not connected to the mains gas grid. In these areas it may provide people and businesses with a low-carbon and economic alternative to coal, heating oil, diesel or electricity from the grid. times SMALLER when in a liquid state. An LPG stove can be Similar to natural gas from the mains gas grid, LPG is a flexible source of energy and has a wide variety of uses including space and water heating, cooking and power. It is also increasingly applied in transport. In combination with energy efficient conversion technologies such as condensing boilers and micro-CHP systems, further carbon and energy savings can be established. ©charlus Why LPG? Portable ❱ LPG can be transported and used almost anywhere. This means regions without a mains gas network, can have access to a clean and convenient fuel and it can be used in even the most remote areas. Clean ❱ LPG can bring the same environmental benefits as natural gas: when used for heating, LPG’s life-cycle CO2 emissions (73g/MJ) are 30% lower than heating oil (95g) and 115% lower than coal (158g). It also considerably reduces air pollution, as it produces significantly less Nitrogen Oxides (NOx) and particulate matters (PM 2.5 and 10) than oil and coal. All of these benefits can be realized without undertaking the significant investment required to extend the existing natural gas grid network. Efficient ❱ LPG is cost-effective, since a high proportion of its energy content is converted into heat. LPG can be up to five times more efficient than traditional fuels, resulting in less energy wastage and better use of our planet’s resources. Convenient ❱ There are more than a thousand applications ranging from cooking to heating, transport, agricultural uses, industrial applications and even bird scarers. times more efficient than a charcoal stove commonly found in urban households in many parts of the world. In Brazil, LPG is the energy of choice for of Brazilian homes; 33 million cylinders are delivered per month, door to door. LPG is a naturally occurring by-product of natural gas extraction and crude oil refining (40%) – therefore we either use it or it is wasted. 06 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 07 LNG BIO-BASED FUELS A growing part of our energy portfolio is composed of bio-based fuels. Balcas is a leading biomass supplier. In addition, we have recently signed a long term agreement with Neste Oil to develop BioPropane. Biomass Biomass is a non-fossil solid fuel, usually natural or processed wood, used in individual heaters or central heating boilers. Good-quality biomass from sustainable local sources has a role to play in the future rural energy mix. Solid biomass is suitable for use in remote areas that are not connected to the gas grid, where it can be deployed as a lower cost alternative to oil. Biomass is particularly attractive in rural areas where the biomass is readily available. One of our companies, Balcas is a leading timber products supplier, and has pioneered biomass renewable energy in the British Isles. The business has grown organically, and through acquisition and investment in the latest processing technologies. Balcas has led the development of the market for wood pellet fuel in Ireland and Britain. BioPropane Liquefied Natural Gas (LNG) is natural gas in a liquid form. After natural gas is extracted from the ground, the temperature is lowered and the natural gas is compressed. At the right temperature and compression, the gas becomes liquid. By turning natural gas into LNG, the volume is reduced 600 times, making it possible to transport the gas over long distances by ships or trucks. When LNG reaches its destination, it is returned to a gas in a regasification facility. It can then be piped to and used by rural homes, businesses that are connected to a local distribution grid, or used on-site at larger industrial complexes. LNG has several advantages. Rural towns and regions may be located far away from gas resources. Transporting gas by pipeline to those areas can be costly and impractical. Because it is easy to transport, LNG can serve to make gas economical and accessible to those areas for which the construction of long-distance pipelines is uneconomical. LNG is a low carbon fossil fuel compared to oil and coal. However, due to production, storage and transportation, associated greenhouse gas emissions tend to be higher than natural gas that is not liquefied and transported via the mains gas grid. SHV Energy is set to become the first energy company ever to distribute BioPropane to its customers. SHV Energy plans to sell the BioPropane in several European markets which will be produced by Neste Oil at its Rotterdam refinery. A recently signed agreement cover the supply of 160,000 tonnes of BioPropane over a fouryear period is the first of its kind anywhere in the world. BioPropane is propane created from renewable feedstocks such as plant and vegetable waste material. In use, it is identical to conventional propane and therefore has the benefit of being able to be blended and used by all existing appliances. SHV Energy is always looking at ways to reduce the carbon footprint of our products and activities. LPG is already a low-carbon fuel, but we believe that the production and distribution of BioPropane can really help to reduce the environmental impact even more. In addition, BioPropane is a great opportunity for SHV energy to lead the LPG business towards a more sustainable future. 