Profit at Risk as a Risk Management Tool in Deregulated Energy Markets

Euroopan energiamarkkinat ovat olleet viimeisen kymmenen vuoden aikana suurten muutosten alla. Markkinoiden kehitys on ollut huomattavaa myös Iso-Britanniassa, jossa sähkö- ja kaasumarkkinat ovat olleet avoinna kilpailulle jo muutamia vuosia. Ennen markkinoiden avautumista energiyhtiöt pystyivät siirtämään kaikki riskit suoraan asiakkaan kannettaviksi. Markkinoiden avautumisen myötä lisääntynyt kilpailu on kuitenkin pakottanut energiayhtiöitä ajanmukaistamaan näkemyksiään riskeistä. Riskitekijät, joista ei aiemmin tarvinnut välittää, on nyt pystyttävä tunnistamaan ja hallitsemaan. Tämä työ keskittyy hinta- ja volyymiriskien hallintaan. Rahoitusmarkkinoilla pitkään käytettyjä riskienhallintatyökaluja on otettu käyttöön myös energiamarkkinoilla. Energiamarkkinoiden piirteet poikkeavat kuitenkin rahoitusmarkkinoista, eikä näitä työkaluja voida ottaa käyttöön muutoksitta. Silti, jopa muutosten jälkeen rahoitusmarkkinoiden riskienhallitavälineet aliarvioivat energiamarkkinoiden hinta- ja volyymiriskejä. Tässä yhteydessä työssä esitetään Profit at Risk, PaR. PaR on skenaariopohjainen riskienhallinnan työkalu, joka on kehitetty erityisesti energiamarkkinoille ja täten huomioi niiden erikoispiirteet. Työn rungon muodostavat energiamarkkinoiden käyttäytyminen, hinta- ja volyymiriskitekijät sekä pohdinta miten hinta- ja volyymiriskeiltä voidaan suojautua ja miten niitä voidaan hallita. PaR-metodologiaa verrataan perinteisiin riskienhallintamenetelmiin ja työn tavoitteena on tuoda esiin ne tekijät, joiden ansiosta PaR on sopivampi työkalu energiamarkkinoiden riskienhallintaan kuin perinteiset menetelmät. Käytännön esimerkkinä työssä toimii Fortum Energy plus’n PaR –malli. Koska PaR on kehitetty erityisesti energiamarkkinoille, se huomioi täysin markkinoiden aiheuttamat hinta- ja volyymiriskit. Käytännön esimerkki kuitenkin osoittaa, että PaR menetelmästä ei ole riskienhallinnallista hyötyä ellei työkalun käyttäjällä ole täydellistä tietämystä niin energiamarkkinoista kuin markkinoiden muutoksiin vaikuttavien tekijöiden käyttäytymisestä.

Technical Wind Energy Potential in Russia

The goal of the master's thesis is a detailed research of the technical wind energy potential in Russian Federation: the distribution of the potential all over the territory of the country and the possibility of the application of the potential for power supply of various objects. The main attention of the thesis is devoted to the assessment of wind energy resources (potential) of Russian Federation, both for the territory of country in whole and for every region. Theoretical basic wind energy concepts and the scheme of transformation of kinetic energy of a wind into electric energy by modern wind turbines are given in the work. Also the costs of energy, stimuli of development of wind-engineering and obstacles which impact the industry development are analyzed. The review of existent and projected wind power plants in Russia is carried out.

Change of Electricity Distribution Industry: Drivers and Opening Business Opportunities

As a result of the recent regulatory amendments and other development trends in the electricity distribution business, the sector is currently witnessing radical restructuring that will eventually impact the business logics of the sector. This report represents upcoming changes in the electricity distribution industry and concentrates on the factors that are expected to be the most fundamental ones. Electricity network companies nowadays struggle with legislative and regulatory requirements that focus on both the operational efficiency and the reliability of electricity distribution networks. The forces that have an impact on the distribution network companies can be put into three main categories that define the transformation at a general level. Those are: (1) a requirement for a more functional marketplace for energy, (2) environmental aspects (combating climate change etc.), and (3) a strongly emphasized requirement for the security of energy supply. The first point arises from the legislators’ attempt to increase competition in electricity retail markets, the second one concerns both environmental protection and human safety issues, and the third one indicates societies’ reduced willingness to accept interruptions in electricity supply. In the future, regulation of electricity distribution business may lower the threshold for building more weather-resistant networks, which in turn means increased underground cabling. This development pattern is reinforced by tightening safety and environmental regulations that ultimately make the overhead lines expensive to build and maintain. The changes will require new approaches particularly in network planning, construction, and maintenance. The concept for planning, constructing, and maintaining cable networks is necessary because the interdependencies between network operations are strong, in other words, the nature of the operation requires a linkage to other operations.

