Alfa Laval sees marine market growth in ballast and SOx

Readers of this blog will recall the Alfa Laval launch on their “PureBallast” water treatment system for marine vessels way back in 2007. The IMO international convention for the ‘control and management of ship’s ballast water and sediments’ was the legislation that would drive the adoption of such systems world-wide: at last this convention became legally binding on shipping and ship-owners worldwide on 8th September 2016. Inevitably there is a 12 month time lag before it will be legally enforced, and then, hopefully, tankers will not be allowed to ply their trade without having an approved ballast water treatment system fitted.

Ballast water treatment market

Peter Leifland, current president of the Marine & Diesel Division of Alfa Laval presented some interesting views of this market in support of the recent Alfa Laval Capital markets Day presentation to analysts and stockbrokers.

Leifland commented that “With the ratification in place, the market for retrofit installations is expected to start to move.”  Alfa Laval expects that 35 000 ships will install a ballast water treatment system between 2017 and 2025. This is split between 15 000 newly built ships and 20 000 retrofit installations. The average order value per ship for the Alfa Laval chemical-free solution is EUR 200,000 – 225,000.

The Alfa Laval system fully complies with IMO standards and requirements, but as ever different countries can impose further approval and performance requirements and testing, effectively policing their own waters so that only ships with their approved systems can trade in their waters. This means more approval testing, fees, and even design changes for suppliers like Alfa Laval. They have their PureBallast system nearing completion of the long testing procedure needed by the US Coast Guard to check that it meets with their USCG criteria.

Shipboard sulphur oxide emissions (SOx)

The IMO convention for the reduction of sulphur oxides (SOx) emissions from ships has been ratified and since 2015 it has been implemented in some Emission Control Areas (ECAs). This IMO regulation will become global by 2020, requiring that that emission levels will be cut to 0.5%.

Leifland commented that Alfa Laval estimates that 5 000 ships, new as well as existing, will install a scrubber solution in the period 2017-2025.” Given the continuing development of new solutions, Alfa Laval’s average order value per ship is expected to be EUR 1 million. Leifland sees these two developing markets as a useful opportunity, during a period where “falling ship contracting is impacting our order intake”.

Postscript 27 December 2016: 

Alfa Laval PureBallast 3 receives U.S. Coast Guard type approval

Peter Leifland, President of the Marine & Diesel division in Alfa Laval, reports that:

“I am very pleased to receive this type approval, as it confirms the reliable performance of our ballast water treatment system. We now have a system approved by both US Coast Guard and the International Maritime Organization”.

Alfa Laval PureBallast 3 has received US Coast Guard type approval for usage in all water salinities, including fresh water. It follows upon two and a half years of compliance testing, according to the strict demands of the Environmental Protection Agency’s “Environmental Technology Verification” (EPA ETV) testing protocol. The tests were performed at DHI’s test facilities in Denmark, supervised by DNV GL as the independent inspection laboratory.

 

GE and Baker Hughes combine

The Offshore Engineer reports that GE and Baker Hughes are teaming up to form the “new” Baker Hughes, a company that will be led by current GE Oil & Gas CEO Lorenzo Simonelli and have dual headquarters in Houston and London.

The agreement will combine GE’s oil and gas business (GE Oil & Gas) and Baker Hughes, in what the two hope will be a leading equipment, technology and services provider with US$32 billion of combined revenue and operations in more than 120 countries.

The deal has already been unanimously approved by the boards of directors of both companies. At closing, which is expected in mid-2017, Baker Hughes shareholders will receive a special one-time cash dividend of $17.50 per share and 37.5% of the new company, with GE owning the remaining 62.5%. The deal is still subject to approval by Baker Hughes shareholders, regulatory approvals, and other customary closing conditions.

Both GE and Baker Hughes expect to generate “total run-rate synergies” of $1.6 billion by 2020, which has a net present value of $14 billion, that will primarily be driven by cost out, and positioned for growth as the industry rebounds.

“By drawing from GE technology expertise and Baker Hughes capabilities in oilfield services, the new company will provide best-in-class physical and digital technology solutions for customer productivity,” the two companies said in a joint statement.