8 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 9 SUSTAINABILITY ENGAGING WITH STAKEHOLDERS SHV Energy companies have a deep commitment to operating in a sustainable way. The theme of this approach is Better – Cleaner – Together. We believe we can contribute to a cleaner planet, by working together with our stakeholders thereby building a better performing business. Better – Cleaner – Together will guide us in reaching our ambition to become a leading, global and sustainable brand for the off grid energy market. Why sustainability? Sustainability is all about how we live our lives and run our business. We are a family owned company. We therefore think long term rather than in quarterly results. The very notion of sustainable thinking is in line with our company strategy. Sustainability is not just part of our business, it is our business. This is what sustainability means to us at SHV Energy: As an energy company we can really make a difference Sustainability means strategy & culture – hearts & minds Sustainability also means growing our business to add value for our people & our planet Sustainability is about changing our behaviour and helping others to change We believe that by focusing our combined strengths, we can: Continue building an ever better performing business Contribute to a cleaner planet Bring our people, our suppliers and our customers as well as other stakeholders together to achieve these goals Better – Cleaner – Together will guide us in reaching our ambition to become a leading, global and sustainable brand for the off grid energy market. Our principles of sustainability Involve all employees, enable them to pay their contribution in their everyday activities in an inspirational & fun way Enable group wide participation Measure - improve – communicate at all levels Reward rather than comply SHV Energy has the ambition to become a leading, global and sustainable brand for the off grid energy market. The sustainability ambitions fit into the innovative spirit of SHV Energy – sustainovation. SHV Energy believes that innovation and sustainability are strongly linked: sustainovation. Innovation will not happen when you lock up smart people in a room. We want to Involve all employees and enable them to share and implement ideas. We are have set up a digital platform that structures the process and facilitates collaboration and interaction. This “sustainovation hub” is an online tool where our employees can post ideas to address a specific challenge. At the end of 2014, a stakeholder research among sustainability and energy experts was conducted for SHV Energy. The purpose of this research was to collect fresh perspectives from the outside on how SHV Energy could take strategic steps in further increasing the sustainability of the company and the market in which it operates. Special point of attention within this research was how SHV Energy can connect with stakeholders to strengthen its sustainability journey. Based on this stakeholder research, the conclusion was that SHV Energy is well positioned as a provider of rural energy and that SHV Energy is n the right track with its Better-Cleaner-Together strategy to become a leading company in the field of sustainability. Therefore SHV Energy will engage more on existing sustainability platforms, by partnering with leading sustainability organisations and start strategic stakeholder dialogues. The main objective is to gather insights that can be used to constantly evaluate the Sustainability growth strategy of SHV Energy. 10 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 11 OUR FOOTPRINT Introduction For the third year in a row, SHV Energy has measured its corporate carbon footprint. This is believed to be the largest footprint-exercise ever conducted within the LPGdistribution industry. Some 1,500 data for 2014 operations were collected from more than 20 business units, then compiled, computed and compared to their 201213 benchmarks (restated). SHV Energy defined its scope of operations as those of LPG-distribution, from terminal-to-delivered-tank. The supply footprint (production and primary transport) is not included. The 2014 total carbon footprint of SHV Energy’s LPG-distribution operations is calculated to be 484 thousand tonnes of carbon dioxide (CO2), up from 476 thousand in 2013 (restated). This equates to a unit footprint of 73 kilogrammes CO2 per tonne of LPG sold to third parties, up from 71 in 2013. The absolute increase of 8 thousand tonnes, or 1.7%, is mainly due to an increase in the footprint of primary and secondary distribution of cylinders – most of which occurred in Brazil. 