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“Power Plant” Operating Rental Business- Case studies in Africa and Japan -
March 19, 2013
Simon Lyons, Director of Marketing and Communications, Aggreko Plc,Kenichi Matsumoto, General Manager, Northeast Asia (Korea & Japan)
Aggreko at a glance
1) World leader in Power Generation Rental with O&M
2) Critical mass of Rental fleet (9.2GW in fleet capacity),
with Gas fleet booming to exceed 1GWwith Gas fleet booming to exceed 1GW
3) 2-3 months to install and commission 100MW+ Plant
4) Modularized and highly mobile fleet in 20cft containers
5) Operating world wide over 100 countries in 194 locations
Aggreko context
2) Continuous geographic expansion in 50 years:
Holland (1962) => Scotland (1973) => North America (1986) => Singapore (1989) =>
Australia & New Zealand (1990) => Middle East (1991) => Africa (2002) => South
1) Listed on the London Stock Exchange (FTSE-100 index)
Australia & New Zealand (1990) => Middle East (1991) => Africa (2002) => South
America (2002) => Central America (2006) and acquired all of GE Rental Business
=> China (2008) => India (2009) =-> Russia (2009) => Eastern Europe (2010)
RevenuesFrom £340m in 2002
To £1.6bn in 2012
PeopleFrom 2,100 in 2002
To 6,000 in 2012
Market CapFrom £ 400m
To £5bn
3) The last 10 years:
Aggreko operation in Africa
Aggreko operation in Africa
20+ Utility customers in Africa at any one time
Highlight in Uganda as example:
Peaked at 300MW - 50% of Uganda power needs.Peaked at 300MW - 50% of Uganda power needs.
Filled gap when hydro power failed by drought (1 year in 5).
Had three geographically dispersed sites.
Environmentally sensitive sites (on Lake Victoria)
Speedy demobilization capability to manage risk
Diesel PowerGenerators
Gas PowerGenerators
TransformerLoadbank
#1 Modularized equipmentin 20cft containers
Power GenerationIndustrialCoolingGenerators Generators Loadbank
ChillerLoadbankTransformerGenerator
Cooling
#2 2-3 months from Contract toPower Generation
PowerContract signing2-3 months
For 100MW+ Power Plant
3/18/2013 7Commercial Agreement Mobilization Installation Commissioning
PowerGeneration
Contract signing2-3 months
#3 Cost of Generation by fuel typeand availability
Illustrative Cost of Generation DO = 100 Fuel as %of cost/kwh
Short –termfuel availability
Diesel Oil 100 88% Everywhere
Heavy Fuel Oil 68 77% Many places
Gas 37 53% Very hard tofind
#4 Demand for Gas Power Projectis growing
Case Study from MozambiqueCross Border Project
DuringInstallation
How INSTANT UTILITY happenedin Mozambique
Gas fielddiscovered byMozambique
Enormousdemand of
electricity in
Aggreko as IPP asINSTANT UTILITYMozambique
with no MarketDemand
electricity inSouth Africa
INSTANT UTILITY
Aggreko Solution as INSTANT UTILITY:1) Source the gas2) Build High Voltage Infrastructure3) Power generation license and generation4) Sell power to Mozambique and South Africa== >> Now selling to Namibia via South African Power Pool
South African Power Pool(Gas and Electricity movement)
MozanbiqueGas Power:
100WPlus
115MW・・・・・・・・・・
South African Power Pool
・・・・・・・・・・
Japan (since 2011)
June – September, 2012 (for Industry)Purpose: Peak Shaving
July 2011 to March 2013 (for Utilities)Accumulated: Diesel 248MW, Gas 100M
Commissioning Ceremony atBeverage Plant in Kyushu area
TEPCO 100MW Gas Site at Sodegaura
Korean Shipbuilding companies andOil & Gas (Exploration to Refining)
Example:Emergency power for Refineries at national disaster (Chille)Summer peak FCC operation at Refinery company
14
Korean Shipbuilding companies for :International Oil Majors such forSakhalin, Gorgon and other LNGProjects
Emergency Power in Asiafor platform refurbishment
１）Investment： As ＣＡＰＩＴＡＬ Expenditure As OPERATING Expense
２）Operating Period： FID to full return on capital Limited to rental period
Mega Infrastructure Capex Projectvs. Modularized Operating Rental
Full Scale CAPEX Project Operating Rental
| 15
２）Operating Period： FID to full return on capital Limited to rental period
３）Plant Site： Fixed location Can be changed by time
４）Plant Capacity: Fixed as designed Easily changeable
5) Fuel type: Fixed as designed Adjustable to market
6) Plant completion: 2-4 years 2-4 months
7) Civil work: Substantial in time and cost Simple e.g. H-Beam mount
8) Maintenance: Periodical Shutdown Possible w/o total Shutdown
How Operating Rental can complimentMajor CAPEX Project
Site locationchangeability
Ren
talMerit
Capacitychangeability
Fuel typechangeability
Off Balance Sheet
Plan & F/S Stage EPC Stage Operation Stage
Minimize andOptimize CAPEX
Management of powerdemand variation during
construction & commissioning
Early Power & Cash to improveProject cash flow
Peak Shaving
Power duringShutdown Maitenance
Co
mp
limen
tability
Presentors:
Simon Lyons
He has been a career marketer having worked on The Macallan malt whisky,Heineken beer and UEFA football among other brands. He joined Aggreko inHeineken beer and UEFA football among other brands. He joined Aggreko in2004 and for the past decade has been working in the corporate marketingand communication functions. His role covers Aggreko’s global operationsfrom Mozambique to Michigan and from local depots to the largest interimpower stations in the world.
Email: [email protected] Phone: +44 7736112008
Presentors:
Kenichi Matsumoto
Engaged in investment, finance, off-take and EPC for various energy projects in Oil,Gas, Chemical, Power Generation and other infrastructure projects in Asia and in CISat Mitsui & Co., Ltd. between 1980 and 2001. Thereafter he has engaged in corporatestrategy and organization change consulting including Post Merger Integration atstrategy and organization change consulting including Post Merger Integration atPricewaterhouseCoopers Consultants Co., Ltd. , and also led Japan operation of AspenTechnology, Inc., an oil, gas, chemical and utilities operations optimization softwarecompany. He joined Aggreko Japan K.K. in May 2012 as President & RepresentativeDirector, General Manager of Northeast Asia (South Korea and Japan), and as amember of APAC leadership team.
Email: [email protected] Phone: +8190-3334-5039
