I. FF-Fossil Fuels (JOULE & THERMIE A)

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EUROPEAN COMMISSION

CLEAN, SAFE AND EFFICIENT ENERGY FOR EUROPE Impact assessment of non-nuclear energy projects implemented under the Fourth Framework Programme Thematic Report

Directorate-General for Research 2003 Directorate-General for Transport and Energy EUR 20876/3 34X256_P3_26 08-01-2004 11:40 Pagina 4

In 2002, a group of 38 independent experts was appointed by both the Directorates-General for Research and Energy and Transport (TREN) to assess the Impact of the Non Nuclear Energy Projects of the Fourth Framework Programme (FP4). The assessment produced a number of outputs including: • A Thematic Report covering the following topics (the present report) : Fossil Fuels, Rational Use of Energy, Renewable Energies, Socio-Economic Research & Modelling, and Complementary & Support Measures • A Synthesis Report on the Impact of the NNE Programme (an independent, stand alone report). • An Executive Summary of the Synthesis Report. • Project summaries of all the assessed individual projects (only available on CORDIS, because of its large size)

The Core Group of the Impact Assessment Panel of Independent Experts Prof. Nicholas Chrysochoides Chairman INNOVATION E.E. Mr. Thomas Casey Rapporteur CIRCA Group Europe Ltd. Dr. Bruno Lapillonne Rapporteur ENERDATA sa Mrs. Julie Roe Statistician CIRCA Group Europe Ltd.

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LEGAL NOTICE Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu.int). Cataloguing data can be found at the end of this publication. Luxembourg: Office for Official Publications of the European Communities, 2003 ISBN 92-894-6299-X © European Communities, 2003 Reproduction is authorised provided the source is acknowledged. Printed in Belgium PRINTED ON WHITE CHLORINE-FREE PAPER 34X256_P3_26 08-01-2004 11:40 Pagina 5

FF-Fossil Fuels (JOULE & THERMIE A)

Contents

I. FF-FOSSIL FUELS (JOULE & THERMIE A) Executive summary ...... 7 1. Introduction ...... 9 2. The objectives...... 10 3. The projects ...... 12 3.1 Research and development projects ...... 12 3.2 Demonstration projects...... 14 4. The results: Technical...... 17 4.1 Research and development projects ...... 17 4.2 Demonstration projects...... 19 5. The Results: Economic, social and environmental ...... 22 6. Conclusions ...... 23 7. Improving the programme and project management ...... 24

II. RUE-RATIONAL USE OF ENERGY (JOULE & THERMIE A) Executive summary ...... 27 1. Introduction ...... 28 2. The objectives...... 29 3. The projects ...... 30 4. The results: Technical...... 34 4.1 RUE in Buildings ...... 34 4.2 RUE in Industry ...... 36 4.3 Transport ...... 37 4.4 Fuel Cells...... 39 4.5 Summary ...... 41 5. The results: Socio-economic and environmental ...... 41 5.1 Socio-economic impacts ...... 41 5.2 Environmental effects ...... 42 6. Project and programme management ...... 43 7. Conclusions and recommendations ...... 44 7.1 General ...... 44 7.2 Scientific and technical ...... 44 7.3 Socio-economic ...... 45 7.4 Organisational...... 45 References...... 47 Tables 4 ...... 48

III. RES-RENEWABLE ENERGIES (JOULE & THERMIE A) Executive summary ...... 52 1. Introduction ...... 54 2. The objectives...... 55 2.1 Integration of renewable energies ...... 55 2.2 Photovoltaics ...... 56 2.3 Renewable energies in buildings...... 56 2.4 Wind energy ...... 56 2.5 Energy from biomass and waste ...... 56 2.6 Others ...... 57 3. The projects ...... 57 3.1 Integration of renewable energies ...... 57 3.2 Photovoltaics ...... 57 3.3 Renewable energies in buildings...... 58 3.4 Wind energy ...... 59 3.5 Energy from biomass and waste ...... 60 3.6 Others ...... 60 34X256_P3_26 08-01-2004 11:40 Pagina 6

4. The Results: Technical ...... 61 4.1 Integration of renewable energies ...... 61 4.2 Photovoltaics ...... 62 4.3 Renewable energies in buildings...... 63 4.4 Wind energy ...... 64 4.5 Energy from biomass and waste ...... 65 4.6 Others ...... 66 5. The Results: Economic, environmental and social ...... 67 5.1 Integration of renewable energies ...... 68 5.2 Photovoltaics ...... 69 5.3 Renewable energies in buildings...... 70 5.4 Wind energy ...... 70 5.5 Energy from biomass and waste ...... 72 5.6 Others ...... 72 6. Improving the programme and project management ...... 73 7. Reference to national RTD programmes ...... 78 8. Conclusions and recommendations ...... 80

IV. RTD STRATEGY SOCIO-ECONOMIC RESEARCH AND MODELLING (JOULE) Executive summary ...... 83 1. Introduction ...... 84 2. Objectives of the impact assessment of FP4 projects ...... 86 3. The projects and their technical achievements ...... 86 4. The results: economic, environmental and social aspects...... 89 5. Conclusions ...... 90 6. Recommendations: improving the programme and project management...... 92 7. List of projects ...... 94

V. SUPPORT ACTIVITIES (THERMIE B) Executive summary ...... 95 1. Introduction ...... 98 2. Area ...... 101 2.1 Strategy ...... 101 2.2 SMEs ...... 103 2.3 Dissemination ...... 105 3. Thematic analysis ...... 108 3.1 Rational use of energy ...... 108 3.2 RES ...... 109 3.3 Fossil fuels ...... 110 3.4 Comparison of the sectors...... 110 4. Project and programme management ...... 111 5. Conclusions and recommendations ...... 113

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This present report represents the work of a number of specialist experts who assessed the impact of the individual research projects, and a coordinator. The coordinator wrote the present report on the basis of the experts’ brief summary reports. The report was then reviewed by the Core Group of the Panel of Experts.

Coordinators: Institutions Perry A. Argyris Consultant

Individual Experts: Annette Cutler Technology Initiatives Jean-François Guilmot ESAP José Andrés Martinez Escam Andrew J. Minchener AndaLin Consulting George Polyzois Elyros S. A.

Core Group: Nicolas Chrysochoides (Chairman) INNOVATION E.E. Tom Casey (Rapporteur) CIRCA Groupe Europe Ltd Bruno Lapillonne (Rapporteur) ENERDATA sa Julie Roe (Statisticien) CIRCA Groupe Europe Ltd

Executive summary

he Impact Assessment of the JOULE-THERMIE Fossil exploration, production and transport”, and “deep- TFuels Projects was carried out to analyse the projects water operations”, as well as the most relevant “decom- and project results in order to establish to what extent missioning techniques” which have a direct impact on the the European Commission’s objectives has been accom- safety and the environment and have been of para- plished, and to report the achievements and failures of mount importance. The innovations resulting from the the funded technological research and development, assessed projects contributed significantly to industry effi- and demonstration projects. This report shows that, by ciency and competitiveness, and to safety and the envi- obtaining information on the projects and their results ronment, as well as to social issues. directly from their own coordinators, the work done has been most valuable in outlining the achievements, Up to the end of the 1980s, the European Commission’s benefits and recommendations. Directorate-General for Research undertook scientific research with funding for innovative technologies in the The comments and recommendations made by the proj- fossil fuels sector, and the Energy Directorate in the ect coordinators have been most significant and are out- European Commission (EC) undertook the development lined in this report. The project selection, construction of new technologies with partial financial support, reim- and management improvements, as well as the work pro- bursable upon commercialisation of the technology. The gramme optimisation, have been the most important rec- EC programmes financed and supported many innovations ommendations made to the Commission. in hydrocarbon and coal technologies and, by 1990, European technologies were leading by far US hydrocar- Outstanding achievements in project results, both at bon technologies, which had a long history of achieve- the research and development stage and mainly at ments up to the end of the 1960s. the demonstration stage, which is the near market stage, have produced new technologies which are much needed From 1990, the Community supported non-nuclear energy by industry. This is especially true for the achievements in technological research and development through the “energy combustion”, “coal gasification”, “hydrocarbons JOULE Programme, while support for the demonstration of

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innovative technologies and market development was pro- The results obtained by fossil fuels projects within vided through the THERMIE Programme. the Fourth Framework Programme are excellent when the number of innovative technologies is consid- The JOULE research and development projects assessed ered – 27 of the 38 THERMIE projects assessed, have were designed to develop new clean technologies for been proven and introduced to the industry, which is a solid fuels and new technologies for hydrocarbons to very percentage of achievement for R&D work. This ensure security of supply. clearly indicates that the return on investment for the European Commission and the European taxpayer has The THERMIE demonstration projects assessed were been very good. designed to advance or implement innovative techniques, processes or products for which the research and develop- Fossil fuels have been and will continue to be key energy ment stages have been completed. The objective was to source in our lives. With the exception of nuclear power, prove the technical viability and economic advantages of oil, gas and coal are essential energy sources for our new technologies by applying them on a sufficiently large industry, the huge petrochemical industry, transportation, scale for the first time. Projects only received financial sup- defence and well- being in our community. The contri- port if there was an innovative technology and consider- butions made by the technologies developed with the able technical and economic risk. These risk factors were support of EC Programmes have been excellent in achiev- borne in mind when assessing the impact of the resulting, ing the objectives of “security of supply” and putting now complete projects. European technology ahead of the US.

The total EC funding for those fossil fuel projects assessed The Sixth Framework Programme is concentrating its was 79,190.615 ecu, as follows: support on a limited number of priorities, but no funds have been allocated to hydrocarbon technologies. On the For the 15 JOULE hydrocarbon projects 13,699.685 ecu, for contrary, the tendency in the US is to give more support three JOULE solid fuel projects 2,608.940 ecu, for eight and funding to these technologies. JOULE generic combustion projects 6,854.095 ecu, and eight new fuels for JOULE transport projects 7,871.500 ecu; total JOULE support of 31,034.220 ecu. For 38 THERMIE hydrocarbon projects 34,733.100 ecu, and for five THERMIE solid fuel projects 13,423.295 ecu; total THERMIE support of 48,156.395 ecu.

In the period 1995 to 1998, 111 THERMIE demonstration contracts for hydrocarbon technologies were awarded, which received a total EC funding of 94,852.439 ecu, ranging from 164,800.00 ecu which was the lowest support for a given project and 3,647,800.00 ecu which was the highest support. Thirty-eight of these projects have been assessed within this particular review.

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1. Introduction As regards fuels, the JOULE projects have contributed to improvements in the performance of internal combustion engines, especially diesel engines (generic combustion Investments in the fossil fuel sector are generally of high area), and the improvement of engine technologies, technical risk and involve huge financial commitment and with further development studies of existing refining commercial risk, particularly for small companies. The EC processes to increase the volume of transportation fuels contribution encouraged the relevant actors to undertake produced (diesel and gasoline) per unit of charge, and the projects by making funding available to them under to adapt these fuels to the more severe environmental the JOULE and THERMIE Programmes. constraints expected in the near future: sulphur content, NOx emissions, carbon monoxide emissions, fine par- The hydrocarbon industry is a global market as oil com- ticulate matter, and volatile organic compounds. panies will buy services and equipment from any part of the world. Companies within the European Union (EU) As for the clean technologies for solid fuels, the strate- are well placed in the market and must remain so. If they gic need has been to maintain fossil fuel use within the have to stay competitive in the international markets, overall energy mix for Europe, while improving the eco- financial support is required to encourage them to nomics, efficiency and environmental impact of fossil develop innovative technologies, services and equip- fuel fired power production. ment that have a high commercial risk. The common objective in these sub-sectors was to The development of a strong European market will allow improve the efficiency and environmental performance EU companies to export equipment and services successfully for the production and utilisation of fossil fuels. worldwide, and there is no doubt that the project contractors were highly motivated towards the successful completion of the projects undertaken. All assessed projects in hydrocarbon and coal technologies were carried out by EU companies, in some cases with Associate Member States, and were demonstrated in most cases in European commercial wells and plants (e.g. France, Germany, The Netherlands, Norway, UK, and Italy).

