OSMOTIC POWER - DEVELOPING A NEW, …...4 Meeting future energy and climate needs requires high...

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Berlin Stein Erik Skilhagen January 2012 Head of Osmotic Power OSMOTIC POWER - A NEW, RENEWABLE SOURCE OF ENERGY

Transcript of OSMOTIC POWER - DEVELOPING A NEW, …...4 Meeting future energy and climate needs requires high...

Page 1: OSMOTIC POWER - DEVELOPING A NEW, …...4 Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies Osmotic

Berlin Stein Erik SkilhagenJanuary 2012 Head of Osmotic Power

OSMOTIC POWER

- A NEW, RENEWABLE SOURCE OF ENERGY

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3200EMPLOYEES...

89%283 POWER AND DISTRICT

HEATING PLANTS

33% OF NORWAY’S POWER GENERATION

RENEWABLEENERGY

...IN MORE THAN

20COUNTRIES

WITHIN RENEWABLES IN EUROPENo. 1

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Small scale hydropower

Flexible European generation and market operations

Wind power

International hydropower

District heating

Deliver growth in pure energy

STATKRAFT’S STRATEGY

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Presenter
Presentation Notes
Strategic platform based on strategic focus areas defined in June 2010. Now it’s time to execute, and do as the title of the strategic platform says: Deliver growth in pure energy. The strategy is based on Statkraft’ s ability to create value and market attractivity, and on these factors: Growth in renewable energy plays key role in combating climate change High growth in emerging markets will continue Global fuel prices sustained by growth in Asia EU will increase deployment of renewables and integration of European power and gas markets to reduce emissions of greenhouse gases HYDRO Generating capacity: More than 12 800 MW 234 hydropower plants in Europe, South America and Asia. Large reservoir capacity and flexible generating capacity INTERNATIONAL - Growth outside the Nordic region Turkey, Albania and France SN Power (60%): Investment in hydropower projects in growth markets outside Europe GAS Knapsack – Germany; 100 % ownership; Installed capacity: 800 MW Herdecke – Germany; 50 % ownership; Installed capacity: 400 MW Landesbergen – Germany; 100 % ownership; Installed capacity: 487 MW Emden – Germany; 100 % ownership; Installed capacity: 452 MW Kårstø – Norway; 50 % ownership; Installed capacity: 420 MW VIND Norway : Onshore wind farms Smøla, Hitra and Kjøllefjord; Installed capacity: 244 MW Sweden: Onshore wind farm Em; Installed capacity: 9 MW United Kingdom: Onshore wind farm Alltwalis; Installed capacity: 23 MW Norway: 2500 MW onshore wind under development in cooperation with Agder Energi Sweden: Licences received for more than 1000 MW onshore wind in cooperation with SCA and Södra Great Britain: 315 MW offshore wind farm Sheringham Shoal under construction. Doggerbank under development with potential of 9000-13000 MW BIO Flexible and environment-friendly energy production 337 GWh in Norway 211 GWh in Sweden Continued growth in Norway expand existing assets new projects Småkraft (60%) Aims to develop a generating capacity of 2.5 TWh in small scale hydropower by 2015 Project portfolio 2,3 TWh 24 in operation 285 GWh 9 in construction153 GWh 10 lisences 65 GWh 83 applications 849 GWh 54 new projects 530 GWh
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Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies

Osmotic power forms a natural part of the new renewable energy portfolio, providing clean baseload energy with low environmental impact,..

...requiring cost reductions, a conducive policy framework and a critical mass of developers to succeed

Presenter
Presentation Notes
Structure of speech and message.
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COMBATING CLIMATE CHANGE AND SECURITY OF SUPPLY ARE THE MAIN DRIVERS FOR ALL RENEWABLES

Source: IEA

Presenter
Presentation Notes
Close to 80 percent of the world‘s energy supply could be met by renewables by mid-century if backed by the right enabling public policies This could assist in keeping concentrations of greenhouse gases at 450 parts per million. This could contribute towards a goal of holding the increase in global temperature below 2 degrees Celsius – an aim recognized in the United Nations Climate Convention's Cancun Agreements. At the end of 2010 concentrations where 390 ppm If no backing by ambitious carbon policies only 15% of the global energy supply would be coming from RE by midcentury
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Renewable electricity generation in Europe (TWh)

