OSMOTIC POWER A NEW, RENEWABLE ENERGY SOURCE

Desalination and the Environment Halkidiki, Greece April 2007 Jon Dugstad

AGENDA

1. 3.

CLEAN ENERGY & STATKRAFT

2.
TIMELINE

THE OSMOTIC POWER PRINCIPLE

4.

THE COMMERCIAL POTENTIAL

GLOBAL WARMING - IPCC

The Intergovernmental Panel on Climate Change

It is very likely that emissions of heat-trapping gases from human activities have caused most of the observed increase in globally averaged temperatures since the mid-20th century.
side 3 OSMOTIC POWER

THE GLOBAL CHALLENGE

The Kyoto-protocol as basis for todays Co2 emission reduction efforts

side 4 OSMOTIC POWER

RENEWABLE ENERGY DRIVERS

Compliance with the Kyoto-protocol and EUdirective Security of supply Increasing oil & gas prices Industrial leadership

Government incentives and subsidies

side 5 OSMOTIC POWER

THE ENVIRONMENT-FRIENDLY ENERGY SUPPLIER

HYDROPOWER

TEV 100%

BKK 49.9%

Agder Energi 45.5% Scanenergi 21.4 %

Skagerak Energi 66.6%

Statkraft Financial Energy

E.ON Sweden 44.6% 66.7% Baltic Cable

Regional office

WIND POWER
SMCAmsterdam

SMC-Dsseldorf

STATKRAFT GROUP Employees: 2 100 Production: 42 TWh Turnover: ca. 3 bn USD GAS POWER
page 6 OSMOTIC POWER

Grid customers: 260 000 Retail customers: 420 000 After-tax profits: ca. 1 bn USD

A EUROPEAN LEADER IN RENEWABLES

POWER GENERATION FROM RENEWABLES (TWH, 2005)
0
Statskraft E dF Vattenfall E nel Verbund E .ON Fortum Iberdrola E nBW Hydro E ndesa E ssent Dong E nergy SSE E dison Fenosa CE Z

10

15

20

25

30

35

40

45

50

Kilde: Annual reports 2005, Dong Energy 2004 production

page 7 OSMOTIC POWER

TECHNOLOGY DEVELOPMENT IN STATKRAFT

Osmotic power Hydrogen Bioenergy Ocean power Off-shore wind power CCS

page 8 OSMOTIC POWER

AGENDA

1. 3.

CLEAN ENERGY & STATKRAFT

2.
TIMELINE

THE OSMOTIC POWER PRINCIPLE

4.
Film

THE COMMERCIAL POTENTIAL

THE OSMOTIC POWER HISTORY

The 70s
Osmotic power concept developed by S. Loeb

The 90s
Sintef (Norway) developed osmotic power model

1997
Statkraft involved in first research

2001
EU Contract initialised Filed PCT patent application on semi-permeable membrane

2003
Norwegian patent granted Osmotic Power test facility in Sunndalsra

2004
Finalised EU Contract Established Osmotic Power feasibility

2005
Filed membrane maintenance patent application

2006
Development of commercial strategy Prototype planning and design initiated

page 10 OSMOTIC POWER

RESEARCH & FUNDING PARTNERS

SINTEF, Petroleum and Energy Research organisation, Norway NTNU, Department of Physical Chemistry, Norway GKSS, Institute of Polymer Research, Germany EMI, European Membrane Institute, The Netherlands ICTPOL, The Instituto de Cincia e Tecnologia de Polmeros, ICTPOL
(Polymer Science and Technology Institute), Portugal

Helsinki University of Technology, Laboratory of Applied

Thermodynamics, Finland

DTU, Technical University of Denmark Funding

NRF, Norwegian Research Foundation, Norway EU-Commission, Belgium

page 11 OSMOTIC POWER

THE PRO POWER CONCEPT

page 12 OSMOTIC POWER

PRO MEMBRANE DEVELOPMENT

Current membrane research at GKSS in Germany, Sintef in Norway and EMI at the University of Twente, the Netherlands Next:
Further membrane chemistry Upscale for manufacturing Element design Pressure vessel
W/m2

MEMBRANE EFFICIENCY
6 5 4 3 2 1 0 1999 2000 2001 2002 2003 2004 2005 2006

Year Target membrane efficiency Tested membrane efficiency

page 13 OSMOTIC POWER

KEY PARAMETERS
Water flux as high as possible A > 10-11 m/s/Pa Salt permeability as low as possible, B < 3 x 10-8 m/s Structure parameter as low as possible S=x/ is the average tortuosity/the porous structure x is the membrane thickness is the porosity

page 14 OSMOTIC POWER

MAJOR PATENT CLAIMS

Semi-permeable multi-layered membrane with physical characteristics optimised for the application to salinity power A method using such type membrane together with optimised design and operation parameters featuring a direct hydraulic pressure transfer to the incoming salt-containing feed stream- , and an electricity generating plant (independent claim) based on such type membrane and such direct hydraulic pressure transfer to the incoming salt-containing feed stream.
page 15 OSMOTIC POWER

AGENDA

1. 3.

CLEAN ENERGY & STATKRAFT

2.
TIMELINE

THE OSMOTIC POWER PRINCIPLE

4.

THE COMMERCIAL POTENTIAL

INDUSTRIAL OPPORTUNITY
Potential of 1655 TWh, of which 12 in Norway and 170 in Europe

Estimated break - even cost 50-100 EUR/Mwh

The membrane is key to the commercial utilization

page 17 OSMOTIC POWER

COST OF COMPETING TECHNOLOGIES

Solar - CSP

200

175
PV 2010

150

125
/MWh
Wave & Tidal 2010 Biomass

100

75
Norwegian spot last 12 months

Wind offshore UK

Osmotic Power 2015

Wind onshore UK Long Term CCGT Nuclear

50

25

0
Sources: NordPool, Statkraft, Hydro, IEA, UK DTI, Emerging Energy Research Leverized Cost
page 18 OSMOTIC POWER

EUROPEAN BASE 2012 FUTURES PRICE

2012 base load price at 54 /MWh 2012 peak prices ca. 73 /MWh

page 19 OSMOTIC POWER

MAIN EUROPEAN INCENTIVE SCHEMES

+59 +59 +59 +59 +65-115 +65-115 +90-600 +65-115 88-100 30-100 400-760 85-100 65-97 97 97 13-97 55-91 37-97 450-625 40-175 Wind (/MWh) New Hydro (/MWh) Solar/PV (/MWh) Biomass (/MWh)

30-84 55-76 140-305 55-90 +130 +130 +130 Feed-in tariff Quota/tradable green certificates Tendering Tax incentive

Source: EU - COM(2005), Statkraft, Emerging Energy Research 2006, IEA

page 20 OSMOTIC POWER

+130

COMMERCIAL?!

160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Cost Revenue
50-100 /Mwh Peak price Base price Incentives

page 21 OSMOTIC POWER

AGENDA

1. 3.

CLEAN ENERGY & STATKRAFT

2.
TIMELINE

THE OSMOTIC POWER PRINCIPLE

4.

THE COMMERCIAL POTENTIAL

THE PROTOTYPE

side 23 OSMOTIC POWER

TIMELINE

Development of Prototype 5-10 kW

Membrane Development Pilot Plant 1-2 MW Commercial plant 25 MW

Years

page 24 OSMOTIC POWER