Claudio Pellegatta

Apatity- 09.04.2010

Business development in district heating and renewable energy in the

Arctic regions

Contents

IIII Overview renewable energy in the Arctic areaOverview renewable energy in the Arctic area

III III Investment and business development Investment and business development -- Deciding FactorsDeciding Factors

II Introduction and frameworkIntroduction and framework

IVIV

VV

VIVI ConclusionConclusion

Relational question: is it possible to develop Green business Relational question: is it possible to develop Green business in the Arctic area? in the Arctic area?

New scenario: Green energy development and the Arctic New scenario: Green energy development and the Arctic societiessocieties

IntroductionIntroduction

District heating and renewable energyDistrict heating and renewable energy(Solar Power, Wind Power, Bio Power, Hydro Power, (Solar Power, Wind Power, Bio Power, Hydro Power,

Waste to Energy)Waste to Energy)

Arctic societiesArctic societies

Green BusinessGreen Business

FrameworkFramework

�� Consultation and interview with a wide range of sta keholders and experts Consultation and interview with a wide range of sta keholders and experts about characteristics and needs of Green energy bus iness development in about characteristics and needs of Green energy bus iness development in Arctic countries;Arctic countries;

�� International literature and internet review;International literature and internet review;

�� Intensively looking at best practices around the wo rld in Green energy Intensively looking at best practices around the wo rld in Green energy business;business;

�� Analysis of Micro and Macro economic data;Analysis of Micro and Macro economic data;

�� Questionnaire to Green energy companiesQuestionnaire to Green energy companies

Example of questionnaire to Green energy companiesExample of questionnaire to Green energy companies

11) Information related to your company (main activity, tur nover, offshore/overseas plants, keycustomers...)

2) When it comes to Green energy Buisiness, what in the list bel ow are You interested in?

a) Solar power b) Wind power c) Bio Power d) Hydro power e) Waste p ower

3) Are you interested in a business possibility - or are a You a lready engaged in any forms ofbusiness in Arctic regions?

4) What are Your reasons to do or not to do business or to invest i n the Arctic regions?

5) What is important to You when it comes to doing business or to invest in the Arctic region?

a) Market b) Incentives /Tax free c) Labor force d) infrastru cture

6) Could you be interested in?

• a) Partnership with a private company in AR b) Partnership wi th a public company in AR c)Joint Venture d) Independent activity

7) How much did you invest or you would like to invest in the Arc tic regions?

Arctic AreaArctic Area

II. Overview of Green energy in the Arctic areaII. Overview of Green energy in the Arctic area

Renewable Energy Capacities by Country Top 10, Marc h 2010US Russia Iceland Norway Sweden Finland Greenland Canada

Wind Power 10) 3,319 MWHydro Power 3) 78,054 MW 5) 46,756 MW 7) 29,317 MW 10) 16,266 MW 4) 75,287 MWSolar PowerBio Gas 3) 1,047 MW 10) 64 MW 9) 117 MWGeo thermal 10) 81 MWBio Mass 1) 9,391 MW 3) 4,522 MW 8) 2,352 MW 10) 1,852 MWSource: Global energy's alternative energy eTrack

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Sundland Heating

Residue from forest industry

8 Mw bio fuel central

Wood briquettes made or wood residue from the forest industry

Brakeoya Heating

Heat pump system based on seawater

115 gwh= 6.000 houses with “normal” energy consumption

90% will be renewable energy

Overview of some examples of Green energy differen t Overview of some examples of Green energy differen t approaches in the Arctic area:approaches in the Arctic area:

consumption

Fjell Heating

Bio fuel 70's tower blocks

70% of the 23 Gwh the suburb

Bio fuel

Tromso Electical cars Zero emission 2 mil Nok to burchase electrical cars in 2008

Alaska Heating

Biomass fuels Wood, sawmil wastes, fish byproducts, municipal waste

AEA's biomass energy program

Lulealven Hydro + wind power 50-100 mw + 1.101 turbines in the future

North of Sweden (project)

Biomass district heating system combined with solar heat

No plant of this type is in operation in SW

New idea: connected households to generate their own hot tap water using solar collectors in each house

Overview of some examples of Green energy differen t Overview of some examples of Green energy differen t approaches in the Arctic area:approaches in the Arctic area:

Finland CHP – combined heat and power generation

Combined generation produced 14.2 TWH of electricity

In CHP 1/3 of the fuel quantity is saved and emissions are 1/3 reduced

QaanaaqHeating

Light oil from waste heat from the diesel motor driven generations (fish oil)

70% of the total heat production

High energy efficency landmark for any other isolated community

Fort McPherson Heating

Waste heat from diesel generation plant

5 community buildings and a school

Project

Light oil from waste heat from diesel motor in Light oil from waste heat from diesel motor in Qaanaaq GreenlandQaanaaq Greenland

The arctic settlement close to the North PoleThe arctic settlement close to the North Pole

