track Presentation - Técnicas Reunidas

🎥 Mar 07, 2023 📺 Track Técnicas Reunidas ⏱ 58m 👁 771 views

Técnicas Reunidas, a leading global engineering and technology company, today presented its proposal for the energy transition and decarbonisation of industry. The event counted with Teresa Ribera, Vice-President of the Government and Minister for the Ecological Transition and the Demographic Challenge. The event was also attended by representatives of important companies in the industrial and energy sector.

Watch on YouTube

Transcript (10 segments)

Unknown0:02

Background music playing.

Juan Arburúa0:28

I'm going to keep my comments very short. I'd like to start by thanking all of you joining us today, dear friends, and Teresa, third vice president of the Spanish government. Welcome to you. We will be presenting TRACK this morning. A lot of people are asking about this. What is TRACK? Perhaps Técnicas Reunidas is changing its corporate headquarters? No, no, no. We were in Chamberí in the center of Madrid and we've come here to Las Rozas, not far. What we want to do, and you'll see this later this morning, is focus on providing an active initiative response to what we're all calling energy transition and decarbonization. TRACK is our response. Are we already in that transition? You will see that later when Eduardo talks in more detail about the activities we are undertaking. Jaime Pereira will explain the know-how we have in Técnicas Reunidas and what TRACK is. And Amelia, our technology expert and head of operations for our energy transition, will go through those projects one by one. I'd like to thank a number of familiar faces here. Welcome to our clients, partners, suppliers, and all of you who have been beside us. Today, Eduardo San Miguel, our CEO, will run through the great opportunities ahead. After Eduardo, Jaime Pereira, our director of TRACK and energy transition, will explain our technology and industrial commitments. Amelia will present the specific projects we're developing worldwide. And lastly, the third vice president will close this event. Let me remind you of some aspects. There are only a top three companies in Spain that are industrial engineering leaders — those who can set up a task force of engineers and process experts from different disciplines. There are three companies in Europe like us. We are an engineering leader. We started in 1959 and were incorporated in 1960. We have worked on more than 1,000 industrial plants, mainly energy plants. Over the last 10 years, we completed projects worth more than 50 billion. We have more than 4,500 engineers in Madrid, our know-how center, and more than 7,000 of us in total. Our added value is our know-how. We have our own technologies, we scale up technologies, and we have procedures and methodologies to develop new technologies. Clients such as Repsol, Exxon, or Aramco start with a more undeveloped technology and we walk them through until it becomes a big industrial plant. What you need is not just experience but procedures. Engineering and procedures are two words that go hand in hand. You need know-how, training, and procedures — that is our barrier to entry, difficult to replicate, and that's why it's such a big opportunity for us to take a leading role in energy transformation. We've been working on yesterday's and today's energies, and we're already starting on tomorrow's. Solar panels and wind — not much added value for us. But where is the value added? Anything to do with industry, with chemical processes. Hydrogen — we've worked on it as part of hydrocarbons; now we'll use electrolysis and derivatives. The circular economy, green fuels, biomass — tremendous added value there. We're already developing plants in England for carbon capture, use, and sequestration. Why TRACK if we're already doing this? You can never win a war or a football match on the counterattack. The war has to be won by going on the offensive, using the Técnicas Reunidas platform, getting to that front line. That means zero emissions by 2050. Net zero 2050. Thank you very much.

Eduardo San Miguel14:37

Thank you very much, Juan. Thank you, distinguished vice president of the government, and thank you all for joining us today in such an important journey in the history of Técnicas Reunidas. Before we begin, I would like to share with all of you a video that explains the rationale behind TRACK.

Narrator15:00

Técnicas Reunidas presents its response to the new energy scenario. Committed to the huge challenge of net zero 2050, we want to make our contribution to finding the answer to the big questions: How can we make a world of more than 9 billion inhabitants in 2050 more sustainable? How can we meet the needs of today's economy without compromising future generations? How can we adapt complete value chains to new technologies? How can we solve the challenge of more energy and less emissions? Today we are taking a step forward in our commitment to the energy transition. We are presenting our pledge for decarbonization of the economy. Transition, transformation, action, commitment, know-how.

