GCC Lab: Update & Future Perspective

Transcription

1 GCC Lab: Update & Future Perspective Beirut October 24, 2017 Omaintec 2017 Lebanon

2 GCC Lab s International Partnership Omaintec 2017 Lebanon Saudi Aramco: Public

3 OBJECTIVE To Provide an Overview on Testing & Certifications Business Opportunities GCC Lab as a Successful Case

4 Outlines 1 Strategic Drives 2 Competitive Advantages 3 Business Portfolio 4 Partnerships & Collaboration 5 Development Update 6 Remarks GCC Cigre 2017 Muscat - Oman

5 Outlines 1 Strategic Drives 2 Competitive Advantages 3 Business Portfolio 4 Partnerships & Collaboration 5 Development Update 6 Remarks GCC Cigre 2017 Muscat - Oman

6 Strategic Drives Favourable GCC national agendas 1 2 Large and growing electricity demand Focus on efficiency and adoption of new technologies 4 3 Localization incentives for electrical manufacturing All drivers are in support of a GCC electrical lab

7 Strategic Drives Favourable GCC national agendas 1 2 Large and growing electricity demand Focus on efficiency and adoption of new technologies 4 3 Localization incentives for electrical manufacturing

8 1 Strategic Drives National agenda of GCC countries GCC COMMON ECONOMIC DEVELOPMENT THEMES Saudi Arabia UAE OMAN Bahrain Kuwait QATAR Expanding the Productive Base Building a Diversified Economy Enhancing Market Efficiency Localization of Knowledge & Industry

9 Strategic Drives Favourable GCC national agendas 1 2 Large and growing electricity demand Focus on efficiency and adoption of new technologies 4 3 Localization incentives for electrical manufacturing GCC Cigre 2017 Muscat - Oman

10 Strategic Drives 2 GCC Installed Power Generation Capacity Gigawatts, Source: Business Monitor International (BMI)

11 Strategic Drives Favourable GCC national agendas 1 2 Large and growing electricity demand Focus on efficiency and adoption of new technologies 4 3 Localization incentives for electrical manufacturing

12 Strategic Drives 3 GCC countries localization initiatives KSA Oman Bahrain UAE Kuwait Qatar Saudi Vision 2030: Localize Manufacturing to 75%, renewables, industrial equipment manufacturing In-Country Value (ICV) program: Maximize capital spend in Oman for a variety of manufacturing activities Bahrainization: Bring more Bahraini citizens into the workplace and reduce reliance on expats Emiratization Initiative: Employ its citizens in a meaningful and efficient manner in the public and private sectors Kuwaitization Law: Increase Kuwaiti s percentage in the private sector to enhance knowledge transfer and localization Qatar 2030 Vision: Natural resource management and development of knowledge based economy

13 Strategic Drives Favourable GCC national agendas 1 2 Large and growing electricity demand Focus on efficiency and adoption of new technologies 4 3 Localization incentives for electrical manufacturing

14 4 Renewables solar targets by country USD billion, Gigawatts Strategic Drives Kuwait 0.5B$ GW Qatar 1B$ GW UAE 3.0B$ GW Oman 0.5B$ GW 46GW Capacity Over $50 billion of investments by 2032 KSA ~50B$ GW 1.Assuming a 25-30% percent drop in solar CAPEX in the short term and excluding storage cost Source: Saudi 2030 vision, Sun&Life, KACARE

15 Strategic Drives Favourable GCC national agendas 1 2 Large and growing electricity demand Focus on efficiency and adoption of new technologies 4 3 Localization incentives for electrical manufacturing All drivers are in support of a GCC electrical lab

16 Outlines 1 Strategic Drives 2 Competitive Advantages 3 Business Portfolio 4 Partnerships & Collaboration 5 Development Update 6 Remarks

17 Competitive Advantages 1. 1 st Mover in a Growing Market 2. Strategic Shareholders 3. International Partners 4. Strategic Location 5. Regional Focus on Quality & Certification