The new company will combine the digital solutions, manufacturing expertise and technology from GE, in addition to the track record of success Baker Hughes has in the oilfield services sector.

“With combined revenue of over $32 billion, the product portfolio of GE Oil & Gas and Baker Hughes in drilling, completions, production and midstream / downstream equipment and services will create the second largest player in the oilfield equipment and services industry,” according to the statement from the two companies. “Customers should expect sustainable innovation and integration that will deliver valuable outcomes. Both companies have invested even in the downturn and have strong, complementary competitive scope across the industry. From GE’s fullstream oil and gas manufacturing and technology solutions spanning across subsea and drilling, rotating equipment, imaging and sensing, to the Baker Hughes portfolio in drilling and evaluation and completion and production, the combined company will be moving beyond oilfield services and into oil and gas productivity solutions.”

Upon closing, the new Baker Hughes board will consist of nine directors: five of whom, including Chairman Jeff Immelt will be appointed by GE and four, including Vice Chairman Martin Craighead will be appointed by Baker Hughes.

“This transaction creates an industry leader, one that is ideally positioned to grow in any market. Oil and gas customers demand more productive solutions. This can only be achieved through technical innovation and service execution, the hallmarks of GE and Baker Hughes,” said Jeff Immelt, GE chairman and CEO. “As we go forward, this transaction accelerates our capability to extend the digital framework to the oil and gas industry. An oilfield service platform is essential to deliver digitally enabled offerings to our customers. We expect Predix to become an industry standard and synonymous with improved customer outcomes.”

“This compelling combination brings together best-in-class oilfield equipment manufacturing and services, and digital technology offerings for the benefit of all customers and stakeholders,” Martin Craighead, Baker Hughes chairman and CEO said. “The combination of our complementary assets will create a platform capable of seamless integration while we enhance our ability to deliver optimized and integrated solutions and increase touch points with our customers.”

“This transformative transaction will create a powerful force in the oil and gas market as we continue to drive long-term value for our customers and shareholders,” Simonelli said. “Both companies’ employees will benefit significantly from being part of a larger, stronger company that is positioned for long-term growth. We look forward to combining the digital solutions and technology from the GE Store with the domain expertise of Baker Hughes and its culture of innovation in the oilfield services sector.”

The full release is available on http://www.businesswire.com/news/home/20161031005488/en/

Emerson acquires PermaSense

Emerson has announced the acquisition of UK-based Permasense Ltd, a leading provider of non-intrusive corrosion monitoring technologies for the offshore and onshore oil production, refining, chemical, power, pipelines, metals and mining and other industries. Permasense monitoring systems use unique sensor technology, wireless data delivery and advanced analytics to continuously monitor for metal loss from corrosion or erosion in pipes, pipelines or vessels, and reliably deliver high-integrity data from even the harshest environments.

The acquisition represents another step forward in the Emerson strategy to invest in its core business platforms and expand in markets that hold significant long-term growth opportunity.

“Corrosion and erosion can significantly impact the safe and reliable operation of our industrial customers’ infrastructure, which can have dire consequences. Wireless non-intrusive corrosion monitoring is a transformational shift that helps customers immediately understand the health and integrity of their infrastructure in real-time and enables them to fully optimise their operations while maximising safety,” said Mike Train, president, Emerson Automation Solutions. “For example, with the increasing complexity of the types of crude oil coming into a refinery, corrosion is becoming a significant issue in the uptime and profitability of a refinery. Now refinery infrastructure can be monitored and controlled using this non-intrusive technology.”

The Permasense product line will become part of the Rosemount portfolio of measurement and analytical technologies. Permasense technologies complement the Emerson Roxar intrusive corrosion monitoring and non-intrusive sand management systems and strengthen the company’s Pervasive Sensing applications that provide customers a more complete view of their operations and facilities. With Permasense and Roxar technologies in its portfolio, Emerson will be the largest provider of integrity and corrosion management solutions in the marketplace.

