MWH Energy and Industry

Energy and Industry

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The UK faces some real challenges around future energy security.

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This is the first Newsletter of 2014 to provide an update on our growth and diversification progress in the areas of Energy and Industry. I intend to issue a few similar updates during the year to inform all UK staff on subjects such as new project wins, ongoing projects, key pursuits, new hires, etc.

The aim of this newsletter is to provide a UK overview of these sectors for MWH and illustrate this through project examples and stories. I want to focus on clients, on emerging market trends and potential opportunities for staff.

We have a clearly defined growth and diversification strategy for MWH in the UK. Through this Newsletter I hope to explain some of this growth strategy and explain why the sectors of Energy and Industry (E&I) are so important to our aspirations for growth and change. We continue to pursue work in the 'infrastructure' sector, however this sector will be pursued on a more opportunistic manner when attractive opportunities arise. The following page offers a diagram, which summarises the E&I strategy (target sectors, key clients and MWH leadership). There are many things out there in the market place that we’d love to pursue but we can’t. I firmly believe in a focused approach and I believe this strategy is sufficiently wide but not to the extent that we lose focus.

The UK faces some real challenges around future energy security. Many fossil fuel power stations will be decommissioned in line with European Emissions Directives, nuclear new build has been slow to start, shale gas is emerging as an opportunity, renewables continue to feature heavily in the UK’s power portfolio and gas is growing in popularity among generators. The power distribution networks are ageing and require replacement or strengthening to accommodate new generation schemes. Many of our traditional and prospective clients are increasingly focused on resource and energy efficiency and making the most of the assets they have. Managing municipal and industrial waste in a more sustainable and efficient manner is now a legislative requirement. All of these and many other market trends offer a significant business growth opportunity for MWH in the UK.

I hope the strategy diagram and the project case studies are sufficient to explain our growth strategy and where we are on this journey. There’s lots going on that’s not covered in this newsletter, so if you want any further information or if you have any questions please contact me directly. Or take a look at the Energy & Infrastructure Group on Yammer for the latest news from the team.

Craig McMasterBusiness Director (Energy and Industry)March 2014

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John Ord

Growth & Diversification MWH UK Ltd Energy and Industry Sectors

Engineering & Technical: Civil, Structural, MEICA, CAD, Process, Hydraulics, Modelling, Architecture, Geotechnical

Craig Scott

SSERWE

Shire OaksPrivate

Developers

SSEAmey Cespa

Keppel SegherBiffa

ViridorFCC

SSEScottish PowerNational Grid

Hydropower

Key Clients Key Clients Key Clients

Thermal & Heat Energy Networks

Energy

Environmental: Planning, Permitting, Land, EIA, SEA, Regulation

Strategic Technical Consulting: Sustainability, Carbon, Policy, Advice, Regulation, Integrated Urban Infra

Project & Programme Management

Management Consulting

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Craig McMaster Simon Baker

Engineering & Technical: Civil, Structural, MEICA, CAD, Process, Hydraulics, Modelling, Architecture, Geotechnical

NugenHorizon

SellafieldMagnox

NDA

GEHoneywellCoca Cola

Network RailManchester AirportMOD Government

Shale Gas (various)BP

North Sea DecommShell

Key Clients Key Clients Key Clients

Nuclear Manufacturing & Food/Beverage & other Oil & Gas

Industry

Environmental: Planning, Permitting, Land, EIA, SEA, Regulation

Strategic Technical Consulting: Sustainability, Carbon, Policy, Advice, Regulation, Integrated Urban Infra

Project & Programme Management

Management Consulting

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Energy Sector

IntroductionMWH as a global organisation have an excellent reputation in the Energy and Power sector. We have designed schemes with a total installed capacity of greater than 100,000 MW. A large proportion of this heritage in the energy sector derives from hydropower. We are seen as one of the world’s top firms in hydropower and have worked on many of the world’s most iconic and technically complex projects. Over the past few years we’ve been working hard to transfer this global reputation to the UK and we believe we’re now one of the most respected consultants in this field in the UK. We are approached directly by major power companies and private developers to support the development of their schemes.

Thermal power generation has also been a key focus of our energy strategy over recent years and we now have a very respectable and capable team under the leadership of John Ord. Our strategy has been to support clients to develop schemes that generate both heat and electricity from thermal fuel sources. These have included Energy from Waste, Biomass, Small-scale Conventional Gas and Anaerobic Digestion. This team provides services across our client base from water companies, large energy firms, waste contractors and private developers.

