Mădălin Mihailovici, CEO Veolia Romania: We are already taking tangible steps to make energy consumption more efficient

Mihai-Alexandru Cristea 27/09/2023 | 08:45
In the challenging and dynamic field of energy, few leaders have the vision and expertise as Mădălin Mihailovici, CEO of Veolia Romania. With a career that encompasses engineering, management, and innovation, Mihailovici has led Veolia Romania to become a key player in providing integrated solutions for water and energy. Business Review talked with him about the achievements and goals of Veolia Romania, the importance of ecological transformation, and the opportunities and challenges that lie ahead for the energy sector in Romania and beyond.

 

How important are energy efficiency and independence in climate change, political, and social contexts?

In the contemporary nexus of climate change, political dynamics, and societal imperatives, the imperious significance of energy efficiency and independence emerges as a pivotal lodestar guiding both corporate and collective trajectories. The confluence of global climatic perturbations, geopolitical realignments, and heightened social cognizance precipitates an intricate tapestry wherein the prudent stewardship of energy resources assumes a paramount mantle.

At the crossroads of climate change, energy efficiency and independence stand as indispensable citadels against the escalating specter of environmental degradation. As anthropogenic activities continue to catalyze climatic vagaries, optimizing energy efficiency becomes an ethical and strategic prerogative for corporations and nations alike. The judicious allocation of resources, adoption of cutting-edge technologies, and fostering of sustainable practices converge to mitigate carbon footprints and advance the cause of ecological resilience. Within the geopolitical and socio-political maelstroms of our era, energy independence unfolds as a preeminent strategy in ameliorating vulnerabilities inherent to global power dynamics.

Strictures imposed by energy interdependencies can foment fragility in national security and impede the ascendancy of policy objectives. Accordingly, the pursuit of energy sovereignty bolsters resilience against external pressures and emboldens the capacity for sovereign decision-making, facilitating a vantage point conducive to negotiating the multifarious exigencies of our rapidly evolving world.

 

Veolia is committed to and working towards ecological transformation. What does this concept mean in general and how does it translate into energy efficiency with waterpower?

Ecological transformation means acting to reconcile human progress and environmental protection. We develop and implement local solutions to depollute our vital resources and preserve them from depletion, solutions to decarbonize our ways of living and producing, and adapt them to the consequences of climate change.

All over the world, attuned to local cultures, we strive to improve the health and quality of life of communities. At Veolia, we tackle economic, social, and environmental issues as an inseparable whole to the benefit of the largest number of people.

Veolia’s resolute commitment to ecological transformation means that it can respond to the highly complex equations that condition tomorrow’s world.

Ecological transformation means working to radically change patterns of production and consumption. It means placing ecology at the heart of every process and every assessment. It means providing radical, meaningful solutions to major problems, with and for its stakeholders: local authorities, manufacturers, civil society, employees, etc.

From that point of view, Romania has a huge potential in renewable energy because it benefits from a diversity of resources such as hydropower, wind, solar, and biomass. However, in the case of hydropower, with only 40% of the country’s hydropower potential being exploited at a national level, Romania is practically at the same level as it was in 1989, with no new construction in the field.

 

What projects in the field of energy efficiency and independence using waterpower has Veolia carried out/is carrying out internationally?

Veolia optimizes the energy efficiency of the entire water cycle, being firmly committed to responsibly managing the 6,000-plus water and wastewater facilities the Group operates worldwide. The aim is to preserve natural resources and limit greenhouse gas emissions caused by using fossil fuels.

For producing energy directly from wastewater, Veolia installs energy production units directly at water treatment plants. This allows the use of residual sludge from sewage treatment as a fuel. Our company uses a specially developed tool to model solutions that are the most appropriate and use the least amount of energy. The tool makes a very accurate estimate of the energy use of wastewater treatment plants. The data collected includes water quality, sludge, and odor suppression. For example, since 2016, the South Pest wastewater treatment plant in Hungary has been energy self-sufficient, thanks to our Ecrusor technology. This solution collects and treats biodegradable waste from local supermarkets and restaurants, as well as the plant’s wastewater sludge. The biowaste is then used to produce biogas while packaging is recovered separately. Ecrusor has allowed the operator to process more than 100,000 metric tons a year of organic waste.