Environmental policy instruments concerning industrial end-use energy efficiency

Energy efficiency and saving energy are the main question marks when thinking of reducing carbon dioxide emissions or cutting costs. The objective of thesis is to evaluate policy instruments concerning end-use energy efficiency of heavy industry in European Union. These policy instruments may be divided in various ways, but in this thesis the division is to administrative, financial, informative and voluntary instruments. Administrative instruments introduced in this thesis are Directive on Integrated Pollution Prevention and Control, Directive on Energy End-use Efficiency and Energy Services, and Climate and Energy Package. Financial means include energy and emission taxation, EU Emission Trading Scheme and diverse support systems. Informative instruments consist of horizontal BAT Reference Document for Energy Efficiency, as well as substantial EU documents including Green Paper on Energy Efficiency, Action Plan for Energy Efficiency and An Energy Policy for Europe. And finally, voluntary instruments include environmental managements systems like ISO 14001 and EMAS, energy auditing and benchmarking. The efficiency of different policy instruments vary quite a lot. Informative instruments lack the commitment from industry and are thus almost ineffective, contrary to EU Emission Trading Scheme, which is said to be the solution to climate problems. The efficiency of administrative means can be placed between those mentioned and voluntary instruments are still quite fresh to be examined fruitfully. However, each instrument has their potential and challenges. Cases from corporate world strengthen the results from theoretical part. Cases were written mainly on the basis of interviews. The interviewees praised the energy efficiency contract of Finnish industry, but the EU ETS takes the leading role of policy instruments. However, for industry the reductions do not come easily.

Use of a Ca-selective electrode in the determination of total Ca in the production of crude sugar. Preliminary studies

The determination of the total calcium in juice, syrups, and other products of the sugar industry is investigated. Total calcium and free calcium is determinated by AAS and employing Ca-selective electrode respectively. A coefficient is obtained for the relation of total calcium with respect to free calcium. The coefficient is employed to determine the content of total calcium in accordance with the following equation.

An Overview Of British Automotive Industry: Implications From History and Recommendations for Future

This thesis is a literary research, which aims to uncover reasons for the downfall of automotive industry in the United Kingdom in the late 20th century. First, there is a short review on the history of the industry in the UK and then there are more present cases presented in the form of BMW-Rover and Tata-Jaguar Land Rover. Finally, the thesis suggests some ideas to which the UK should work towards in order to ensure future competitiveness. The automotive industry in the United Kingdom is one of the oldest in the world, but as the end of last millennium was approaching it was not doing too well. Industry that was still flourishing in the mid-century was soon heading down river and by the end of the century all large English car manufacturers had either closed down or were forced under foreign ownership. The thesis suggests possible targets for future prospects from the literary review and from the conclusions made. These are to ensure the continuity of the industry and the competitiveness on an international level. The suggestions are for long term and are mainly focused around research and development of renewable energy forms.

Energy Efficiency of Pumping Medium Consistency Pulp with Centrifugal Pump

Approximately a quarter of electrical power consumption in pulp and paper industry is used in different pumping systems. Therefore, improving pumping system efficiency is a considerable way to reduce energy consumption in different processes. Pumping of wood pulp in different consistencies is common in pulp and paper industry. Earlier, centrifugal pumps were used to pump pulp only at low consistencies, but development of MC technology has made it possible to pump medium consistency pulp. Pulp is a non-Newtonian fluid, which flow characteristics are significantly different than what of water. In this thesis is examined the energy efficiency of pumping medium consistency pulp with centrifugal pump. The factors effecting the pumping of MC pulp are presented and through case study is examined the energy efficiency of pumping in practice. With data obtained from the case study are evaluated the effects of pump rotational speed and pulp consistency on energy efficiency. Additionally, losses caused by control valve and validity of affinity laws in pulp pumping are evaluated. The results of this study can be used for demonstrating the energy consumption of MC pumping processes and finding ways to improve energy efficiency in these processes.

Employer Branding in Power Industry

Companies invest in employer branding in order to get good applicants, retain employees and create the image of a great employer. Employer branding will become more prominent in the future because companies strive to gain competitive advantage. Power industry is an internationally remarkable field of business. Energy and the solutions of power technology are always needed and there is a major need for new experts in power industry. The competition of talented workforce will increase because of the decrease in working-age population. The fundamental purpose of this study is to examine what kind of motives and practices company has for employer branding in power industry. The objective is to find out the benefits of employer branding and how it is targeted towards potential and current employees. In addition, the aim is to examine whether companies see employer branding as a process and what kind of processes they have for employer branding. The theoretical contribution of this study is based on literature review, which provides a better understanding of employer branding. The empirical part is a qualitative case study of two large and international companies in the field of power industry. Employer branding in the case companies is examined using theme interviews. According to this study, employer branding is a significant part of companies’ business in power industry. The main motives for employer branding are better employer image, more efficient recruitment and improved job satisfaction. Employer branding is communicated and targeted according to target group. Recruitment and educational co-operation are the main objects of employer branding towards potential employees, whereas training and development are an essential part of employer branding towards current employees. This study also discovers that there is some kind of process aspect in the background of employer branding.