The nuclear sector offers significant opportunity for MWH in the UK. We will not become a designer of nuclear power stations but there is a significant amount of environmental and engineering work required in support of nuclear developments (outwith the nuclear island). Additionally, the Programme Management and Project Management expertise we’ve developed over recent years is attractive to both the nuclear new-build programme and the ongoing decommissioning programme.

Finally, energy networks (High Voltage, Low Voltage and Gas Pipelines) offers good opportunity for MWH. Our Environmental services including planning, permitting and regulatory support continues to be widely used by energy companies across the UK.

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Energy Sector

Client: Amey CespaProject: Milton Keynes – Resource Recovery Centre and Energy from Waste PlantMWH has been appointed by AmeyCespa to perform Owners Engineer and Project Management Services for the Milton Keynes Waste Recovery Park (MKWRP). AmeyCespa is one of the ‘big six’ waste management companies in the UK and currently operates a number of sites and continues to bid for and develop new projects which will help reduce landfill waste and recover energy to meet landfill diversion targets. As Owners Engineer MWH will be supporting AmeyCespa through the project by providing technical advice and reviews with a team who have experience of the proposed technologies, construction management services, cost management, programme management and SHEQual management.

Client: Green Investment BankProject: Lender’s Advisor – Framework AgreementMWH in partnership with Ricardo AEA have been appointed by the Green Investment Bank to provide technical due diligence service as Lender’s Engineer. The GIB will fund a variety of thermal and renewable power schemes and will use this framework to obtain technical advice during the transactory process.

Client: Scottish Power Energy Networks (SPEN): Project: Rowantree Wind Farm Connection ProjectMWH were commissioned under our Environmental Planning Framework to undertaking environmental studies to gain consent for an overhead line connecting a new terrestrial wind farm to the national grid. Following successful completion of the main Environmental Appraisals in late 2013, MWH is currently undertaking additional studies to assess re-routing options due to system changes proposed by the client. These include reviews of ecology, landscape and access constraints.

Client: Scottish and Southern Energy (SSE)Project: Coire Glas Pumped Storage Scheme, FEED Study and Commercial Modelling SupportMWH completed a FEED Study for SSE for two pumped storage hydropower schemes, each 600MW capacity. SSE have now obtained all necessary permissions for the Coire Glas scheme. MWH have recently been supporting SSE with the revenue model, which will lead to an investment decision and potential follow on work for MWH. In addition, we’ve carried out a pre-feasibility study of a 400MW pumped storage scheme in Ireland and bidding for some small conventional hydro schemes in Scotland.

Client: National GridProject: Mid-Wales Wind Farm Connection ProjectThe project involves identifying a site for a new 400kV substation in Mid Wales and the associated route corridors which would link the site back to the existing grid in England. MWH successfully completed the route corridor and sub-station siting study in late

2013 and has now been appointed by National Grid to lead the Environmental Impact Assessment and preparation of supporting documents for the Development Consent Order submission scheduled for 2015. MWH has developed a Draft Scoping Report for the EIA that has been submitted to stakeholders for early approval prior to submission to the Planning inspectorate. Field surveys are scheduled to commence in Spring 2014.

Client: Scottish Power Energy NetworksProject: Crystal Rig Substation Expansion ProjectMWH has undertaken environmental studies to gain consent for a major extension to the existing Crystal Rig substation to support connection to a new offshore wind farm; with landscape and hydrology being key constraints. In addition to the environmental studies at Crystal Rig, variations for a deflectography study for the access road and a landscape and planting design of the finished substation, have been commissioned by the client. Also, as this project meets the criteria for a ‘Major Application’, the MWH team has designed and delivered public consultation events in the project area.

Client: Shire Oaks Energy (Private Developer)Project: Hydropower Development ProgrammeShire Oak Energy is a private entity looking to develop conventional hydropower and pumped storage schemes across the UK. MWH secured a framework agreement to provide SOE technical, engineering and environmental consulting services. As part of the first phase of works MWH analysed the earning potential of 54 potential sites. Using a multiple account analysis, the original number of sites was reduced to a short list of those with the best topographical and geographical setting. We continue to work with SOE to develop outline designs for many of these sites.

Client: RWE nPowerProject: Glen Noe 2MW Hydropower SchemeMWH were commissioned by RWE to complete the outline design for a 2MW, run-of-river hydropower scheme at Glen Noe, Scotland, comprising a pair of Francis turbines on a gross head of 150 m with 3 separate coanda intake structures. Services performed consisted of topographical surveys and outline design for the intake structures, intake design, penstock design, powerhouse and outfall design.