In Rialto, California, Veolia employees have come up with an innovative microgrid solution that uses a unique combination of biogas cogeneration, solar power, and backup battery storage. The city of Rialto is situated just east of Los Angeles and Rialto Water Services provides water and wastewater treatment to 100,000 people. In 2013, a 30-year concession agreement was signed between the City of Rialto and Veolia. Last year, as part of this contract, the microgrid solution was announced. It will include a 360-kw reciprocating engine that will run on the biogas generated from treating the wastewater using anaerobic digestion technology. Additionally, there will be a 1.6-MW solar photovoltaic system and a 2.5-MWh lithium-ion battery that can run for four hours before needing to be recharged. The plant can therefore run self-sufficiently and can operate during power outages. Any excess energy produced can also be sold on the grid to raise additional revenue. No natural gas will be used, and 600 million tonnes of CO2 emissions will be saved every year.

Also, Veolia will lead a consortium in charge of the engineering, procurement, and construction of the Mirfa 2 desalination project. Located in Abu Dhabi, this state-of-the-art Reverse Osmosis Desalination will be the third-largest desalination plant in the United Arab Emirates. With a production capacity of 550,000 cubic meters per day of potable water, it will provide clean drinking water to approximately 210,000 households while offering increased efficiency and a reduced environmental footprint.

 

What can you tell us about these projects in Romania?

Locally, we are already taking tangible steps to make energy consumption more efficient and to adopt renewable energy sources. Thus, with an investment exceeding 2.5 million euros, we are among the companies concerned about these resources. By using the renewable source of solar energy, we are ensuring self-sufficiency at the photovoltaic plant that will serve the South pumping station. In addition, we will also become prosumers by installing smaller photovoltaic technologies on the roofs of the buildings of the Pantelimon pumping station, the headquarters of the Cassette Directorate in Vitan, and the Baneasa pumping station.

Also, a major project that we have been implementing for some time now is ensuring energy independence at all our local sites. The goal is to keep our tariffs as low as possible, especially considering the fluctuations and dynamics of energy prices.

At the same time, we are concerned with solutions that make wastewater treatment a renewable energy source. At Glina, biogas from sludge digestion is captured and recovered to cover the energy needs of the wastewater treatment plant.

Through energy supply and energy efficiency services, we are an active participant in creating good conditions for the lives and well-being of the people and communities in which we operate. For example, for a retirement home in Alba Iulia, we have designed and are now building into a turnkey project. That means we provide design, construction, equipment procurement, and operation, and then we are responsible for the maintenance of the facilities and the supply of heat, hot water, and cooling. Thus, we will provide a highly innovative option, using a geo-exchange solution and heat pumps to provide heating, domestic hot water, and cooling to reduce the use of current hot water boilers by as much as 85%.

At the same time, as a result of the expertise and know-how of the Group of which we are part, we can help local authorities and producers introduce or use biomass to a greater extent in the energy mix, by collecting and exploiting different types of biomasses. Veolia has innovative examples worldwide and we have the resources to replicate these models locally.

 

Can you briefly give us some figures about wastewater treatment and reuse in Veolia and worldwide?

In 2022, 14 million metric tons of CO2 were eliminated from Veolia’s customers’ carbon trajectories, and more than 320 million cubic meters of water were saved compared with 2019, equivalent to the annual consumption of Singapore.

In terms of wastewater reuse, we started from 401 million m3 in 2019 and reached almost 1 billion m3 in 2022.

 

How do you see the future of global society from the perspective of water efficiency and energy independence, given the context of climate change that we are all witnessing more and more in recent years?

In the context of the escalating climate change challenges that have become increasingly pronounced in recent years, the future trajectory of our global society concerning water efficiency and energy independence takes on an imperative significance. As the palpable ramifications of climate change continue to reverberate across the spectrum of environmental, social, and economic domains, the paradigmatic shift toward sustainable resource management emerges as not merely a strategic choice, but an existential necessity.

Water efficiency stands as a linchpin in the pursuit of resilience against the unfolding climate crisis. The escalating frequency and intensity of droughts, erratic precipitation patterns, and compromised freshwater availability have propelled the efficient utilization of water resources to the forefront of global sustainability agendas. In envisaging the future, a convergence of cutting-edge technologies, comprehensive regulatory frameworks, and conscientious consumer behaviors is poised to catalyze a transformative approach to water management. Smart water grids, precision irrigation systems, and advanced desalination techniques underscore the potential for mitigating water scarcity and fostering judicious consumption.

Moreover, synergistic collaborations among governments, industry stakeholders, and research institutions are indispensable in realizing transnational solutions that transcend geographic boundaries and harmonize divergent interests.

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