Can you introduce Mott MacDonald, especially focusing on your presence in North America and your footprint within the chemicals industry?
Michael: Mott MacDonald globally consists of approximately 20,000 employees spread across five regions. In my 35 years in the industry, Mott MacDonald stands out as the most globally interconnected company I have worked with. Despite the challenges of operating across multiple time zones, from Australia to the UK and the US, this global interconnectivity allows us to effectively cross-sell and share technical resources.
We primarily serve the infrastructure markets, specializing in transport, energy and water, with a focus on tunneling, networks, pipelines, and water conveyance and treatment. Our expertise extends to rail, highways, and bridges. We are particularly noted for our work on pipelines and power transmission projects, emphasizing sustainable growth and renewables like decarbonization and electrification of transport, including advanced hydrogen models.
How has the Inflation Reduction Act influenced Mott MacDonald’s strategy and operations?
Michael: The Inflation Reduction Act has certainly presented opportunities, though the flow of funds through governmental agencies can be frustrating regardless of political affiliations. Our expertise helps clients navigate these financial landscapes, ensuring they understand and access available funds effectively. We contribute to discussions, helping clients leverage these opportunities for future planning.
Simon: The Inflation Reduction Act has injected about $650 billion of committed capital into projects, generally welcomed by the industry. Despite some challenges with permitting and some frustrations related to the lack of details over implementation of specific elements (such as 45V), the act’s flexibility supports various energy technologies and stimulates market-side activities
What are the key demands you are seeing in the energy sector, particularly related to sustainability and circular manufacturing?
Simon: The private industry is increasingly focused on energy security alongside emissions reduction and optimizing their processes to meet external market demands. Key areas of focus include reliability, cost and decarbonization. High-energy users, such as the chemicals sector, typically have a split focus with energy. First, they look to manage their own consumption, its reliability and associated costs and emissions. Second, they look to understand the energy and emissions content of products in response to Scope 3 market / data demands. Another significant trend is the shift towards advanced recycling technologies, which allow for higher grades of recycled material that better meet market demands. This shift is driven by the increased value placed on recycled materials, enabling companies to command a premium for high-quality recycled content. This is complemented by evolving consumer demands, especially concerning low and zero-carbon products and the broader adoption of sustainability reporting practices. This has moved beyond mere compliance to actively shaping business strategies that capitalize on sustainability for competitive advantage.
Could you elaborate on the role of advanced recycling technologies, particularly regarding your involvement with leading companies?
Simon: Advanced recycling technologies, such as pyrolysis, are becoming crucial as companies respond to market demands for sustainable materials. Historically, recycled materials were sold at a discount, but now they can achieve parity or even a premium over virgin materials. This pricing shift encourages companies to integrate advanced recycling into their operations, maintaining material quality and meeting stringent environmental standards. The value chain, including major car manufacturers for example, are looking at the design of their end products which is creating a market demand that our clients are increasingly focusing on meeting through the development and application of these technologies to enhance the sustainability, traceability and certification of their products.
Could you elaborate on Mott MacDonald's approach to water treatment and management, particularly in the context of regulatory challenges and PFAS remediation?
Kelly: At Mott MacDonald, we address a broad spectrum of water-related challenges, encompassing everything from water conveyance—moving drinking water from regions of abundance to those of scarcity—to specialized treatment processes. Our significant expertise in large tunneling projects enhances our capability in water management. Currently, PFAS contamination is a major focus due to new EPA regulations setting maximum contaminant levels. These emerging contaminants, along with the recent updates to the Lead and Copper Rule, have led us to undertake substantial initiatives, such as the program management support to Denver Water’s Lead Service Reduction program which has replaced over 15,000 lead service lines to date. Regulatory requirements often drive our projects, shaping our strategic response to water treatment needs.
With the growing public and regulatory attention on water contaminants like PFAS, how is Mott MacDonald adapting its strategies to address these concerns?
Kelly: The PFAS issue exemplifies the evolving challenges in water treatment. While regulations shape our strategies, public awareness and demand for transparency are increasingly influential. For instance, we have been involved with projects where concern over PFAS predates current regulations, dating back to 2007. These projects began as proactive measures by utilities foreseeing regulatory changes. In other cases, public concern around contamination, particularly around military installations, has spurred utilities to increase transparency and expedite treatment solutions. By gaining experience with our clients who were early adopters, we are well positioned to help utilities nationwide respond to the new PFAS regulations, and investigate emerging technologies to address future requirements such as residuals, while optimizing their energy/carbon footprint.
Could you expand on how Mott MacDonald facilitates discussions on sustainability challenges and solutions?
Simon:
Our role extends beyond typical consultancy; we aim to facilitate broader industry discussions about sustainability, exemplified by our Carbon Crunch Report. Initially focused on quantifying carbon footprints when such metrics were nascent, carbon accounting has evolved to address scope 3 emissions, traceability, certification, and incorporating sustainability into decision-making processes regarding capital improvements / investments.
By hosting forums where companies can discuss their challenges and share solutions, we help foster a collaborative environment that enhances industry-wide responses to sustainability. This interconnected approach not only helps our clients but also advances the entire sector.
How does Mott MacDonald manage the interconnectedness and regulatory environments of its global offices?
Michael: Our global interconnectivity is crucial for understanding and responding to the diverse needs and maturity levels of our clients worldwide. This ranges from energy sectors to infrastructure projects mentioned by Kelly. We see different regions like Europe, often leading in regulatory standards and sustainability, similar to how California operates in the U.S.—progressive and well-funded. By understanding where each client is on their sustainability journey, we tailor our guidance to help them advance toward more sustainable practices effectively.
In the context of digital transformation, how is Mott MacDonald evolving as an industry 4.0 solutions provider while integrating engineering and sustainability consulting?
Michael: Digital transformation is integral to our strategy. Everything we do now incorporates digital solutions, whether through our unique offerings like Moata or more broadly in our consulting practices. As AI and other technologies such as 5G become more prevalent, digital integration is becoming a standard expectation in all our projects.
Looking ahead, why will Mott MacDonald be significant in the market in the next three to five years, especially in North America?
Michael: Over the next few years, Mott MacDonald intends to leverage its global expertise more heavily in North America, expecting to increase our presence and influence significantly. We aim to be recognized alongside major players in the industry by winning substantial projects in key cities like Toronto, New York, and Los Angeles. Our global expertise in sectors such as tunneling, energy, and water treatment will drive our growth and visibility in these markets.
Simon: From an energy perspective, we anticipate significant advancements in integrating digital and AI technologies, enhancing our internal processes and governance. This will not only improve our efficiency but also allow us to offer more innovative solutions to our clients. By embracing these new tools and approaches, we expect to be seen as a key partner in projects, known for our ability to apply new technologies effectively for the benefit of our clients.