Lal Karsanbhai, group vp, measurement and analytical technologies, Emerson Automation Solutions, added: “The addition of patented Permasense technologies along with our existing Roxar technologies enables Emerson to provide customers with a more complete corrosion monitoring solution and a clearer picture into the performance of their infrastructure based on what they’re demanding of it and the strategies needed to optimise production.”

Central to Permasense corrosion monitoring systems are sensors that employ proven ultrasonic wall thickness measurement principles. The sensors are battery powered and communicate wirelessly, which minimises the cost of installation and enables use in remote areas and on a large scale. The sensors are also designed so they can be deployed in hazardous areas.

man-adjustpipe

Noise mapping offshore using wireless sensors

Many of the latest technology developments in relation to offshore oil and gas production installations have emerged from Norwegian research studies, because that industry represents the major part of the economy in Norway.  Such research studies do not only relate to better and more efficient methods of working, but they also investigate the health and safety aspects of the industry: an area of particular concern has been hearing damage to workers offshore, which is the predominant cause of work related illness. At the Yokogawa User Group meeting held in Budapest in May 2016, Simon Carlsen of Statoil ASA in Norway explained the background to a recent project that was undertaken to improve the efficiency of the noise surveillance and monitoring systems Statoil use offshore. This was also presented to a Society of Petroleum Engineers International conference on Health and Safety in Stavanger in April (Ref 1).

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The main Health & Safety tool used for monitoring noise exposure is the ‘Noise map’, which provides noise level contours within rooms and around machinery where workers are active. These are used to establish a course of action where noise levels exceed allowed limits, whether this action is to reduce or remove the noise source (if possible), insulate the area, issue PPE to workers, and/or impose working time restrictions. Noise maps have historically been based on manual surveys that take single point readings, which are then plotted onto a site map, typically from CAD drawings. Manually taking and plotting these measurements is arduous and time consuming, and typically would be updated only on around a four year cycle. Plus the readings are (obviously) not continuous, only record the conditions when each reading was taken, and generally do not record the added effects from workers using different machinery and tools in the area.

Statoil R&D on wireless & noise instrumentation

Simon Carlsen of Statoil joined the R&D Department in 2006, bringing expertise in wireless instrumentation, and started investigating the feasibility of using wireless sensors and software techniques to create a real-time noise map. The system subsequently commenced became known as WiNoS, for “Wireless Noise Surveillance”, when formally initialised in 2013. This will consist of a network of wireless noise sensors, continuously monitoring the noise in the process area, using sound pressure level (SPL) measurements of four types: A-weighted SPL (I.eqA), C-weighted SPL (I.eqC), peak SPL (I.peak) and thirty one separate third-of-an-octave frequency band measurements from 25Hz to 16kHz. This data is much more comprehensive than the simple noise level measurements used to establish the noise maps, but will superimpose this data onto the historically available maps. These readings can then be used to update the map in real time, and create alarms available to operators.

The WiNoS sensors then use an industry standard wireless network infrastructure, which transmits the data into the control system, where special software produces the updates to the noise maps – typically on a one minute update rate (ie almost continuous). This live information can be used to create alarms to report back to workers in the area, to control their noise exposure. The objective is to reduce work-related hearing damage, by knowing the actual on-site conditions; to optimize operator time working on/near tools, to reduce daily exposure; and to provide instant feedback on the effect of noise reduction measures. In addition WiNoS allows for time synchronized measurements amongst the sensors in the network, and also allows the control room operator to trigger a download of a high resolution frequency spectrum waveform from any sensor of particular interest, to analyse the signature of the noise. This latter is a major part of the future development of the monitoring system, which will feed into plant condition and process performance monitoring studies.

noise-map-3

The WiNoS project development employed the expertise of the Norwegian companies Norsonic AS in the microphone design and the sound level measurements, and the Department of Acoustics at the research company SINTEF to develop the PC software that records the data and creates the noise maps. The software was also required to conform to the Statoil qualified communications protocol.

Choice of wireless network

A major part of the research feasibility study that preceded the WiNoS project was devoted to the choice of the wireless network to be used to efficiently and reliably transmit the data, relatively continuously from multiple sensors. The two suitable networks that were emerging at that time were WirelessHART and ISA100.