The North Sea oil and gas reserves are recognised as being of strategic importance within the EU. The exploration and production industry has been under pressure to maintain and improve the high level of exploitation of these reserves and to reduce investment costs and gain a better return on such investments. This has driven the need to introduce improved, more efficient methods for the location, development, operation, and depletion of reservoirs in the North Sea. It has also been necessary to improve overall environmental compliance for all activities. At the same time, there has been an increasing need to explore and utilise what were previously regarded as marginal fields, containing fractured and heterogeneous reservoirs. Consequently, in order to address these issues, the projects under the JOULE Programme were designed to develop concepts for relevant new technologies.

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2. The objectives In the hydrocarbon sub-sector, it was evident that there was an increasing need to explore and utilise what were regarded previously as marginal fields, containing The prime objectives of the JOULE-THERMIE programme fractured and heterogeneous reservoirs. Consequently, for Europe in the field of non-nuclear energy were: the objectives of those projects assessed were: • To encourage technological research and develop- • To improve reservoir modelling for effective investment ment in order to improve energy security, ensuring decision-making; durable and reliable energy services at affordable • To improve overall extraction efficiency through bet- costs and conditions, and recognising that one major ter estimation of reserves and the use of advanced concern is the protection of the environment; and reservoir management, with particular emphasis on • To reduce the impact of the production and use of high-pressure and temperature reservoirs and on fractured/heterogeneous systems; energy, in particular CO2 emissions. • To reduce the uncertainty in exploration and produc- Within this framework, JOULE-THERMIE also aimed to tion activities through better understanding of the achieve other important European objectives: reservoirs and the factors that influence oil migra- • Strengthening the technological basis of the energy tion, including the use of the fractures present in industry with benefits for the economy, employment, marginal fields as a means of improving extraction and export potential; operations; • Improving social and economic cohesion; and • To visualise the complex geological structures above • Contributing to the co-operation with eastern and and within the marginal reservoirs, including the use central European countries and developing countries. of enhanced seismic models; • To monitor and assess core samples, including fluid sat- To contribute to the general research being undertaken uration in such samples, leading to better modelling at a global level in these fields, the Fourth Framework of the potential and management of the reserves; Programme studied in particular: • To develop more efficient and less energy intensive sys- • Prediction tools for combustion and emissions from tems for drilling, particularly for exploratory drilling diesel and gasoline engines; where there is also a need to gather core samples; • Application of advanced chemistry to reduce pollutant • To better understand the environmental interactions emissions in diesel engines; and between drilling fluids and the drilling strata, leading to • Constant development of the direct injection the use of better fluids with lower environmental impact; concept. • To limit wastewater production, especially in mature wells; Apart from the improvement in engine technologies, • To better predict lime scale formation in producing specific studies have been set up to increase volume and oilfields, thereby allowing more efficient means of quality of transportation fuels inside refineries. The control to be established; main challenges addressed by the different projects concerned are: • To monitor remotely and control the down-hole activ- • Development of a new catalytic system; ities of well operations; and • Improvement of transportation fuel characteristics • To limit unforeseen interruptions arising from opera- in respect of their impact on urban air quality; and tional problems. •Improved production of hydrocarbons or synthesis gas. As regards the clean technologies for solid fuels, the It must be stressed that the objectives of all projects primary need is efficiency in power production. addressed closely and in general the main objectives The main issues are to minimise CO2 emissions, through of the EU’s energy policy: reduction of energy-specific improvements in the cycle efficiency, and other pollu- consumption; increasing security of supply through tants including SO2 and NOx through better capture and diversification; improvement of air quality in urban control systems. The objectives of the projects examined areas; and the reduction of greenhouse gas emission. were:

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• To improve the energy efficiency utilisation and envi- The projects assessed focused on demonstration and ronmental performance of low-grade, high-moisture market penetration of innovative technologies which fuels for various power production technologies result in efficiency and improvement in the exploration, through the introduction of efficient and effective production and transport of oil and gas, as well as envi- fuel pre-drying technologies; ronmental safety. • To develop an integrated NOx and SO2 gas clean-up system with lower cost, but enhanced capture capacity; Coal is one of the world’s most important and abundant • To develop a cost-effective, high-efficiency particu- fossil fuels. It accounts for more than 30% of all energy late removal unit for use in pressurised combined cycle presently being used worldwide, and is one of the most power generation systems; and efficient energy sources in the EU. Forecasts suggest • To develop a modelling capability to assist in determin- that in the coming years, in addition to hydrocarbons, ing the impact of various combustion-related tech- coal will remain a substantial source of energy. nologies on the improvement of overall efficiency and especially on the environmental performance of pul- However, growing environmental awareness makes peo- verised fuel boilers. ple pay more attention to the various negative points of coal utilisation and try to minimize them. This awareness Thus, for both sub-sectors there are common overall leads to the need to develop new clean coal technolo- objectives in terms of energy and environmental per- gies. The challenge is to have commercially available formance. In addition, in both cases there is recognition technologies acceptable from the environmental point of the need to maintain the competitiveness of EU indus- of view. try through advances in technology. The objectives of those projects assessed were within the Improving the exploration and exploitation of oil and gas EC THERMIE programme, i.e. to improve environmental reserves in Europe is a top priority. More hydrocarbons conditions and efficiency of coal utilisation for power are found and extracted, and at lower costs, using generation. The projects were involved in activities improved geophysical exploration methods, by optimis- already using successful clean coal technologies in gasi- ing well drilling, and by increasing productivity of wells fying or burning biomass or waste together with coal. and the recovery of oil and gas. Benefits will be a reduction in CO2, SO2, NOx emissions from coal-fired plant and recovery of useful energy All the projects assessed were well within the objectives of from biomass or waste at high efficiencies, without the JOULE-THERMIE programme, i.e. to provide innovative the need to build dedicated plants. The coal-fired power technological solutions to meet increased demand for oil industry will give support to renewable energy as well and gas while, at the same time, coping with growing envi- as to waste industries. ronmental concerns about the safe, clean, efficient and affordable exploitation of hydrocarbon resources. Co-utilisation may prove a more economical way of using biomass than from a plant that is dedicated to biomass as The hydrocarbon projects assessed aimed at improving a fuel. It will allow the development of fuel supply chains, drilling efficiency, improving offshore oil exploration in and technologies needed to handle biomass and waste, yet complex geological conditions, strengthening floating allow renewable energy sources to enjoy the economies production equipment, and designing integrated simula- of scale provided by large coal-fired plants. tion tools for core analysis and hydrocarbon reservoir evaluation. In the field of storage and transport, safety has The efficient use of biomass and waste, while improving been the number one priority as it relates directly to the environmental conditions, is a priority for certain regions environment. Technologies for the safety and reliability of in the EU. the equipment, and new technologies for the decommissioning of offshore platforms have been primary aims. Achieving the objectives is very important for the industry which involves power-generating companies with the relevant expensive installations.

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3. The projects ment of system components for improving environmental performance and overall system efficiency. The focus was on the construction and testing of components and The projects assessed by the team can be divided in prototypes, both on test rigs and in large-scale facilities. two major groups, one for research and development This work was backed up with characterisation studies and (JOULE) and the other for demonstration (THERMIE). techno-economic assessment studies, leading to the provision of design criteria for full-scale operation. 3.1 Research and development projects Another project was concerned with the development 3.1.1 Hydrocarbons of a range of predictive models for better estimating system performance associated with the introduction of The projects assessed in the field of hydrocarbons can be various combustion-related gas-cleaning methodolo- divided into three separate problem-solving groupings: gies. Here the focus was on fairly large-scale testing of the combustion-related options, backed up by extensive • Better estimation and mapping of reserves, with modelling studies and the development of predictive emphasis on economic viability for investment in capabilities. development, production and exploitation. The approach in all cases was to develop, in the broadest 3.1.3 Energy combustion sense, modelling capabilities involving the use of a wide range of techniques. This included the use of In the field of engine combustion and exhausts, the those various modelling packages already available, projects assessed can be put into six groups: 1) tools pre- plus the development of either additional modules or dicting combustion and emissions from diesel and gaso- completely new packages. Various associated labora- line engines; 2) application of advanced chemistry to tory-based characterisation studies were undertaken reduce pollutant emissions in diesel engines; 3) devel- to provide input data for the models, backed up by the opment of direct injection concepts; 4) development of provision of information from existing reservoirs to new catalytic systems; 5) improvement of transportation allow for a comparison between the models and the fuel characteristics, bearing in mind their impact on ‘real’ situations. urban air quality; and 6) improved production of hydro- • Reservoir management: Development of techniques carbons or synthesis gas. and methodologies to improve the overall efficiency and effectiveness of reservoir management. Once The majority of the projects were initiated in 1995, at again the emphasis was on the development of new the beginning of the Auto-Oil programme which brought and improved modelling techniques with the prime together the oil industry and car manufacturers. Together outputs being the means to better estimate the poten- with EU representatives, they initiated an assessment tial of recoverable reserves through better exploitation of the future trends in emissions and air quality. They strategies and systems. established a consistent framework with different policy • Optimal production performance: Finally, there were options to reduce emissions – using the principles of projects concerned with the development of tech- cost-effectiveness, sound science and transparency – and niques, equipment and methodologies to improve to provide a foundation (in terms of data and modelling the operational performance of production units. tools) for the transition towards longer-term air-quality Here, there was still some emphasis on both modelling studies covering all emission sources. and on the development of actual drilling equipment, monitoring instruments and control systems. As in the Auto-Oil programme, the oil industry and car or truck manufacturers conducted projects in association 3.1.2 Solid fuels with specialised research institutes and universities. Referring to the energy situation prevailing in 1995, the As regards the projects concerned with clean technolo- main priorities were improving the energy efficiency of gies for solid fuels, the emphasis was on the develop- the transport sector and reducing environmental

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impacts, especially in order to improve living condi- The main challenges addressed by the different projects tions in urban areas. concerned: Development of new catalytic systems. The develop- The development of new internal combustion engines ment of stable, active and selective materials for appli- was influenced extensively by the requirements to cation as catalysts in modern refineries remains very reduce the amount of unwanted exhaust gas emissions. important, especially the improved conversion of heavy Diesel engines with direct fuel injection were known to fuel-oil fractions into useful light transportation fuels be the most fuel-efficient power source for transporta- or high-quality fuels which is driven by the development tion. High fuel efficiency leads to low emissions of CO2, of new catalysts. The development of a new catalytic sys- thereby reducing impact on global warming. tem able to desulphurise the fluid catalytic cracking gasoline, without producing any significant reduction The related projects included: of its octane value, is of particular interest. Tools for predicting combustion and emissions from diesel and gasoline engines. Traditionally, engine devel- Improvement of transportation fuel characteristics with opment was based on empirical knowledge gained respect to their impact on urban air quality. One of the from experimental testing. Developments of models, in major outcomes of the first phase of the Auto-Oil pro- combination with very rapid computer developments, gramme, as regards diesel fuels which have a fairly make calculations possible with a sufficient degree of high aromatic content, was that any significant reduc- accuracy. The aim of many of these projects has been to tion in emissions could only be achieved with improve- improve the understanding of and formulate a descrip- ments in both fuel properties and engine design. A fur- tion of the basic combustion and emission formation ther and related objective was to investigate the processes in both diesel and gasoline engines. effectiveness of oxygenate additives in suppressing particulate formations. Finally, consideration was made of Application of advanced chemistry to reduce pollutant how to obtain the best matching between fuels, includ- emissions in diesel engines. The objective was to provide ing additives, lubricants and vehicles in terms of perform- experimental and numerical tools as well as the neces- ances, pollutant emissions, engine noise emissions, after sary insight into the requirements for reducing the NOx and treatment efficiency, vehicle driveability and initial qual- particulate matter emission problems of heavy-duty ity keeping. diesel engines. Improved production of hydrocarbons or synthesis gas. Development of direct injection concepts. Both diesel Natural gas, or methane, provides plentiful, clean hydro- and spark ignition engine cars have their own market seg- carbon reserves, but with a wide geographic disper- ment as a result of their respective advantages. To main- sion and difficulty in use as a fuel for transportation. tain leadership in the EU’s car industry, a continual improve- Using catalysis, this gas can be converted into liquid or ment in the present direct injection combustion concepts solid paraffin which can be stored more easily, trans- was needed, as well as new, more efficient, clean concepts. ported, and used in the automotive and petrochemical Any improvement in combustion efficiency would create industry. Two aspects were considered in particular in dif- huge savings in absolute value as a result of the amount ferent projects: to produce a new catalyst making this of fuel currently being burnt in transport. new option economically viable, and to develop compact, energy-efficient reforming technology with Apart from the improvement in engine technologies, reduced environmental impact. specific studies have been made to increase volume and quality of transportation fuels in refineries. The con- Even if these projects were classified under two different tinuous reinforcement in fuel specifications was and is topics – engines and refined fuels – it is clear that glob- always the most important challenge facing the refin- ally they participated in the same general theme “improve- ing industry. Improvement of existing technologies and ment of performance of internal combustion engines development of new ones are the most consistent and further development of the existing refining process”. answers to this challenge.

