Could you provide some background on AFRY and its involvement in the hydropower industry?
AFRY has deep Nordic roots and a rich heritage spanning various industries including process industry, energy, and infrastructure. A significant milestone in our history was the merger of two renowned companies, Pöyry and ÅF, in 2019, leading to the birth of AFRY as a new brand. With a workforce of approximately 20,000 employees operating in around 50 countries, AFRY stands as a truly global entity.
AFRY boasts nearly 130 years of experience in developing hydro projects, offering a comprehensive range of services. We provide design and design review services, spanning from the early conceptual stages to tendering and detailed design phases. Our expertise encompasses various disciplines essential for hydro projects, including geotechnical, tunnelling, civil, hydrological, hydraulic, as well as social and environmental considerations. With our broad spectrum of capabilities, we integrate AFRY’s vast knowledge base into hydro projects, ensuring comprehensive and effective solutions.
Our journey in hydropower dates back to the late 19th century when smaller engineering firms, primarily based in Europe, initially ventured into hydro projects. Over time, our engagement expanded beyond Europe as we witnessed the emergence of new hydro developments in different regions. This gradual international expansion allowed us to diversify our portfolio and expertise.
Our Nordic roots undoubtedly influenced our early focus, but our hydro business, being a significant vertical within the energy sector, gained prominence primarily in Europe. However, as opportunities arose beyond Europe, we actively sought to expand our horizons, venturing into regions like Latin America and Southeast Asia. This strategic approach enabled us to drive development within the hydro sector across diverse global markets.
There are certain countries where we are not active due to various issues, including regulatory concerns. For instance, we have refrained from pursuing hydropower projects in Myanmar due to the prevailing situation in the country.
With decades-long engagements in regions like Latin America and Southeast Asia, do you still observe significant development in these areas?
Absolutely. The energy landscape is constantly evolving, and regions like Latin America and Southeast Asia continue to witness substantial development, especially amidst the ongoing energy transition. This transition underscores the importance of hydro and other renewable sources in meeting evolving energy needs. Each region’s unique priorities shape the role of hydro, whether it’s rehabilitating existing infrastructures, building new capacities, or integrating renewable sources like solar and wind.
Considering the diverse priorities across regions, how does AFRY navigate its involvement in various aspects of the hydro sector?
We adopt a versatile approach tailored to the specific needs of each region. Whether it’s rehabilitating existing hydro fleets, collaborating on new build ventures, or contributing expertise in emerging areas like pumped storage, we align our services with regional energy priorities. By doing so, we aim to play a pivotal role in driving sustainable energy transitions worldwide, catering to the diverse needs of different regions.
What is the biggest market you work in?
When considering our revenue, it’s clear that our primary market lies in Europe and the Nordic region. Additionally, we maintain significant activity in Southeast Asia, where we’ve established a strong presence and identified substantial market potential. In Africa, we’re actively pursuing projects in select countries and regions that align with our commitment to sustainability initiatives, reflecting AFRY’s perspective. We’re also involved in projects in India and Latin America as well.
Do you cover both large hydro and small hydro?
The major portion of our project portfolio as focused on large hydro initiatives. However, we do have areas where we’re actively involved in smaller hydro projects. For instance, here in Norway and also in Finland, we allocate a significant portion of our efforts to smaller hydro projects, which may surpass the scale of similar initiatives in other regions.
How has your work contributed to industry standards or practices?
We actively engage in shaping industry standards and practices. We have developed our internal review process to ensure alignment with AFRY’s values and mission before taking on projects. This approach allows us to uphold international standards while considering local needs and perspectives.
We integrate global knowledge with local expertise in the countries where we operate, collaborating closely with clients and partners to achieve the best outcomes.
What trends are you noticing in the hydropower market currently?
Pumped storage remains a significant trend due to its efficiency in large-scale energy storage. Additionally, there’s a growing emphasis on social and environmental considerations, which we’re actively addressing to promote sustainable hydro solutions.
How do you engage with local communities regarding your projects?
We conduct thorough investigations and implement innovative solutions to address concerns such as fish migration and environmental impact. This approach ensures community involvement and fosters sustainable practices, both in new projects and existing ones.
Can you provide some examples of the projects AFRY worked on?
One project worth mentioning is the Nant de Drance project, a 900MW pumped storage scheme where both Pöyry and AFRY played significant roles.
Another project that stands out is the Nam Theun 1 project, where we set a world record for RCC placement in a single month. This accomplishment underscores our commitment to building structures efficiently, safely, and with environmental sustainability in mind. Our focus on sustainability drives us to continuously improve our practices in projects.
A project nearing completion is the Pinnapuram project, an integrated solar, wind and pumped storage project in India. We’re proud to deliver our own engineering services for this exciting endeavor.
We’re seeing a rise in multi-disciplinary projects combining solar, wind, and hydro, particularly in regions like India where there’s a strong emphasis on transitioning to renewable energy.
What is the most common type of dam project you work on?
We work on a wide range of dam projects, encompassing various types and sizes. Dam construction and safety are integral aspects of our business, and we’re focused on expanding our global offerings in this area. Additionally, we undertake multipurpose projects for flood retention, water treatment, and freshwater supply to urban areas.
How do you ensure sustainability is integrated into these projects?
We often serve as owner’s engineers, assisting with design and providing input to drive sustainability initiatives within projects. Our approach involves leveraging both our local and global knowledge to adapt sustainability practices. This includes incorporating new technologies such as fish-friendly turbines into both rehabilitation and new build projects.
How does AFRY maintain its global reach and business operations?
Our global presence is reinforced by our team’s extensive international experience, with many of our 600 employees having worked in diverse contexts. Internally, we develop traveler programs to familiarize new hires with cultural differences and collaboration methods. The COVID-19 situation has also facilitated remote work, enabling us to maintain our global operations more efficiently. Externally, building local connections with clients and stakeholders is essential for us to remain a global player in the hydro industry.
How is AFRY addressing the impending retirement of many experienced professionals in the hydropower industry, and how are you attracting younger engineers?
We prioritize effective onboarding processes to integrate new talent into our workforce, resulting in a low attrition rate. However, our focus now is on actively attracting more individuals to our industry, particularly young engineers. We are working to increase awareness of our hydropower initiatives at AFRY, leveraging our rich history and heritage in the field. We’re also exploring ways to foster diversity within our workforce, particularly concerning gender representation. While we’ve made progress in this area, we’re continuously evolving our strategies to enhance diversity and inclusion across different cultures and regions.
Regarding the future of hydropower, what do you anticipate will be the major challenges?
Looking ahead, key trends in hydropower will include the prominence of pumped storage and growing emphasis on social and environmental considerations. Addressing financing issues in certain regions will also be crucial. To stay ahead in the industry, we’re committed to adapting to market dynamics, providing cutting-edge services, and leveraging our extensive knowledge and global presence in hydro. Technological innovation, particularly in pumped storage configurations, will also play a significant role. Moreover, streamlining implementation processes, from construction to installation, will be essential for future success.
How do you plan to maintain your position as an industry leader?
We’re focusing on prioritizing specific offerings identified for special treatment and emphasizing our global initiatives. Recently, we arranged for our CEO to visit one of our projects in Southeast Asia to showcase our operations in the vertical. This hands-on approach underscores our commitment to excellence and innovation, ensuring that our work speaks for itself. Seeing our projects in action reinforces our dedication to maintaining our position at the forefront of the industry.
