Andrew Owen – ‘the participation of Brookfield Business Partners will allow Greenergy to participate in larger-scale strategic mergers and acquisition activities to propel our business to its next phase of development’.
Greenergy has reached agreement for Brookfield Business Partners (NYSE: BBU; TSX: BBU.UN) to invest in the business with the aim of accelerating growth. Existing Greenergy management shareholders will invest alongside Brookfield Business Partners and will retain a 15% share in the business.
As part of the process all existing non-management shareholders will exit the business. There will be no change to company strategy and the current management team will remain in place.
“It has been our long-standing aim to increase our access to capital through a strategic investor,” said Andrew Owens Greenergy’s chief executive.
“The participation of Brookfield Business Partners will allow us to participate in larger-scale strategic mergers and acquisition activities to propel our business to its next phase of development.”
Established in 2016, Brookfield Business Partners acquires and manages businesses with high barriers to entry, low production costs and the potential to benefit from Brookfield’s global expertise as an owner and operator of real assets. Its investment objective is to generate long-term returns without taking undue risk, and it seeks returns of at least 15% on its investments.
Cyrus Madon, chief executive officer of Brookfield Business Partners, commented:
“Our investment in Greenergy expands our footprint in the European market through a business that provides an essential service and a track record of providing customers with reliable and competitive supply. Greenergy is well positioned to continue growing its service offering for its long-term UK customer base, and we believe we can broaden the company’s operations outside of the UK by leveraging our global presence.”
The transaction is expected to conclude in Q2 2017. Its value has not been disclosed.www.greenergy.comwww.brookfieldbusinesspartners.com
A new bunkering facility supplying marine gas oil (MGO) has now opened on the Thames. Operated by the marine division of Certas Energy, the Thames facility stores distillate marine fuel (DMA grade MGO with less than 0.1% sulphur).
The new bunkering facility can accommodate smaller vessels such as bunker barges, through to large vessels with fuel being delivered via truck or ex-pipe.
“In line with our growth plans, this Thames location is a tactical addition to Certas Energy’s marine fuel offering, enhancing our storage and supply portfolio,” said Gary Byers, general manager for Certas Energy Marine.
“With depots near every major British port, Certas Energy marine fuel customers can take advantage of our extensive and reliable delivery network, capable of covering all bunkering needs.”
“Certas Energy continuously monitor the whole of the market to ensure that we keep up to date,” said Varun Chhabria, head of marine and risk at Certas Energy.
“Currently bullish positioning is stretched, price momentum is fading and the forecasting fundamentals for the following months do suggest some peaks. With so many moving parts and with no surprise that OPEC has stepped back into market management mode, it has steered in a new era of growth within specific product lines for the oil industry.”
www.certasenergy.co.uk
(l-r)) Joe Roddy, Volvo’s network truck sales director North & Ireland with Michael Cundy, MD, Suttons Tankers and John Sutton, CEO, Suttons Group
Suttons Group is investing more than £17m in new tractor units for its UK road tanker business. The purchase of over 200 new Euro-6C 6×2 tractor units in the next two years will provide capacity for recent growth and contribute to the company’s strategy to invest in equipment that offers its customers the most effective and flexible solutions.
The strategic procurement process has considered the vehicle specification, fuel efficiency, environmental impact, vehicle reliability, after sales support and whole life cost.
“Suttons Tankers is the UK’s largest bulk chemical logistics company and this latest deal continues Suttons commitment to investing in the latest equipment and technology for both existing and new customers,” said John Sutton, CEO Suttons Group.
“Our drivers’ safety and wellbeing is of great importance so all trucks have undergone an evaluation by a driver trainer, focusing on areas like seat comfort, cab and bed access, noise and cab design.
The deal has been agreed with both Volvo and MAN with Volvo receiving the biggest proportion of orders in the first year.
“Volvo Trucks is absolutely delighted and very excited to have won such an important supply agreement from Suttons,” added Mike Corcoran, commercial director, Volvo Trucks UK & Ireland:
“We’re very proud to be working closely with such an internationally important logistics and supply chain company.”
Suttons operates internationally with key business centres in New Jersey, Houston, Chicago, Widnes, Antwerp, Ludwigshafen, Paris, Kuantan, Singapore, Shanghai, Tokyo and Khobar.www.suttonsgroup.com
The Freight Transport Association (FTA) is concerned that proposed revisions to the European Commission’s Driver CPC Directive (Certificate of Professional Competence) could limit operators’ ability to provide relevant training for their drivers….