1.1 Carbon footprint of LPG distribution The 2014 total carbon footprint of SHV Energy’s LPG-distribution is 484 thousand t CO2, which is a unit footprint of 73 kg CO2/t LPG sold to third parties. The following subsections present this LPG-distribution carbon footprint in five ways: by function, by business type, by energy type, by distribution scope and scale, and by region. 1.1.1 Carbon footprint, by function Between eight- and nine-tenths of SHV Energy’s footprint is caused by producttransport emissions. The rest is split mainly between filling plants and overheads, with a minor fraction to storage (Figure 1). Figure 1: LPG-distribution carbon footprint is mainly transport This report marks the first time that SHV Energy has presented data on water consumption. In both 2013 and 2014, about 50 litres of water were consumed per tonne of LPG sold to third parties. The first subsection of this chapter presents the LPG-distribution footprint in detail. The second compares 2014 to 2013. THE LPG SUPPLY CHAIN EXPLAINED carbon footprint by main function 6% 3% 7% All transport Primary Distribution Secondary Distribution Overhead REFINERY Filling plants MAJOR STORAGE FILLING PLANT /DEPOT All storage CYLINDERS LARGE WHOLESALE CUSTOMERS BULK 84% SMALL WHOLESALE END CONSUMER END CONSUMER 12 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 13 Product-transport emissions are dominated overwhelmingly by road vehicles, with minor contributions from railcars and barges (Figure 2). Figure 2: Looked at more closely (Figure 3, which is a more-disaggregated version of Figure 1), it can be seen the single largest component is cylinder transport, which accounts for half of the entire footprint. Transport of bulk LPG accounts for one-third of the footprint. Overheads and filling plants each account for a bit more than 5% of the total, with storage (in terminals and depots) creating the remaining 3%. Figure 3: carbon footprint by transport type Road transport dominates the distribution footprint carbon footprint by function (transport / STORAGE) Cylinder transport and bulk transport predominate 2% 0.2% 6% 2% 1% 7% Cylinder transport Bulk transport Road transport Overhead Rail transport Filling plants 53% Barge transport Terminals Depots 31% Production transport 98% Footprints by product type vary, mainly because of the amount of transport required per quantity of LPG sold. As it turns out (Table 1), the average footprint per tonne of cylinder LPG is about 2.5 times that of bulk LPG. This in turn is some 9 times greater than the footprint of wholesale LPG. TABLE 1: CARBON FOOTPRINT, PER BUSINESS TYPE, KG CO2 PER TONNE LPG Business type Footprint Scope Cylinder 123 From terminal through delivery to retailer. Does not include customer transport, from retailer onward. Bulk 53 From terminal to customer tank. Wholesale 6 Storage and overheads only, assumes no transport – i.e. customer picks up loads at the SHV terminal or depot. 14 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 15 In its finest granularity (Figure 4, an even-more-disaggregated version of Figure 1 than Figure 3 is), the relative contributions of primary and secondary transport of bulk LPG and cylinders can be seen more clearly. 1.1.2 Carbon footprint, by business type Given the differences in business-type footprints (Table 1), the disproportionate contributions to the total LPG-distribution footprint (Figure 5) are not surprising. Bulk and cylinder sales contribute about 80% of sales volume. However, cylinders contribute nearly three-fourths of the total footprint, while bulk accounts for about one quarter. Wholesale’s footprint is only 2% of the total. Cylinder footprints are higher, because their economies of scale are lower. Figure 4: CARBON FOOTPRINT BY FUNCTION (COMPLETE DISAGGREGATION) Cylinder transport more carbon-intensive than bulk transport 1% 1% CONTRIBUTIONS TO SALES AND FOOTPRINT, 2014 Cylinders contribute disproportionately more footprint than bulk or wholesale 80% 2% 6% 6% Sales volume 60% Footprint Cylinder secondary transport 40% Cylinder primary transport 30% Bulk primary transport 14% Bulk secondary transport Overhead Filling plants Terminals Cylinder depots Bulk depots 16% 70% 50% 32% 22% Figure 5: 20% 10% 0% Bulk Cylinders Wholesale 16 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 17 1.1.3 Carbon footprint, by energy type SHV Energy’s carbon footprint is an energy footprint. That is, the footprint consists purely of emissions caused by energy consumption. Most of this energy is consumed (Figure 6) in transporting LPG, mainly in heavy-goods vehicles. Therefore, the primary energy type responsible for the footprint is diesel, which is also consumed, to a lesser extent, in terminals, depots and filling plants. 1.1.4 Carbon footprint, by distribution scope and scale Business units with sparser customer distributions and greater integration (backward to terminals, forward to cylinders) report higher per-tonne-LPG footprints than those with denser distributions and less integration. 