ADC Energy Systems is switched on for development
ADC Energy Systems, based in Dubai, is building on its expertise gained over a successful 10 years in business by seeking to grow not only its capabilities, but also its geographical reach.
The company, which has reached AED 1.7 billion turnover since its inception in 2005, is a turnkey contractor for Cooling Plants, Energy Services, Grain Handling and Infrastructure.
The EPC (Engineering, Construction and Procurement) contractor has been awarded over 20 district cooling plants during that period and is currently working on bringing to completion six plants by the end of 2015 and into the first half of 2016 within the GCC region.
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ADC built its first district cooling plant for Dubai’s iconic development The Palm Jumeirah, the palm-tree shaped, man-made island, which is home to a number of luxurious hotels and holiday accommodations including the five-star Atlantis Hotel.
CEO Ibrahim Sleiman said: “This was the first major project we won through our partnership approach and since then there have been almost 20 projects scattered between Dubai and Abu Dhabi in the United Arab Emirates, and other GCC countries such as Qatar and Saudi Arabia.
Collectively, to date the district cooling plants generate a total cooling capacity nearing 600,000 Tons of Refrigeration; its sub-stations are designed and equipped for 450MW and its cooling impact may reach up to some 240 million square feet of occupied space. They have a total combined footprint of about 26,000 square metres and serve seven leading utility developers and operators, as well as master developers within the GCC region.
With some 200 professionals on board, along with a 350-core construction team, Sleiman explained that ADC is keen to further explore its capabilities throughout its energy services division, and new sectors like Renewable Energy.
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The forward-thinking company is also looking at how it can further utilise the renewables sector in a bid to bring greater efficiencies and benefits for not just its customers, but also for the environment.
Exciting times are ahead in the GCC region with events such as the World Expo 2020 to be hosted in Dubai and the 2022 FIFA World Cup in Qatar. All of these are opportunities that ADC is keen to exploit and is already involved in, or pitching for the business they are creating.
The company is in the finishing stages of completing a new district cooling plant in Qatar’s $45 billion, ambitious and ground-breaking new town development of Lusail, which is being purpose-built to cope with the demands the World Cup is expected to generate.
First and foremost, ADC, building on its wealth of experience in Engineering, Procurement and Construction and as a natural growth from the District Cooling sector, through its Energy Services arm is currently looking at how it can develop Combined Cooling Heating & Power (CCHP) schemes.
For this purpose, ADC is targeting l industrial and institutional clients whose connectivity to the main grid or need for back-up power in addition to their requirements for comfort or process cooling and heating qualify them as attractive prospects for CCHP schemes.
Sleiman said: “District cooling systems are very efficient, but they are intensive power users of the national grid with an average 40-50 megawatts per plant. Through the power generation, transmission and distribution cycle, there is a lot of energy wastage with nearly -60 percent of the original energy source lost.
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“So that is not very efficient and what we want to do with CCHP is to produce the energy where you need it by combining your power generation with your cooling/heating requirements in one plant and optimise the production of the power side by capturing the waste heat wherever you produce power.
“By so doing, we can almost increase the effectiveness of the energy source from 35-40 percent up to 75 percent or maybe even higher.”
Sleiman was keen to point out that ADC is not pursuing pure power production, but targeting the sector of distributed energy plants which deliver energy at the point of use.
Another strategic focus for the company is the use of renewable energy sources such as solar panels and the company is currently investigating the use of Concentrated Solar Panels.
“The reason we still use fossil fuel for our plants is the fact that with solar energy plants you need a lot of space which is hard to find in urban areas,” said Sleiman.
“So for now we are concentrating on smaller-scale solar plants. We are looking to participate in an Egyptian set of tenders which will come out shortly, which will range between 20 and 30 megawatts of power production.
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“We also anticipate to a smaller extent that there will be further opportunities from Jordan and Kuwait, and with Saudi Arabia much larger 100 megawatt plants which we will target in due time.
“As a leading and specialized EPC contractor, we are able to team up with international EPC contractors and technology providers to work hand-in-hand on the implementation of such projects.”
Geographically speaking, ADC has already qualified and participated in tenders as far afield as Algeria to the North and eastwards as far as India and Bangladesh for its grain handling business.
Huge infrastructure growth in Saudi Arabia means ADC has its hand firmly on that tiller. Sleiman said: “There is huge opportunity in Saudi at the moment and when you add up all the other GCC countries, Saudi can equalise if not exceed the development of all of them put together pending more regional stability in terms of security and oil prices.
“There are essentially two prongs to our growth, one is expansion horizontally by pushing our CCHP strategy which is a natural outgrowth of our district cooling plants to second generation cooling/thermal energy plants and moving into renewables.
“The second is location wise, expanding beyond our core markets to tackle projects in the wider GCC as well as in North Africa and potentially central African countries, where we are bidding for a few projects right now.”
