Ivan Buckner
Hello and welcome to power bites. I am your host, Ivan Buckner. Today we have a special treat. We'll be delving into the concept of bridging power but with a twist. We have not one but two special guests with us. We have Michael Clarke and Nestor Sanchez. I'm going to let them introduce themselves and then we're going to dig into this intriguing topic. Mike let’s start with you.
Michael Clarke
Yes, I am Michael Clarke, the sales director for our GPP (Global Power Provider) business, which is our Global Power Provider. We perform temporary power projects around the world and. Where from twenty megawatts on up to hundreds of megawatts.
Nestor Sanchez
Hi, my name is Mr. Sanchez. I work in the Panama Office for Caterpillar. I'm part of a rental power and Michael's global power provider team. In my role as a project developer for the GPP is in Latin America. I prospect qualify and develop project opportunities for the GPP.
Ivan Buckner
Thanks for the introduction, gentlemen. So, today we're talking about bridging power, and I want to give my definition, I think it is, and then you guys can add on to it and tell me if I'm missing anything. But bridging power to me is like it's a short-term solution that is essential for businesses to keep their operations going.
Michael Clarke
That's correct, Ivan. It's really the gap between running utility power is available to a customer and when they actually need to have power on site. So, bridge power is when we come in with a temporary solution to bridge that gap, from the time of customer needs power to the actual utility power is in place.
Nestor Sanchez
And it's not only a short term, but it's the duration of bridge power solution will depend on the need. For the user, it could last weeks, or it could be months or even years.
Ivan Buckner
OK. And when we are talking weeks and years, I mean, how long have you? Seeing these projects take.
Michael Clarke
These projects typically range anywhere from six months to five to seven years and really depend upon the situation, where they are in the world.
Nestor Sanchez
The flexibility of the sign and the Caterpillar equipment used in these types of solutions allows the company to achieve the desired outcome. Once those goals are met, the solution can be moved elsewhere.
Ivan Buckner
So why would someone need power for you know, you know, five to seven years?
Michael Clarke
So, if you look at what's happening within the world and specifically within North America, utilities have seen an unprecedented demand for power coming towards them. And you know for them they have to go through their process and understand where power is coming from.
Ivan Buckner
When I read about bridging power, I hear a lot about data centers and utilities. How do data centers play into this.?
Michael Clarke
Data centers have really grown in size, so not only the number of data centers, but the actual megawatts that are required to run a data center has grown exponentially. So, when you add the fact of more data centers at higher power demand and utilities are trying to keep up with this unprecedented demand. It has created a situation where bridge power is needed to fill that gap between when a customer needs power and is ready to go online and when until we can actually get them that power.
Nestor Sanchez
One special characteristic that data centers have is that they have a very large demand requirement in a single spot.
Ivan Buckner
So, you mentioned planning, how important is planning to the success of bridging power?
Michael Clarke
I think it's key and critical. One of the important things to remember is the sooner that you can bring this up to somebody, they can start looking at it. Allows them the time to take a look at the needs, to go through the engineering, to secure the gear, and to be able to work through all the necessary things to make a power project work.
Ivan Buckner
So, it sounds like these companies should have started planning yesterday. If they have not started, what should be the first thing that they should do?
Nestor Sanchez
Well, I would say that they should have started planning the day before yesterday, but definitely they need to provide a lot of information, especially site related information, how many megawatts do you need? How much site do you have available? what we call the footprint of the site. What would be the operation of the site? Is it going to run 24/7? Is it going to run just for the peaking hours, the duration as well? Duration is flexible, like many of the different aspects of bridge power duration, fuel force, the special scope related to this type of application. There is a lot of technical information that needs to be in place for the solution itself to be designed and implemented. So, yes, the sense of urgency is very important here.
Ivan Buckner
OK. So, we have talked high-level, let's get specific. I have a challenging question for you guys. Who's up for a challenge?
Nestor Sanchez
I am!
Ivan Buckner
All right, Nestor. Can you talk about the most complex bridge power project that you have worked on?
Nestor Sanchez
Yes, I will take that one. One of the most complex bridging powers I worked on in my time with Caterpillar has been a large grid connected application where the GPP had to provide a solution for the additional requirements of the National Grid. The turnkey technical solution was quite complex, utilizing both power modules and turbines. It also required 69 KV connection to the grid. It also required transformers, substation equipment, metering. All the controls required. So, it was layer upon layer upon layer of complexities.
Ivan Buckner
So, when we were talking about putting these programs together on the bridging power programs together. Who are some of the key players that you are working with and putting these solutions together?
Michael Clarke
We typically work with our GPP dealers, obviously that we work with. We work with the end customer to understand exactly what their needs are, there is a myriad of other folks, gas supply companies or fuel supply companies, site infrastructure, regulatory, emissions, permitting, inspectors. It is a power plant, even though it is temporary, it is still a power plant. So, we have to work across many different disciplines in coordination with our GPP dealers to ensure a successful execution of the project.
Ivan Buckner
You guys have done a really good job of painting a good picture of what bridging power is. And regardless of who the provider is for these solutions, I think some of our listeners out there that are more technical want to know specifically about the products that are involved, like generators or batteries. Can you give us more specifics on the products involved in these solutions?
Michael Clarke
Well, it can be a combination of many things. At a minimum it can begin sets whether it be reciprocating engines, whether it be turbines. There could be some energy storage that is in there. Potentially renewable solar that could be put into play. And then what we call balance of plan, all the switch gear, the electrical infrastructure, the means, and the mechanism to take the power that's being generated by the power source generator, renewable, etc. And convert that into the substations and the distribution at the data centers or the end customers require. So, it is a total power plant.
Ivan Buckner
It seems like there are a lot of components and people involved in putting together these bridging power solutions. And I think this is just the beginning of this type of solution. And I do not think it is going away. If you guys had to leave our listeners with some key takeaways if they were about to put together a bridge power solution for themselves, what would you leave them with?
Nestor Sanchez
From my side, I think the end users of utilities should think about bridge power as a solution and enabler, that's one of the biggest takeaways of the conversation about bridge power. It's a way to deal with the present needs that you have today and at the same time, much value to your operations allowing you to remain focused on your core business. Whatever problem you need you have today, you still have your core business to take care of and bridge power allows you to manage both things at the same time.
Michael Clarke
Yeah, for me. I think one of the keys is that sooner you can start engaging with somebody, even if it's a contingency. If you're not sure if utility or other power source is going to be there, the sooner you're able to do that, the more planning can go into it. It could be, you know, walk through, and see what the feasibility of the project is. I do think timing is a key and obviously engaging in folks that have the experience and can actually put a total plan together. Not only the generation, the balance of plant, the switch gear, the electrical infrastructure, the permitting, the gas supply, or fuel supply depending upon you know what fuel source that you have those are those are key and critical for me.
Ivan Buckner
Mike and Nestor, thank you guys for joining us today.
Michael Clarke
Thank you. It's been a pleasure.
Nestor Sanchez
Thank you very much.
Ivan Buckner
Thank you for joining us on power bytes and helping our listeners and myself learn more about bridging power and how important timing is. Please continue to send us emails on topics that you want to hear about. You can contact us at power bytes. That is power BYTES at cat.com.