DistrictDistrict heating heating

infrastructure is the key to infrastructure is the key to

this high efficiencthis high efficienc

Oil consumption and CO2 for Oil consumption and CO2 for

power produtcion and power produtcion and

heating heating --30% (20 years ago)30% (20 years ago)

Nukissiorfiit Greenland national powercompany + Ramboll (consultancy service)

Surplus energy, which

else would be waste,

covers 70% total heat

production

Network is

efficient for all

kinds of

renewable energy,

(electricity

production/

heating)

In case oil

boilers instead

of district

heating total

efficiency = only

55%

Drammen District heating in Sundland (Norway)Drammen District heating in Sundland (Norway)Residue from the Forest IndustryResidue from the Forest Industry

BIOMASS ADVANTAGES:

Central uses mainly wood briquettes made of wood residue from

the forest industry

-Burning biomass results fewer harmful emissions

(compared to coal, oil and natural gas)

-relatively inexpensive fuel source;

-self-sufficiency

Central heating systems: use a series of ducts to

distribute heat throughout a house

Heating Heating -- Boiler Boiler -- Multiple buildings Multiple buildings Fort McPherson CanadaFort McPherson Canada

Waste heat from diesel generators to heat

buildings in their community

A community in northern Canada

approximately 110 km by air from

Inuvik

Company: Gwich'in Development Corporation and the Northwest Territories (NWT) Company: Gwich'in Development Corporation and the Northwest Territories (NWT)

Power CorporationPower Corporation

It has reduced the community's overall fuel requirements by 12%, and reduced

electrical rates as a result of the additional revenue stream.

The system was expanded in 1998 to provide heat to more customers

Wind power Waste to energy

Solar power Bio Power Hydro Power

III. Investment and business development III. Investment and business development –– Green en ergy sector Green energy sector

Market * Infrastructure Labour force +Know how

Incentives

? DK/G? DK/G? DK/G? DK/G Local

Arctic

III. Investment and business development III. Investment and business development –– environm ent environment

Arctic

???? ? New Tech? New Tech? New Tech? New Tech ????

? NP? NP? NP? NP

? Alaska/US? Alaska/US? Alaska/US? Alaska/US

? NP? NP? NP? NP

+120%

+30%

+45%

80%

Investment and business development in the renewable energy Investment and business development in the renewable energy

industryindustry

Global Business development in Renewable energy

1998 2000 2002 2004 2006

+4%+10%

※Source:REN21- 2009

2008 1996

+20%

Global trends in green energyGlobal trends in green energy

80

100

120

Bill

ion

do

llars

Global investment in Renewable energy

04 05 06 07 08

0

20

40

60

Year

Bill

ion

do

llars

※Source: REN21- 2009

IV Relational questionIV Relational question

How to improve investments and How to improve investments and business development in the business development in the business development in the business development in the

Renewable energy industry in the Renewable energy industry in the Arctic region?Arctic region?

-- Improving public investment?Improving public investment?

-- Attracting private investment?Attracting private investment?

-- Incentive and supporting local entrepreneurs?Incentive and supporting local entrepreneurs?

-- How public support could help international and n ational Green How public support could help international and nat ional Green energy companies in Artic regions?energy companies in Artic regions?

-- Improving infrastructure?Improving infrastructure?

-- Establish a highly specialized district and resea rch center in Establish a highly specialized district and researc h center in Renewable energy in the Arctic region?Renewable energy in the Arctic region?

-- Promote Arctic region like a new green revolutio n?Promote Arctic region like a new green revolution?

-- More or less legislation in Green energy and in p rivate market?More or less legislation in Green energy and in pri vate market?

Scenario - Green energy development in Arctic societiesGreen energy development in Arctic societies

Heating & EnergyHeating & Energy

WealthWealth

LabourLabourWell BeingWell Being

Best PracticeBest Practice

Scandicci (Population 45.000) Toscany

2007: The main factory (Refrigeretor) was closed

25% of the population of the town was directly effe cted of job's lost

2009: Energia Futura was established in the same factory (Investment 1mm euro)euro)

2010: 35% of the population are directly effected f rom the new green businessEnergia futura produces energy for 1.473.000 families = 2.170.000 oil drums

2011: Energia Futura has purchase orders for 80 mm euro, 100 more worke rs will be hired next year

2010: 12 mil euro will be invested from the municip ality to build a new school, a new library and to develop the citys natural park

Conclusion

DEVELOPMENT =DEVELOPMENT =

District heating and renewable energy in District heating and renewable energy in the Arctic region?the Arctic region?

+ Employment / + Wealth / + Sustainable and green + Employment / + Wealth / + Sustainable and green environmentenvironment

Comments, suggestion, remarks, Comments, suggestion, remarks,

new idea, information, advices, new idea, information, advices,

areare

More than welcome toMore than welcome to

CLAUDIOP@RUC.DKCLAUDIOP@RUC.DK

Thank You!

Grazie!

Contact: claudio.pellegatta@libero.it

www.linkedin.com