Energy storage in electric drive system

In recent years the environmental issues and the energy saving have become increasingly import in modern society where industry is the major emission factor and energy consumer. Generally, most of the total energy consumption is caused by electrical drives used in industrial applications and thus improving the performance of electrical drives give an opportunity to improve the energy efficiency. In this Master Thesis improving the energy efficiency in different electrical drives is clarified with different cases: regenerative braking in the electric grid or recovery of the braking energy into an energy storage. In addition, as an example, the energy consumption of an elevator is analyzed by measurements. From these measurement results it can be estimated how much the share of the standby energy consumption is from the total energy consumption and how much regenerative energy is available. The latter part of the thesis concentrates on determination of the properties of lithium iron phosphate battery with measurements.

Anaerobic co-digestion of crude glycerin and starch industry effluent

The Brazil's Biodiesel Production and Use Program introduces biodiesel in the Brazilian energy matrix, bringing along the perspective of a growth of the glycerin offer, co-product generated in the proportion of 10 kg for each 100 L of biodiesel. The aim of this study was to evaluate the addition of crude glycerin in the anaerobic digestion of cassava starch industry effluent (cassava wastewater), in a horizontal semi-continuous flow reactor of one phase in laboratory scale. It was used a reactor with a 8.77 L of useful volume, a medium support for corrugated conduit of polyvinyl chloride (PVC), temperature of 261 ºC, fed with cassava wastewater and glycerin, with hydraulic detention times of 4 and 5 days and increasing volumetric organic load of 3.05; 9.32; 14.83 and 13.59 g COD L-1 d-1, obtained with the addition of glycerin at 0; 2; 3 and 2% (v/v), respectively. The average removal efficiencies of TS and TVS were decreasing from the addition of glycerin to the cassava wastewater, averaging 81.19 to 55.58% for TS and 90.21 to 61.45% for TVS. The addition of glycerin at 2% increased the biogas production compared to the control treatment, reaching 1.979 L L-1 d-1. The biogas production as a function of the consumed COD was higher for the control treatment than for the treatments with addition of glycerin, which indicates lower conversion of organic matter into biogas.

Hydrogen production from cassava processing wastewater in an anaerobic fixed bed reactor with bamboo as a support material

Attempting to associate waste treatment to the production of clean and renewable energy, this research sought to evaluate the biological production of hydrogen using wastewater from the cassava starch treatment industry, generated during the processes of extraction and purification of starch. This experiment was carried out in a continuous anaerobic reactor with a working volume of 3L, with bamboo stems as the support medium. The system was operated at a temperature of 36°C, an initial pH of 6.0 and under variations of organic load. The highest rate of hydrogen production, of 1.1 L.d-1.L-1, was obtained with application of an organic loading rate of 35 g.L-1.d-1, in terms of total sugar content and hydraulic retention time of 3h, with a prevalence of butyric and acetic acids as final products of the fermentation process. Low C/N ratios contributed to the excessive growth of the biomass, causing a reduction of up to 35% in hydrogen production, low percentages of H2 and high concentrations of CO2in the biogas.

Energy balance in the poultry-shed system and its influence on broiler performance

ABSTRACTThe objective of this study was to determine the energy balance of the poultry-shed system and its effect on broiler performance during the production cycle. The experimental design was completely random with sub-divided blocks. The blocks were composed of five different types of sheds and the sub-blocks of the evaluation times (00:00 h to 23:00 h), allowing an analysis of variance and a comparison between means with the Tukey test. There were no significant differences between the mean values of the exchanges of sensible, latent and total heat between the poultry sheds but the differences for the evaluation times were significant (P<0.05). There was no significant difference between sheds 1 and 4 for broiler productive performance regarding weight gain, feed consumption and feed conversion. Bird performance was significant (P<0.05) for the remaining poultry sheds. The productive indexes remained below the ranges considered ideal for broilers and values in the final weeks were characterized by the poor installation efficiency in controlling temperature variations and, consequently, the energy balance in the system, which adversely affected bird productive performance.