The WirelessHART system is now well-known and fairly widely used in Statoil facilities, but the early research trials showed mixed experience with the system and the relevant vendors – some of this was related to the lack of specification details written into the WirelessHART standard. But there were also challenges with achieving the power efficiency in the transfer of all the data required, and the requested large data transfer of the high-res waveform was not readily achievable.

The ISA100.11a wireless transmission standard was also in use in Statoil, and had been adopted for the wireless flammable gas detector pioneered by GasSecure in Norway – Statoil had been involved with the prototype field trials offshore. The initial trials on ISA100 equipment from Yokogawa provided high flexibility for the different application demands, allowed all the 31 one third octave values to be packed into one transmission telegram, and allowed a well-defined block transfer. The sensor could also achieve the two year life required from the installed battery pack, at the 1 minute update rate.

The decision was made that ISA100.11a was to be the preferred protocol for WiNoS, from a technical and project model perspective. Based on the earlier experience of development co-operation with Statoil, it was decided to invite Yokogawa to join the WiNoS project as a Co-Innovation partner, a role that they were keen to develop. In addition to providing the ISA100.11a wireless interface electronics for the sensor, and the interface into the third party control system, Yokogawa worked with Norsonic to develop the mechanical housing for the microphone sensor, and the electronic hardware to process the sound measurements using the Norsonic software, with the whole sensor assembly meeting ATEX requirements.

yta510iaeueth-xx

A Yokogawa wireless temperature transmitter adapted to include the Norsonic microphone

Full system test

In March 2016, a network of 7 off Yokogawa ISA100 enabled wireless noise sensors were tested within the (land-based) industrial lab hall at Statoil Rotvoll, in Trondheim, which has dimensions 35x25x15 metres – and contains various pumps and process equipment. Further synthesized test noise sources were created using loudspeakers. The wireless sensors, the noise mapping software and the IT backhaul architecture all operated reliably and successfully.

winos-system-test

Dynamic noise map generated with the system test

 

A further test, offshore on an operational Statoil platform, is planned and scheduled for Spring 2017, for which Yokogawa will supply 20 production sensors and the ISA100.11a wireless system. A typical platform deck of 50×50 metres might in practice require around 12 noise sensors for effective coverage.

isa100_yta-a-xx

Possibly future noise mapping sensors will be added in high noise plant areas

The Statoil WiNoS system is now ready for development into a commercially available product for use as an offshore platform noise mapping tool. Future research on this system will involve investigation of 3D noise mapping systems. Statoil consider that the equipment application has potential for expansion into machinery condition monitoring, to include automatic process upset or fault and leak detection.

© Nickdenbow, Processingtalk.info, 2016

References

 

Total Exploration and Production chooses Emerson maintenance services

Emerson has been selected by Total Exploration and Production Services to provide control and safety system maintenance services that will support Total’s upstream oil and gas operations around the whole world.

The ten-year frame agreement is part of Total’s Integrated Control and Safety Systems standardisation strategy. It is the first of its kind between Total and an automation systems provider and formalises the already robust relationship between the two companies.

Emerson will be responsible for servicing, maintenance, obsolescence planning, on-call application support, spare parts management, and reporting activities relating to integrated control and safety systems used in selected Total onshore and offshore sites. This includes Emerson’s DeltaV distributed control systems and DeltaV SIS safety systems, along with its AMS asset management software.

“This agreement strengthens Emerson’s excellent relationship with Total and enables our services team to support Total in its continuous efforts to optimise the efficiency of their operations and ensure high safety performance,” said Mike Train, president of Emerson’s Automation Solutions business. “We appreciate being trusted to maintain critical automation systems that will help Total continue to run their operations safely and reliably.”

The Yokogawa User Group conference in Budapest

The “User Group” conferences, which provide a meeting place for automation and control managers and engineers from different companies and industries to meet and share their operational experience, started in the USA, and have blossomed in Europe in the last few years. Usually hosted by a major supplier, they encourage their clients to come together in a way that is more cost effective, for them, than a standard commercial exhibition and conference. But they always gather their normal specialist sub-suppliers as partners, to also show and talk about their products, and explain how they can interface together to create a total plant system, in the mini-exhibition running alongside meal and coffee breaks.