Source: Statkraft, EREC, ECF

2°C 2050

Wind

Hydro

Bio-energy

Geo-thermal

Solar

Ocean

OSMOTIC POWER PART OF SOLUTION

by 2050

~800-3 000

by 2020

~600

Today

~600

Presenter
Presentation Notes
Hardly anyone could imagine how fast the renewable energy sector has developed over the past few years. All forecasts on the expansion of renewable energy have consistently been surpassed. An estimated $120 billion was invested in renewable energy worldwide in 2008, including new capacity and biofuels refineries. This is double the equivalent 2006 investment figure of $63 billion. With the agreement in 2009 on the Energy and Climate Package which contains the European Directive on the promotion of the use of energy from renewable sources with its binding target of at least 20% renewable energy in final energy consumption by 2020, the EU has made a strong and ambitious commitment towards renewable energy. The EU´s target of 20% renewable energy consumption by 2020 will mean doubling the renewable power generation over the next 10 years. This translates into business opportunities. Opportunities will be spread across several technologies. Wind power stands out as particularly promising, but also hydropower and new sources like ocean energy will take a share of the growth. Looking towards 2050 adds complexity and uncertainty. Political ambitions for reducing greenhouse gas emissions are high. In July 2009, the leaders of the European Union and the G8 announced an objective to reduce greenhouse gas emissions by at least 80% below 1990 levels by 2050. In October 2009 the European Council set the appropriate abatement objective for Europe and other developed economies at 80-95% below 1990 levels by 2050. Studies suggest different pathways to 2050 with shares of renewables ranging from low res scenarios with around 2000 TWh of RES-Electricity in 2050 representing 40% of total electricity consumption, to visionary pathways towards a 100% renewable energy system for the EU with up to 5000 TWh of renewables. The res share and the technology mix is highly uncertain, but we are confident that there will be high growth and huge investments in renewables in the short, medium and long term, across a broad range of technologies. We invest in wind onshore and offshore, we develop solar power and we look for new opportunities in hydro, but we also know that technological innovation is a crucial enabler for a low-carbon future. Energy companies have an important role to play. We need to be willing to take on the inherent risk of exploring new ideas and do the job of making new technology cost-efficient.
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Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies

Osmotic power forms a natural part of the new renewable energy portfolio, providing clean baseload energy with low environmental impact,..

...requiring cost reductions, a conducive policy framework and a critical mass of developers to succeed

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8 Companypresentation 2009

OSMOTIC POWERA NEW, RENEWABLESOURCE OF ENERGY

Presenter
Presentation Notes
What is the next generation of renewables? We do need renewables that can blend in together with the more mature technologies such as hydro and wind We believe Osmotic Power to be one of the answer for the next generation of renewable energies So, what is osmotic power? When to water voulmes with different content of solvents mixes, energy will be released. This is also what happens when a river meets the salty sea. The technology for capuring this energy is osmotic power, where electricity is generated based on the controlled mixing of fresh water and sea water.
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THE OSMOTIC POWER CONCEPT

Presenter
Presentation Notes
Based on Proven Technology
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Constant power generation - “Base load”

Small ecological footprint

Decentralised source of energy

Based on proven technology, except Membrane & Module

WHY OSMOTIC POWER?

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Resource criteria• Salt water with

sufficient salinity• Fresh water

availability and quality

• Short distance between salt water and fresh water

* Source: Statkraft

ABUNDANT RESOURCES

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Global potential: 1600 - 1700 TWh/year*

European potential: 180 TWh/year*

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• “Proof of concept”• System scale-up• Membrane and component testing and optimisation• Operation and maintenance experience

2009 – WORLD FIRST PROTOTYPE

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MATURE AND IMMATURE COMPONENTS

Osmotic Power illustration (prototype)

Examples of mature components

Brackish waterSea waterFresh water

Turbine WaterpipesValves

Examples of immature componentsPressure

exchangerPre-

treatmentMembrane elements

Presenter
Presentation Notes
Membrane efficiency Pressure exchangers Pretreatment of fresh water and sea water System design Operation and maintenance
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PROTOTYPE – MAIN ACTIVITIESOperation since 2009 Main activities

Test membrane performance and monitor operation

Develop cleaning and maintenance of membranes

Test of high pressure units (turbine, energy recovery unit, valves etc.)