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The assessment indicated that in general the projects The related projects included: respected the work programmes well and the research was conducted to completion. Only in the case of cat- 3.2.1.1 Exploration alyst development have some modifications been intro- Improved accuracy in seismic and reservoir modelling. duced into the work programme as a result of the Upgrading industrial seismic exploration techniques by ongoing work. In many projects it was emphasised that introducing “single bubble” mode seismic pulse in the the work done needed to be continued. air gun array technology, for use in deep offshore seismic surveys. The basic idea is a pulse-generating method to centre the output signal on the first bubble pulse con- 3.2 Demonstration projects taining the major part of the low-frequency energy of the air gun output while cancelling the primary pulse The demonstration projects assessed were primarily for and the bubble pulse train. hydrocarbon technologies. The projects in oil and gas technologies covered exploration, drilling, production, pipelines, offshore operations and decommissioning, all The development of improved and new software to these sectors being of vital importance to the European reduce costs, and for the rapid interpretation of data oil and gas industry, and the security of supply. generated by seismic equipment, as well as to demonstrate seismic data-recording systems capable of cover- 3.2.1 Hydrocarbons ing a wide area to explore and operate over difficult multi-terrain environments. New hydrocarbon technologies require demonstration before the end-user would consider their commercial The application of numerical tools and innovative 3-D pre- application, because of their high technical and eco- stack processing techniques to improve the accuracy of nomic risks. These technological demonstrations have 3-D seismic depth images, as well as to reduce costs in seis- always suffered from a lack of field trials, particularly off- mic acquisition and improve processing for land surveys, shore, to prove the innovative technologies. THERMIE and to demonstrate the ability of 3-D borehole seismics. offered the opportunity to address this problem, yet few of the projects assessed were for the large-scale offshore Providing new reliable software for the prediction of field trials which might be expected to be present and petrophysical and reservoir-engineering properties, as for which this funding route was appropriate. well as stratigraphic 3-D simulation modelling software to be used as a reservoir prediction tool and to improve Most of the new technologies required design, manu- the description of petrophysical properties between facturing and installation of equipment, which were put wells. The integration of geophysics, use of seismic data into applications in the oilfields. In most cases, the to constrain stochastic geological reservoir model, and actual demonstrations were witnessed by the potential reservoir characterisation using a non-stationary approach end-users of the equipment and oil company personnel. are innovations which have come from certain projects.

Many of the major multinational oil companies were con- Demonstration of new and improved seismic techniques, spicuous by their absence. It was the same few oil compa- as well as drilling technologies: Seismic-while-drilling nies which appeared to be supporting the demonstration techniques were improved by using polycrystalline dia- programmes and were prepared to allow access and use mond compact (PDC) drill bits. The demonstrations of their facilities to help further this new technology. aimed to show an improved performance/cost ratio due to the increased efficiency and applicability of the Change in the economic climate had a severe impact and enhanced Seisbit system. The seismic-while-drilling several projects were badly affected, resulting in the methodology is, and will continue to be, widely used by withdrawal of test facilities and, in one instance, the the industry today so the improved performance/cost basic already-commercial technology which was being ratio will be well accepted by the industry. developed in the project for other applications, being scrapped when taken over by a rival company.

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New and modified technologies for improved drilling • Offshore fibre-optic temperature sensors to provide an and completion, operation and evaluation of advanced early-warning system for fire/heat detection; corrosion wells, with the aim of reducing the economic risk and and fatigue damage modelling, and non-destructive uncertainty as related to operational safety and technical testing (NDT) inspection reliability, with quantitative performance. The demonstrations also include new sim- assessment to give a national basis for inspection ulation tools for reservoir evaluations. scheduling that is both cost effective and provides adequate safety. Slim-hole drilling technology improvements in self-penetrating drilling systems based on new design of slim- • A 3-D frame demonstration and a collapse test to be hole bits (PDC drill bits), using slim-hole coiled tubing undertaken at sufficient scale to validate methodolo- in highly deviated well applications, and hybrid-drilling gies and innovative software to determine accurately rigs utilising coiled tubing, combined in one rig with system strength and resistance of offshore structures reduced manpower on the rig, were tested and demon- under extreme loads. strated for safer and environmentally protected drilling, work-over and re-entry work in marginal fields. • An innovative technique of monitoring the structural integrity of Floating Production Storage and Offloading New technology was tested to predict fracture/fissure (FPSO) vessels during operations while the vessels are per- development in the subsurface, enabling the planning manently anchored in harsh and remote conditions. of optimum well location and estimation of the best direction for drilling multilateral wells in the reservoir. • Innovative technologies in multi-flow separations, the three-phase hydro-cyclone separator for liquid/liquid/ New technology was tested for a complete treatment solid used for treatment of petroleum produced water process of waste mud and cuttings both during and at prior to discharge. This unit combines – for the first the end of the drilling process, including a two-phase time in a single unit – the functional characteristics of procedure: multiphase separation and immobilisation of de-sanding and de-oiling hydro-cyclones. Another solids. The system, which is technically and economically approach is the Welcome System which is an on-line viable, will be applicable to all mud waste (water based, separator and commingling device. The innovation saturated brine water, and oil-based mud). involves the use of simple, reliable and passive components which enable the jet pump to handle multi- Demonstration of new tools for seismic acquisition in phase fluids efficiently and to use high-pressure flu- high-pressure/high-temperature fields (1,200-1,400 bars, ids to enhance the production rate and delivery 150° C to 200° C) was performed, with improvements in pressure of low-pressure wells. the tool electronics and the umbilical cable connectors. • Innovative technology utilising existing microwave tech- Improved instruments were tested for the measure- nology for imaging flow through the section of a con- ment of real-time of drilling parameters, down-hole duit measuring multiphase flow (oil, water and gas). The data being processed down-hole in the ‘dynamics sub oil companies’ need for accuracy is satisfied by this sys- tool’ and then transmitted to the surface through mud tem and its versatility allows for continuous measure- pulse in the normal way. ments without diverting or interrupting production.

3.2.1.2 Production • Flexible risers for connecting sub-sea installations New and improved technologies for efficiency and safety to floating vessels in deep waters, at 1,000 metres. in operations, with an emphasis on offshore operations. This technology is for large diameter and high-pressure The innovations covered by the projects assessed are production, and export risers for floating production numerous and include applications of existing technolo- in deep water. Flexible risers forming part of floating gies and techniques to improve production operations production will allow for the development of smaller and, more importantly, to address safety and environ- fields, fields with high pressure, and fields in deeper mental aspects: waters, in an economic and environmentally safe way.

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It will ensure utilisation of European indigenous 3.2.1.4 Decommissioning resources, namely West of Shetland and the Norwegian The decommissioning of platforms in offshore operations Sea (Voring plateau), but also smaller and high-pressure has become one of the most important technologies as fields in the North Sea and in the Mediterranean. This it directly relates to safety, the protection of the envi- will contribute significantly to the security of supply for ronment, and costs. The largest EC-funded project European consumers. assessed – 3.6M ecu – relates to one of only four known new technologies today for the installation and removal • For offshore operations, improving deep-diving tech- of complete deck units offshore. The innovation comprises niques, in particular, thanks to the use of hydrogenated the application of a shock-less method using jacks acti- breathing gas mixtures, hydrogen ludion, instead of vated by wave energy. The advantage of these tech- helium, the goal being to increase divers’ efficiency and niques is that removal of one completely assembled deck to reduce the duration of manned sub-sea operations. unit can be transported by the removal barge to another Both techniques aim to produce a noticeable reduction site and installed as a new platform, which has a great in operational costs and thus help European diving com- impact on cost savings. The aim of the ‘smart leg system’ panies to boost their competitiveness. technology was to extend the limits for integrated deck installations, allowing heavier weight decks to be installed • One of the longest ongoing projects assessed, which in severe environmental conditions. In addition to a started in the late 80s and has received total funding of reduction in installation and decommissioning costs, it con- over 14M ecu to date, has been the sub-sea technology tributes to safer offshore operations. for an all-electric oil production system, using electricity as the common source for both motive power and con- 3.2.2 Solid fuels trol, thus removing the hydraulic element completely. In addition, it implies modularisation of all production Projects assessed related to gasification and co-gasifica- equipment, which was the original concept of this proj- tion. The technologies demonstrated related to an ect under the Development Programme in the 1980s, essential process step and an overall concept, utilising whereby each piece of equipment is contained within lignite and municipal waste, for energy generation. a removable module that is easily retrievable back to The use of municipal solid waste as an alternative fuel the surface for service or replacement. provides not only savings on available energy resources but, at the same time, contributes to the improvement 3.2.1.3 Transport of the environment by avoiding, to a great extent, its In the pipeline sector, which is an important sector for adverse environmental effects. the transport of oil and gas, the new technologies related to reliability and safety. New welding technolo- New concepts were pursued and a method was devel- gies to ensure reliability, which could be performed on oped with partial gasification and partial combustion. a barge offshore, consisting of electron beam and The process concepts were based on the gasification of orbital laser welding processes to lay a pipeline. biomass in a fluidised bed. In this case, the air is fed to The costs associated with the transportation of hydro- the system exactly to such an extent that part of the fuel carbons, from the place of their extraction to the place burns and, while doing, the heat produced is that of their utilisation, are very high. The ‘electron beam’ required for the gasification of the rest of the biomass, technology and the ‘laser orbital welding’ technology for which there is insufficient oxygen available for the developed will help to reduce these costs. One of their combustion. Because it is neither a matter of total com- characteristics is that the welding of two or more pipes bustion nor a matter of total gasification it is called ‘par- together (to form the pipeline) is faster than welding tial gasification’. The gas is taken uncooled from the done using ‘conventional’ welding methods. Therefore, gasifier to the boiler where it serves as auxiliary fuel and an industrial system incorporating electron beam guns replaces part of the coal. Apart from the CO2-reduction, and the associated control system or the ultra-fast laser the NOx-reduction through ‘reburning’ is also of interest. orbital process system will, in the end, be competitive for welding and laying offshore pipelines.

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The partnerships best able to achieve results and take the 4. The results: technical results forward to commercialisation were those which included a researcher, a product/service supplier and an end-user. The projects with this complement of partners also benefited when the researcher, who had lead the R&D 4.1 Research and development projects programme, handed over project management to the product/service supplier for the demonstration pro- In the RTD sector, although the scientific and technical gramme, which resulted in the most successful projects of objectives were highly complex and extremely chal- those assessed. The partners in these successful projects also lenging, a high percentage of the overall scientific and commented that the project benefited from having the technical objectives were achieved. flexibility to bring in new partners as the project pro- gressed. Where the partnerships were researcher-driven, 4.1.1 Hydrocarbons these were successful when the project leader was open- minded, prepared to listen, would guide rather than con- In the hydrocarbons projects, the scientific and technical trol, and was prepared to adjust to change. objectives were highly complex and extremely challenging. It is a credit to the R&D consortia that some 80% of the Several project managers commented that too many overall scientific and technical requirements were met. partners, particularly those with similar skills, could be The advances achieved were reflected in the high quality detrimental to the project as it was difficult to develop of the scientific data gathered, the techniques and method- co-operation and a close working relationship. The opti- ologies developed, and the equipment prototypes estab- mum number of contributing partners with different lished. With the recognition that the RTD was of a medium- skills appeared to be three, four or a maximum of five. to long-term nature, in most cases there was a need for further activity before full market exploitation and deployment could be undertaken. This has been covered by subsequent R&D plus demonstration. In particular, this has happened with individual technologies, typically individual equipment items, software codes and modelling packages where take-up by industry has been significant.