18 Competitive Advantages Industrial and HP 1 laboratories Europe VEIKI VNL ICMET HP Charles Parsons Schneider Volta Labs CESI HP Tecnalia HP TDL PSW Siemens CESI (2 labs) HP EGU ABB NEFI HP Ormazabal DNV GL KEMA HP SEDIVER ABB AB HP EDP DNV GL KEMA HP LCOE FFII ABB HP Brugg Cables IPE HP STRI AB EDF HP HP HP HP Americas APAC Powertech Kinectrics LAPEM CFE DNV GL KEMA Manitoba Hydro Cepel Eaton Corporation S&C Electric Co. HP HP HP HP HP Central Power Research Institute ERDA HGK KERI Ausgrid (Lane Cove) Xi an Apparatus Hitachi Meidensha Corp HP HP HP HP HP HP HP HP -High Voltage /HP HighPower Source: Project team Independent 3 rd party labs Manufacturer or utility labs Mitsubishi NGK Insulators Nissin Electric HP HP HP Toshiba HP

19 Competitive Advantages 1. 1 st Mover in a Growing Market 2. Strategic Shareholders 3. International Partners 4. Strategic Location 5. Regional Focus on Quality & Certification

20 10 Shareholders (Market Leaders) Right Mix End Users 70 % Manufacturers 10% Neutral 20%

21 Competitive Advantages 1. 1 st Mover in a Growing Market 2. Strategic Shareholders 3. International Partners 4. Strategic Location 5. Regional Focus on Quality & Certification

22 GCC Power Lab Partnership with CESI-Italy Key Highlights LV, MV, & HP Services Design & QA Asset Management Consultation & Training Marketing Services R&D Services Exclusivity: Middle East North Africa Turkey Saudi Aramco: Public

23 GCC Renewable & Safety Lab Partnership with UL-USA Key Highlights Testing of Solar Cells DC Systems Feasibility & bankability Studies Smart Meters Safety/Efficiency Audits Training & Certification R&D Exclusivity: GCC Countries Middle East Saudi Aramco: Public

24 GCC Calibration Partnership with Motabaqah Key Highlights Calibration Services On-site Inspection Testing & Certifications Training Saudi Aramco: Public

25 GCC Lab Benefits to the GCC/MENA 1 Optimize Quality, Time & Cost 2 Create Knowledge Economy 3 Localize Manufacturing & Services 4 Create High-skilled Jobs 5 Promote Applied R&D 6 Retrofit Solutions for Obsolescence GCC Cigre 2017 Muscat - Oman Saudi Aramco: Public

26 Competitive Advantages 1. 1 st Mover in a Growing Market 2. Strategic Shareholders 3. International Partners 4. Strategic Location 5. Regional Focus on Quality & Certification

27 Modon Dammam 3 GCC Lab Land Allocation Site 1 Area of 140,000 m 2 2 Adjacent to EIC Road 3 Abqaiq Highway 4 GCC highway Air & Seaports 5 KFIA- Dammam King Abdul-Aziz 6 Seaport Rail 7 Abqaiq Railway Station Rail connection to 8 Dammam 3 Key Highlights 136,000 SQM. 20 years lease. Right to rent to JV Waived liquidated damages. Site Preparation Saudi Aramco: Public 27

28 Competitive Advantages 1. 1 st Mover in a Growing Market 2. Strategic Shareholders 3. International Partners 4. Strategic Location 5. Regional Focus on Quality & Certification

29 Outlines 1 Strategic Drives 2 Competitive Advantages 3 Business Portfolio 4 Partnerships & Collaboration 5 Development Update 6 Remarks

