Tag: clean energy procurement

IR33

A Perfect Guide to Strategic Procurement Process for Clean Energy Fuels

Clean energy fuels are modifying the way the world fuels its vehicles. Minimizing pollution from the transportation industry is one of the important objectives for every nation today and every corner of the globe is just trying to figure out how realistic and attainable that goal is with the aid of clean energy fuels. These fuels are abundant and economically viable. Every country around the world is increasingly adopting these fuels for improving the health of the planet. Additionally, augmenting fuel costs and concerns for the environment and energy inContact USdependence and its conservation are a few things that come on the top of the priority list of every nation. Reduction of carbon footprint and greenhouse gas emission is a priority worldwide, and all these factors contribute to the rising popularity of these fuels. But let’s pause a bit before digging deeper and understand the fundamentals of clean energy fuels.

What are Clean Energy Fuels?

Fuels that are derived from renewable and zero emission sources are termed as clean energy fuels. These are derived from natural processes that can be regenerated in a short span of time and cannot be depleted. The most common clean energy Fuels are ethanol, natural gas, electricity, propane, hydrogen, biodiesel, methanol and P-series fuels.

IR36

Top 5 Countdown – The Best of MRO Supplies and Services Vendors

Any company’s job is not all done after the purchase of an equipment, plant, machinery, or such assets. In fact, it’s a whole new challenge to keep such assets up and running. This is where the importance of MRO supplies gets highlighted. The field of maintenance, repair, and overhaul (MRO) is vast and comprises of multiple products and services. Technically, MRO services include functional checks, repairs, servicing, replacement, residential installations, supporting utilities in industrial installations, infrastructure building, and machinery building. In some domains like aircraft management, MRO services also include the supply of spare parts, raw materials, accessories, adhesives, sealants, consumables, and coatings for aircraft maintenance at the utilization SE_Demo2stage. So, who are the top suppliers of such MRO products and services?

Top MRO supplies and services providers

Sonepar

Sonepar is an independent family-owned company and a global leader in the B2B distribution of electrical products and related services. Founded in 1969 by Henri Coisne, Sonepar operates through 345 entities spread across 2,800 branches globally. The company saw an increment in revenues for the year 2016 by earning 20.6 billion Euros, which can be attributed to the growing applications for electrical equipment, need for new services, and rapidly changing product technologies. Wiring devices, HVAC, distribution transformers, home automation, industrial automation, and VDI and some of the key product and services offered by this MRO supplies and service provider.

Top MRO Supplies and Services ProviderFerguson plc

Ferguson plc formerly known as Wolseley is the world’s largest distributor of plumbing and heating products. The MRO service provider has a broad customer base that comprises 60,000 suppliers and 1.1 million consumers worldwide. The company sells its product under a different brand name including Center, Raptor, Jet Range, Center Rad, and Nabis. The company has operational units spread across the US, Canada, the Nordic region, Central Europe, the UK, and France. Ferguson plc offers a wide range of MRO supplies including boilers, radiators, pipe systems, drainage systems, cooling systems, and commercial plumbing.

Rexel

Rexel is a French group founded in 1967 and is a global distributor specializing in products and services to the energy sector. The company distributes MRO supplies and services in the areas of technical supply, automation, and energy management. This MRO services provider offers its products to commercial, industrial, and residential sector with the majority of its revenue incoming from the commercial sector. Their MRO supplies include lighting, climate control, security, photovoltaics, EVs, and home automation products and solutions. The company boasts over one million products in its portfolio with operations spread across 2,100 branches globally.

Wurth Group

The Wurth Group is considered a leading vendor and a worldwide wholesaler of dowels, fasteners, screws and screw accessories, tools, machines, and installation materials. With a global customer base of over three million people, the company offers more than 125,000 products. The company provides a diverse range of products and services including chemical and technical products for maintenance, servicing and bodywork, tools for pneumatic and electric machines, rapid assembly systems, and fastening materials and sealing technology.

W. W. Grainger

W.W. Grainger is one of the Fortune 500 industrial supply company and also the oldest provider of MRO supplies. The company serves over three million customers through a network of 598 branches and 33 distribution centers. Their MRO services portfolio includes safety, facility, energy, lighting, mid-stream utility, and after-hours emergency services. In the US alone, the company boasts an impressive portfolio of over one million products serving over 7,000 brands.

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IR25

Use of Backup Power in Multiple Industries Driving the Demand in the Global Battery Market

Battery MarketLondon, Feb 23, 2018: The need for environment-friendly transport is driving the adoption of battery-driven cars in the automotive industry, which in turn is creating the demand for batteries across the globe. Rechargeable batteries are dominating the market due to their longer lifespan compared with primary batteries. Additionally, use of backup power in industries such as oil and gas, railways, mining, automotive, manufacturing, healthcare, education, retail, and pharmaceutical is also driving the demand in the global battery market.