However, in several projects dealing with rather longer- term topics, some interesting results were obtained, but not taken forward via the consortia. In some cases this appears to be because the industrial members of such consortia then wished to work alone. In other cases, it appears to be because industry was not truly integrated into the consortia and, for various reasons, the members of these consortia have not managed subsequently to interest industry enough to become involved.

4.1.2 Solid fuels

For the clean technologies in solid fuels projects, almost all of the technical objectives were achieved and, once again, high-quality scientific and technical results were obtained. This sub-sector comprises a relatively mature technological base and, as such, it is difficult to consider the projects in terms of breakthroughs, although the innovations achieved were significant. Indeed, subsequent development

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and ultimate exploitation of the results has been mixed. It is also mentioned that developed tools will be used in In two cases, the techno-economic studies undertaken further research activities or that further research activ- after the R&D was completed suggested a lack of market ities are needed and foreseen to complete the ongoing for the technologies under development. This arose research work. The validation of new tools also revealed through adverse changes in the power generation oppor- the deficiency of current engineering models and the tunities, with an emphasis on natural gas usage and a need to improve existing analytical tools. reluctance by the power generation industry to consider anything but short-term issues. In those cases, further Apart from model development and numerical simula- work has ceased. In the other cases, further development tions, a lot of instrumentation was developed to collect and demonstration of the technologies is proceeding, all the required data during engine experiments. albeit to varying degrees and at various rates. This again In particular, one project addressed the development reflects the difficult market conditions within the European of optical imaging diagnostics for probing the key phe- power generation sector. nomena responsible for emissions from automotive engines. Some injection system prototypes were also However, in both sub-sectors, the scientific quality will assembled, tested and used for systematic studies and have spin-off benefits in addressing aspects of high pri- engine development. ority topics such as CO2 capture and sequestration. In general, it can be considered that, as a result of these 4.1.3 Energy combustion projects, enhanced numerical codes and sub-routines have been developed for the study, characterisation Results from all the projects related to the ‘generic com- and optimisation of further engine design and con- bustion’ topic were globally of the same nature: testing, cepts. The results of the systematic programmes of development of databases, diagnostic tools or equip- measurements provided new information of immediate ment, numerical simulations and computer models. In assistance in the design of direct injection gasoline and particular, the development of computer models was diesel engines, thereby participating in the general considered as a pertinent result by quite a few projects. improvement of engine efficiency. As these models were developed to analyse specific questions, it is particularly difficult to appreciate their contri- Results from all the projects related to the ‘new fuels in bution to the general progress observed since 1995, in the transport’ topic were rather more dispersed. They con- field of engine design and combustion optimisation. cerned development of new catalysts to improve gasoline production, less noxious soot emissions of diesel engines, The subjects explicitly treated by these models concern: characterisation of engine exhaust particulates, fuel description of ignitions; combustion and emission for- and lubricant effects on engine pollutant emissions, mation; representation of the two-phase flows which and improved hydrocarbon production from methane occur within the manifolds; ports and cylinders of or natural gas. engines operating under steady and transient conditions; improvement of combustion system design; understand- All these projects were oriented towards concrete objec- ing of wall-bounded turbulent flows submitted to a tives and consequently it is not surprising to establish that a limited number of these objectives has not been compression; reduction of NOx and particulate matter reached. The development of improved catalysts, in par- emission of heavy duty diesel engines; implementation ticular new zeolites, was successful. Projects relating to of direct injection divided charge strategies; and under- the reduction of emissions from diesel engines have standing of the air/fuel mixture preparation. Some of improved the understanding of physical and chemical phe- these developments were integrated in existing mod- nomena of diesel fuels on emissions of diesel engines and els to extend their capabilities. Validated codes were also flames. The results available have helped the European delivered to the car manufacturer partners where col- industry to start with concepts for reformulated diesel laborative computational studies were performed. fuels with low aromatic and higher O2 content.

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4.2 Demonstration projects properties. The tests showed that the software, which can even be used with damaged cores, provides an effi- In the demonstration field, most of the projects can be cient alternative to expensive and time-consuming considered technically successful as they achieved their petrophysical experimental measurements on core sam- technical objectives. ples. This can be considered a major breakthrough in the provision of 3-D information on the geometrical and 4.2.1 Hydrocarbons topological characterisation of reservoir pore structures.

In the hydrocarbons sector, most of the projects were totally • Technical advances were also made in logging. The fol- successful and a small percentage partially successful. lowing new logging tools were designed, developed and tested to extreme during the project and are The advancements that were achieved by the assessed proj- now commercially available: array induction tool, ects were considerable and can be summarised as follows: photo density, shallow focused electric, dual neutron, gamma ray, dual laterolog and sonic. These new tools 4.2.1.1 Exploration will contribute a lot to reservoir characterisation. • A significant innovation has resulted in the ability to see real-time dynamics data while drilling at the rig • Technical advances were also made on the design floor and transmit this data to the surface. This can be of a self-penetrating PDC drill bit, but no actual field considered a major technical breakthrough in the trials were made due to the lack of a suitable test well. deep drilling domain. 4.2.1.2 Production • Another technical development is the new concept for • Innovative technical advancements were made on the drilling and work-over, i.e. the development of a rig, development of a standard procedure for the assess- compact and integrated with its components optimised ment of fatigue loads on Floating Production Storage and improved. All vital information on the drilling and Offloading (FPSO) vessels. The results provided a process and machine facilities are indicated by instru- better understanding of the extreme and fatigue ments and displayed on screen. This rig has been proven loads and responses of an FPSO under service condi- even in difficult field operations. tions. The results have made a contribution to the FPSO area as they can be used in the development, • Another technical achievement concerns a large-scale engineering and construction of new FPSOs. application of Seisbit technology, using polycrystalline diamond (PDC) to obtain seismic results, which is use- • An innovative technology proved software to be useful for exploration and drilling. The technical results ful in order to determine accurately system strength and achieved included the ability to identify and use on a resistance of offshore structures – platforms – under large scale even the low-level axial torsional PDC sig- extreme loads, thus preventing major disasters in off- nal, and to acquire and process it to enhance signal shore operations which, in addition to production and content and improve signal bandwidth. material loss, would incur a great loss of life.

• A technical improvement was the introduction of the • Successfully proven technologies in multi-face separa- ‘single bubble’ seismic pulse in air gun array technol- tion, specifically in a three-phase hydro-cyclone separa- ogy. The single bubble offers a new opportunity in the tor – a proven concept also used in domestic vacuum exploration of areas where previous prospects gave cleaners – and the innovative multiphase jet pump unsatisfactory results. This new technology can be which is an on-line separator and a commingling device. installed on industrial seismic vessels without major changes to the equipment normally used onboard. • The results of innovative technology in an all-electric sub-sea oil production system project were positive • An important technological advancement was the in the underwater installation of the system-module development of a software tool that can predict core to a docking manifold, the electrically powered and

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controlled processing system in gas/liquid separation, have undergone commercialisation. However, as regards and the innovative electric actuators. Proving the those projects that were created to be funded by the EC technology of the innovative multi-ported connec- – a small number in comparison – although they may tor, through which the fluids enter and exit, and the have had a successful project outcome, they have failed innovative high-voltage underwater mateable con- to achieve commercialisation. nector that supplies power, as well as a proprietary electrical signal/control system connector, was also a Taking into consideration the fact that most of the proj- success. ects assessed involved innovative work, the high rate of success can be considered remarkable and a good return 4.2.1.3 Transport on EC investment. In most cases, the technical results of • Pipeline welding was another area in which technical those projects assessed enhanced the European Union’s advances were made: the design and manufacture of leadership in their relevant technical areas. an industrial system incorporating two electron-beam guns for pipeline welding. However, due to the fail- The technical success of the projects resulted in improve- ure of the mechanical properties of the welds, the elec- ment of hydrocarbon exploration and exploitation tech- tron beam welding technology could not advance to nologies which will contribute to the further development industrial application. of the European Union’s hydrocarbons industry and have a positive effect on both domestic and export markets. 4.2.1.4 Decommissioning The uptake of some of these technologies has been • The innovative technology for installation and decom- slow and this may be due to lack of dissemination or missioning of a complete deck unit offshore in adverse poor dissemination. What is more likely, however, is weather conditions, demonstrated in the open seas that it is not normal working practice for oil company and proven, has been one of the most successful sto- personnel to look for or to be encouraged to look for ries in industrial technology. It saw commercial appli- new and improved technology, externally. cation in June of 1997 when a 4,500 tonne six-legged deck was successfully installed on a jacket offshore The projects in which the new technology could be Nigeria, during a period of the year when a more added to existing products and services have been the severe swell is experienced. most successful in contributing to technical developments in the oil and gas industry. In the work com- The majority of the projects followed the work plan with pleted on inspection techniques and structural integrity, minor modifications and to completion. There were these added to existing knowledge and services offered exceptions where projects could not stay within the and stimulated follow-ups on projects to complete the cost budgets and were abandoned, and others which work where necessary. In some cases, the EU partnerships experienced technical failures and were stopped. Also, have remained in existence and have become recognised there were cases where the new technologies developed as world leaders in their field. and demonstrated could not be effectively marketed. In general, in projects where the EC has been asked to assist in the development, these have been successful and

The development and demonstration of this successful innovative technology was funded in part by the EU, under two demonstration projects in 1994 and 1996. The ‘smart leg method’ extends the limit for deck installation and removal, allowing heavier decks to be installed or removed in more severe environmental conditions. The innovative technology utilizes a conventional barge with specific equipment to cancel wave-induced movements. Surge movements are first neutralised using lateral shock absorbers, then jacks with no-return valves between the deck unit and the barge block the deck unit in the lift position. The technique also showed considerable cost savings as heavy lift vessels are no longer required. The efficient decommissioning of heavy deck platforms has a direct impact on the environmental safety of the seas.

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Smart leg: Installation and decommissioning of complete deck units in the open seas This innovation has been recognised by the Offshore Northern Sea Committee, the French Academy of Sciences, the French Civil Work Association, the American Society of Mechanical Engineers, and the Civil Engineering Research Foundation, as a highly significant breakthrough. Among the many accolades received, the technology received the ‘innovation award’, a very important award in technical and engineering societies. This is one of the only four known techniques in the world to remove complete deck units, the other three being one American technology and two other European technologies.

In the projects reviewed, all of them achieved most of which was found to be both possible and useful. their objectives and several achieved 100% of their Investigations into the material’s behaviour showed goals. Even where projects did not fully achieve their that the materials used were suitable and long lasting. objectives, lessons have been learned and elements of In all these investigations, the water tube heat exchanger the technology commercialised. In some projects, tech- principle has proved to be reliable in operation. In view nology has been developed and transferred into other of its unrestricted availability, the water tube heat industrial sectors. Other projects have been assigned low exchanger technology has qualified as an important priority because the technology has moved on. element for future application in combined-cycle power plants with integrated coal gasification. In one case, the technology has been developed for deeper water applications. This technology, which is The co-utilisation of municipal solid waste by a co-gasi- still ahead of existing technical requirements, was devel- fication system was investigated in a series of three tests. oped by a then small company that, through growth and During the entire test series 1,050 tonnes of pretreated acquisitions, has now become a major supplier to the oil waste were gasified, to the complete satisfaction of the industry – Stolt Comex Seaway. The technology – tita- project partners. All three test series were carried out suc- nium risers – has and will be offered to oil industry cessfully. The gasifier operation was virtually trouble clients as and when suitable opportunities arise. Industry free. The municipal solid waste addition did not impose specifications are now in place for its deployment. additional or unknown operational problems.