1.1.5 Carbon footprint, by region By geography (Figure 7), the largest regional footprint comes from South America, followed by Europe, with Asia in distant third. After diesel comes gasoline, which powers automobiles and vans for deliveries, sales and administration. Then comes electricity, which powers storage filling operations as well as offices. The footprints of LPG, natural gas and heating oil consumption are very minor. Employee air travel and train travel have been classified as ‘energy types’, because direct fuel consumption data for these are not available – in any case, together they account for less than 1% of the corporate footprint. Figure 6: Figure 7: carbon footprint by energy type Diesel is the predominant energy used 6% 2% 1% carbon footprint, by region South America and Europe dominate the distribution carbon footprint South America’s footprint is roughly equal to that of Asia and Europe combined, thanks to significantly-greater transport distances and a cylinder-heavy business. <1% 9% 13% Diesel Gasoline Electricity LPG South America Natural Gas Train Travel 40% 51% Europe Air Travel Heating oil 77% Asia 18 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 19 1.2 Comparison of 2014 to 2012-13 OUR CUSTOMERS In 2014 SHV Energy’s total LPG-distribution footprint was 1.7% greater in 2013, and 2013’s was 1.9% greater than 2012’s. The three functions contributing to the increase (Figure 8) are cylinder secondary transport, cylinder primary transport and bulk secondary transport. Figure 8: Sustainability goes beyond our operations. Every day, we help customers make the switch from polluting solid or liquid fuels to cleaner energy solutions. Here are some of their stories. carbon footprint by function Comparison of 2013 and 2012 footprints (restated), LPG distribution Carbon dioxide equivalent [kilotonnes] 160 140 2012 120 2013 100 2014 Baird McNutt: OIL TO LPG CONVERSION 80 IRELAND: 60 Calor 40 20 0 Terminals Bulk primary transport Bulk depots Bulk secondary transport Filling plants Cylinder primary transport Cylinder depots Cylinder secondary transport Overhead Ocean-ship transport As already noted, the unit footprint (i.e. kg CO2 per t of LPG sold) of cylinders is 2.5 times higher than that of bulk (Table 1). This means that absolute-volume results can be skewed seriously by shifts in the business mix between bulk, cylinder and wholesale. And that mix can be influenced only in part by SHV. TABLE 2: EQUIVALENT-VOLUME FOOTPRINTS 2012 AND 2013, LPG-DISTRIBUTION (kt CO2) Business type 2012 (restated) 2013 (restated) 2014 Bulk 124 121 117 Cylinder 334 346 358 9 8 9 467 476 484 Wholesale Sum Baird McNutt Irish Linen is steeped in tradition and knowledge, gained over 100 years of industry experience. The production process is The conversion also helped fairly energy intensive and the reduce the company’s carbon company used to rely on coal footprint by 20% which is fires boilers and later heavy important for Baird McNutt fuel oil. Recently Baird McNutt and its customers. converted to LPG to generate They pride themselves in using the steam needed in the Moreover, energy costs have traditional Irish methods to production process. been reduced by 12% which helps the company remain produce the highest quality material and their Irish linen is The new boiler was up and competitive on the global renowned amongst designers running in three days and market. worldwide. emits virtually no soot which reduced maintenance time servicing costs. CASE STUDY To eliminate the skew caused by the business-mix shift, we compared the footprints on an equivalent-volume basis. In other words: what would the footprints have been, had we used the same volume proportions in both years? On this equivalentvolume basis, for 2012-14: bulk footprint is steadily declining, cylinder footprint is steadily rising and wholesale footprint is holding almost constant (Table 2). 20 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 21 Daylan Lagoon: MARINEGAS TURKEY: Guangzhou: CLEAN PUBLIC TRANSPORT Ipragaz CHINA: SHV China SHV (China) operates ten LPG service stations in Guangzhou and supplies more than 8000 taxis and 2000 busses on a daily basis. The LPG we supply saves taxi and bus operators money and contributes to improving air quality. We have also started to invest in LNG stations in Guangzhou. The Guangzhou government has recognised our contribution to making public transport more sustainable. Marinegas is a clean alternative to diesel and petrol. Using Marinegas eliminates the risk of water pollution and reduces emissions. A tourist hub The region welcomed not harmful to the ecosystem, 800.000 tourists in 2010. all at a reasonable cost. Most tourists visiting the area use touristic boats to The solution, using LPG go around the canals and eliminates the risk of spillage, Dalyan Lagoon is located in admire the natural beauty. reduces noise and vibrations Southwestern part of Turkey. This activity is an important and eliminates bad odours Within the lagoon, there are source of income for local produced by diesel engines. many rivers and lakes which communities. There