Logistyka Archive

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Gary Miles, CEO of Gentrack, tells delegates at Future of Utilities that the world needs to learn lessons from Australia’s “energy as a service” model

Utilities can’t afford to wait to transform, the benefits significantly outweigh the risks

IT transformation will be critical to deliver the energy transition. Gary Miles, CEO of Gentrack, tells delegates at Future of Utilities that the world needs to learn lessons from Australia’s “energy as a service” model.

Transitioning to a low carbon world involves huge upstream and midstream investment in solar, wind turbines and grid infrastructure to cleanly and reliably deliver electrons to people and businesses. But, as Gary Miles, CEO of Gentrack, made clear in his keynote presentation at the recent Future of Utilities Energy Transition conference, the IT systems which underpin the workings of the modern retailers and gen-tailers must transform to adapt to the decentralisation and decarbonisation challenges ahead.

Get this right and there’s huge upside, both for the utility provider and the customer. “Amazing customer experience, digital first engagement, lower debt, more than 99.5% accurate billing and reduced cost to serve, with automation helping to deliver 30-40% lower cost-to-serve,” said Miles

Miles is a newcomer to the energy industry, having spent most of his career in the telecoms industry. “Telecoms had the largest impact on GDP in the world over the last 30 years, delivering information and education to billions of people,” said Miles. “It’s been an amazing vehicle of progress for the world.”

“The energy industry today is more dynamic than the telecoms space. The pace of change is accelerating and the existential need to modernize is more profound.”

By comparison, few people would consider utility providers to be hubs of innovation. Yet this would, said Miles, be a misconception. “From time-of-use tariffing to virtual power plants there is an innovation highway ahead of energy suppliers and the industry today is more dynamic than the telecoms space was,” he said. “The pace of change is accelerating, and the complexity is enormous, but so are the opportunities.”

To illustrate his point, Miles highlighted the success stories from Australia, which, having been hard hit by blackouts, is now powering ahead with renewable and decentralised energy. The Australian Energy Market Operator and Energy Networks predict that generation from decentralised sources will be up to around 45% by 2040 – indeed, the country is already the number one in the world for solar PV per capita. This isn’t just about being blessed with good weather – after all, the country is also rich in oil, gas and coal – but about policy and investment.

Energy decentralisation graph

Government policy has accelerated the uptake of solar and battery systems, which in turn is leading to innovations in customer propositions.

Energy as a service

“One of the more recent innovations we’re seeing, powered by technology, is leveraging flexible behind-the-meter load from Solar and EVs,” Miles says, highlighting the work of Gentrack client Energy Australia. They offer householders installations of solar PV and battery systems with zero up-front cost, and at the end of seven years they own the system. The solar option is highly popular, and the battery roll out is also growing fast; around 140,000 homes already have batteries, with the number installed expected to rise to 800,000 by 2025.

Most importantly, for the consumer this is a super simple and very affordable proposition.”

“Consumers pay a flat energy rate for seven years on an ‘energy as a service’ model,” Miles explained. “Energy Australia leverages their ability to aggregate this flexible load and bid it into the grid as a virtual power plant, so they can take advantage of wholesale revenue streams. Most importantly, for the consumer this is a super simple and very affordable proposition.”

“Your systems need to deliver a simple customer experience in the face of extreme complexity”

This is key, and it’s why the IT side is just as important as the panels and batteries. To work, the hugely complex, multi-faceted and vastly expensive energy transition must be presented to the end-user as simple, reliable and good value for money. “Your systems need to deliver a simple customer experience in the face of extreme complexity,” said Miles.

While telcos responded to the cyclical waves of innovation that would routinely hit every eight years or so by renewing and reinventing their IT infrastructure, Miles believes that the systems powering much of the energy industry are stagnant and act as a brake, rather than an accelerant, on progress.

“The IT systems of many retailers are old and broken,” he told delegates. “The systems are 20-30 years old and they’re leaking and creaking. The shift to upgrade and transform has happened in leading markets with huge success as retailers move off of these antiquated systems. The rest of the world is due to follow as it sees that such transformations are both achievable and able to deliver significant results.”