IMG_20160523_214347932   DSCN3364

The conference dinner was held in the Hungarian National Gallery, by the side of the Danube 

The Yokogawa European User Group meeting took place this May in Budapest. It attracted around 200 engineers and interested editors from all around Europe: from Spain to Norway, from the UK to Turkey, to hear about recent new applications, and the latest product developments.

 

“Transformation 2017” is the current Yokogawa business plan, covering the three years from 2015-17: the year 2015 also happened to be the 100th year since the foundation of the company. So their anniversary year plan focuses on customer interfacing and “Co-Innovation”, which was the main conference theme for the presentations.

Yokogawa appears to have developed a different approach recently, and have become keen to bring in ideas, products and even make acquisitions to broaden their expertise base. They did this previously, but there is a greater emphasis now, it seems. They are also the ISA100 wireless sensor technology leader, amongst the main automation companies, and are helping more small sensor manufacturers to develop this capability.

Wireless sensors to ISA100

Yokogawa have produced wireless versions of their own temperature and pressure transmitters, as you would expect, plus have the routers and base stations necessary to complete the site system. More interesting, they have developed a wireless module, which can be integrated with other (third party supplier) sensors, to create a new wireless measurement sensor. They also have a battery pack that can be exchanged in a hazardous area, when needed, often only after ten years, but maybe after two years if that battery also powers a third party sensor and needs a fast data response time.

In a presentation about a Richter Gedeon Group pharmaceutical plant in Romania, Yokogawa described a wireless sensor installation that monitored the groundwater levels around the site, in 20 wells over an area 1500m x 600m, with some wells actually outside the factory fence. The historic weekly manual monitoring was not felt to be sufficiently frequent, and current environmental standards required an improvement, to at least 4 times a day. Standard HART submersible pressure sensors were used for the level measurement, powered by the battery pack in the Yokogawa wireless module, which communicated digitally with the sensors and then sent the data over ISA100 links. This provides hourly reporting data from each well, and allows the sensor to be put into sleep mode between readings.

The large area of the site, the topography and pipe bridges, provided a challenge for the wireless links. To achieve the transmission distances involved, Yokogawa planned the site layout with four of their independent wireless Routers, to gather data from the local sensors at the extreme distances, and then use the superior range achievable from the Router to the base station to deliver the data. This was then displayed by the pre-existing site ABB 800XA control system, to present any alarm data to the operators, and archive the records.

The IIOT and “Sushi Sensors”

Yokogawa say they have been working on the development of low-cost, small, battery operated wireless sensors, perhaps aptly named as “Sushi Sensors”, for ten years, as well as learning what associated data analysis is required to come to a meaningful conclusion about what the data – “Big Data” – is saying. So it was good to see their Sushi sensors on display, in different colours (as you might expect: blue, yellow/gold, and silver) – all with a little stub aerial. But turn these little bugs over and there was an empty shell – nothing there yet! Nevertheless, the work is going on, initially to produce temperature sensor systems: watch that space.

On other stands the GasSecure GS01 hydrocarbon gas detector was on show, which is another ISA100 wireless sensor from Dräger, marketed by Yokogawa for LNG and oil and gas facilities.

STAPS

Spirax Sarco STAPS

Next, Spirax Sarco presented their latest wireless sensor, used for monitoring steam traps on petrochemical plants. Available only recently, from March 2016, this sensor uses the standard ISA100 system, and is called STAPS (which stands for Spirax Total Acoustic Performance Solutions). The acoustic sensing uses a PZT sensor clamped to the outside of the steam line, alongside the trap, and can indicate when the trap is blocked, and when it has failed open, and is leaking live steam. Not only does the STAPS sensor calculate and transmit the rate of steam loss, so the operator can assess the cost and therefore the urgency needed to make a repair, it can analyse the actual type of trap failure. This is done within the sensor electronics, by measuring the emitted acoustic signatures in multiple bands between 5 and 40kHz, to suggest whether the problem is dirt, or a sticky valve, or a damaged valve seat. The STAPS sensor is available intrinsically safe, for petrochemical applications: Spirax previously offered a different wireless sensor for standard industrial plants and boiler rooms, which used a Zigbee communications link.