are are tied together by canals and approximately 750 active LPG as a solution are linked to İztuzu beach. boats out of which 500 are The Marinegas conversions officially registered to local are currently being tested in Köyceğiz Lake and Dalyan cooperatives. Most of these cooperation with partners canals are protected by both boats run on diesel which engine manufacturers, Turkey and EU. This region causes a range of issues local cooperative etc. and is one of the 7 rare natural amongst which we can count university researchers. beauties of the world. It is rich noise and water pollution. The initial tests have been in biological diversity and has CASE STUDY combined with a fuel that is a sensitive canal and lagoon Ipragaz worked with the local very successful and we ecosystem. Its rich biodiversity transportation cooperative believe Marinegas can play includes mullets, sea bass, to develop a solution that an important role in turtles and blue crabs. would provide operators with preserving the biodiversity the power performance and and natural beauty of the low noise levels they need, Dalyan Lagoon. Benefits of LPG Environment benefits: Economic benefits: Our supply of LPG in Guangzhou City, has led Taxis that use LPG instead of gasoline can to a substantial decrease in diesel and petrol save 2000 to 4000 RMB per car each month. consumption. This equates to an annual decrease Furthermore, buses have decreased their fuel of 22.000 tonnes of CO2 and 417 tonnes of consumption by almost 20%. particulate matter. 22 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 23 Noble Foods: Residencia Fátima: DUAL FUEL FOR TRANSPORT United Kingdom: REDUCING THE CARBON FOOTPRINT Calor SPAIN: Primagas Energía “ Dual fuel systems have given us the best of both worlds, lower fuel bills and lower CO2 outputs and maybe further capital savings in the future. „ Michael Tucker Noble Foods’ main site near Newark-on-Trent is the largest free range egg packaging facility in the world. Built in 1974 it now operates seven days To date LPG represents approximately 30% of the total fuel consumption. That 30% translates into a week, 365 days a year grading three million eggs a 14% overall saving on fuel bills plus a 6% every day. Across the whole of Noble Foods group, reduction in CO2. 72 million eggs are graded, packed and delivered each week to all the UK’s major supermarket chains. The Challenge To facilitate this enormous logistics exercise Noble Positive Conclusions The move to dual fuel systems has clearly paid off for Noble Foods. “…and this initiative can be copied We at Primagas Energía believe this to be one of our most interesting, but at the same time challenging, conversions from oil to liquefied petroleum gas (LPG) of 2014. fairly easily,” says Michael, “It’s cost- effective, and Is ‘Residencia Fátima’, involves little capital. It also delivers improved Foods operates more than 200 vehicles from a retirement home located carbon emissions, but the big reason to make seven sites across the UK – all working around the on the outskirts of Madrid in the move is the financial saving, the size of which clock. The combined fleet travels over 11 million a town called Galapagar, and has surprised even me.” “Our success was due kilometres per year, consuming three million litres the largest of three family- to having the right trucks, the right monitoring, of fuel. The challenge was to improve efficiency owned residences. Together, and the right drivers. We began double-shifting and reduce cost. the three retirement homes the trucks, six days a week, and the proportion of have the capacity to look after cheaper LPG usage rocketed!” The Drive for Efficiency CASE STUDY Fuel And CO 2 Savings the kitchen, with an LPG Fátima. After successfully solution. completing the first project at Fuenteverde, which entailed Fátima and Fuenteverde will replacing an oil-powered now consume 28 tonnes of boiler with an LPG-powered LPG instead of the massive one, they began to think about amounts of oil they used to how they could acquire a need. This translates into cleaner and cheaper source of an approximate reduction of energy for Fátima too. 17 tonnes of carbon dioxide and cost savings amounting A deliberate choice to €7,000 a year. It will also What came as a surprise was provide them with greater the fact that the owner of comfort and a better service. Fátima did not want natural This is one clear example 150 people. gas, despite it being the of how we can achieve our easiest to install. She wanted objective of making cleaner LPG because of its greater and cheaper energy available calorific value, which would to everyone. Since 2011 Noble’s 50 articulated trucks have “I’m surprised more people aren’t doing it. Perhaps been pioneering dual fuel technology which Fátima and Fuenteverde it’s because it’s fairly new and requires project automatically adjusts the blend of LPG and diesel combined were using 50,000 planning. The payback is under 12 months and in used according to the vehicle’s load and road litres of oil every