Existing legacy systems are, quite simply, not fit for purpose if the energy transition is to be achievable to any meaningful timescale.

“Today, leading utilities are telling us that their legacy systems are like cement in their businesses,” he said. “Those platforms are literally weighing their organisations down and stopping them from moving forwards.”

“Leading utilities are telling us that their legacy systems are like cement in their business.”

Investing for a smarter, greener future

The good news is that this overdue investment is now being made. Miles cited statistics from a leading industry analyst that suggest that all of the utilities companies will upgrade their systems in this decade and the first 20% will choose a replacement system by 2026.

And this comes with a kicker in the tail. “If you don’t do it, you will fall further and further behind,” he said, stressing this wasn’t just an energy company issue; water companies need to make this investment too.

These investments in IT are part of the enabling technologies for the energy transition. Because clean energy isn’t just about turbines and solar; as demonstrated by Energy Australia, it’s about building a grid that can deal with intermittency and distributed generation, flexing and adapting and hedging to changing inputs and outputs, offering dynamic pricing and giving more power to consumers – who are becoming generators in their own right.

Get this right and there’s huge upside, both for the utility provider and the customer. “Amazing customer experience, digital first engagement, lower debt, more than 99.5% accurate billing and reduced cost to serve, with automation helping to deliver 30-40% lower cost-to-serve,” said Miles.

What’s more, this kind of digital transformation can be done relatively quickly, using low-code, no-code technologies. “It means you can be launching innovative propositions and new services in days rather than months,” he said.

The energy transition is going to require constant innovation and systems will need to be able to flex, whether it’s in response to new technologies, customer behaviours or market conditions. Future optionality can come from being part of an open ecosystem, enabling companies to partner with specialists and leverage existing capabilities. This is a new way of thinking and working for many in the utilities sector but it’s going to be essential to deliver perhaps one of the biggest challenges facing humanity: the transition to a low/no carbon future.

“The world needs to look at places like Victoria in Australia, and make that leap,” stressed Miles. “The time to do this was yesterday.”

As delegates at the conference would no doubt agree, the next best time is now.

More: MarketForceLive

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GALATEA Results – 23 innovative projects involving 42 companies from 5 different countries

GALATEA Results GALATEA-catalogue 2023

GALATEA has directly financed 23 innovative projects involving 42 companies from 5 different countries. More than 2.21 M € have been distributed.

49 coaching services have been provided to 30 SMEs to get support on Business model elaboration, Technology expertise, Internationalisation and Funding Opportunities.

4 workshops (Internationalization in support of innovation, Business Model Elaboration, Branding and Communication and How to pitch your Business/idea) have been conducted by consortium partners involving 59 companies.

 

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Knut Ørbeck-Nilssen, CEO Maritime, DNV: progress towards industry decarbonisation must be accelerated

Partnering on the pathways to tomorrow

Knut Ørbeck-Nilssen, CEO Maritime, DNV, says that while progress towards industry decarbonisation should be applauded, it must be accelerated. Shipping needs to work together, in tandem with other sectors and stakeholders, if we’re to stand a hope of reaching our most ambitious, and necessary, goals. Nor-Shipping, he believes, with its 2023 theme of #PartnerShip, is an ideal platform for progress.

It’s difficult to know what’s going to happen in the next ten days, let alone the next ten years. So, how are shipowners and operators, eyeing investments with timescales of 25 to 30 years, expected to make optimal long-term decisions, especially regarding fuels?

And how can an organisation like DNV, the world’s leading Class society, make the right decisions to advise them? Surely it’s impossible to navigate a landscape that’s yet to take shape? Isn’t it?

Knut Ørbeck-Nilssen, CEO of the Maritime division at DNV, smiles.

He is a man who, as befits his position, exudes a steady calm and confidence… Even though he’s just ran from another meeting and has yet to eat his lunch, which he pushes aside to deliver his answer.