Key Pursuit and TargetSellafield Nuclear Decommissioning An example of an ongoing campaign in the energy sector; 2014 will likely see a significant increase in capital expenditure at the Sellafield nuclear decommissioning site. MWH have been positioning for the past year for a number of opportunities predominantly in programme and project management services but also some engineering and technical areas. Contact Neil Crellin for further information.

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Industry Sector

IntroductionThe relationship between the sectors of energy and industry is very close; many of our industrial clients have clear needs relating to energy, resources and indeed water. There is a strong overlap in the services MWH provide to both industrial and energy type clients.

The global industrial sector is both large and diverse. To grow our business in this sector we’ve adopted a highly focused strategy in maintaining a disciplined approach to winning new work. In broad terms the MWH Industry business can be defined as: Manufacturing/Food/Beverage and Oil/Gas. Our skills and therefore our offerings to industrial clients range from environmental, permitting and compliance through to hard engineering and design.

Industrial clients tend to be driven by fast moving business imperatives and need a very responsive support service, often to help deal with environmental issues while they focus on their core production business. MWH has learned to respond quickly to support these environmental and compliance issues and therefore allow our clients to focus on delivering their core business. The following case studies illustrate some of the work we’re currently delivering for various industrial related clients:

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Industry Sector Client: General Electric (GE)Our service offering to GE is centered around 3 areas: EHS and Due Diligence Services, Contracting Services with MWH Treatment, Consulting Services for GE Water

Our EHS and Due Diligence services are undertaken by the Ground Engineering, Planning & Permitting and SHEQUAL teams and involve anything from desk based Environmental Site Assessments for new sites GE are looking to lease followed by intrusive investigations, or review of environmental liabilities of a business GE are looking to acquire, or environmental sampling to support GE leaving a facility. Current projects include overseeing unexploded ordnance (UXO) clearance at a former RAF base GE are expanding on to, supporting the evaluation of an acquisition of a company in the Oil & Gas sector and supporting the management of groundwater and surface water interactions at a jet engine repair facility.

Our contracting services have focused around facility exit services where MWH and MWHT have provided a combined approach to scope, assess, test, design, oversee and verify a variety of industrial facility exit services ranging from equipment cleaning, dismantling and disposal, industrial process strip out, demolition, stack removal, underground tank closure and soil remediation to support one GE business moving out and either a new GE business moving in, or the facility being sold or returned to the landlord. Current projects include GE facilities at Shipston on Stour, Dartford, Glasgow and Bonnyrigg, with Skelmersdale planned for later in 2014.

Our working relationship with GE Water is the newest and an exciting development in the GE portfolio where we are working together under a Memorandum of Understanding to identify opportunities to go to market together. Current opportunities involve a McCains facility in Peterborough, Carlsberg in Northampton and Haribo in Pontefract. The solutions to the food & beverage effluent treatment problems involve GE technology, with MWH providing feasibility studies, outline and detailed design with the opportunity for MWH Treatment to provide construction services during the solution implementation.

Client: HoneywellProject: Combined Heat and Power - Framework AgreementHoneywell has been awarded the Blue Sky Peterborough framework for the delivery of energy conservation projects into Local Authorities throughout the UK. MWH UK will partner with Honeywell on the framework with our primary function being Owners Engineer on a number of energy centre installations designed to service the energy requirements on, potentially, a city wide scale.

The relationship is delivering additional industrial based initiatives potentially with: Procter and Gamble, Pilkingtons Glass and Jaguar Landrover. With Government incentivisation schemes our industrial clients are developing beneficial commercial models for installing decentralised energy generation plants on their facilities, not only to service their own on site needs, but also to export sustainable energy back into the grid.

Client: Ministry of DefenceWe are currently providing a variety of environmental support services to the MoD across the UK, primarily at air bases. We’ve helped respond to environmental incidents including hazardous spills and dealing with contaminated ground. We’re currently bidding with Babcock and URS for a large capital programme of works at HM Naval Base Clyde.

Client: Various Unconventional (Shale) Gas Developer FirmsMWH UK have recently been involved in delivering technical services to oil & gas clients in both Australia and the US, where Shale and other Unconventional Gas reserves have been extensively developed. This market is now emerging in the UK and Europe. We are well connected within this UK sector and have helped shape industry thinking on water resources and strategy. We aim to work with all developers if this market moves to full production in the years ahead. We’ve been working to develop the new arrangements with Worley Parsons and how we can work together in the emerging UK Shale Gas market.