The experience gained in the project has contributed to 4.2.2 Solid fuels technical development in the area, i.e. the suitability of the ‘high-temperature Winkler gasification process’ for In the solid fuel sector, one of the main factors for suc- efficient and non-polluting use of brown coal and cess was the great interest the companies played in the municipal solid wastes by co-gasification in a fluidised areas investigated in order to improve and enlarge the bed system at commercial scale. application of clean coal technologies. This was done to ensure that coal would continue to play a significant role Furthermore, the fuel gas produced can be burned for in meeting the European Union’s energy requirements direct heating in various industrial and domestic applications well into the future. or for producing steam to generate electricity; it can be converted into gaseous or liquid fuels for use in all of the The advances that were made by those projects assessed above processes, or converted into transportation fuels. can be summarised as follows: Advances in the use of an improved design of water tube The gasification of biomass and use of the gas pro- exchanger in a fluidised bed gasifier, such as HTW, duced in existing coal-fired power stations to substitute

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coal proved successful. Not only did the ignition and gasi- 5. The results: economic, social fication behaviour of the biomass in the gasifier fulfil all expectations, but the combustion behaviour of the and environmental gas in the boiler was also successful. The results of the project showed a number of innovative characteristics which can be summarised as follows: The innovations resulting from the research projects, related to the reduction of specific consumption • A low quality of the gas is sufficient, therefore there of gasoline and diesel engines, have contributed to the sav- is no need to pre-dry the biomass; there are low ings associated with energy consumption in the transport requirements regarding the purity of the gas for coal- sector. This is essential to reduce the growth of total fired boilers, so hot-gas-cleaning can be omitted; the energy consumption, to lower the weight of hydrocarbons gas is conveyed to the coal-fired boiler at a high tem- in the European Union gross energy supply, to decrease perature level, therefore a condensation of gas com- energy import dependency and, finally, to contribute to ponents does not take place; and partial gasification satisfying Kyoto targets at the 2010 horizon. of the biomass is sufficient and even desired. Fine carbon particles (biomass-coke) are conveyed with In the hydrocarbons sub-sector, the overall economic the gas to the coal-fired boiler and burn there com- outcome of the projects will be to enhance the compet- pletely. Larger biomass pieces remain in the reactor itiveness of European oil companies. The work will until they are fine enough to be extracted from the allow oil production companies to carry out more CFB and are suitable for subsequent co-combustion. targeted exploration, at lower costs, with less uncertainty in the outcome of such activities. In addition, improved • In addition to demonstrating a successful technology, tech- reservoir management will lead to more efficient and effective extraction of oil and gas. All in all, the oil nical work and information was provided on CO2 reduc- production companies will be able to achieve more tion by using renewables to replace coal, checking the economical extraction from the North Sea reservoirs long-term influences of biomass co-combustion on boiler with a lower marginal cost per unit of gas and oil. performance, and monitoring other additional effects. For the limited number of projects examined from the • In parallel with the specific direct results, these clean technologies for solid fuels sub-sector, the over- projects have also helped in improving the general all economic impact will be felt when improving the effi- knowledge and operating procedures in the relevant ciency and environmental performance of fossil fuel specific areas. Although these benefits are not made power production. clear in the projects themselves, they will certainly emerge in subsequent relevant developed techniques and pro- Furthermore, the projects in the RTD programme have cedures carried out mainly by the same contractors. provided very valuable training towards higher quali- fications and established careers in the related fields for The paramount importance of hydrocarbon explo- a number of students. ration and exploitation was addressed successfully by the projects. The innovative technologies developed The THERMIE programme prioritised safety and the influ- have proven to be of exceptional value, where meth- ence of the environment, and most of the demonstration ods and techniques have been demonstrated and in the projects addressed that issue successfully. majority of cases used by industry. The increase in productivity and cost savings have been outstanding. Cost reduction remained the main reason for many of the demonstration projects to meet the industry objec- Coal, which accounts for more than 30% of all energy tives in limiting the number of wells drilled, reducing being used, is the world’s most abundant fossil fuel. The re-work time, reducing material costs, and improving projects on new clean technologies have achieved time/productivity ratios. positive results with an overall economic impact, and improvement in efficiency and environmental performance of fossil fuel electricity generation.

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The technically successful projects in the coal technologies 6. Conclusions could have considerable economic impacts. The actual cost savings will be measured upon implementation/ commercialisation of the successful project technologies. The Impact Assessment Exercise on fossil fuel projects The successful innovative technologies will also have an was successful and achieved its objective. impact on social issues. The most important issues to consider would be the improved security and diversity of The task was not easy since the co-operation from the energy supply, and the public acceptance of these municipalities, SMEs and industry, which have received energy technologies which will impact directly on the funding from the Commission, was not overwhelming. well-being of our society. It was evident that one enterprise that received the largest amount of funding under the THERMIE In addition, the successful technologies will result in Programme was not very co-operative. The team has some positive social issues, such as a reduction in the worked hard to get the information required and work price of products and services, better working conditions, with it to produce the reported results. The EC offi- and improved safety of workers and employees. cials’ contribution has been very helpful in accomplish- ing the tasks. The selection of the projects to be assessed As regards employment, a large percentage of these new provided a good mix. technologies will help in employment growth as more material and production will be required to produce the Looking at the projects assessed in the fossil fuel sector, new innovative equipment. This should offset, in gen- the results based on what was reported and from the eral, the reduction in labour as the result of other new project data compiled during a project’s life, it is evident technologies having a direct effect on cost savings. that the majority of the projects produced excellent results and achieved their objectives. From those THER- MIE projects assessed, a large number – 27 – of innovative technologies were proven and have been intro- In the hydrocarbon industry, the impact on the envi- duced to the industry. ronmental issues has been one of the most talked about subjects and the target of some of the proj- Since the early days of the North Sea experience, out- ects. The results obtained in the safety of pipelines standing new technologies for offshore operations have and in the decommissioning of oilfield and offshore been developed and implemented in the sub-sea fields, platforms, and the technologies developed and underwater production facilities and platforms, as implemented, have had the most beneficial impact well as in all types of vessels related to the offshore oil on the environment and the best return on invest- and gas production industry. ment of taxpayers’ money. In the early 90s, when the offshore industry began The results obtained in the development of new, more looking seriously at very deep waters, the European efficient and less polluting engines can be used by scientists and engineers started developing the most European authorities for improved quality standards for innovative technologies. Now, operations are possible the reduction of emissions in urban areas and for guid- at 3,000 metres, thanks to Europe’s professional excel- ance in future legislation on automotive pollutants. lence in engineering.

Assessment of the fossil fuel projects indicated that the new technologies developed did indeed contribute to the above goals.

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The EU funding programmes have definitely helped 7. Improving the programme European companies in the past to develop new technologies and improve their competitiveness in rela- and project management tion to the US. However, the Sixth Framework Programme is concentrating its support on a limited number of priorities, and no funds have been allo- Generally speaking, evaluations made by project coordi- cated to hydrocarbon technologies. On the contrary, the nators underline that projects have been conducted pro- tendency in the US is to put more support and funding fessionally, with excellent communications and harmony into these technologies. between partners. A close collaboration between research institutes and universities, and representatives from the industrial sector, is a prerequisite for developing materials, computational tools or databases with direct implica- The return on investment for the European Commis- tions in the industry. The real benefit for the European sion and the European taxpayer has been good. In the community relies on excellent collaboration between the past 25 years of programme work on energy technol- partners. This kind of collaboration must be encouraged ogy for fossil fuels, particularly in hydrocarbons, and reinforced in future programmes. the contributions achieved have been significant. The European industry has received an enormous There have been problems in a number of instances, which amount of new concepts and techniques which have provide lessons for future project construction and man- supported the industry in improving energy security agement. Where industry has not been an active, partici- and ensuring durable and reliable energy services at pating stakeholder within the consortia undertaking the affordable costs, as well as having a direct positive R&D, then it is noticeable that the research institutes and impact on safety and the environment. universities have experienced some difficulty in getting industry involvement for subsequent R&D initiatives. Not only has the security of supply objective been met, but it has also given Europe the leadership in The work programmes should be optimised, with respect oil and gas technologies, and the opportunity to to the resources of the academic and industrial partners, export such technologies. in such a way that maximum synergy could be achieved. Within the limits of each project, it should have been particularly beneficial if a significant part of the research/development activity had been undertaken on the premises of the industrial partners. In this way, an even greater depth of technology transfer from academia would have accrued and academia would have gained a greater insight into industrial issues.

Individual projects would have benefited from greater awareness on the part of the participants of related projects within the programme. The Commission should encourage exchange of information, not only for existing know-how, state of the art and technical knowledge, but also to avoid duplicating efforts. Likewise, the involvement of a Commission Technical Officer in consortium meetings could help to reduce the consortium’s impression of operating in an isolated project.

The issues raised regarding the need to ensure full integration of industry and balanced consortia must be addressed within the structure of future R&D activities.

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I. FF-Fossil Fuels (JOULE & THERMIE A)

On the basis of the information available to date regard- work to completion. There were instances where enter- ing networks of excellence and integrated projects, the prises and municipalities abandoned projects because intended approach in future programmes should deal their own funds were lacking. adequately with the issues raised. The Commission, in addition to setting priorities for the fields of technologies The contractual arrangements that exist permitting mod- for the projects, should establish requirements on the ifications in the work programme to adjust, while the proj- structure of the consortium, specifying the disciplines. ect is ongoing, to industry requirements, economic climate, and market force changes, must be improved so that It is evident that the more successful projects were led there is no loss of time. In the length of time – which def- and coordinated by a research institute, but with strong initely must be reduced – between project proposal and and active industrial support plus focused input from contract award, the technology is changing and allowance high- quality universities. A key role of the institute is must be made for this. The project must be allowed to to bridge the gap between industrial requirements and evolve, even though the EC funding commitment cannot the academic capabilities of the universities. It is also change. Without exception, the project leaders com- important to ensure true focused dissemination of the mented that lead time on EC projects is considered too pre-competitive results to European industry and, in slow, the system is too onerous, negotiations take too long, many cases, this might be done best via a specialist and there are too many hurdles, with no consideration for organisation rather than the technically focused market and business changes. researchers themselves. Finally, there is the need to ensure that, at some stage in a project, some form of Demonstration projects, primarily for offshore opera- techno-economic assessment is undertaken to deter- tions, might not only require availability of active equip- mine that the R&D is ultimately of potential benefit to ment, but also weather windows for trials; in which case, European Union industry. the work programme time schedules should be flexible. The Commission’s officer responsible for the project should In the THERMIE projects, it has been shown that most be able to approve appropriate changes to the time of those in which the industry was represented in the frame, without delay, as this is essential to the trials. consortium were successful. The end-user partner is a critical factor in demonstration projects. It has the advan- Reporting between the international partners as well as tage that the end-user can follow the development with the European Commission has to be structured and and trials of the new technology project from the begin- planned very early to prevent fruitless efforts. Contacts ning to the end, put in real experience and know-how, with the European Commission officials, on a regular and foresee the application in his/her operations. basis, must keep information flowing in both directions and help to prevent possible misunderstandings. It is recommended that all projects in subsequent programmes that include large-scale demonstration should In the solid fuel sub-sector, all demonstration activities include an end-user who is prepared to carry out the were carried out in industrial- scale demonstration demonstration on his/her facilities. It appears that having plants which was very positive as it reduces demonstra- additional industry sponsors may not be sufficient in tion cost, cuts down the perception of technical risks, demonstration projects – they need to have active involve- improves availability, and represents an essential precon- ment in the project as partners and to take the technol- dition for the commercial application of the technology. ogy into everyday use. In this respect, demonstration projects differ from R&D projects – it is preferable that the actual The projects demonstrated present good replication demonstration in a project is lead by the end-user. potential and the contractors were large companies which are the main users of solid fuels. Firms which The candidates for projects, be they SMEs, municipalities use solid fuels are generally aware of the acute need for or large enterprises, should be scrutinised carefully to new clean technologies and many of them contribute assure that the contracts awarded for projects will have actively to research and development. value, and will achieve the energy objectives and priorities of the European Union, as well as be able to carry on the

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The technical, economic and social benefits of a project The reluctance of the project coordinators to co-oper- could be maximised if the programme management ate with the Impact Assessment Experts and the organises meetings or forums with other projects in the Commission was evident and disappointing when con- same sector, to exchange information among themselves sidering the financial support they received for their proj- and gain from each other’s experience in the specific ects. Understandably, it was additional work on their technical area. Furthermore, increased efficiency will part, when the project had already been completed result from enhancing flexibility and avoiding excessive many years ago but, if nothing else, it should be a bureaucratic procedures that might delay or even discour- moral obligation to the Commission which financed age the project partners from taking some important their projects. actions during the execution of the contract. The Impact Assessment Team, including the EC officials, Almost all of the French projects included GERTH, worked in harmony and made a lot of extra effort to a management initiative supported by TotalFinaElf and obtain the information required for the completion of IFP, as financial project coordinator. However, GERTH’s the assessment task. role appeared to be very confusing for some technical project leaders. The Commission should conduct an assessment of projects every year in order to have a good and effective GERTH normally brought the partners together for the understanding, and then combine the yearly assess- projects. Nevertheless, its administrative role during ments into a programme period Impact Assessment. the life of the projects appears to have been passive and with little impact. It seems that for some projects financial coordination was not enough support during the project and GERTH was often seen as a drain on what could have been research funds.