SpendEdge’s latest procurement research report on the global battery market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the components and spares portfolio, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“The use of electric power in vehicles is increasing due to the production of new hybrid and electric vehicles from OEMs across the globe. Also, government initiatives (such as subsidies for electric vehicles in countries such as the US, Japan, and China) undertaken for encouraging eco-friendly transportation due to growing awareness about environmental protection among people is driving the demand for batteries in vehicles” – Tridib Bora, components and spares procurement research specialist at SpendEdge.

Suppliers need to comply with regulations associated with the transportation of batteries (such as lithium batteries) due to the hazardous nature of chemicals present in them. Non-compliance with these regulations might lead to heavy penalties or cancelation of licenses. As a result, suppliers in the battery market are facing procurement challenge to adhere to regulations.

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This procurement report on the battery market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

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IR20

Top Procurement Challenges in the LPG Gas Market

LPG gas is used as a fuel for many residential, agricultural, and commercial heat applications which includes cooking, heating, and hot water systems. However, the use of LPG gas has numerous other applications including its use as a refrigerant, propellant, vehicle fuel, and petrochemical feedstock. The consumption of LPG gas has been on the rise as it is an economical source of fuel and burns efficiently with very low combustion emissions. Although, burning LPG releases carbon dioxide, a greenhouse gas, the emission is very low per unit of energy produced compared to coal or oil. Currently, the US is the leading producer and exporter of LPG. The most common variety of LPG is bought and sold in the form of propane and butane gas. The global market for propane gas and butane gas is expected to grow at a rate of 3.1% and 2.8%, respectively, during the forecast period. (SpendEdge – Procurement Market Intelligence Report)

Challenges in the procurement of propane and butane gas

Butane gas market

  • Evaluating supplier’s compliance with labor laws and international standards regarding workplace conditions is extremely important as non-compliance may incur penalties and fines for the buyers. Conducting periodic audits of suppliers’ facilities adds to procurement costs and complexity as well acting as a significant procurement pain point.
  • Buyers need access to data associated with suppliers including plant utilization rates and total yield capacity of plants. Since the information is critical pertaining to suppliers’ operation, buyers may not always get such data. As a result, suppliers are not forthcoming with such information making it difficult for the buyers to assess suppliers.
  • In order to promote consumption of domestically produced products, several countries have levied import duties on products including butane. However, domestic prices for butane can be higher due to demand-supply imbalances and inefficiency across the value chain. Varying prices and high import duties add to the complexity of procuring the butane LPG gas.
  • Prices of butane are consistently changing due to factors such as variations in demand and supply and volatility in crude oil prices. As a result, there are different pricing for the butane LPG gas between the winter and summer seasons. Due to such price fluctuations, buyers have a hard time determining the procurement budget compelling them to hire consultants to forecast future prices, which adds to their procurement costs.

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  • Propane gas prices are highly dependent on the cost of crude oil, gasoline products, and diesel. The high volatility of crude oil prices leads to fluctuation in the cost of propane, thereby making it difficult for buyers to forecast propane gas prices to estimate their procurement budgets accurately.
  • The propane gas produced is generally stored in large steel containers or tanks or through underground pipelines in compressed liquid form at the buyers’ operational facilities. Storing propane in liquid form significantly increases the storage costs for the buyers in addition to the maintenance costs. As a result, buyers are facing complications in the procurement of this LPG gas in terms of added costs and efforts for storage.
  • In a bid to minimize their maintenance costs, buyers usually rent or lease the storage containers from suppliers. Consequently, signing a lease agreement makes it difficult for the buyers to switch from one supplier to the other due to the high switching costs. The switching costs include uninstallation and reinstallation of the equipment and also increases the downtime leading to operational interruptions.
  • The suppliers of propane gas usually engage with third-party vendors for the transportation and storage of propane. However, buyers are not aware of information regarding the contractual agreements between the supplier and third-party vendor in terms of the type of storage containers used and regarding compliance with transportation laws and regulations. Lacking such information makes it difficult for the buyers to abide by compliance laws and may impact their supply flow of LPG gas and quality of the product.

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Top Three Renewable Energy Trends

There’s only a finite amount of energy resources such as fossil fuel, oil, and natural gas which is getting depleted each year. This has compelled the world leaders to consider alternative sources and utilize renewable energy sources that are naturally replenished. Sunlight, rain, wind, tides, waves, and geothermal heat are some of the major sources of renewable energy. Renewable energy is slowly gaining an edge over the non-renewable energy’s contribution to the global energy consumption. Although a significant amount of investment is required to setup energy production from renewable sources, the cost pays for itself in the longer run.

#1 – Fortune 500 Companies Demand Sustainability Measures

A majority of Fortune 500 companies are setting up targets to increase renewable energy dependence. Most of the companies within this space have already pledged to go 100 percent renewable as a part of the RE100 campaign. For instance, Apple launched a 2-gigawatt clean energy initiative in China to meet its 100 percent renewable energy promise. Similarly, Foxconn has also started investing in solar energy.

#2 – Location Specific Pricing

The availability of renewable energy is scattered across different parts of the world. For instance, some regions may experience strong winds and show great potential for wind energy, and some may potential for solar energy. As a result, investors are exploring variable pricing strategies to produce and sell energy in high-cost areas.