Client: Novopro Projects Inc.Project: Ethiopia Potash Mine (Hydrogeological Studies)MWH has been appointed by Novopro Projects Inc. to conduct hydrogeological studies and independent consultancy services to confirm the sustainable yield from a number of alluvial fans close to a proposed potash mine site. The project is located in the Danakil Depression near Dallol, Ethiopia, in the Afar State of Northeast Ethiopia, next to the border of Eritrea. The Dallol region is the second lowest non-water covered area on earth with a depth of about 120 m below sea level. The Dallol region is endowed with mineral resources such as salt, potash, sulphur and manganese deposits. Traditional salt mining has been active in the Dallol area for centuries. Our role involves advising our client on sustainable production rates, well lifespans, water availability and supervision during well drilling operations.

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Who's Who?

Craig Scott

EA Dams & Hydro Sector Leader

Craig McMaster

Business Director -

Energy & Industry

John Ord

Business Director - Thermal

Power & Energy Networks

Simon Baker

Business Director - Industry

Energy (Thermal Power and Energy Networks) Business Director The Energy and Power sector in the UK is an integral part of our growth strategy. Thermal power and networks is a key component of our energy strategy. I am pleased to announce that John Ord has been appointed as Business Director responsible for growing and delivering our business in thermal and networks. John will retain his role as Product Line Leader (PLL) for Energy Systems within EA Design and will be a bridge between technical delivery and business management and leadership. John will also retain his technical delivery role working with clients both in the UK and internationally.

Hydropower and Dams Director (EA Region)I am pleased to announce that Craig Scott has relocated from MWH New Zealand to the UK to lead the growth of our hydropower business across the Europe Africa region. Craig successfully undertook this role across the MWH Asia Pacific Region before transferring to the UK so brings a wealth of knowledge and experience in this field. Craig has relocated to Scotland with his wife, Julie and children; Oliver, Amelia and Theo.

Industry Business DirectorSimon Baker has now been with MWH for 18 months as the Business Director for Industry. During this short time Simon has made a significant contribution to our growth aspirations in the industrial sector and helped position MWH externally with clients. There is still much to do in growing MWH in this sector and Simon will continue to provide strong leadership and drive change inside MWH.

Business Development TeamWe have dedicated sales and business development managers working in the field of Energy and Industry: Mike Wright, Neil Crellin, Amer Rafique and Alan Kyle. We have a significant investment budget for growing a diversified E&I business in the UK and we need dedicated sales people who can represent MWH with potential clients and bring opportunities for subsequent bidding. Building effective client relationships and long term positioning is the key to success in winning work in these new areas.

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The effective transfer of knowledge around the world has always been a key component of doing business at MWH. This concept is extremely important as we work to grow a diversified E&I business in the UK. We have many areas of excellence around the world in particular disciplines. In the UK we actively engage in the wider MWH Global community and ensure we transfer learning and innovation to maximize our chance of success. This sharing of knowledge goes both ways with many UK staff supporting wider global growth initiatives.

One of the reasons for growing our E&I business in the UK is to provide different career opportunities for staff out with the water industry. Many staff in the UK have transferable skills, which can be used on a variety of projects in other sectors. We aim to win new work in new sectors and utilize these skills to maintain a high Direct Time business and help retain staff by offering diverse career progression opportunities. In addition, we continue to hire staff with new and unique skills in areas where MWH does not have the expertise.

Join the conversation about Energy, Industry and Infrastructure and see the latest news from the team by joining the 'Energy, Industry & Infrastructure Group' on Yammer.

Also, keep a look out for my interview with executive action officer, Tracey Gee featured at the end of Cath Schefer's May Webcast where I share my thoughts on why we are focussing on Energy, Industry and Infrastructure in the UK and talk about the areas of opportunity and key investment areas.

Sharing Knowledge

Increasing Capability & Resources

Keep Up to Date

www.mwhglobal.com

If you have a question or feedback for the team, please contact us directly:

Get in Touch

Craig McMasterBusiness Director - Energy & Industry

+44 131 335 [email protected]

John OrdBusiness Director - Thermal Power & Energy Networks

+44 191 269 [email protected]

Craig ScottEA Dams & Hydro Sector Leader

+44 131 335 [email protected]

Simon BakerBusiness Director - Industry

+44 1925 [email protected]

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