Unprecedented Transformation Rife with Opportunities

Q: What impact is the Energy Reform having on the industry and companies like Industrias Energéticas?

A: Mexico is in the middle of an unprecedented transformation resulting from the reforms implemented by this administration. The Energy Reform was created because of the transformational needs of the industry. If a country lacks power, its growth is hindered and prospects for employment growth and infrastructure development will be missed. We now have several options implemented by the federal government such as natural gas pipelines, LNG projects, private power generation plants, new refineries and the ability to exploit alternative energy sources, such as wind and solar, and dynamic energy sources such as tidal energy, which in Norway accounts for 15 percent of its produced energy.

Q: How is the company positioned to take advantage of the new regulations?

A: We represent Capstone Turbine Corporation as a distributor, but Industrias Energéticas can also participate in other projects to add value in the manufacturing of alternative solutions for the industry, such as natural gas compressors, commercialization and installation of mass and ultrasonic metering systems, oil valves, specialized instrumentation and automation with strategic partners in the US and Latin America. Industrias Energéticas is in a constant state of evolution. We were awarded a recertification of our Quality Management System ISO 9001:2008 and we are halfway through the OHSAS 18001 certification for safety and health management and the ISO 14001. This latter certification is the international standard for environmental management and will help us to identify, prioritize and manage environmental risks within our regular operational framework. We analyze each project individually to select our workload with care. Industrias Energéticas is addressing several areas such as industrial construction for the oil and gas sector, support for power generation and pipeline systems and implementation of natural compression stations. We want to offer complete solutions that benefit both the public and private sectors.

Q: How is Industrias Energéticas facing the challenge of new competitors in clean power generation?

A: Thanks to Industrias Energéticas’ trajectory we are being sought by oil and gas companies that distribute and operate equipment on a larger scale in Mexico. Our best networking and marketing opportunities come from conferences and conventions. We have a dynamic marketing system and we are investing resources to promote our activities and develop strategic alliances.

Q: How must the landscape change to boost the usage of biogas technology?

A: The main challenge for biogas is that the reform is still developing. There is also a lack of fiscal stimuli and financial support to incentivize the implementation of this type of technology in the agriculture and hotel industries, which are the largest generators of biogas. As for municipal services, there is still a lack of awareness about these types of plants and their success in countries like Argentina, Uruguay or Spain. Massive diffusion of this technology as an alternative among government, banks and investment funds is still needed, as well as academic linkage through training, conferences, forums and elaboration of projects to explain its benefits. The market potential in Mexico for biogas is large, especially for the hotel industry and state and municipal governments. Biogas could be used for selfsupplying systems that would allow small industries such as farms or ranches to be independent from CFE’s power generation. The target would be to incentivize a selfsupplying business scheme at the government and private level to boost its usage.

Q: What is Industrias Energéticas doing to benefit from the government’s five-year pipeline plan?

A: Industrias Energéticas is developing strategic alliances with E&P companies, providers, constructors and pipeline operators. If we collaborate with each other, offering our unique expertise, knowledge and experiences, we can reach any target set.