“That’s why big decisions can’t be taken alone,” he replies. “Everybody needs partners; no one can prosper, or change, in isolation, and that’s especially true when we consider an energy and technology transition of the scale facing shipping.

“We need one another to navigate the future, now more than ever.”

Alternative options

Ørbeck-Nilssen isn’t just being nice here. This isn’t a platitude; it’s a cornerstone of his, and DNV’s, vision. He’s been quoted over the past year or two as noting that “collaboration is the true fuel of the future” and 2022, with its unpredictable geopolitical, economic and environmental challenges, seems only to have deepened that conviction.

He talks of “significant barriers” that have to be overcome together, but before addressing the future wants to dwell on the present – recognising achievements so far. “It’s encouraging to see that some of the key issues highlighted in past editions of our Maritime Forecasts and Reports have been picked up by the industry,” he comments, referring back to previous statements identifying LNG as arguably shipping’s “most feasible transitional fuel”.

“If we look at newbuild ordering there’s now an established trend for alternative dual-fuel propulsion, with LNG as the dominant fuel, especially amongst the larger, deep-sea segments. A third of the vessels on the orderbooks, by gross tonnage, are being built to operate on alternative fuels, with LPG and the first hydrogen-fuelled designs also generating interest.

“So, we can see concrete proof that the transition is gathering pace, with regulatory pressure, access to investment and capital, and cargo owner and consumer demands as the key drivers. But is it moving fast enough?

“Well, that’s another question.”

Clearing the hurdles

And the answer, he implies, is ‘no’.

Ørbeck-Nilssen says that “substantial investment” is needed – “and quickly” – in terms of researching safe and economically feasible carbon neutral fuels, as well as developing the optimal technologies to utilise them.

However, that will be in vain, he stresses, if the main hurdle to progress can’t be overcome, namely, fuel availability:

“According to our recent Maritime Forecast to 2050 report, we need to produce 5% of shipping’s total energy consumption from carbon-neutral fuels by 2030. That requires huge investment… and it’s just the start.

“And if the IMO strategy is revised in 2023, pushing for full decarbonization by 2050, then we require the means and infrastructure to deliver around 270 million tonnes of alternative fuels, according to our research. That is a massive challenge, and it requires action, now.”

He continues: “It goes without saying, this is an issue that shipping cannot resolve alone. We need to see collaboration in the industry, for sure, but beyond that we have to work in unison with energy producers, infrastructure developers, ports, and, not least, national and international authorities and organisations to enable such fundamental change.

“This goes beyond working within our ‘tribes’ – it’s a global issue of critical importance.” But, of course, it’s difficult to know where to place bets when it comes to that fuel. Should a shipowner today invest in assets running on natural gas for tomorrow, or will it pay to be an early mover on hydrogen, ammonia or any other emerging alternative?

This, Ørbeck-Nilssen retorts, is where DNVs ‘pathways’ come in.

Solving the puzzle

Arguably, DNVs core strengths lie in its neutrality and acknowledged expertise and networks in a broad range of industries and disciplines. It has teams spanning maritime, oil & gas, carbon capture and storage, renewables, technology, and more, in addition to strong links with academia, authorities and other key societal stakeholders. As such it can understand the “big picture” and see how pieces of the transitional puzzle might fit together, helping mitigate risk, enhance safety and facilitate development.

It’s pathways – again, featured in the latest Maritime Forecast to 2050 – detail likely scenarios on the journey towards decarbonisation, considering factors such as fuel availability, costs and the apparent lack of one “silver bullet” solution.

“There’s so much uncertainty,” Ørbeck-Nilssen stresses. “The only things that are certain are that we need to change, and that the future fuel mix, at least in the near-term, is going to get more complex, with a wide variety of energy choices emerging. That creates obvious challenges for the industry.

“The pathways address that, helping plot potential routes to decarbonisation.” As an example, he picks an owner opting for LNG today.

“Now, they know this isn’t a perfect fuel,” he explains, “but it enables substantial gains over conventional heavy fuel, utilising proven technology. So, on the ‘gas pathway’ they use LNG as the first step, before switching to bio-gas and then later transitioning to synthetic gas. That’s an over-simplified example, but it shows how you create clarity as you move ahead with business strategy and investments.”

