BETTER CEXBY MAKING THINGSBECOMING SMARTER
Jukka Helin
J. Boye Aarhus
2.11.2016
1
Sisäinen | Internal2
Vapo - fuel and energy supplier with exciting growth opportunities
Strong Nordic presenceVapo in figures (FY 2016)
Group revenue EUR ~390m
(FY 2016)
EUR ~20m
EUR ~290m
Kekkilä Group in Norway and Russia EUR ~5m
Group revenue EUR ~390m
Amount of personnel ~800
Hectares of land in peat production over 50,000
Annual fuel sales 14 TWh
Annual energy sales 1,6 TWh
Power- and heating plants 153
EUR ~75m
Vapo’s business areas
Fuels
Kekkilä Group
• Provides domestic solid
fuels, such as fuel wood,
peat and pellets
• Related added value
services
• Solutions based on delivery
reliability, local and
responsible operations, as
well as expertise in fuels
and energy production
• Offers tailored heating
solutions, district heating
and remote operation
services for plants
• Turnkey solutions according
to customers’ individual
needs
• Owns 7 power plants, 146
heating plants, 29 district
heating networks
• Develops, produces and
markets high-end garden
substrates, plant fertilisers
and mulches as well as
home garden and yard
construction products
• Customers include hobby
gardeners, professional
growers and landscapers
Net sales: EUR 250m
EBITDA: EUR 37m
• Vapo Clean Waters Oy
Solutions for controlling and treating
natural waters
• Vapo Fibers
Ecological peat fibers with unique
characteristics to be applied in various
industrial purposes
• Vapo Carbons
Technical carbons incl. activated carbon,
carbon fiber and carbon black.
Net sales: EUR 88m
EBITDA: EUR 6m
Net sales: EUR 95m
EBITDA: EUR 18m
Heat and Power
Vapo Ventures
Heat and power production value chain
Fuel productionFuel
procurementFuel
processingTransport
Power production
Energy distribution
Energy services (sales
/ retail)
Energy consumption
Big
centralized
power plants
Coal
Gas
Biomass
Nuclear
Wind
Distributed
consumption
AFTER BEFORE
BEDDING PEATSmarter and easier
Sisäinen | Internal7
Base for automation.
Special interest in logistics optimation.
Customer promise
”We make sure your storage is always full.”
Business value
”We have better control over the whole process and
logistics”
Notes
Issues with reliability, expensive. Work in outdoor
conditions (when they work).
Average customer orders a delivery or a
pick-up 1-2 times per month by phone.
Customer promise
”One less thing to take care of. Just press the
button.”
Business value
”Happier customers, better retention, more orders.”
Notes
Easy to start with, fairly cheap. Some reliability
issues. Need to be placed inside.
ORDER BUTTONSLEVEL MEASUREMENT
PELLET PLANTS
SENSORS IN THE
SILOS
Vapo’s powerplants in Finland
Silo level measurement key to
successful logistics. Transportation is a
big part of the total cost.
Step 1. Get data from our own silos
Step 2. Plan logistics based on data
Step 3. Add sensors to customers silos
Problems
• Still too expensive and unreliable
• We need to get price per silo to
under 1000 €
• Dusty environment challenging for
current technology.
Easy step 1. screen-capture plants controlscreens
Lot of remote, independently
operating pellet plants.
Normally work just fine, but in
fault situations maintenance
crew had to drive hundreds of
kilometers to operate the control
panel inside the plant.
Simple solution: screen capture
software to the control panels.
Now they can be operated from
anywhere. No real automation
software needed.
We had cameras for security in
the silos. Only internal access to
them.
We opened the camera feeds to
internet and gave our partners
access to them.
Now truck drivers can check the
silo levels on their mobiles and
decide independently when to
fill the silo.
Zero cost because we were
able to use existing equipment.
Easy step 2. Opening the cameras
ALGORITHMICORDERING
14
Automated fuelorders for largecustomers
By combining different data
eg.
– Weather
– Plant size
– Fuel metrics
– History data
We think we are able to
automate fuel ordering for
our big customers.
Dashboard is there to show
that everything works.
Project starting now. MVP
out in March-April 2017.
Automated offers for consumers
By using marketing automation
that combines different data sets
eg.
• Purchase history
• Weather data
• Storage size
We are able to send perfectly
timed sales offers to existing
customers.
Logic is being build into Salesforce
Launch at the end of 2016.
p.s. Our dream is to automate this
as well using sensors or buttons.
Continuum of automation
Order
buttons
Remote-
controlled
screens
CamerasSilo
monitoring
Automatic
ordering
Controlling
energy
streams
Our goals with IoT and becoming smarter
Better customer experience
• Easier buying
• Less work for customers
• Better reliability
• Eventually cheaper prices
Better business
• Improved logistics
• Better control of the whole value chain (which is changing drastically).
New energy value chain
…in a two-
way market
meets…Distributed
production…
…distributed
consumption
Customer becomes a user and a producer
Prices are pushed down.
Huge strain on traditional
production that is still
needed as reserve.
Focusing on customer
experience is essential in
the future value chain.
Owning production
plants doesn’t bring
advantage.
I IIIII
@yuccis