year. Initially, fact we had one truck pay for itself within eight topography with the aim of delivering optimum fuel the project involved changing months.” the energy source (from oil efficiency. saw a great opportunity at to LPG) at Fuenteverde, but our sales representative allow the stove in the kitchen to function better for cooking. They agreed to replace the entire oil boiler room, along with the gas cylinders from 24 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV ENERGY 2014 SUSTAINABILITY REVIEW I 25 M/S Gem Wire: CONVERSION FROM AN ELECTRIC SOURCE TO LPG INDIA: Supergas In 2014, SHV and its furnace manufacturer partner, M/S Knackwell Engineers, converted the wireannealing furnace of M/S Gem Wire Industries from electricity to liquefied petroleum gas (LPG). Background M/S Gem Wire Industries is in the business of copper and aluminium wire manufacture for use in motor windings, but was having recurrent problems of coil maintenance in the electric furnace. Indeed, the breakdown rate was as high as once a fortnight. The company was aware of natural gas, but not able to get a foot in the door due to the high security deposit required. This was the perfect opportunity for us to educate the customer on the benefits of LPG. We had the support of their furnace supplier to make a pitch for conversion to LPG. CASE STUDY Social housing: MICRO CHP FRANCE: Conversion Primagaz and fuel plan validation, We, along with the partner, in association with M/S M/S Knackwell Engineers, Knackwell Engineers. convinced the prospect of the benefits of LPG, The customer is now reaping including lower maintenance the rewards of conversion, requirements and cost with no more breakdowns, savings. The customer leading to higher production agreed and our partner rates and overall savings in converted the electric furnace energy costs of more than to LPG by redesigning it 30%. We were led by our and making the necessary firm belief in seizing the modifications, taking into opportunity and creating account elements like a niche for ourselves, in line recirculation of air and burner with our vision statement position. The SHV team looking to provide efficient helped the customer with energy solutions through LPG various aspects of design in a sustainable way. Primagaz recently equipped homes in a social housing project with a solution that will substantially reduce energy and power consumption. The homes, located in Bretagne, will benefit from state of the art Micro CHP technology. Micro Combined Heat and Power (micro CHP) systems simultaneously produce useful heat and power from a single compact unit fitted inside the building they supply.They have several environmental and economic advantages. On the one hand, fuel is used more efficiently compared to installations that produce either heat or electricity as the waste heat from the generation of electricity is used on site. This reduces fuel expenditures. On the other hand, as electricity is produced The electricity generated from right where it is consumed, the unit is used to power the the energy losses from common areas and lift and transmission and distribution excess electricity is sold to of power are reduced. This the power grid generating results in an increase of the additional savings for the overall efficiency of energy tenants. supply and a substantial reduction of CO2 emissions. The benefits Effectively, a micro CHP unit The electricity produced is replaces a (conventional) 40% cheaper than power and heating boiler, providing heat generated a CO2 reduction and hot water as usual, but of 47% to 83% as well as additionally also providing reducing the energy needed some of a building’s electricity for water heating. needs. The solution This project is the first energy efficient social housing For this particular housing project in France that project, a Cogengreen Micro combines Micro CHP with CHP unit with a 21Kw engine smart metering and is sure producing 7.5 Kw of electricity to be an example for future was installed. The installation developments. was also equipped with a smart metering system. 26 I SHV ENERGY 2014 SUSTAINABILITY REVIEW FUTURE REPORTING We are committed to report on our carbon footprint and water usage on an annual basis. This year we will start measuring the CO2 savings we make with our customers. Our customers often live or work in rural areas beyond the natural gas grid. These rural areas are faced with a series of energy challenges such as a higher usage of polluting fuels which causes a higher carbon footprint and a decrease of air quality. We help our bulk customer to switch from those polluting fuels such as oil and coal to LPG or LNG. To enable the measurement of the CO2 savings within customers a workbook has been developed. Next year we will report on these savings in our 2015 Sustainability Review. Gas Supply & Risk Management 028 I SHV ENERGY 2014 SUSTAINABILITY REVIEW SHV Energy N.V Taurusavenue 19 - 2132 LS Hoofddorp - The Netherlands T +31 (0) 23 5555 700 - F +31 (0) 23 5555 701 - E [email protected] www.shvenergy.com