This “clarity from confusion” wouldn’t be possible, Ørbeck-Nilssen notes, without an understanding drawn from close relationships throughout the industry and beyond.

“It all comes back to partnership.”

Collective ambition

A further example of that, and of DNV’s role as a key enabler for an industry in transition, is the recently unveiled Nordic Roadmap initiative.

This follows on the back of the Clydebank Declaration at COP26, where shipping “green corridors” were identified as a key tool for accelerating change. In a bid to position the region at the vanguard of developments, the Nordic Council of Ministers, with support from all the Nordic nations, set up the project as a “cooperation platform” creating unity of purpose. The result is a joint public and private initiative aiming to bring together diverse stakeholders to enable green corridor infrastructure, start pilots, share knowledge, build alternative fuel experience and, Ørbeck-Nilssen says, “set an example for other regions to follow.”

DNV has been brought in as project manager, recently hosting the first meeting at the company’s Høvik HQ in Oslo.

“When you look at the industry in its entirety, the scale and complexity of change needed can seem overwhelming,” he notes. “But if you take separate regions, and look at establishing individual green corridors, it makes the challenge more manageable. Then, when you bring together diverse partners, it’s suddenly possible to work towards concrete, achievable goals – goals that can form a blueprint for the industry in general.

“It’s a really exciting example of partnership in action.”

The Nor-Shipping connection

The repetition of the ‘p-word’ brings us on to Nor-Shipping. The 2023 event, taking place in Oslo and Lillestrøm, 6-9 June, has chosen #PartnerShip as its main theme.

Needless to say, Ørbeck-Nilssen approves, confirming that DNV has once again secured the position of Main Partner.

“Nor-Shipping is a fantastic meeting place for the global industry,” he comments, “bringing people from right across the ocean value chain together in one place. As such, it provides a physical platform for partnership, and progress, helping build relationships, share knowledge and highlight the latest developments.

“We need this kind of face-to-face interaction,” he continues. “And, on a personal level, it’s always so rewarding meeting people, discussing issues and gaining new insights. It’s a constant source of learning. And, not least, it’s fun!”

Here he mentions the traditional Nor-Shipping BBQ at DNV’s fjord-side facilities, which, he adds with a broad smile, is back.

“I’m really looking forward to the chance to host a few thousand guests again,” Ørbeck-Nilssen concludes. “It’s great to see the industry coming together here and, of course, it’s helpful Nor-Shipping is back in the summertime. It’s always a bit more pleasant to have a chat, drink and something to eat when the sun’s shining!”

And with the talk of food, he takes the chance to politely, finally excuse himself.  Lunch, and the next meeting with industry partners, beckons.

www.nor-shipping.com

For further details please contact: Sidsel Norvik, Director Nor-Shipping, Email: sn@nor-shipping.com; Phone: +47 932 56 387

 

DNV and Ørbeck-Nilssen at Nor-Shipping- taking a lead role in the future of maritime

DNV and Ørbeck-Nilssen at Nor-Shipping: taking a lead role in the future of maritime

Ørbeck-Nilssen on stage at Nor-Shipping- a platform for industry partnership

Ørbeck-Nilssen on stage at Nor-Shipping: “a platform for industry partnership”

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Tareq Jarour: eGlobExpo’s first International Conference will be in May in Egypt

By: Magdy Sadek

 The first international conference “eGlobExpo” on e-Commerce, e.Logistics, entrepreneurship, and investment will be held in the new administrative capital of Egypt under the slogan of the digital economy and investing in logistics

Provided that the second edition of the conference and its activities will be in the Kingdom of Saudi Arabia, due to the great economic renaissance it bears, the opening of investment prospects in it, and the vision. About the conference halls, the meeting was with Tareq Jarour, Chairman of the Board of Directors of Trio LLC, the organizing company

 Can you tell us more about the activities of your next conference in the administrative capital of Egypt next May?!

