Energy sector case examples

Dr Heli Antila, CTO Fortum

Global Cleantech Conference,, 9 September, Helsinki

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Solar EconomySolar based production with high overall system efficiency

Geothermal

Hydro

Wind

Sun

Ocean

Traditionalenergy production Exhaustible fuels that

burden the environment

Coal GasOil

Advancedenergy productionEnergy efficient and/or

low-emission production

Nuclear today

Nucleartomorrow

CHP

CCS

Bio

Copyright © Fortum Corporation

All rights reserved by Fortum Corporation and shall be deemed the sole property of Fortum Corporation and nothing in this slide or otherwise shall be construed as granting or conferring any rights, in particular any intellectual property rights

Energy is an enabler

Storage

Active ConsumerDemand

Response

Low

Effi

cien

cy

Hig

h E

ffici

ency

High Emissions Emission free

Interconnectors

Smart applications

3

Solar EconomySolar based production with high overall system efficiency

Geothermal

Hydro

Wind

Sun

Ocean

Traditionalenergy production Exhaustible fuels that

burden the environment

Coal GasOil

Advancedenergy productionEnergy efficient and/or

low-emission production

Nuclear today

Nucleartomorrow

CHP

CCS

Bio

Copyright © Fortum Corporation

All rights reserved by Fortum Corporation and shall be deemed the sole property of Fortum Corporation and nothing in this slide or otherwise shall be construed as granting or conferring any rights, in particular any intellectual property rights

Energy is an enabler

Storage

Active ConsumerDemand

Response

Low

Effi

cien

cy

Hig

h E

ffici

ency

High Emissions Emission free

Interconnectors

Smart applications

1.

3.

2.

4

From R&D initiative to investment Case pyrolysis oil production• First pilot 2001 (“stand alone type”)

– Market was not ready (low oil price, no price for CO2 )

• Feasibility studies 2007- 2008– Market outlook getting more favourable for CO2 –lean solutions (e.g. EU 20-20-20

targets)

• Fortum joins R&D consortium with Metso, VTT and UPM in 2009– Strong partners with natural roles, CHP –integrated technology

• Pilot testing in Metso laboratory supported by VTT, combustion testing in Fortum heating plant 2009 – 2011

• Investment decision for a demonstration plant in February 2012

• Pyrolysis oil production started in Joensuu at Q4 / 2013

• Fortum, UPM and Valmet start developing technology to produce advanced high value lignocellulosic fuels, such as transportation fuels or higher value bio liquids Q1/2014 ->

1.

5

Wave power – three different technologies • Wave power has potential to cover 10 % of global power

consumption

• Wave power is now in demonstration phase

– Full-scale demonstration project in Sweden in co-operation and using technology by Seabased , power generation to grid is estimated to begin during 2015

– The plan is to start the demonstration with one Penguin unit with the capacity of 1MW during 2016 in Great Britain

– AW-Energy has been operating its pilot wave energy power plant in Portugal since 2012 and plans to deploy a full scale commercial power unit utilizing WaveRoller® near shore technology during 2016

Wello* Penguin

Seabased

AW Energy* Waveroller®

*Fortum is shareholder in the company

2.

Smarter use of energy calls for good market design

ElectricVehicle

Micro production

Demand Response

Local storage

Electricity• Supply• Grid• Taxes & fees

Other energy sources

Other…

Services making the consumers active market participants

Retail market design that supports energy services• Simple customer interface

- Service and information through one interface

• Market driven service development - Clear roles, DSOs only market facilitators

• Easy access to data- Smart metering, data hubs

• Level playing field- All commercial players: Incumbents/new

entrants, integrated/”independent”, ...)Customer interface

digitalisation

Efficient, customer-oriented energy services require a holistic view on the customers energy use, costs and environmental footprint

The energy services need to be attractive and easy-to-use for the customer, despite of increased complexity

3.

Next generation energy company

Twitter @AntilaHeli