Sustainability Report 2017

Sustainable industrial services

Why this topic is important to us

In previous years, the requirements for the operation of industrial plants have steadily increased. It is predicted that the requirements regarding emissions, energy efficiency and performance of these types of plants will continue to increase. The public expectation of operating industrial plants with the least possible ecological impact has also continuously grown.

For these reasons, the need for future-oriented solutions that achieve higher performance and efficiency for industrial plants and at the same time reduce their ecological footprint, has increased. With its services, Bilfinger contributes by requiring that its clients meet these conditions and, at the same time, achieve their sustainability targets – in both the Engineering & Technologies and Maintenance, Modifications & Operations business segments This can be easily seen in, for example, our wide range of engineering services, environmental technologies, our insulation solutions – in particular thermal insulation for both hot and cold temperatures –, maintenance services, conversion and expansion work and the modernization of plants.

We see an attractive market in sustainable industrial services, where increasing importance is given to interregional and industry-wide services. Our goal is therefore to align our range of services more closely to sustainability requirements and to the fulfillment of our clients’ sustainability targets.

Tom Blades (quote-portrait)

“Operators of industrial services face a broad range of challenges. These include the use of new digital technologies and the efficient handling of energy and resources. With our range of services, we help our customers improve the performance and efficiency of their plants, while also reducing their ecological footprint.”

Tom Blades, CEO Bilfinger SE

Engineering & Technologies

The Engineering & Technologies business segment bundles activities that are focused on engineering services and technical solutions. These relate primarily to the project business in which our customers invest in property, plant and equipment. We meet the requirements of this business by means of a centrally controlled project management system in a globally-active division, concentrated on defined industries and engineering disciplines. In order to ensure an optimal exchange of knowledge, project managers in the regions are networked with each other and with headquarters using digital platforms.

By bundling our engineering and technology services in this internationally-active division, we guarantee our customers that we have access across our entire Group to the most recent knowledge and findings, the best expertise and the most comprehensive experience available in developing innovative and sustainable solutions. Our comprehensive range of services is divided into the following four areas:

Planning

Planning covers all consultative engineering services that we deliver on behalf of our customers for the design of an industrial plant. These include feasibility studies, concept, basic and detailed planning, cost estimates, authority engineering and the execution of calculations and analysis. We model the plant components, erect manufacturing plants and conduct machinery and apparatus engineering. We develop structural analysis concepts and structural planning as well as maintenance plans. We also offer a very high level of expertise in and , structural analyses for piping, CAD construction as well as technical building equipment.

Cradle-to-cradle

Reuse of all materials

Products that leave no waste behind: that is the goal of the cradle-to-cradle principle. With its more than 20 specially-trained cradle-to-cradle consultants, Bilfinger Tebodin supports companies that seek a relevant certification for their products. M-plastics was among the companies certified in 2017 that were advised by Bilfinger Tebodin. The manufacturer of premium plastic packaging for the agricultural and horticultural sectors was granted certification for its fully-recyclable products and for its thoroughly sustainable production process.

Cradle to Cradle (photo)

Sustainable furniture store

BREEAM certification with Bilfinger

Swedish furniture giant Ikea has been relying on support from Bilfinger Tebodin for years when it comes to the new construction or expansion of its stores. The most recent project: Construction of a 30,000 square meter furniture store in Belgrade, Serbia which will be certified in accordance with the international BREEAM sustainability standard. In order to achieve certification, a number of requirements must be met with regard to waste, transportation and energy supply. Bilfinger is integrated into the project as a consulting engineering partner and is responsible for the technical and structural supervision as well as the coordination in the area of occupational and health protection.

Sustainable furniture store (photo)

Execution

Our core competences include the planning and development of industrial plants in the sectors oil & gas, chemicals & petrochemicals, energy & utilities, pharmaceuticals & biopharmaceuticals, metallurgy, and cement. In keeping with our life-cycle concept, we offer our clients the entirety of all services, as a one-stop services provider, that the construction, expansion, and modernization of an industrial plant will entail. In particular, these services include generic engineering, , and process engineering. We assume responsibility for project management, construction monitoring and commissioning. We deliver the preparation of entire plant concepts – from the first concept draft through to final 3D planning – as well as the design and construction of any components that are needed.

Pinch analysis

Optimizing energy flows

In cooperation with the Technical University of Vienna, Bilfinger Bohr- und Rohrtechnik has developed a particularly efficient process for pinch analysis. The goal: an optimization of existing energy flows in industrial plants in order to reduce the need for external energy supplies. To this end, the plants and their process engineering procedures are thermally analyzed and, using the analysis as a basis, presented in their ideal plant status, meaning an optimal heat connection between the process flows. Bilfinger subsequently develops relevant implementation concepts which include, for example, the use of heat exchangers, high-temperature heat pumps, flue gas capacitors or heat accumulators. This regularly leads to substantial savings potential regardless of the industry.