The conference will serve as a table for presenting experiences and ideas for projects that have not been realized on the ground and need more experience, encouragement, and financing, as well as emerging, small, and medium projects that seek development without deviating from their true goal for which they were established and correcting their paths

The conference is a unique experience as it will bring together all e-brands from around the world to learn about the latest eBiz-focused tactics and strategies, integrate with each other, and find partners with solutions to help them take their business to the next level with successful digital transformation.

What is the idea behind the slogan “Invest in Logistics”?!

We emphasize the importance of investing in the logistics sector by the private sector, especially since it is managed globally through this sector. As changes are instantaneous in this sector, whether in technologies or the prices of these services, which requires flexibility in determining the profit margin on the one hand and on the other hand the acquisition or merger with other entities in this sector, which is a key factor for building large economic entities facing challenges and market fluctuations.

And as I said, the private sector has the flexibility to conclude such deals on behalf of the government sector, which is governed by many local or international factors such as responsibility, commitment, bureaucracy, and bearing the burdens of conflicts or market fluctuations. Therefore, we find today, whether in Egypt or Saudi Arabia, interest in investment and the private sector, as well as emerging companies and small and medium enterprises that represent the mainstay of the national economy.

We affirm that the forum will be the first technological and logistical conference that presents innovative technological solutions in the field of logistics, highlighting mechanization and digitization, and reducing the cost of commercial and industrial solutions and logistics industries, so that there is a digital infrastructure for smart manufacturing so that it is in line with the serious challenges with the fourth industrial revolution in terms of artificial intelligence, automation, the Internet of things and the block Chain and others

Why did you choose to launch the first edition in Egypt? And why was your concern for the Saudi Kingdom to be the second stop for that event?!

Egypt and Saudi Arabia are two main stations in the world of trade and business locally, regionally, and globally, because of the logistical and ports infrastructure that both countries enjoy also a geo-strategic location is an important point for the Arab trade movement together.

The conference is a global forum on Egyptian soil, which includes all international companies specialized in the field of digital transformation, as the conference represents a valuable in addition to the Egyptian economy and contributes to the integration of emerging companies.

The forum represents an opportunity to present investment opportunities in Egypt and Saudi Arabia in a field that is the backbone of the trade, which is logistics and sea, dry, and land ports, and put it up for dialogue to support the idea of ​​the logistics center, which is the strategy of the two countries, Egypt, and Saudi Arabia 2030, to become the largest logistics center in the region.

What will make the conference unique considering the global challenges in the logistics industry? What are the most important topics and axes that will be raised through its activities?!

The conference agenda includes a variety of sessions that allow participants to discuss new industry trends, listen to expert opinions on key issues, and learn about new products and consumer needs, and study market changes in the coming period and its ongoing challenges.

The program also includes discussion sessions related to all fields of industry, where the conference will hold seminars, workshops, and round tables on many financial, economic, and commercial issues in Egypt and other countries of the world, especially since the world, including Egypt and the Kingdom of Saudi Arabia, are interested in e. commerce, which now represents a large percentage from the global trade movement and the interest of the private sector and the increasing growth in e-commerce companies, which are witnessing a significant increase, whether in Egypt or Saudi Arabia, as it reaches ten times every year, which makes Egypt one of the largest dynamic markets in the world. As well as the Kingdom of Saudi Arabia

Do the activities of the conference include many other topics such as opportunities for emerging companies to meet with financing institutions?

The Conference eGlobExpo Presents the future of digital transformation in the world and learns about the latest Technologies and insights from leading brands and service providers to help companies build a successful digital transformation strategy.

Also, the event includes thousands of professionals and experts from all fields and solution providers around the world, which provides an opportunity for entrepreneurs and startup owners to communicate with them and learn from their previous experiences so that their businesses can advance globally under the shadow of global competitions, and supporting them, whether by direct financing or financing through the acquisition of stakes in these companies, especially since digital transformation is the future of all businesses and industries.