In general terms, project management has been responsible. The EC scientific officers and the THERMIE technical management (TTM) team were able to follow up the project’s progress and compliance to the work programme, and to assist in the project consortia with technical and/or administrative problems.

However, it is recommended that the EC scientific and technical officers should, along with the other EC services, see that the work programme is complied with and that nothing is side-tracked, especially in the financial part.

As regards the Impact Assessment Exercise, it was evident that the project co-ordinators were not pleased with the extra burden put on them to provide information, fill in questionnaires and prepare project summaries for projects that had been completed many years ago, so their contributions were limited to the bare minimum. In addition, in many cases it was very difficult to contact the project coordinators because of their current status in relation to their original project affiliation.

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II. RUE-Rational Use of Energy (JOULE & THERMIE A)

This report represents the work of a number of specialist experts who assessed the impact of the individual research projects, and a coordinator. The coordinator wrote the present report on the basis of the experts’ brief summary reports. It was then reviewed by the Core Group of the Panel of Experts.

Coordinators: Institutions Thomas C. Brendel IDB Dr. Brendel Consultant Engineers, Frankfurt, Germany Individual Experts: Manuela Alemeida University of Minho, Guimarães, Portugal Karin Drda-Kühn media k GmbH, Darmstadt, Germany Gerard McNulty Systems Optimisation Ltd, Fenor, Ireland Mats Rydehell KanEnergi Sweden AB, Skara, Sweden

Core Group: Nicolas Chrysochoides (Chair) INNOVATION E.E. Tom Casey (Rapporteur) CIRCA Group Europe Ltd Bruno Lapillonne (Technical Rapporteur) ENERDATA s.a. Julie Roe (Statistician) CIRCA Group Europe Ltd

Executive summary

he following Thematic Report summarises the results RUE in buildings and industry has achieved a mature Tand impacts of 98 research and 14 demonstration state, where certain but incremental progress can be projects in the 'RUE - Rational Use of Energy’ sector, expected. Specific research dealing with indoor air qual- executed in the context of the Fourth Framework ity and the adequate maintenance of ventilation plants Programme (FP4) from 1994 to 1998. in buildings went beyond energy efficiency and contributed positively to the quality of life and health. The projects covered the sub-sectors: • Buildings (39 projects, of which nine dealt with the use RUE in industry has a high potential in Europe (and an of renewable energies (REN) in combination with the even higher one in developing countries) and is, in many RUE approach)) cases, on the verge of profitability. Through concentrat- • Industry (45 projects) ing on generic techniques (e.g. soft tools such as software, • Transport (15 projects), and methodological approaches and/or common devices like • Fuel Cells (13 projects). heat exchangers, separation techniques, etc.) a huge replication potential was opened up. The overall project budget was 181.5 M for the research projects and 42.1 M for the demonstration projects, the The industrial projects show that energy efficiency EU contributions being 98.2 (54%) and 14.9 M(35%), techniques can be combined with “process intensifica- respectively. Industry had the greatest importance in tion”. The higher efficiency of plants and more com- the research sector (> 27%) while transport took first pact production rows in turn lead to lower investment place (56%) in the demonstration projects. costs. This again improves the international competitiveness of European industry, not only for the operators Overall, an estimate of nearly 70% of research projects of efficient processes, but for the manufacturers of achieved their goals. Demonstration projects obtained a energy efficiency equipment, too. Target markets are the technical success rate of about 90%, but many missed EU Member States and non-EU markets (mostly Central their target of getting in or close to the market. and Eastern Europe as well as the developing countries).

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1. Introduction By far the greatest compound impact as regards energy saving, pollutant abatement, social effects, and ‘European added value (EAV)’ could be observed from the clustered RUE - the rational use of energy became a major issue in demonstration projects in transport. Taking into account the nineties in Europe. In some Member States its poten- all programmes and actions, more than 60 cities were tial ranks higher than the energy generation from renew- engaged in concerted actions to develop and demonstrate able energy sources1. The underlying reasoning is easy to clean and efficient urban transport. understand: rational use of energy can be applied in Fuel cell research leapt ahead in technical progress, but is building stock and in existing industries, which has bound to need possibly another ten years to become com- immense potential in short- and mid-term energy saving. mercially viable for everyday mobile and/or stationary appli- Rational use of energy means less input to achieve a cation. Fuel cell prototypes, be they built into co-generation given output (i.e. production of goods or the condition- (domestic heating in combination with electricity generation) ing of space or processes) or – vice versa – more output or into hybrid vehicles (e.g. fuel conversion plus electrical with a given amount of energy input. Though rather sim- motors), attract much public attention and are likely to ple from a methodical point of view, attaining these raise awareness about clean energy. objectives requires the application of new and/or enhanced techniques during the complete life cycle of the Despite the obvious success of the FP4 RUE Programme, ‘energy consumer’, be it a building, an industrial process certain improvements for future Framework Pro-grammes or a transportation system. The various phases, from could be envisaged: planning and engineering design through construction The recommendations range from the: and installation and on to operation and production, • Improved evaluation procedures for submitted project require differentiated approaches. Accordingly, the EU's proposals RTD2 support within the NNE (non-nuclear energy) • Mid-stage project evaluation schemes Programme included research, development, demon- • Creation of a ‘Forum for Software and Engineering stration, and dissemination activities. Tools’ developed in the projects • Securing continuity and follow-up actions for success- The following report presents and assesses the impact of ful projects 98 JOULE RUE research and 14 THERMIE_A RUE demon- • Harmonisation and coordination of the research focus stration projects performed under the Fourth Framework in EU Framework and National Programmes Programme (FP4) from 1994 to 19983; it gives an overview of the projects and a summary of the results achieved, it In the course of this assessment exercise, weaknesses assesses the observed and expected, direct and indirect in the method became apparent which have led to the impacts – as far as possible – and formulates recom- following recommendations: mendations for improving technical, procedural and • Reporting the necessary facts for the impact assess- organisa-tional matters in future FPs4. ment should be reorganised and made contractually mandatory for project coordinators. It must be stressed that the RUE projects represent only • The questionnaire and project database need a com- about a quarter of the total number of the research plete redesign to enable reliable and easy data collec- and demonstration projects in FP45. tion as well as fast and meaningful analyses of impacts. • It would be extremely useful if the institutions engaged in preparing statistical data and analyses at the European Commission, at the International Energy Agency and in Member State national governments 1 See figures in Table D-2. could agree upon a common terminology and classifi- 2 RTD Research and Technology Development. cation for projects, sectors and funding. 3 A further 27 JOULE projects had already been assessed in 2001 but were in included in the questionnaire action again. The authors and co-authors would like to thank those proj- 4 Thus, it is part of the accounting effort as requested in Article 4.2 and 4.3 of [5]. 5 The complete assessment covers the sectors RES (renewable energy sources), SF ect coordinators who assisted in documenting and comment- (solid fuels and TR (transport), as well, with about 394 research and 76 ing on their projects for this impact assessment. demonstrations projects in all (RUE projects included).

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2. The objectives • Site visits and intensive personal discussion with the project coordinators and/or other participants in those projects of higher complexity or volume; all in all, 20 The aim of this report is not only to present the results of sites were visited; the single projects and summarise them, but also to reflect • General information about the research area and the on how the FP4 Programme's objectives were fulfilled. various national RTD programmes; These objectives were ".... to improve energy security in the • Handbooks and general references; and broadest sense – i.e. ensuring durable and reliable energy • Internet pages (CORDIS, etc.). services at affordable cost and conditions – and, recognising that the main concern today is the protection of the envi- The looked-for direct impact included: ronment, to reduce the impact of the production and use • New/improved products and processes; • The saving of energy and/or water (including cost) and the of energy, in particular the emissions of CO2. Within this increased energy efficiency; frame, JOULE-THERMIE also aims to contribute to the • The abatement of emissions and environmental pollution; achievement of other important EU objectives such as • The development of tools (e.g. models, software); strengthening the technological basis of the energy indus- • The employment of researchers in the projects; try – with benefits for the economy, employment and • The acquired know-how and skills in the research group export potential, improving social and economic cohesion, (human capital); and and contributing to co-operation with third countries (in par- • Publications and patents. ticular PECO and developing countries)."6 The indirect impacts – where applicable – comprised: In so doing, this report discusses the energy related results • Positive effects on employment beyond the participants' of the projects as well as the indirect impacts beyond the consortium; scope of technical results. Ninety-eight research and 14 • Training and education of researchers and associated demonstration projects in the RUE sector have been screened staff; against this background. • Creation of public awareness for energy matters; • Economic growth; This was done by a group of six experts7 (including the • Strengthening European competitiveness; author), based upon the following information: • Social improvements; • Project related material (e.g. final project report, TIP8, • Quality of life and health; publications, etc.); • Normative work and standardisation; and • A 17-page questionnaire sent to and (typically)9 filled • Co-operation with third countries. in by the project coordinator and checked by the experts. The questionnaire covered approximately 350 items deal- It is evident that for RUE projects in particular the latter issues ing with various aspects of the project, its outcome and are difficult to quantify and could not be assessed easily10. impact. Project co-ordinators were asked to estimate the impact of their project directly after completion and – seen from the project's end – five years later. Since most projects ended in 1998 and 1999, the latter estimate refers to a point in the near future, two years from now, and may be regarded as a sort of hindsight. These questionnaire results will be published separately; • One or more telephone interview(s) with the project coordinators, conducted by the experts;

6 See (13) 10 Similar [1]. 7 See Appendix E. 8 Technology Implementation Plan, see [15]. 9 In rare cases, the experts had to fill in that form themselves.

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3. The projects

The results of 98 JOULE (research) and 14 THERMIE A Thus, the findings could be considered as representative. (demonstration) projects in the RUE sector are included The projects fall into five sub-categories areas as shown in in this report. These projects represent not all, but the Figure 1. majority of the projects performed in RUE under FP411.

Figure 1: RUE JOULE projects in assessment according to sub-sectors

Distribution of RUE projects according to subsectors (total = 98)

39 27

REN_Bldg. RUE_Bldg. RUE_Industry Transport Fuel cells

9 10 13

Note: Bldg = buildings. The projects dealing with renewables (REN) in buildings represent only a small part of the whole REN complex.

Both the industry (39 projects) and the building sector (27 + 9 = 36 projects) together represent three-quarters of all projects, the rest being divided between transport and fuel cells.

Looking at the budgets – Table 1 and Figure 2 – gives a slightly different picture.