#3 – Development of Battery Technology

Although companies invest heavily in renewable energy, consumers’ demand will fluctuate as per seasonality. The companies will then have to store the excess energy using a battery for future use. The current battery technology has not progressed much, especially when compared to the developments in other technologies. As a result, companies have started looking for new battery technologies to increase the energy efficiency. Hydrogen storage, molten salt, and other forms of batteries are some of the alternatives receiving significant investment in recent times.

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IR33

10 Important Findings from the Corporate Clean Energy Procurement Index

The 2016 Corporate Clean Energy Procurement Index, released in late December 2016 by Clean Edge on behalf of the Retail Industry Leaders Association (RILA) and Information Technology Industry Council (ITI), is a ranking of all fifty US states on how easy it is for American brands to obtain or procure domestic renewable energy for their operations and practices. The index uses 15 indicators across three categories: Utility Purchasing Options, On-site/Direct Deployment Options, and Third-Party Purchasing Options.

This index is important for making predictions and drawing conclusions about the state of procurement in the US and worldwide, and for a brand to determine where best to procure energy and set up their businesses, make procurement decisions, and choose the best and safest methods and areas of operation. Here are 10 of the most important insights and findings from the index:

  1. Wind is now the second most popular source of energy in five states, Kansas and Iowa included. Almost half of all states now count wind, solar energy, or geothermal energy as one of their top three electrical generation sources; this number has risen significantly (from zero) in the last decade.
  2. Iowa is the leader with the highest and most favorable overall index score of 74.73, followed by Illinois and New Jersey. Iowa and Illinois both have strong scores in terms of deployment and policy indicators. Iowa is also the top scorer in the Utility Purchasing category, largely thanks to roughly 548 MW of wind power agreements that MidAmerican Energy has with both Google and Facebook. These agreements represent 3.32% of the total generating capacity in Iowa.
  3. State taxes or tax hikes across the US on renewable energy generation can act as potential barriers to its widespread adoption and procurement, keeping the ranking of certain states low. Utility rates and overall energy costs, especially for solar energy adoption, can also act as barriers holding back state initiatives and overall progress.
  4. Though in this report only five states—Nevada, New Mexico, North Carolina, Utah, and Virginia—received points for having green tariffs or riders, this number is likely to grow in the future. Twelve states currently have mandatory green purchasing requirements, and an additional 35 have utilities that voluntarily offer this, which are beneficial options for small companies in regulated markets. However, these options may not satisfactorily meet all companies’ needs, especially not large companies who need to push back against high electricity costs effectively.
  5. Texas, Illinois, and North Carolina are, to date, the only three states that have had a direct corporate purchase of an offsite renewable generation project. In Illinois, this purchase was IKEA’s 2014 acquisition of Apex Clean Energy’s 98 MW Hoopeston Wind project.
  6. Texas ranked highest in terms of the Third-Party Purchasing Options category, with 1.9% of its total state capacity coming from off-site, corporate-funded, renewable power purchase agreements (PPAs). All of these PPAs are for wind farms. In terms of percentage, Oklahoma, at 3.22%, is number one in third-party renewable PPAs; Texas is second with 1.91%. Fourteen other states also scored points for deployment through this indicator for the Third-Party Purchasing Options category.
  7. In 2015—for the first time—corporations in the US procured more wind power through PPAs than utilities did, and corporate PPAs have doubled every year since 2012. Corporate PPAs allow renewable energy developers to better compete with the retail electricity rates that corporate customers pay for, leveling the playing field somewhat. However, the differences in the types of corporate PPAs available require understanding and attention to seize their benefits for corporate clean energy procurement fully. Companies need to decide, based on their own business, industry, and financial needs, whether a physical or financial PPA is the best fit for them.
  8. The use of solar energy is gaining momentum with corporate customers who are increasingly installing solar panels, grids, and other forms of solar energy technology on rooftops and corporate campuses to help them reach their renewable energy targets. Half of US states received points for on-site solar procurement, and a dozen more have some onsite solar deployment but not enough for a measurable impact in this index.
  9. The top eight states for corporate on-site solar deployment are California, Hawaii, Nevada, New Jersey, Maryland, Connecticut, Massachusetts, and North Carolina. Though the five states on the East Coast have lower solar resources than those in the West, favorable solar and renewable energy policies have allowed them to flourish.
  10. There is a growing need and demand for suitable energy storage solutions that the market must meet in order to encourage the growth of renewable and clean energy procurement. Policy initiatives across the US are working to improve the accessibility and availability of energy storage deployment, including new storage mandates in California, Massachusetts, and Oregon.

These findings are essential for determining the potential that the future for renewable energy procurement, procurement outsourcing, and energy procurement services and solutions in the US and makes it easier to predict how renewable energy will fare in other parts of North America and around the world. As renewable energy continues to grow and gain importance in the US, businesses will have to decide how best to procure renewable energy, where to get it, and how best to benefit and profit from its use.

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