Eduardo San Miguel16:33

I beg to disagree with Juan. This is not a transformation. It's rather a revolution. And we are pleased to take part in this revolution. We are the ones transforming ideas into realities. And on the other hand, it bestows upon us enormous responsibility and accountability because we really need to rise up to the occasion. By 2035, 1.7 trillion dollars are expected to be invested in energy — a 70% growth. Conventional energy will be maintained, but there's going to be a major surge in decarbonization strategy. Two-thirds of that additional growth has to do with decarbonization. Técnicas Reunidas can benefit enormously because it can broaden our target by approximately 55%. We have selected two key industries: steel and cement, which account for roughly 15% of total global emissions — equivalent to the emissions of the United States for a whole year. The investment in these two sectors over the next 10 years is roughly 200 billion euros. Our technologies can avoid up to 86% of such industrial emissions. Now, the name behind TRACK: the monogram shows a footprint in blue and green paths. The footprint is what we want to leave in our societies. The world represents our international aspiration. The paths are the specific roadmaps to achieve goals. TRACK divides into TR — Técnicas Reunidas, 60-odd years of history with strong recognition among international clients — and ACK, which stands for Action, Commitment, and Know-how. That refers to our 8,000 employees who work day and night to ensure ideas become realities. Lastly, we want to launch the TRACK Academy. We need a set of knowledge, skills, understanding of climate change technologies and regulation, and how all markets associated with the energy transition work. In the next 18 months, our professionals will gain access to this knowledge. In the long run, our intention is for all this knowledge to be shared at universities. I'm now going to hand over the floor to Jaime Pereira, the head of this project. He's really the go-to expert here. Thank you very much indeed.

Jaime Pereira24:32

Good afternoon to all of you. Thank you very much. If you wouldn't mind, I will read out what I've written down so I don't miss anything. Thank you, Eduardo, and to you the third vice president of the Spanish government. Welcome to you and to everyone here. Thank you for joining us this very special day at Técnicas Reunidas — not just those of you here physically but those watching through the streaming connection and those who worked so hard to prepare this event. Juan has explained why Técnicas Reunidas is a very valuable tool for this decarbonization scenario. Amelia will talk about our current footprint, and I will try to explain what we are working on right now. Técnicas Reunidas is already part of this transition. That is the reality. We want more — more services, more growth markets, and new industries. We're identifying new opportunities and developing new services based on our capabilities. First, engineering services. Historically these were rendered to big industrial plants. Now we're helping big investors and funds shape and configure their projects on a solid basis. We've already worked on more than 30 projects, and if executed, they would avoid 25 million tons of CO2 per year — equal to 10% of Spain's emissions. We're launching project structuring. We've started in Spain with two projects in fair transition zones — a green ammonia project requiring about 400 million euros in investment and creating about 350 jobs. We're setting up end-to-end complete value chains, working with many partners here today. We're also creating new recurring services in two business lines: carbon management and methane management, responsible together for 75% of all carbon emissions. Carbon management: some industries like cement cannot decarbonize without capturing carbon. Sixty percent of cement emissions are not from energy combustion — they're from the process itself. We want to help them manage the capture, use, and storage of carbon. Methane management: 30% of global warming is due to methane. We use satellite technology, drones, and land-based sensors to identify and quantify methane leaks. We're already working with a multinational company to manage their methane assets in the Middle East. We also have a technology center with more than 70 people developing technologies for phosphorus recovery, critical raw materials, and energy transition. We've partnered with McKinsey because we want to move fast. They've studied the TRACK proposal and are convinced there's great value in it. Let me talk about collaboration. In the early 1990s, renewable energy covered about 5% of electricity generation in Spain. By 2022, that increased to 45-50%. That's quite a success — but it took 25 to 30 years. In 25 to 30 years' time, we'll be in 2050. There are 10,000 days to go. We can't afford that slow pace. We need flexible and imaginative ways to ensure decarbonization happens fast. Collaboration is essential. Let me give you a quote from Star Wars. Yoda asks Luke Skywalker to lift a spacecraft with his mental strength. Luke says, "I will try." But the master says, "No, no. You either do it or you don't. You don't just try doing it." We have to collaborate. We won't try to do it — we will do it. Let me give the floor now to Amelia Aras.