Digital infrastructure is one of the most important themes of the conference and the transfer of modern technology, whether for companies that will start or start-ups. To what extent will this be announced or implemented through the activities of the conference?

The conference represents an opportunity for partnership, merger, exchange of supplies and digital data in the field of e-commerce, logistics technology, digital dealing, and billing to other electronic transactions, which means the transfer of these modern technologies to the small and medium companies in the Egyptian market

 Funding is one of the most important problems for startups. To what extent do you have solutions to it?

Funding has many faces, direct financing, or financing through the acquisition of shares in these companies. This is an essential aspect. Large and international institutions have expressed their interest and willingness to take practical steps in this regard.

We are interested in e.commerce, one of the most important axes and objectives of the conference. To what extent did this interest come in this file, which has become the focal point of the global trade movement?

Indeed, e.commerce represents one of the most important components of the global trade movement in light of our entry into the world of digitization, which has become part of the “life” movement now, and it is a growing trade in the world, as it represents 2 billion online marketers in the world. only in the Kingdom of Saudi Arabia, more than 80 billion Saudi riyals in 2021 Only an increase of 14% from 2020, and in the latest report of UNCTAD, it is expected that global trade will reach a record level of about 32 trillion US dollars for the year 2022, as it is the “future” of the global trade movement, which is witnessing great growth in the future.

 Why did you become interested in the land transport and multimodal transport sector?! Didn’t this sector, whether in Egypt or the Saudi Kingdom, receive the required attention?!

The land and multimodal transport sector are a real “lung” to serve the logistics sector. In Egypt, the Egyptian government has taken care of establishing the infrastructure for this vital sector and linking it, whether to seaports or dry ports, as a logistical extension that complements the supply chain.

In Saudi Arabia, according to Vision 2030, the interest in these sectors came as a strategic importance for the trade movement, as the total lengths of future railways were increased, and the implementation of the “land bridge” project is one of the most important components of the strategy.

Connecting the Kingdom’s ports on the coasts of the Arabian Gulf and the Red Sea, with modern logistical centers, centers for economic activities, industrial cities, and mining activities, which will contribute to promoting sustainable development, creating a safe and highly efficient link network and relieving pressure on land roads.

It will also create an efficient supply and transport system within the Kingdom. Its importance and efficiency will increase by linking it, in the future, to the Gulf network.

 

 

 

 

 

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Oil and Product Logistics in 2022 – Radical Changes in Routes, Ports and Freight

By Marek Grzybowski

The year 2022 brought radical changes to the transport routes of crude oil and products. After Russia’s invasion of Ukraine, importers experienced a record increase in freight rates for operators of oil tankers and its products. The local war changed the macroeconomic picture of the world economy.

 

Last year marked a new era in the global logistics of crude oil and petroleum products. December 5 last year With the extension of the European Union’s sanctions package and the entry into force of the EU ban on trade in Russian oil, a new era of oil at sea and on land has begun.

– The year ends with critical macroeconomic challenges regarding the future of VLCC and crude oil freight rates. There is uncertainty about the evolution of the oil supply given the current increase in oil demand and the impact on trade flows, as Europe continued to rely on Russian oil imports until the end of the third quarter, says Sue Terpilowski of SeaNews, using data compiled by Signal Ocean.

In 11 months of 2022 [excluding December], the global supply of crude oil in sea transport increased by 8.6% y/y to 1,866.8 million tonnes, excluding cabotage transport, Refinitiv experts calculated. This means higher demand than in the period January-November 2021 (1,718.3 million tonnes), but it was slightly lower than in the same period of 2019, when it amounted to 1,926.9 million tonnes.

As the geography of crude oil and petroleum product imports changes, fuel terminals in Polish ports play a greater role. We still imported 51% of crude oil from Russia to Poland (January-October 2022). Crude oil from outside this market also reached Poland by sea. The main suppliers were: Saudi Arabia (28%), Norway (8%), Great Great Britain (5%), USA (4%), Kazakhstan (3%), Guyana (1%), Nigeria (1%) – Forum Energii experts calculated.

More: Oil and Product Logistics in 2022