Table 1: Budget total for RUE JOULE projects according to sub-sectors

EC contributions 1994 - 1998

REN_Bldg. RUE_ Bldg. RUE_Ind. Transport Fuel Cells Total Total in K 7.430 18.080 26.850 20.000 25.840 98.190 % 7,6 18,4 27,3 20,4 26,3 100

11 Effects of parallel (non-technical) actions as they were performed, for instance, under the EU's SAVE programme from 1996 on, with an approximate volume of 10 M per year, were not assessed in the context of this report.

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Figure 2: EC contributions relative to RUE JOULE projects in the sub-sectors EC Contribution in sub-sectors (100% = 98.2 M)

REN_Bldg. RUE_Bldg. 8% 18% REN_Bldg. Fuel Cells RUE_Bldg. RUE_Industry 26% Transport Fuel cells

28% RUE_lnd. 20% Transport

Though transport and fuel cells represented only 25% projects was about 113 M13 which means that approxi- of the projects by number, their budget share is nearly mately 11% of the global EU's FP4 NNE budget (~ 1.000 47% of the total budget, which means that these sec- M) went into RUE. In the EU (15) national programmes, tors had the bigger, more complex, and relatively more the total public funding of RUE and fuel cell research for expensive projects. the years 1994 to 1998 was about 1.300 M14 – see Table The average EC contribution was about 1 M per proj- D-1 in the ‘Tables’ section below – the ratio of EU funding ect and the EC share was approximately 54% of the total to national public funding being approximately 9%. eligible cost. Thus, the ‘value’ of the 98 JOULE research projects amounted to about 181.5 M. Although there are no exact figures available for private research spending, the SENSER authors15 assumed that the For RUE THERMIE A projects, the total eligible project private sector invested about the same amount in research costs were about 42 M, 14.9 M (approximately 35%) and pilot installations. Following this assumption, it can of which were contributed by the EC. The distribution be concluded that EU research funding in RUE reaches less is similar to JOULE: out of 14 projects (three in the than 5%. This has to be regarded as subsidiary, when building sector, six in industry and five in transport) compared to the overall budget, even if it is assumed the five projects in transport drew 56% of the available that there is some leverage effect with EU contributions16. RUE budget12. No demonstration projects were performed in the fuel cell sector, which is not surprising since Of course, the share of EU funding compared to the fuel cells were not sufficiently developed for practical national and private programmes varies from country pilot installations at that stage. to country, and sector to sector. Whereas the ratio of the The total EU contribution to these JOULE and THERMIE A EC contributions to REN vs. RUE for JOULE projects

12 It must be noted that these figures refer to the 14 projects listed in Appendix C, 13 Including unaccounted projects. Table 2 and do not include either a group of targeted THERMIE 14 Unfortunately, classification by the IEA and EU respectively of the Commission projects in the area of urban transport, such as ZEUS, SAGITTAIRE and Jupiter-2 with regard to sub-sectors and research and demonstration activities or a series of RUE projects in industry performed during this period (see [12]). is different and therefore not completely consistent. 15 See [14]. 16 See Section 5.1 below.

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Figure 3: National German funding for energy research (1974 … 2006 [prognosis])

400 Mlo EURO 350 Rational use of energy Renewables 300 Fossil fuels conversion

250

200

150

100

0 Year 1975 1980 1985 1990 1995 2000 2005 Source: BMWI - Germany

under FP4 was approximately 1.5 (98:144), national projects were funded from both EU and national funds, programmes in the Member States set completely but this tended to be the exception. Generally, to the different priorities during those years. knowledge of the authors, research issues were not coordinated or harmonised between the EC and the Member France, for example, invested 19.4 M in renewables State national governments. compared to 29.4 M for RUE17, whereas Germany spent about 20 M per year for RUE, which was only a quar- By trying to analyse the scope of the EU-funded projects ter of the German national REN funding (~ 80 M) – see in the different sub-sectors, one recognises the focus on also Figure 3. the development of new or enhanced components and processes in industry – see Table 2. Hence, it can be concluded that in Germany, where the national programme was so extensive, EC funding may Of course, the project categories given in Table 2 should have given more momentum to RUE than to RES. not be interpreted as being exact. Today, every engineer- Furthermore, some experts had the impression that – not ing-related project has a major software aspect. Thus, implausibly – EU funding played a more important role in ‘hardware’ projects always include ‘soft’ tools such as the smaller MS18 (e.g. Sweden) with lower RTD budgets, thus modelling, simulation and optimisation software, e.g. enabling and supplementing research in fields which could CFD – computational fluid dynamics, CAPE – computer- not have been tackled otherwise. However, there were no aided process engineering, and LP – linear programming; detailed financial and statistical figures available to attrib- in about 80% of the projects software was not only ute EU contributions to the researchers/ groups in the var- applied, but also developed by the researchers. The ‘soft- ious Member States and their weight compared to the ware’ classified projects in Table 2, on the other hand, national programmes. have their main focus on developing algorithms or expert systems and the appropriate knowledge basis; Judging by a small sample of research projects, it appears application to real life, e.g. transforming and implement- that the topics of national and EU research were rather ing the findings in industrial plants and processes being similar during those years. In some very rare cases, research a second step.

17 See Table D-2 – ‘Tables’ section. 18 Member States.

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II. RUE-Rational Use of Energy (JOULE & THERMIE A)

Table 2: JOULE and THERMIE A projects according to focus

REN RUE RUE Transport Fuel Total %

Type Description Bldg. Bldg. Industry Cells A Architecture RS 2 2 2 B Building Automation and Controls RS 7 7 6 C Components RS 2 18 11 8 13 52 46 D Demonstration Projects * 3 6 5 14 13 E Engineering Research RS 3 1 4 4 M Measurement Techniques RS 1 1 1 N Guidlines and Preparation of 11 1 33 Normative Actions RS P Process optimisation RS 1 19 20 18 S Software and Expert Systems 3 6 98 (Modelling and Simulation) RS Total: 9 30 45 15 13 112 100 Legend: RS = Research, D = Demonstration * not assessed in this report, see Thematic Report RES.

Figure 4: Project focus in RUE sub-sectors

Project Focus in Sectors

Legend:

20 A Architecture M Measurement Techniques

18 B Building Automation and Controls N Guidlines and Preparation of Normative Actions C Components 16 P Process optimisation D Demonstration 14 S Software and Expert Systems E Engineering Research (Modelling and Simulation) 12

Number of projects 10

4 Fuel Cells REN Bldg. 2 RUE Bldg. 0 Transport RUE Industry A RUE Industry Transport B Sector C RUE Bldg. Fuel Cells D E M REN Bldg. N Focus P S

The average duration of the projects was 30 months for A short description of the projects can be found on the the JOULE research projects and 36 months for THERMIE CORDIS web pages – 27 projects were presented in [9]. A demonstration projects.

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4. The results: Technical 4.1 RUE in Buildings

Energy conservation in buildings is not a field for rad- In the following sections, the technical results of the proj- ical innovations. After so many years of research, ects in the four RUE sub-sectors are presented plus – progress here is incremental, aiming mainly at improv- wherever possible – their direct impact in terms of ing existing techniques for newly erected and/or retro- energy savings and application potential (represented fitted buildings – the latter being a vastly more attrac- by the payback time for the eventual necessary invest- tive field. ments). It is evident that there is no simple way to extrapolate the figures from single projects on to the FP4 The 36 JOULE projects here can be categorised as follows: programme or a mid-term perspective at EU level. a. Methodological approaches, e.g. providing and When asked, some contractors were quite understand- preparing climatic data for engineering calculations, ably very optimistic, expecting short-term savings in engineering software for evaluating a building's energy consumption or spending of 50% and more as energy status; or a result of their project results in the area addressed. Of b. Components with improved energy gain factors either course, one has to be very cautious with such projections: for HVAC (heating, ventilating and air-conditioning) it is not the best-case ‘efficiency gain factor’ (EGF) which systems like burners or heat pumps, or for the build- counts, but rather a realistic market penetration factor ing envelope (e.g. ‘smart windows’ – letting the day- (MPF) with an average EGF which should be used. In light in, but keeping the heat out); addition, every new technology or process has to achieve c. More efficient processes (solar driven or desiccant publicity and acceptance on the one hand (a matter of cooling) and processes with reduced GWP (global how well the dissemination strategy of the project warming potential) by substituting CFHC19 refriger- worked) while, on the other hand, it has to stand up ants with ammonia or other less obnoxious working against economics which accepts only certain (short) media (e.g. propane, butane, etc.); payback periods. d. Improved control systems/strategies (‘intelligent’ or adaptive controls and control networks respectively, With three exceptions, all projects ended having installation bus systems); achieved their technical goals more or less completely. e. Indoor air quality, determining the requirements of In about two-thirds of the cases, the projects were ventilation rates, etc. and development of measure- regarded as a technical success. ment techniques; and f. New design concepts for office buildings (and residen- The remaining third stayed below expectations for sev- tial homes), integrating architecture, technical equip- eral reasons: ment, and control aspects. • Problems within the researchers' consortium paralysed progress, e.g. Most of the projects delivered improved components - Conflicts of interest and prototypes, but did not come near to a state ready - Commercial problems, e.g. bankruptcy for commercial deployment. However, since researchers • Some projects would have needed further research and industry have been working intensively in this area efforts and time, but no additional funding was available. at national and international levels for many years, • Competitors emerged, making the end-product obsolete. realistically an easy and surprising technological breakthrough could not be expected. From a commercial or market penetration point of view, only a few projects made real breakthroughs – the reasons for this are discussed below.

19 Chlorofluorohydrocarbons, which are mainly responsible for ozone layer depletion.

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This is also true for the commercial aspect of the demon- Figure 5: Natural ventilation plant with auxiliary fan stration projects in this sub-sector – see also Table C-2 in and air-to-air heat exchanger; from Appendix C. One project dealt with the production of elec- the NatVent project (JOR3-CT95-0022) trochromic glazing (e.g. windows that can adapt their transparency and thermal conductivity to the radiation and temperature conditions to an energy optimum). This was in a series of three JOULE projects on similar topics under FP3 and FP4. Although the prototypes met the technical requirements, the glazing did not reach the targeted cost level necessary to be commercially competitive on the building market. Fortunately, however, following some alterations, a successful entry into the automotive industry was achieved.

In another demonstration project, ammonia refrigera- tion systems using flo-ice as a refrigerant were developed for supermarkets, but market introduction was only seen five years after the project's completion and then it was based on a different concept. In contrast, the installation of a large heat storage system in a rock cavern (a former petrol storage area) for optimising the operation of a CHP (combined heat and power) plant in Finland showed the expected results and – with the help of the EU contribution – achieved a pay- back20 time of approximately five years.

Without a doubt, for new buildings the design issue (f.) has the highest potential: subsequently, if followed-up, In addition, renewable energies may complement this office buildings in mid-Europe could operate with a spe- scheme – seasonal heat storage in the ground or solar- cific primary energy consumption (i.e. heating and elec- driven, absorption or desiccant cooling plants for the tricity for ventilation and lighting) of less than 100 kWh summer time. per square metre without any loss of comfort standards21. This would represent energy savings of between 50 to The design of such buildings/systems requires great skill 70% compared to today’s average energy consumption and interdisciplinary teamwork by architects and engi- level. The basic idea is to use the natural convection of neers and the use of sophisticated computer models. air and the thermal storage of a heavy, highly insulated Here, innovative building design influences progress building and daylight to provide comfortable conditions in computer-simulation techniques and vice versa. without much auxiliary energy being needed. If cooling is required, mechanical ventilation at night with cold At present, buildings conditioned along these lines require outside air induces comfortable office temperatures. a high-level engineering approach22 and additional investment when compared to conventional buildings, for the Figure 5 shows the principle of a mechanically supported, nat- benefit of being able to promise lower operating costs and ural ventilation system (hybrid ventilation) with heat reclaim. a better balance over the life cycle. This is why these techniques are now found mostly in prestigious projects such as Germany’s new Reichstagsgebäude (with a large seasonal aquifer-storage), or Portcullis House in London. 20 Payback time is defined as investment cost/(annual energy cost saving – Although they do not have a significant impact yet, they annual maintenance cost) in years. 21 See, for example, the projects NatVent (JOR3-CT95-0022), Air-Instruct may gain some ‘publicity’ and are a good advertisement (JOE3-CT97-7003), TIP-Vent (JOE3-CT97-0080), EDIFICIO (JOE3-CT97- for sustain-able building design. 0069) and others. 22 This puts a burden on the engineers, as discussed below.