Amelia Aras37:10

Good afternoon and welcome. Thank you very much for your kind presence here today. This is truly a revolution in our industry — all about revolution and transformation. I'm going to give you a few brush strokes and representative figures of what we are undertaking in the field of energy transition at Técnicas Reunidas. We are the backbone of a circular economy. One hundred percent of the technologies under development at Técnicas Reunidas have to do with the circular economy. We are developing our own in-house technologies and third-party technologies in the field of electrolyzers and high-efficiency hydrogen production. We are making a substantial effort in biorefineries. We are also working in plastic recycling and have technologies for recovering metals and valuable elements from waste, like phosphorus, zinc, and iron. We are executing green hydrogen projects, electrolysis-based hydrogen generation, biorefineries, carbon capture, and hydrogen production for biofuels. We are present in the entire value chain of the circular economy. Allow me to present a few projects. In hydrogen, we have numerous projects in Spain based on electrolysis and in Australia with CO2 capture. The Cataluña project in Spain — 500 megawatts, producing 52,000 tons of green hydrogen per year, avoiding 400,000 tons of CO2 annually. The total value of our hydrogen projects can avoid up to 8 million tons of CO2 every year. In biofuels, we have numerous projects in Spain, Latin America, and Europe. The AMG project will enter EPC stage at the end of the year, producing 90,000 tons of biomethanol per year using organic waste, avoiding 77,000 tons of CO2. All biofuel projects will avoid 1 million tons of CO2. For CO2 capture, the Peterhead project in the United Kingdom — a planned CCGT of 800 megawatts — will recover 95% of CO2 emissions, equivalent to 2.2 million tons of captured CO2. In Spain, we are boosting CCS projects based on biomass, which will create negative CO2 emissions. In methane, we have a flagship project to help an international player manage their methane emissions from oil and gas assets. Thanks to the outstanding TRACK platform, Técnicas Reunidas has ensured its presence in different projects across Spain, Europe, and many other continents. The total number of avoided emissions will be 25 million tons of CO2 per year, and that figure will hopefully grow further. This is just the beginning. Thank you very much indeed.

Teresa Ribera42:22

Juan, Eduardo, Jaime, and Amelia — it's wonderful to be here with you in this room, absolutely full, with those stimulating and enriching presentations you've given us this morning. You've complemented the picture. You've built up a picture in which the pace we will move forward cannot just be proportional growth — it has to be exponential to get to the target. Let me talk about the paradigm shift we're experiencing. Not that long ago, we felt climate change could be resolved with regulation, better international cooperation, or setting a price. But we realized the Kyoto Protocol was not enough because we need everybody to contribute at a faster pace according to their capacities — the whole world, public and private partners, technologists, financial partners, social partners, all generators of value or public opinion. That world is too interdependent. When we started working with McKinsey, we remembered the watershed moment at Copenhagen in 2009. It wasn't until the Paris Accord that we reached the conclusion we have to set that common timeline, that common horizon. The questions are as important as the answers. If we really want to achieve net zero emissions by 2050, the analysis looking back with hindsight as if we were in 2050 would matter. What could we do to reach that point? What contribution do we have to make? This is completely different from setting long-term or mid-term objectives. We have transitional provisions sending the right signals to technologies and financial partners. We're talking about a couple of decades of transition changing the model of the way we live and consume. Professor Nicholas Stern in 2005 talked about transforming the world requiring massive investment and triggering opportunities, economic activity, and job creation. It's an opportunity to create a better world, but we have to set out the questions differently. Spain has a lot of reasons to feel proud in this race. We have the physical conditions, climate conditions, and geographical conditions. And we have exceptional human capital — engineers who are trained, flexible in seeking solutions, and do excellent work. We need to reinforce training across all stages of education and vocational training. Companies like Técnicas Reunidas have a global footprint, the right size to be flexible, an active presence across geographies, and a portfolio that allows them to think about step changes in carbon capture and use, methane management, and circular economy value chains. Let me end by thinking about Star Wars. Harrison Ford, the climate activist — may the force be with you. Off you go, let's bring out those swords. There's a lot of empire out there that we have to conquer as we're building a better future for all of us. Thank you very much.

Juan Arburúa56:40

Thank you very much, Vice President. Thank you to all of you here today and to all of you out there listening and following us on the streaming connection. Eduardo, thank you very much to all of the Técnicas Reunidas team through you. That's all for today. This has been our premiere, our debut. Somewhere close by I'm sure there will be a little reception for us — a snack before lunch. Thank you very much to all of you and particularly again to the vice president of the Spanish government. We'll see you soon.

Unknown57:36

Background music playing as the event concludes.