Carbon dioxide removal revenues worth £2bn a year by 2030
Carbon dioxide removal revenues could reach £2bn a year by 2030 in the UK with costs per megatonne totalling up to £400 million, according to the National Infrastructure Commission.
Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades - although costs are uncertain given removal technologies are in their infancy - and revenues could match that of the UK’s water sector by 2050. The Commission’s analysis suggests engineered removals technologies need to have capacity to remove five to ten megatonnes of carbon dioxide no later than 2030, and between 40 and 100 megatonnes by 2050.
The Commission states technologies fit into two categories: extracting carbon dioxide directly out of the air; and bioenergy with carbon capture technology – processing biomass to recapture carbon dioxide absorbed as the fuel grew. In both cases, the captured CO2 is then stored permanently out of the atmosphere, typically under the seabed.
The report sets out how the engineered removal and storage of carbon dioxide offers the most realistic way to mitigate the final slice of emissions expected to remain by the 2040s from sources that don’t currently have a decarbonisation solution, like aviation and agriculture.
It stresses that the potential of these technologies is “not an excuse to delay necessary action elsewhere” and cannot replace efforts to reduce emissions from sectors like road transport or power, where removals would be a more expensive alternative.
The critical role these technologies will play in meeting climate targets means government must rapidly kick start the sector so that it becomes viable by the 2030s, according to the report, which was commissioned by government in November 2020.
Early movement by the UK to develop the expertise and capacity in greenhouse gas removal technologies could create a comparative advantage, with the prospect of other countries needing to procure the knowledge and skills the UK develops.
The Commission recommends that government should support the development of this new sector in the short term with policies that drive delivery of these technologies and create demand through obligations on polluting industries, which will over time enable a competitive market to develop. Robust independent regulation must also be put in place from the start to help build public and investor confidence.
While the burden of these costs could be shared by different parts of industries required to pay for removals or in part shared with government, the report acknowledges that, over the longer term, the aim should be to have polluting sectors pay for removals they need to reach carbon targets.
Polluting industries are likely to pass a proportion of the costs onto consumers. While those with bigger household expenditures will pay more than those on lower incomes, the report underlines that government will need to identify ways of protecting vulnerable consumers and to decide where in relevant industry supply chains the costs should fall.
Chair of the National Infrastructure Commission, Sir John Armitt, said taking steps to clean our air is something we’re going to have to get used to, just as we already manage our wastewater and household refuse.
"While engineered removals will not be everyone’s favourite device in the toolkit, they are there for the hardest jobs. And in the overall project of mitigating our impact on the planet for the sake of generations to come, we need every tool we can find," he said.
“But to get close to having the sector operating where and when we need it to, the government needs to get ahead of the game now. The adaptive approach to market building we recommend will create the best environment for emerging technologies to develop quickly and show their worth, avoiding the need for government to pick winners. We know from the dramatic fall in the cost of renewables that this approach works and we must apply the lessons learned to this novel, but necessary, technology.”
The Intergovernmental Panel on Climate Change and International Energy Agency estimate a global capacity for engineered removals of 2,000 to 16,000 megatonnes of carbon dioxide each year by 2050 will be needed in order to meet global reduction targets.
Yesterday Summit Carbon Solutions received "a strategic investment" from John Deere to advance a major CCUS project (click here). The project will accelerate decarbonisation efforts across the agriculture industry by enabling the production of low carbon ethanol, resulting in the production of more sustainable food, feed, and fuel. Summit Carbon Solutions has partnered with 31 biorefineries across the Midwest United States to capture and permanently sequester their CO2 emissions.
Cory Reed, President, Agriculture & Turf Division of John Deere, said: "Carbon neutral ethanol would have a positive impact on the environment and bolster the long-term sustainability of the agriculture industry. The work Summit Carbon Solutions is doing will be critical in delivering on these goals."
McKinsey highlights a number of CCUS methods which can drive CO2 to net zero:
- Today’s leader: Enhanced oil recovery Among CO2 uses by industry, enhanced oil recovery leads the field. It accounts for around 90 percent of all CO2 usage today
- Cementing in CO2 for the ages New processes could lock up CO2 permanently in concrete, “storing” CO2 in buildings, sidewalks, or anywhere else concrete is used
- Carbon neutral fuel for jets Technically, CO2 could be used to create virtually any type of fuel. Through a chemical reaction, CO2 captured from industry can be combined with hydrogen to create synthetic gasoline, jet fuel, and diesel
- Capturing CO2 from ambient air - anywhere Direct air capture (DAC) could push CO2 emissions into negative territory in a big way
- The biomass-energy cycle: CO2 neutral or even negative Bioenergy with carbon capture and storage relies on nature to remove CO2 from the atmosphere for use elsewhere