Assessing the Environmental Value of Water Treatment Solutions in the Mining Industry

Environmental accountability has become a major source of competitive advantage for industrial companies, because customers consider it as relevant buying criterion. However, in order to leverage their environmental responsibility, industrial suppliers have to be able to demonstrate the environmental value of their products and services, which is also the aim of Kemira, a global water chemistry company considered in this study. The aim of this thesis is to develop a tool which Kemira can use to assess the environmental value of their solutions for the customer companies in mining industry. This study answers to questions on what kinds of methods to assess environmental impacts exist, and what kind of tool could be used to assess the environmental value of Kemira’s water treatment solutions. The environmental impacts of mining activities vary greatly between different mines. Generally the major impacts include the water related issues and wastes. Energy consumption is also a significant environmental aspect. Water related issues include water consumption and impacts in water quality. There are several methods to assess environmental impacts, for example life cycle assessment, eco-efficiency tools, footprint calculations and process simulation. In addition the corresponding financial value may be estimated utilizing monetary assessment methods. Some of the industrial companies considered in the analysis of industry best practices use environmental and sustainability assessments. Based on the theoretical research and conducted interviews, an Excel based tool utilizing reference data on previous customer cases and customer specific test results was considered to be most suitable to assess the environmental value of Kemira’s solutions. The tool can be used to demonstrate the functionality of Kemira’s solutions in customers’ processes, their impacts in other process parameters and their environmental and financial aspects. In the future, the tool may be applied to fit also Kemira’s other segments, not only mining industry.

Regioselective modification of galactose-containing polysaccharides in aqueous media

Biorefining is defined as sustainable conversion of biomass into marketable products and energy. Forests cover almost one third of earth’s land area, and account for approximately 40% of the total annual biomass production. In forest biorefining, the wood components are, in addition to the traditional paper and board products, converted into chemicals and biofuels. The major components in wood are cellulose, hemicelluloses, and lignin. The main hemicellulose in softwoods, which are of interest especially for the Nordic forest industry, is O-acetyl galactoglucomannan (GGM). GGM can be isolated in industrial scale from the waste waters of the mechanical pulping process, but is not yet today industrially utilized. In order to attain desired properties of GGM for specific end-uses, chemical and enzymatic modifications can be performed. Regioselective modifications of GGM, and other galactose-containing polysaccharides were done by oxidations, and by combining oxidations with subsequent derivatizations of the formed carbonyl or carboxyl groups. Two different pathways were investigated: activation of the C-6 positions in different sugar units by TEMPO-mediated oxidation, and activation of C-6 position in only galactose-units by oxidation catalyzed by the enzyme galactose oxidase. The activated sites were further selectively derivatized; TEMPO-oxidized GGM by a carbodiimide-mediated reaction forming amides, and GO-oxidized GGM by indium-mediated allylation introducing double or triple bonds to the molecule. In order to better understand the reaction, and to develop a MALDI-TOF-MS method for characterization of regioselectively allylated GGM, α-D-galactopyranoside and raffinose were used as model compounds. All reactions were done in aqueous media. To investigate the applicability of the modified polysaccharides for, e.g., cellulose surface functionalization, their sorption onto pulp fibres was studied. Carboxylation affects the sorption tendency significantly; a higher degree of oxidation leads to lower sorption. By controlling the degree of oxidation of the polysaccharides and the ionic strength of the sorption media, high degrees of sorption of carboxylated polysaccharides onto cellulose could, however, be obtained. Anionic polysaccharides were used as templates during laccase-catalyzed polymerization of aniline, offering a green, chemo-enzymatic route for synthesis of conducting polyaniline (PANI) composite materials. Different polysaccharide templates, such as, native GGM, TEMPO-oxidized GGM, naturally anionic κ-carrageenan, and nanofibrillated cellulose produced by TEMPO-oxidation, were assessed. The conductivity of the synthesized polysaccharide/PANI biocomposites varies depending on the polysaccharide template; κ-CGN, the anionic polysaccharide with the lowest pKa value, produces the polysaccharide/PANI biocomposites with the highest conductivity. The presented derivatization, sorption, and polymerization procedures open new application windows for polysaccharides, such as spruce GGM. The modified polysaccharides and the conducting biocomposites produced provide potential applications in biosensors, electronic devices, and tissue engineering.

Wastewater Treatment and Deinking Sludge Utilization Possibilities for Energy and Material Recovery in the Leningrad Region

Operation of pulp and paper mills generates waste including wastewater treatment sludge and deinking sludge. Both sludge types are generated in large amounts and are mainly disposed of in landfills in the Leningrad Region resulting in environmental degradation. The thesis was aimed at seeking new sustainable ways of sludge utilization. Two paper mills operating in the Leningrad Region and landfilling their sludge were identified: “SCA Hygiene Products Russia” and “Knauf”. The former generates 150 t/day of deinking sludge, the latter – 145 t/day of secondary sludge. Chemical analyses of deinking sludge were performed to assess applicability of sludge in construction materials production processes. Higher heating value on dry basis of both sludge types was determined to evaluate energy potential of sludge generated in the Leningrad Region. Total energy output from sludge incineration was calculated. Deinking sludge could be utilized in the production process of “LSR-Cement” or “Slantsy Cement Plant Cesla” factories, and “Pobeda” and “Nikolsky” brick mills without exceeding current sludge management costs.