Strengthens our market position in safety-critical applications with a leader in dynamic uninterruptible power supply

Completes our power supply product offering and accelerates our strategy of offering integrated solutions

Acquisition expected to deliver cost and revenue synergies and help support medium-term profitability and creation of long-term shareholder value in our back-up power generation business

Rolls-Royce is strengthening our business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply. We are already a leading provider of back-up power generation through our Power Systems business with its product and solutions brand MTU. This market has remained a growth area during the Covid-19 pandemic and is expected to grow in the coming years as customers look to further minimize their risk of disruption.

Rolls-Royce is strengthening its business in power supply for safety-critical systems with the completion of the acquisition of Kinolt S.A., a Belgian-based specialist in dynamic uninterruptible power supply.

Uninterruptible power supply systems are used wherever stable electricity is required or a power failure would be extremely harmful, for example within data centres, hospitals or manufacturing facilities which operate sensitive processes. This acquisition is another important step on the strategic journey of Power Systems towards becoming a full-service provider of integrated solutions. Kinolt’s uninterruptible emergency power supply technology is particularly well suited to applications where space is at a premium, such as urban areas or installations in existing buildings, and complements our own MTU branded solutions for large scale and greenfield sites. As a result, the deal is expected to result in cost and revenue synergies and help support medium-term profitability and creation of long-term shareholder value in our back-up power generation business.

Andreas Schell, CEO of Rolls-Royce Power Systems, said: "The extraordinary times created by the Covid-19 pandemic have shown just how important it is to secure electricity supply to sensitive and critical infrastructure. The provision of uninterruptible power is vital in any situation and even more so today, as it ensures the provision of vital services such as medical care or the world’s continued flow of internet traffic. Without it, no public authority or company would be able to act in any crisis."

The demand for uninterruptible power solutions is expected to remain strong in the aftermath of the Covid-19 pandemic. The acquisition of Kinolt will give Rolls-Royce a leading solution for businesses and local authorities who experienced issues with supply, or came close to doing so, and do not wish to run the risk again.

The Kinolt system is made up of a diesel engine that is coupled to a kinetic energy accu, via an electromagnetic clutch. The kinetic energy accu is the combination of a kinetic energy accu and a synchronous machine. Kinolt will become part of Rolls-Royce's Power Systems business unit and its MTU product and solutions brand.

"We originally signed the deal to acquire Kinolt before the full global impact of Covid-19 was apparent," added Schell. "Since then we have rigorously examined the rationale for the transaction and the opportunities it presents to our business and concluded that the arguments in favour of the acquisition are even stronger than before."

Power Generation is already the top-selling segment within the Power Systems business. In the future it is expected to be able to supply customers with all components and consequently a complete uninterrupted power generation system in the power range from 200 to 3,200 kVA. Kinolt's technology consists of a combination of rotating, kinetic mass storage devices, a diesel engine and a generator that can also be used as an electric motor. MTU engines from Rolls-Royce are often already used within Kinolt’s solutions. The Kinolt system is connected between the external power supply system and safety-critical equipment and supplies the latter with the required electrical power during normal operation. The grid frequency and voltage are generally more stable than the grid of public power suppliers. This is necessary because data servers, computer-controlled systems or sensitive devices such as those in hospitals can fail in the event of voltage and frequency fluctuations. In the case of a power failure, the flywheel mass accumulator ‘bridges’ the first few seconds before the diesel engine takes up the load.

"We will integrate the products and systems of our new subsidiary into our MTU product portfolio," said Andreas Görtz, Vice President of Power Generation at Rolls-Royce. "Our worldwide sales and service network will open up new market opportunities for the new portfolio. This will significantly strengthen our market position in safety-critical applications."

Kinolt is based in the town of Grace-Hollogne in the Belgian province of Liège and was known as Euro-Diesel until mid-2019. The transaction was completed on 1 July 2020 following the approval of antitrust authorities.

Source:  Rolls-Royce
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Unlike other manufacturers, MHPS demonstrates new gas turbine capabilities at our own combined cycle power plant before shipping to our customers. This enables us to provide unmatched performance, such as the 99.5% reliability of our J-Series gas turbines.

MHPS’ most advanced JAC gas turbine, designed for maximum efficiency and lower emissions, is now integrated with MHPS-TOMONI® digital solutions for verification and validation at T-Point 2. The gas turbine is entering commercial operation at record-setting combined cycle efficiency greater than 64% and a world’s first turbine inlet temperature of 1650°C. This gas turbine reduces carbon emissions by 65% versus coal-fired plants. In addition, it has the capability for conversion from natural gas to a blend of natural gas with 30% renewable hydrogen to reduce emissions further. Eventually it will be capable of running on 100% renewable hydrogen to completely eliminate carbon emissions.

The digital building blocks of the autonomous power plant being validated at T-Point 2 include an advanced Automatic Plant Startup package that is closely linked to the advanced analytics and diagnostics that continuously monitor the total plant. To validate complete remote operation, operations will be transferred from the local control room to the Takasago Remote Monitoring Center. Operations and maintenance building blocks under evaluation include an advanced array of acoustic, video, and thermographic data acquisition sensors monitored by advanced analytics that are being trained to identify pattern changes. T-Point 2 is also evaluating the first ever Netmation 4S Digital Control System to be used on an advanced class gas turbine combined cycle plant. Netmation 4S adds additional reliability, redundancy, and enhanced operator experience to the well-proven Netmation family of control systems.

"Unlike other manufacturers, MHPS demonstrates new gas turbine capabilities at our own combined cycle power plant before shipping to our customers. This enables us to provide unmatched performance, such as the 99.5% reliability of our J-Series gas turbines," said Paul Browning, President and CEO of MHPS Americas and Chief Regional Officer for Europe, the Middle East, Africa and the Americas. "I congratulate our dedicated team of Engineers, Procurement, and Construction personnel for achieving commercial operation on schedule, on budget, and exceeding output and efficiency expectations. This project positions us years ahead of any manufacturer in putting the latest generation of 1650°C gas turbine technology into commercial operation. We are leading a Change in Power."

Source:  MHPS
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Along with the turbine, Doosan Skoda Power is supplying the generator, excitation transformer, oil system and high-pressure hydraulic system. It is a turn-key solution that includes assembly and launch on site. Right now, assembly is scheduled to be completed by October 2020 and the first steam should be generated in late March 2021.

"We are already implementing similar projects for Hitachi Zosen Inova in Istanbul and most recently in Newhurst in the UK. Our turbines, which are suitable for a wide range of applications, including the generation of electricity from waste, thus contribute to reducing the amount of municipal waste worldwide which would otherwise end up in unsightly suburban landfills. We are proud to be able to participate in beneficial projects like this," concludes Tomas Stary, project manager at Doosan Skoda Power.

"We have been working with Doosan Skoda Power in several projects before and we are looking forward to be able to rely on their expertise again in this important infrastructure project in the UK," said Kaan Türkyilmaz, Project Procurement Manager at Hitachi Zosen Inova.

Despite complications caused by the COVID-19 pandemic, the turbine was manufactured and shipped two months ahead of the deadline specified in the contract. At the beginning of May, CEZ Distribution engineers assisted with the transport of the excess cargo, which weighed more than 240 tons, to the Port of Lovosice by lifting the power lines along the route. From Lovosice, the cargo will head to the Port of Hamburg and then continue through the English Port of Tilbury to its final destination.

Source:  Doosan Škoda Power
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