104 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 Redeploying an FPSO involves modifying an existing asset to suit the specifications of the new field. This is much less resource-intensive compared to a new build, as the majority of materials, if designed well, can be repurposed. Notably, redeployment avoids the need for decommissioning and dismantling. Plus, a redeployment project can generally be executed in a relatively short timeframe, thus bringing forward production timeframes for our clients while reducing capital expenditure. We believe that redeployment projects play an important role towards asset circularity at Yinson, embodying our long-term commitments. Yinson Production is one of the few contractors globally with the capabilities and experience to undertake redeployment projects. In our current operating fleet, FPSO Abigail-Joseph, FPSO Helang and FPSO Atlanta (expected to be operational by end of 2024) are redeployment projects. The conversion of FPSO Abigail-Joseph, for example, which was completed within seven months, is believed to be one of the world’s fastest deliveries of a brownfield FPSO modification and upgrading project. FPSO Abigail-Joseph is a redeployment of one of Yinson’s existing vessels, FPSO Allan, which had previously operated for nearly 10 years in the Olowi Field in Gabon. Yinson Production is also experienced in conversion projects, in which very large crude carriers (VLCC) are converted into FPSOs. Conversion projects are considerably less resourceintensive compared to new builds. Using donor tankers for our FPSOs allows us to reuse steel from the hull, which our engineering teams will always factor into the design and conversion process. Our strategic focus on FPSO conversions and redeployments, as opposed to new builds, reflects our emphasis on material efficiency, timely delivery and costeffectiveness. Resource efficiency during construction and operations Resource efficiency forms part of Yinson Production’s Project Execution Philosophy, which underpins how we aim to execute projects on time and on budget to support a strong brand reputation. Our project teams carefully manage resource and project planning throughout our FPSO design and construction phase, and they continue to identify resource efficiency opportunities that could be gained with changing external circumstances. Design solutions that we are implementing onto our current and future FPSOs that contribute to resource efficiency include: • Combined cycle technology to efficiently capture heat generated in the production process, thereby reducing fuel gas consumption, to generate electricity for FPSO operations. • Partial/full electrification of FPSO operations by importing renewable energy sourced from onshore and/or nearby offshore infrastructure to lower fuel gas consumption. • Variable frequency drives for main rotating equipment and cargo offloading pumps, which use fine process controls and advanced regulation settings to allocate resources efficiently when needed. • Seawater turbine generators, where the kinetic energy of moving seawater, which is used for processes onboard the FPSO, is simultaneously used to produce electricity for FPSO operations, therefore consuming less fuel. • Innovation and incorporation of the latest digitalisation technologies to monitor, measure, analyse and manage our asset performance, implementing automation where possible. We are forerunners in the industry for the digitalisation of our predictive maintenance processes. Yinson has successfully established a supply chain process for 3D printing spare parts from recycled polymers and metals and is able to print identified long lead items and obsolete spare parts upon demand. We aim to pioneer these solutions and eventually introduce them to the FPSO market and beyond, contributing to overall energy efficiency and lower emissions for the industry. On top of these solutions, we are piloting the DNV Abate class notation on one of our newest FPSOs. This involves establishing and implementing an energy management system for effective control and management of emissions throughout the whole project lifecycle. We aim to implement this on all new projects going forward. Increasing resource efficiency in our renewables business Materials like steel, copper, silicon, aluminium and glass as well as certain rare earth minerals are used in the construction of solar PV farms. Fluctuations in the supply of these materials have had a significant impact on the global solar industry in recent years. Yinson Renewables is cognisant of the need to balance such supply chain constraints with our commitment to deliver clean energy infrastructure, without negatively affecting the environment and societies where we operate. Below are some measures we are taking to manage the input of natural resources into our asset construction and operations efficiently: • In addition to quality and price, we also consider environmental footprint when selecting equipment and products. These are part of our project evaluation criteria when building our pipeline. • We implement strict quality control protocols to ensure materials are used efficiently to reduce the need for rework. • We leverage technology and digitalisation to streamline operations and reduce inefficiencies. • We foster strong relationships with our suppliers to secure high-quality materials and negotiate better prices. • We are actively exploring dry cleaning methods for solar PV maintenance, as an alternative to the water-intensive wet cleaning methods, for use in certain operational areas. • End-of-life recycling processes are part of our procurement evaluation, and we are committed to keeping updated on the latest advances in this area. • We have implemented recycling and robust waste management processes at our construction and operational sites. Case study: Project Polaris, pg 29.
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