Customer software and Co-Innovation

There have been two Yokogawa acquisitions in the field of ‘management’ software, which are focused on making the computer based control systems supplied by Yokogawa for plant and process control provide the overview data required by management, improving the connectivity between plant and office, and optimising business operations. First they acquired Industrial Evolution Inc, in January 2016, who provide cloud-based plant data sharing services, or DaaS (Data-as-a-Service). Yokogawa renamed this business Industrial Knowledge: this service has been used in a broad variety of applications such as the sharing of data on oil and gas field operations among authorized users at multiple companies, and the real-time sharing of data with investors on facilities that are operated by third parties. For example when an oilfield is jointly owned by three oil companies, but only one of them acts as the main operator.

Then in April Yokogawa acquired KBC Technologies, a successful provider of software and consultancy focused on achieving operational excellence and improving profitability for both the upstream (oil production) and downstream (oil refineries and petrochemicals production) segments – advanced software for process optimisation and simulation. Originating with three process engineers who started life at the Exxon Fawley refinery, KBC also now incorporates the original Honeywell HPS reactor technology expertise, acquired in 1998, and the chemicals processing technology developed at Infochem, acquired in 2012.

Combining KBC and Industrial Evolution into their Industrial Knowledge business, Yokogawa is expanding its advanced solutions service business by engaging with its customers in a co-innovation process, to add value, using company-wide optimisation of the business operations.

Co-innovation with the specialists

Oil fiscal metering using specialist skids at oil tanker batch shipping terminals is a major application area for Coriolis meters. Yokogawa have just upgraded their Coriolis product line to improve their performance, using modern electronics and sensor technology. The pressure drop for a given flow rate has been greatly reduced, and on-site accuracy enhanced to meet the laboratory tested specifications. Also tube condition monitoring enables on-site checks to confirm that the process conditions have not affected the measurement tubes.

mf_header_skid

M+F skids in use at a tanker terminal

Unlike other Coriolis suppliers, Yokogawa do not offer an in-house fiscal metering skid production facility, but rely on the knowledge of their specialist customers to achieve the total package offer. So via their chosen skid supplier customer, M+F Technologies of Hamburg, they have supplied meters for terminal management systems, tank truck loading systems, aircraft and ship supply across the world. The M+F MFX4 batch flow computer has been supplied for blending, leak detection and terminal operations in Latin America, Russia, EU, and Cuba. The latest Yokogawa Coriolis meters, the TI product range, has enabled M+F to reduce the size of the gas separators involved, reducing the skid footprint, and also M+F have reduced the maintenance costs associated. Using TCP/IP communications the system has 24/7 remote maintenance available, essential for 24 hour terminal operations.

Conclusion

The two or three conference days crammed in a lot more than was described above: the delegate just chooses the topics of major interest on his plant. Further announcements showed that Yokogawa is to now construct complete Analyser house systems in Spain, in addition to their existing facilities in Singapore and USA, to serve the European market primarily. Here they act as the site systems supplier, perhaps in contrast to their approach to fiscal metering described above. Yokogawa are also collaborating with Cisco Systems over the Shell SecurePlant initiative, which is to be rolled out over 50 Shell plants, and have developed an interesting collaboration with StatOil, to use wireless sensors to monitor the on-site sound noise level on offshore oil platforms, to ensure personnel safety and monitoring.

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An Analyser house supplied by Yokogawa

The next Yokogawa User Group meeting will be in South Africa in October, for three days in Johannesburg, which should be well worth attending.

Fresh air with Brexit @ProcessingTalk

Having been a silent voter during the run up to the referendum, and appalled by the rubbish pedalled by the Politicians on both sides, I was delighted to discover that despite my reservations about leaving the EU, a small majority of the voting population also agreed that the positive aspects of a Brexit outweighed some inevitable early problems.