“With one of the proposed revisions preventing training on the same subject within the five-year period, an unintended consequence could be that a driver would undertake training that was less relevant to his or her role just to fulfil the statutory requirement,” explained Chris Yarsley, FTA’s EU affairs manager.
“This could hamper keeping drivers up to date with changes in legislation which would particularly apply to operators who carry dangerous goods or are involved in security work, where very specific training is required on a regular basis.”
This long-awaited document from the European Commission follows an evaluation completed in 2014 which was broadly positive, highlighting safety improvements and labour mobility.
Whilst a number of shortcomings which were identified, are now being addressed, the FTA says it is vital that Driver CPC training remains flexible, so that operators can adapt to their own driver needs.
Attention should also be given to how training is delivered and increased flexibility provided, as a seven-hour block of learning may not be the best method for each individual.
The changes could be agreed by the European Commission before Brexit, so would continue to apply following the Great Repeal Bill until otherwise decided.
www.fta.co.uk
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“Government funding to support the development, evaluation and piloting of an ultra-low carbon fuel would be valued,” says Paul Rose
A two-stage approach to reducing carbon emissions from oil-using households has been put forward by OFTEC in its response to the government’s ‘Heat in Buildings: The Future of Heat in Domestic Buildings’ consultation.
OFTEC’s submission focused on the urgent need to decarbonise heat for the 920,000 oil using households in England and Wales – but in a way that is practical and affordable for consumers.
OFTEC suggests this could be achieved by adopting a two-stage approach, looking at a boiler replacement programme in the short term and developing a very low/zero carbon liquid fuel alternative to kerosene as a realistic medium to long-term solution.
“Our independently verified data shows a boiler replacement programme would prove five times more effective in reducing carbon emissions from oil using households than the current domestic Renewable Heat Incentive (RHI).
“Government has already committed further funding to support the ill-fated RHI scheme but by doing so in preference to a boiler replacement scheme, is forfeiting the chance to reduce CO2 emissions by five times for every pound of expenditure.
“A simple boiler replacement programme would be more affordable, easier to comprehend, and simpler to implement for homeowners compared to renewable alternatives, resulting in much higher take up. Due to oil being significantly cheaper to run than renewable options, the approach has the added benefit of reducing household energy bills which will in turn help to lessen the country’s severe fuel poverty issue.
“Whilst a boiler replacement programme would provide an effective short-term carbon reduction solution, we believe the future lies in bringing to market a very low or zero carbon liquid fuel,” added Paul.
“Following advancements in biofuel and building on OFTEC’s successful development of a bio/kerosene blend of fuel in 2010, we are evaluating the suitability of low carbon liquid fuels currently employed in the transport and aviation sectors, for use as a heating fuel.
OFTEC’s submission also supported mandating heating controls along with simple steps such as system flushing and annual boiler servicing to ensure systems are working to maximum efficiency.www.oftec.co.uk
Using biomethane will deliver significant environmental and operational benefits to the business says Waitrose
Last week CNG Fuels, supplier of biomethane fuel, and Waitrose introduced Europe’s most advanced fleet of CNG powered trucks with a range of up to 500 miles. These vehicles use technology developed jointly by Scania and Agility Fuel Solutions which helps overcome concerns about the distance that CNG-powered lorries are able to cover before refuelling.
The 10 new Scania-manufactured CNG trucks entered operation for Waitrose last month. Making deliveries in the Midlands and the North, they are the first in Europe to use two 26-inch diameter carbon fibre fuel tanks which store gas at 250 bar of pressure to increase the range from around 300 miles to as much as 500 miles. This range will allow them to always run entirely on biomethane which is 35% to 40% cheaper than diesel and emits 70% less CO2.
Each truck costs 50% more than one which runs on diesel but the extra costs will be repaid in two to three years with fuel savings of £15,000-£20,000 a year depending on mileage. Operating for at least five years, savings of £75k-100k are expected compared with a diesel equivalent with each lorry also saving more than 100 tonnes of CO2 a year (versus diesel).
“This is a game changer for hauliers,” said Philip Fjeld, CEO of CNG Fuels.
“These high pressure carbon fibre tanks demolish the range anxiety concerns that have made many hauliers reluctant to move away from diesel to CNG.”www.cngfuels.com
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