Pretreatment fresh water optimization

Pretreatment seawater optimization

Design and operation of single membrane module test units

Presenter
Presentation Notes
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MEMBRANE PARTNER

Statkraft and Nitto Denko/Hydranauticshave entered into an agreement in June 2011 for the development and supply of membranes for osmotic power to accelerate the development.

side

15

MARS 2007

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OP is spreading across the world

OP an important business for Statkraft

THE NEXT STEPS

Feasibility Prototype 2 MW Pilot

25 MW Demo Vision towards 2030

2009 2013 ~2018:

Statkraft operated

Other utility operated

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PILOT PLANT KEY CHALLENGESTechnology “good enough” for scaling up and reducing cost of energy

Available site with good water resources

Concession for building a 1-2 MW pilot plant

Governmental support for developing osmotic power as a new, promising renewable source of energy

Utilization of the pilot plant for industry development and bringing the technology down the learning curve

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Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies

Osmotic power forms a natural part of the new renewable energy portfolio, providing clean baseload energy with low environmental impact,..

...requiring cost reductions, a conducive policy framework and a critical mass of developers to succeed

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Pilot plant (1-5 MW)LCOE1 = high

Full scale demonstration plant (25 MW)LCOE = 120 €/MWh

Commercial plantsReduction towards 70-80 €/MWh within

2030

COST OF ENERGY

0

25

50

75

100

125

Controlsys.

OPEXPro-cess

Proj. mng

Pipes Construction

LCOEMem-brane

EUR/MWh

1. Levelized cost of energyNote: Base case with RO & OP combined for membrane-related learning, High learning case with only OP for all learning, Low learning case with RO and OP combined for all learningSource: EU Second Strategic Energy Review (2008), moderate fuel price scenario, osmotic power strategy and BCG team analysis 2009

0

25

50

75

100

125

2018 2020 2022 2024 2026 2028 2030

Low learning caseHigh learning caseBase case

Year

LCOE€/MWh

~120

Presenter
Presentation Notes
This slide has the focus on the LEARNING CURVE to explain that OP will be competitive when commercial: Prerequisite: that the development will be as expected, following the same learning curve as other industries. Giving three main types of learning effects for OP (methodology differs for mature and immature components). Immature components: Cost reduction through direct learning on components (e.g. lower production cost of membrane) Mature components: Cost reduction mostly indirectly from increase in membrane efficiency (e.g. less units needed) Cost reduction from system integration learning (e.g. planning and construction) Details: Membrane element: direct37%Based on proxies from desalination (similar technology and production) Pressure vessels:indirect10%From increased membrane element efficiency Pipes and valves:indirect10% From increased membrane element efficiency Membrane rack steelworkindirect10%From increased membrane element efficiency Pressure exchangers:direct20%Some learning due to better adaption of unit. Unit specific to OP plant. Other, booster pumps:direct10%Booster pumps, chlorine dosing and backwash with probable learning Pre-treatment:direct10-20%10 for SW and 20 for FW. Likely learning, especially for fresh water Construction:syst.int.15%likely improvement due to reduced footprint and increased experience(5-10% for wind installations). Construction mgmtsyst.int10%likely improvement due to increased experience (5-10% for wind installations). -> References: RO membrane learning curve, Global Water Intelligence, International Desalination Association, IEA, and SK team analysis.
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A JOINT EFFORT TO BUILD THE INDUSTRY

•Technology suppliers integrated in the development of the technology

• In a wide time-frame, competition contributes to industrial growth

•Osmotic power to be perceived as an attractive business opportunity for membrane & component manufacturers

•Deployment of osmotic power

•Define needs and requirements towards technology suppliers and policy makers

Utilities

Manufacturers

• Increase awareness of osmotic power among policy makers and governments

•Establish regulation for site development and support for deployment

•Secure access to sites for pilot plant and demonstration plant

Governments

Presenter
Presentation Notes
FOR PARTNERS AND RELATIONSHIP BUILDING
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VISION FOR OSMOTIC POWER: “A GLOBAL FOOTPRINT BY 2030”

OP is spreading across the world30 plants in operation worldwideSupport schemes have helped OP move down the learning curvePrice of OP power is 50-100 €/MWh1

OP an important business for StatkraftOP breakthrough has given a major publicity boost to Statkraft and the governmentStatkraft has a leading position in OP operation in EuropeStatkraft operated

Other utility operated

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22Statkraf

Statkraft is organising the 3rd Osmosis Membrane summit in Barcelona – April 26-27. Past events in has been sucessfully organised in 2008 in Amsterdam and 2010 in San Diego

Organised as a post-event for EDS’ Desalination Conference

Conference web site: http://osmosis-summit.event123.no/ or send an E-mail to [email protected]

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