Why is there so much worry over the UK from my overseas friends and relations? The UK is one of the original trading nations, dating back to the C15th. The world is now a much smaller place, and all nations seek to trade worldwide. No countries or group of countries put up trading barriers (or walls) to stop trade, so business between the EU and the UK across the board will continue. They would lose more business than we would, by ceasing to carry existing business forwards. Plus all the recent growth in UK exports has come from trade with non-EU countries.

Forty years ago, the Politicians suggested joining the Common market would be great, citing cheap wine etc. Just another bad promise I’m afraid. Plus we joined the Common Market, not the EU, a Federation of States whose unelected bosses dictate that cucumbers and bananas shall be straight, and set the minimum size of strawberries to exclude the better English (and Scottish) ones. My niece asked where I would get my supplies of wine – so I mentioned that we drink only Australian and NZ wine, the wine sold expensively in the UK from France is actually the cheap stuff they would not drink themselves, and presumably normally turn into vinegar.

The French describe the British as a nation of shopkeepers. It is true, but I say we are a nation of independent-minded traders, sometimes also called entrepreneurs.

What about Automation

In the UK, there will be a slowdown of investment, and this will hit what little domestic spend there was on process automation. It is in the food industry where automation is needed most, and the suppliers there are surely used to an unwillingness to invest. Other sensors go into machinery that is exported, and some of that will suffer with a turndown in EU trade. The oil industry is not really investing at the moment, but the lower GBP/USD rate might make our oil industry, with its experience, and our costs more competitive in overseas contracts.

Siemens, who were publicly very much against a Brexit, has announced it will put on hold any further investment in its wind turbine manufacturing plant in Hull, where it has just set up a new factory employing 1000 people, at a cost of GBP310m. Hull voted by one of the largest majorities FOR Brexit. Dong Energy, the biggest investor in UK wind power, said “we don’t believe that UK energy policy is dependent on EU membership”. Maybe the UK can impose a trade barrier that stops Areva sending their reactor to Hinkley Point: already a UK Government advisor has suggested the GBP18Bn investment by EDF would be cancelled by the French. Maybe then we could go for a sensible UK/US solution?

From an editor’s point of view, press releases about major onshore automation investment projects in the EU, by British suppliers, have been very thin on the ground for several years. So what is at risk with a Brexit anyway? For the big multinationals, they deal with these contracts through their local subsidiaries, wherever the work or engineering is carried out. Most project descriptions these days mention interlinked CAD systems using resources from 5 or 6 design centres all around the world, and the work flows electronically through country borders. From India to Aberdeen, Houston, Madrid, Romania, Italy, UK and Egypt. So what will change? The Brexit might subtly boost the likelihood of investment projects in Eire, rather than the UK, which would be good news for Ireland.

Changes to expect

Probably the people feeling the pinch most will be the City Traders and the Banks. The pound will settle to a lower level, enabling us to recover faster, and then it will climb back when compared to the Euro, if not the Dollar. Whether there will be any further effects on the EU, I cannot predict. There is very little likelihood of Scotland or Northern Ireland breaking away from the UK and joining the EU separately (but the last time I said something similar to this, it was to say that “clamp-on ultrasonic flowmeters would never be able to measure steam or gas flow” – judge for yourself).

What I would like to see is an end to the extreme contrast between the lowest and the highest salaries in the UK, possibly starting by eliminating those highly paid banking jobs. Already HSBC is relocating their Euro currency trading operation to Paris. Maybe this will put a lid on the property prices in London, and overseas billionaires will sell their empty apartments. At least we will now stop paying high salaries and higher travel expenses to the ineffectively employed UK MEPs (Members of the European Parliament)!

For another viewpoint….

For a different viewpoint, see Eoin O’Riain’s post on his Read-out.net Instrumentation Signpost blog: https://instrumentsignpost.wordpress.com/2016/06/30/nobody-knows-brexit-pauto-tandm/

Nick Denbow

http://www.Processingtalk.info