30 GCC Lab- Strategic Objectives 1 Vision 2 Mission 3 Long-term strategic objectives Achieve global leadership in testing, inspection, certification and innovation for the power Industry Advance safety, efficiency and innovation in the GCC power sector by profitably delivering world class services and solutions enabled by highly skilled people, efficient workflows and state of the art operating facilities I. Provide world class TIC services in the power sector II. Attain financial sustainability III. Advance local innovation & knowledge Economy IV. Develop local workforce 4 Short-term strategic priorities i. Develop internal capabilities ii. Build infrastructure iii. Accelerate business growth iv. Establish partnerships 5 Business goals 2017 Efficient operating model deployment Support functions and enablers implementation HR plan execution for Calibration & Testing labs 2018 HR plan execution for Renewables & Smart Grid lab 2019 HR plan execution for Industrial lab (Phase 1) fully operational Calibration & Testing labs Asset company establishment Fully fledged IT capabilities & systems Operational Renewables & Smart Grid lab Phase Fully operational Renewables & Smart Grid lab 2019 Fully operational Industrial labs (Phase 1) 2017 US$ 1 million revenues Preferred TIC 1 services vendor with SEC and Saudi Aramco 2 major Saudi customers acquisition 2018 US$ 5 million revenues 1 st non-ksa GCC customer 2019 US$ 7 million revenues 2 nd non-ksa GCC customer 2017 JV partnership for Renewables & Smart Grid lab JV partnership for Industrial labs R&D strategy development 2018 Partnership for Appliances & Electronics lab Partnership to provide training to GCC Lab personnel 2019 Strategic partnership with international R&D organization GCC Cigre 2017 Muscat - Oman 1. Testing, Inspection and Certification Source: Project team Saudi Aramco: Public 30

31 Equity Operating Model Holding Company (Corporate) Equity Dividends Equity Dividends Funding and Services Profits Dividends Industrial (Power Lab) OpCo JV Renewables & Smart Grid JV Calibration & Testing Profit center Asset leasing contract Leasing payments Industrial Asset Company Debt capital Interests and debt repayments Debt funding Operating Model that facilitates agility for specialized & competitive growth. GCC Cigre 2017 Muscat - Oman Saudi Aramco: Public

32 Outlines 1 Strategic Drives 2 Competitive Advantages 3 Business Portfolio 4 Partnerships & Collaboration 5 Development Update 6 Remarks GCC Cigre 2017 Muscat - Oman

33 GCC Lab Collaborations Collaboration with KACARE Key Highlights Assessment Studies R&D Test Fields Standards Development Workshops GCC Cigre 2017 Muscat - Oman Saudi Aramco: Public

34 GCC Lab Collaborations Collaboration with KACST Key Highlights Standards Development R&D Testing & Certifications Consultations GCC Cigre 2017 Muscat - Oman Saudi Aramco: Public

35 GCC Lab Collaborations Collaboration for Training Courses Topics: Electrical Safety (Arc Flash) Equipment Testing & Certifications Calibration Solar Field O&M Protection Systems Training Collaborations SCE IEEE CIGREE SEC/Aramco Bahrain GCC Cigre 2017 Muscat - Oman Saudi Aramco: Public

36 Outlines 1 Strategic Drives 2 Competitive Advantages 3 Business Portfolio 4 Partnerships & Collaboration 5 Development Update 6 Remarks

37 GCC Lab Business Development Implementation Timeline 1. Q1 2016: Company Business Plan Created 3. Q4 2016: Partner(s) Identified 5. Q4 2017: Renewables/ Smart Grid Lab LV-MV Labs Industrial Lab Full Operations Q2-Q4 2016: Partner Selection Process 4. Q3 2017: Calibration, Training Services 6. Q4 2017: Industrial Lab EPC Initiated Inspection/ Audit Services GCC Cigre 2017 Muscat - Oman Saudi Aramco: Public

38 Outlines 1 Strategic Drives 2 Competitive Advantages 3 Business Portfolio 4 Partnerships & Collaboration 5 Development Update 6 Remarks GCC Cigre 2017 Muscat - Oman

39 GCC Lab Business Development 2017 Ongoing Activities Partnership Deals with Partners Operationalize Calibration Labs Consultation Services Develop Strategic SLAs with Major Customers Participate in Developing PV Standards Provide Training & Inspection Svs GCC Cigre 2017 Muscat - Oman Saudi Aramco: Public

40 Remarks Synergy with Visions of GCC & MENA Countries Enable Manufacturing & Knowledge Economy Mitigate Challenges (Safety, Quality, Reliability & Cost) Create Centers of Excellence (Asset Management, Spare Parts, Retrofit Condition Assessment) Influence Technical Specifications (Life-Cycle Control, Climate) R&D and Innovation (Conventional, New Technologies) Collaboration with ALL Saudi Aramco: Public

41 THANKS Saudi Aramco: Public