Maria Ciliberti Shares Vopak’s Strategy for Supporting the World’s Need for Energy Security and the Ongoing Energy Transition
Around the clock and at ports around the world, Vopak provides infrastructure solutions for storing essential products that enrich everyday life. The company has been doing this for over four centuries. “We’re a global company with 73 terminals in 23 countries,” begins Maria Ciliberti, President, Vopak Americas. “We have over 5000 employees and operate nine business units. I’m the President of one of the larger units which is the US and Canada. I’m a chemical engineer and have worked in the petrochemical industry throughout my career, both in the US and across Europe, before joining Vopak in 2022.
“Our lifespan in this industry is quite incredible. We’ve been in business for over 400 years and are one of the safest bulk liquid storage companies in the world. Our standards are global, and products are stored in line with the appropriate safety legislation. Our longevity in this space brings a lot of knowledge. Likewise, as a global organization, even if decision making takes place in the US, we’re able to work with our customers wherever their need arises. We are also independent; we don’t own any of the products we store, so we can be objective. There’s never any question about prioritization.”
Advancing partnerships
Since Energy, Oil & Gas last spoke with Vopak, the company, in partnership with AltaGas, has announced a positive final investment decision on the Ridley Island Energy Export Facility (REEF), a large-scale liquefied petroleum gas and bulk liquids terminal with rail, logistics and marine infrastructure on Ridley Island, British Columbia, Canada. Following a five-year environmental preparation and review process, extensive engagement with multiple stakeholders including Indigenous rights holders and local communities, the joint venture is set to deliver a world class export facility that will operate with industry-leading environmental stewardship.
“The construction has already begun,” Maria elaborates, “key procurement contracts have been executed and are valued at over 350 million Canadian dollars. A project of this size is significant, but it fits with our growth strategy to expand into liquefied gases. Another project we’re very excited about is the completion of repurposing 22 oil tanks that we have at our Los Angeles terminal. We’ve invested in repurposing those assets and they’re now storing renewable diesel and sustainable aviation fuel which is used by Los Angeles International Airport. We’re carrying out similar repurposing activities at our other sites too to further drive our renewable fuels strategy.
“We do have land adjacent to many of our existing sites and continually explore opportunities to develop our capabilities for hydrogen storage with pipeline connectivity into California. We’re also looking at low-carbon ammonia as a hydrogen carrier,” she continues.
Indeed, Vopak strives to actively shape a sustainable future, by advancing partnerships that accelerate the development of infrastructure solutions for new energies. The company is focusing on new infrastructure solutions in the areas of low-carbon and renewable hydrogen, CO₂, sustainable feedstocks, and long duration energy storage. These future vital products are used as sustainable transport fuels for airplanes, flow batteries for storing clean electricity, and hydrogen, which can be used to store and transport renewable energy.
“The joint venture approach is often a viable option for us,” Maria shares, “and particularly so when we go into new geographies or if it involves different technologies. The new energy space, for example, is extremely capital intensive, so collaborations can help to distribute the burden.”
Strategic priorities
In terms of Vopak’s internal sustainability strategy, Maria explains that being sustainable is critical and the company has its own goals. “We will aim to reduce our emissions by 30 percent using the baseline year of 2021,” she adds. “We want to reduce our emissions by 30 percent by the year 2030. That goal includes growth. So, truth be told, that figure is more in the field of 60 percent. This is an aggressive and ambitious target. As such, we’re looking at ways to reduce our carbon footprint. First off, we’re exploring how to conserve our energy consumption from pump performance to heat tracing optimization for example. Alongside this, we’re sourcing renewable energy as our supply. We’re also looking at electrifying some of our processes and exploring cleaner fuel options.”
Vopak’s strategic priorities are to improve its financial and sustainability performance, grow its footprint in gas and industrial terminals, and accelerate towards new energies and feedstocks. Looking at growth in gas and industrial terminals, as the global population grows, global chemical production is also expected to increase, which will require storage solutions that meet the market’s requirements for flexibility and reliability. Vopak has committed to investing one billion euros in growing its footprint in industrial and gas terminals, towards 2030.
Looking to the more immediate future, Maria shares Vopak’s priorities. “First and foremost, safety’s always at the top of our list,” she affirms. “We’ve had a very good year thus far globally as well as in the US. So, we want to maintain that safety mindset. We’re in the middle of upgrading some of the fire protection standards across different terminals in the US. While the current standards are obviously compliant, we want to continue to raise the bar.
“Under our ‘right to operate’ activities, we’re also focusing on new legislation at the state level that targets emissions. We’ve already invested in technology that limits emissions and we plan to make this technology available to our customers to facilitate their compliance with the new laws. We’re undergoing new projects all over the country, from refurbishment of bulkheads to reactivation of out-of-service tanks, all of which address our carbon footprint as a company. We will also be focusing on new infrastructure for electricity storage, marking our first entry into electricity storage in the US. We will own and operate two stand-alone lithium-ion battery energy storage systems near Houston, Texas.
“Our intention is to continue our growth journey,” Maria concludes. “There is a lot of opportunity in the United States; the industries are quite diverse and while we’re sitting in several very advantageous locations, we’re not restricted to the ones we’re currently at. Through our independent network of infrastructure solutions, we’ll continue to deliver and improve, building on our proven track record and our heritage of more than 400 years.”
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