Pinch analysis (photo)

Technology

Bilfinger has decades of experience in the development, manufacturing and installation of assemblies and components for industrial plants. These include, for example, fuel plants, oil combustions systems, gas treatment systems, filters, precipitators, separators, absorbers, heat exchangers, heaters, boilers, flare systems, combustion chambers, tank storage systems and piping systems We also offer a broad range of environmental technologies including, for example, flue gas desulphurization, purification and denitrification. As a provider of comprehensive industrial services, we also assume responsibility for the engineering, manufacture and installation of complex system solutions. In this regard, we design and organize plants, systems and system components, provide comprehensive project management and apply effective planning tools. Our comprehensive expertise in the areas of process engineering, electrical instrumentation and control engineering, mechanical engineering and design (3D planning) ensures that the assemblies and components we provide for industrial plants meet the highest demands in terms of their quality.

Scrubber-Technology

Stricter threshold limits for SO2 emissions

Ships often use heavy oil with a significant amount of sulfur as fuel. In order to reduce the amount of SO2 emissions generated by these ships, Bilfinger has developed a so-called “scrubber” procedure. As part of the procedure, the sulfurous flue gas is scrubbed and cleaned. To carry out the task, a flue gas desulfurization system must be installed in the main engine (“single line”) or in several emitters (“multi-stream”) of the ship. A pilot project with the ocean tanker M/T Aurelia showed: Installation is possible within just a few weeks and pays for itself already after a short period of time.

Video: Desulfurization of Ship Engines

Construction

We provide our clients with a full-service offering for the construction of industrial plants: We handle the engineering, manufacturing, delivery and assembly of complete plants and individual trades. This includes prefabrication work, construction of apparatuses and containers, steelworks, special welding, construction of the industrial plants or of pipelines, as well as the laying of lines and pipes below grade. We also offer an assembly and industrial service and provide technical personnel as well as any machines that might be necessary for the industrial assembly.

Maintenance, Modifications & Operations

Our business segment Maintenance, Modifications & Operations bundles all of the activities we pursue in our ongoing maintenance service, in the modification of industrial plants and in their operation. This typically relates to a services business on the basis of long-term framework agreements to ensure the ongoing operation of a plant. Because these most often relate to activities with specific local demand structures, we have organized this business into regions. These include Continental Europe, Northwest Europe, North America, and the Middle East. By having our regional units provide these services, we ensure that the efficiency of the industrial plants we look after is continually enhanced on site, in parallel with the maintenance and expansion measures we take. Our range of services includes the following:

Maintenance

Bilfinger is one of the few providers on the market in a position to provide its national and international customers maintenance services for the entire life cycle of an industrial plant. Our services include maintenance engineering and consulting, the planning and execution of maintenance measures in all key trades, the coordination of subcontractors, the planning and execution of as well as . Our proprietary Bilfinger Maintenance Concept, which comprises more than 30 methods and tools that are combined to form 16 modules, provides our clients with a state-of-the-art, uniform safety and quality management program. Progress in digitalization within the area if MMO will not only lead to the further development of the Bilfinger Maintenance Concept, but also to a close connection with the Engineering & Technologies business segment.

Maintenance at its best

The Bilfinger Maintenance Concept®

The Bilfinger Maintenance Concept (BMC®) is setting new standards in the maintenance and repair of industrial plants. The objective: a comprehensive, modular and standards-based concept that covers all significant maintenance aspects and that substantially improves plant efficiency and availability. In 2017, the BMC was further refined and rolled-out across the country.

Video: The Bilfinger Maintenance Concept

Bilfinger Maintenance Concept (photo)

Modifications

Bilfinger offers a comprehensive range of customized services for the modification and expansion of industrial plants. We assume responsibility for detailed engineering, project management as well as the procurement and manufacture of the necessary components. We execute plant engineering, piping construction and steel construction and carry out assembly in all trades (mechanical equipment as well as electronic instrumentation and control). As a matter of course, we also look after the commissioning and transfer the modifications and/or expansion into the maintenance process. We also assist our customers in the demolition and conversion of their plants. To this end, we not only provide project management and detail engineering services, we also assist in the fields of disassembly in all trades, waste management, logistics, reassembly, and commissioning, and also prepare the required documentation.

Operations

In addition to the maintenance and expansion of industrial plants, we also support our customers in the operation of industrial plants. This typically relates to independent process units that deliver support services for the operation of the actual industrial plant of our customer. We ensure the ongoing operation of these plants, monitor their performance, carry out necessary expansions and modifications, are responsible for the procurement of required resources such as materials and energy and look after the repair and maintenance of the plant.

How we counter risks

Our risk management system and significant risks for our company are described in the Annual Report.

Laser scanning
Line or grid-like scanning of surfaces or bodies with a laser beam in order to measure, process or create an image of them
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As-built analysis
Analysis of a virtual plant created using the laser scanning method
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Basic engineering
Planning of the basic process technology
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Turnaround
Comprehensive maintenance work on an industrial plant during which the plant is shut down
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Condition monitoring
Regular recording and monitoring of the plant status, e.g. vibrations, temperatures
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