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This mixture of generic techniques and branches 4.2 RUE in Industry (Table 3) was intended to create the highest potential for replicating successful technologies in other branches and In the RUE in industry programme, the major efforts even trans-sectoral, e.g. in the transport or building sector. were devoted to ‘generic’ techniques such as: 23 a. Enhanced separation and distillation processes ; Two projects28 referred to the paper industry – one of the b. Process engineering to improve processes or intro- most energy-intensive industries in Europe. One project duce new ones; here researched the techniques and processes to press and c. The design of common components (heat exchangers, dry paper at higher temperatures and pressures than on furnaces, ovens and kilns)24 and other equipment for conventional machines, and proved it was feasible. energy efficient operation and compact installation; d. Control strategies and sensors25 ; and Should this become state of the art in the near future, the e. Modelling, which comprises CAPE (Computer Aided size of papermills and machinery (and the energy consump- Process Engineering) tools for ‘Energy Synthesis’ tion) could be reduced significantly. Figure 6 gives a good (SYNEP), CFD (Computational Fluid Dynamics) and so- example of what process intensification can mean. called Expert Systems (EXSYS))26 and other techniques. The application of intensified and high-performance ther- All this can be subsumed under the term ‘process inten- mosyphon reboilers in the oil and gas process industries sification’ which means designing processes in a way that (JOE3-CT97-0061) – see Figure 7 as an example – goes in a they run on more compact and therefore (often) less similar direction; here, a reduction of nearly 50% of the size costly equipment with greater energy efficiency and less and weight of the heat exchangers was achieved. pollution27. Herein, both energy saving and economic water usage were targeted. There were 39 research Many of the industry projects uncovered a high poten- projects plus six demonstration projects, covering a vari- tial for reclaiming waste heat, for the use of energy sav- ety of industrial applications – see Table 3. ing components and process intensification, and demonstrated it. Thus, with a share of nearly 30% of the energy consumption and probably a higher percentage

Table 3: Distribution of industrial projects according to branch and focus

BRANCH FOCUS Separation & New & modi- Components Controls & Modelling Distillation fied processes & Equipment Sensors & Software

Joule Thermie Joule Thermie Joule Thermie Joule Thermie Joule Thermie Chemical Industries 3 3 2 1 Energy generation 1 1 1 1 Food 2 Glass 1 Paper and Pulp 1 1 Non-Ferrous metals 1 1 Oil and gas 1 2 Steel 1 1 1 Textile 1 1 General (e.g. heat exchangers etc.) 3 7 1 6 TOTAL SUM 7 9 1 14 3 2 2 7 45

23 For instance [20]. 27 In energy conversion and also in manufacturing processes: e.g. JOE3-CT97- 24 For more information see [16], [17]. 0072, where the lead bath in steel wire patenting was substituted by a fluidised 25 See [20] with further references. bed-bath treatment, leading to higher product quality, too. 26 See [18], [22]. 28 JOE3-CT97-0078 and IN 204/1996, see also [23].

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Figure 6: Evolution of paper plant size (process intensification) – from JOE3-CT97-0078

in pollution production in the EU, the industry sub-sector Furthermore, industry managers are willing to invest in promises the best mid-term impact by applying these energy-saving equipment and measures only when the techniques, theoretically. In practice, however, innova- technique is proven and the payback period is typically tors face a rather conservative clientele: as long as no longer than three years. This means that the return energy is relatively cheap, hardly any manager would on the investment must be guaranteed here in much dare to experiment with a ‘new’ system at the risk of a shorter terms than in the building sector, for example. two-day production standstill, probably costing more than the value of the energy saving over a whole year. Since process intensification can reduce capital investment and operating costs (energy, maintenance) while, at Figure 7: Reduced-size propane/propylene splitter the same time, innovative and successful industry projects (TARGOR plant) – JOE3-CT97-0061 strengthen the international competitiveness of European manufacturers. A good example is found in demonstration project IN/6/1995 which developed a ‘fuzzy’ con- troller for arc furnaces. This led to energy savings of about 2% and productivity gains of 5% with little investment and found interest in the steel industry in many countries.

The energy savings achieved in the various projects and areas range from zero to 40%. Various projects dealing with burners and heat exchangers identified and proved an average saving potential of about 12 %. Higher efficiency gains were observed by the introduction of new distillation and separation processes in the chemical industries: here, up to 40% energy and/or product input savings were achieved, and the processes proved to be feasible for large-scale applications in mid-term perspective.

4.3 Transport

RUE in transport was covered by ten research projects dealing mainly with components: batteries, energy storage with flywheels, supercapacitors, and batteries for vehicles. One project analysed and proposed EU-harmonised safety

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regulations for hydrogen-fuelled vehicles, while another • CENTAUR (TR/1009/1996 and TR/280/1997) was an tackled the design of energy efficient ships. Five29 demon- outstanding project, probably showing the highest stration projects were carried out in urban transport. degree of multi- and interdisciplinary partnerships in The aim was to achieve a reduction of investment and urban transport. Ten cities participated: Barcelona, operation cost by the development of new, multi-pur- Bologna, Bristol, Dublin, Graz, Las Palmas, Leipzig, pose vehicles (passengers and goods, e.g. TR/52/1995) Naples and Toulouse. Krakow will follow as the and induce a modal transfer from private to public eleventh. The total energy saving benefits of CEN- transportation. TAUR measures rose from over 250 toe per site per annum after the first year to almost 800 toe per site The average research project had a volume of 4 M and per annum over a five-year planning period. the demonstration projects 4.6 M; the total EC contribution amounted to 28.4 M – i.e. around 25% of the • The Hybrid Bus project comprised a bus fuelled with total RUE Programme budget. biogas driving an ICE (internal combustion engine) This alone shows the importance the EU attributed to which loads the accumulators for the electric wheel this sub-sector – a sub-sector in which approximately motors – see also Figure 8. This was carried out in 32% of the total European energy expenditure occurs Uppsala, Malmö and Bolzano (TR/228/1995). It 30 (307 Mtoe of 955 Mtoe in 1999; see also Table D-2 in achieved significant reductions in pollution: CO2: - the ‘Tables’ section below). 30%, CO: - 60%, NOx: - 50%. and, in addition, received 31 All in all, 60 cities in Europe were involved in urban good ratings from the users: 80% of the public inter- transport projects, attracting a lot of public attention. viewed considered the buses good, and the accessibil- Not surprisingly, the compound transport projects ity of hybrid buses was increased by 50%. achieved very good and visible results: Figure 8: Prototype of a hybrid bus developed in TR228/1995 (Uppsala, Malmö and Bolzano)

Big gas thanks on the roof

Electronic equipment Batteries

Wheel motor Gas engine and generator

30 Mtoe = million tons of oil equivalent. 31 There were further targeted THERMIE projects in the area of urban 29 Two projects represented phases I and II of the same project CENTAUR transport like ZEUS, SAGITTAIRE and Jupiter-2 which are not covered by (Clean and Efficient New Transport Approach for Urban Rationalisation). the a.m. budget figures – see [12].

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Due to their large volume and the participation of so Figure 9: ZED zero-emission downsized many cities (clustering), these projects in--curred enough urban vehicle (JOE3-CT97-00767) critical mass to be perceived by a broad public. The multinational and interdisciplinary, even trans-sectoral, approach from modal traffic planning to new vehicles and new services created perceivable European Added Value (EAV)32. This is also true for projects preparing legislative actions, such as JOE3-CT97-0088 (EHP – European integrated Hydrogen Project), which treated the prerequisites for hydrogen fuelled road vehicles with fuel cells and ICE on the European level.

Some ‘purely technical’ projects were successful, too:

• The development of supercapacitors for electric vehicles (JOE3-CT95-0001), a project coordinated by an experienced industrial partner with a strong leadership Overall, the transport-related projects covered both and with clear ideas about the prospective research the improvement of urban public traffic as well as the and the market needs; development of low-emission electric vehicles for private transport, showing promising results. • Test-benching and evaluating various battery technologies as the basis for traction energy storage sys- 4.4 Fuel Cells tems – the weak spot in electric and hybrid electric vehicles (JOE3-CT95-0021); in this and other projects Fuel cell (FC) research was the subject of 13 projects in (e.g. JOE3-CT95-0012) dealing with accumulators and FP4, aiming at basic research in materials and processes, systems for electric vehicles, practically all European car and ranging from prototyping of components (reform- manufacturers (BMW, Daimler-Chrysler, Fiat, Ford, ers, reactors [CPO Catalytic Partial Oxidation] and stacks) Opel, Peugeot, Renault, Volvo and Volkswagen) par- to the construction of pilot plants, and covering a wide ticipated, as well as the major battery producers, giv- spectre of various FC types and combinations, e.g. ing a good example of research with a European dimension and EAV. One project achieved energy stor- • SPFC – solid polymer 33 age and power ratios over 120 Wh/kg and 240 W/kg • SOFC – solid oxide at battery module level, which can be seen as a good • DMFC – direct methanol basis for further intensified development. • MCFC – molten carbonate • DIR-MCFC direct internal reforming molten carbonate • An electric, tri-wheeled and covered scooter for one • PEM polymer electrolyte membrane person, the ZED (zero emission down-sized urban • HTFC high-temperature fuel cells on the basis of SOFC vehicle JOE3-CT97-0067) – see Figure 9, which a and/or MCFC fuel cells, both for research consortium led by FIAT plans to introduce to • stationary (household or CHP – co-generation of heat the market in 2003. With a maximum speed of up to and power at small power plant scale) and 45 km/h and an operating range up to 80 km, it may • mobile (portable and automotive) applications and be attractive for commuters. operated with • hydrogen, • natural gas, or • methanol (i.e. methyl alcohol – CH3-OH).

Total project investment was 53.3 M with an EC contribution of 25.8 M (~ 49%). 32 See [27]. 33 These ratios represent the ability of a battery to deliver the energy storage and power requirements within reasonable battery weight.

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Most of the projects were successful in reaching their Figure 10: Improved design of a 550cm2 DMFC fuel cell technical goals – at least partially – as far as power output, fuel efficiency, and compactness/weight and durability were concerned,34 the farthest target being a fuel cell with a volume of 1 litre and weighing 1 kg per kW electric power output. Figure 10 shows an example in this direction: the improved, reduced-sized methanol FC on the left, the predecessor on the right.

Not so, were the efforts to narrow the gap to market introduction, a cost range of 100 to 200 being the goal here35. Even after four more years of research following the end of FP4 and another 31 FC projects, researchers in industry do not expect the FC will gain momentum in the course of the next ten years. Then, the FC may have a brighter future in stationary application (e.g. CHP Source: JOE3-CT0095-0025 for domestic applications) than in automotive applica- This may be the reason for some companies either ter- tions. Apparently, the FC will not be a magic remedy for minating FC development or putting it on ice. In times the carbon-free production of electricity and/or automo- when ‘shareholder value’ is the magic (but abused) tive energy, at least not in Europe where renewable term, even big international companies and consortia resources for producing hydrogen are limited. hesitate to invest in research and technological devel- Furthermore, hydrogen is an unwieldy fuel for vehicles: opment with horizons beyond three years. Here, the typ- the liquid phase temperature must be below -252°C, and ical 50% subvention from the EU or national pro- at normal temperatures it requires tanks which can endure grammes may not be a sufficient stimulus. What is at least 200 bar (200 times atmospheric pressure). To needed, according to expert opinion, is basic research, extend the operating range of the car, high-pressure mainly in materials (catalysts and MEA membrane 36 tanks were developed (for pressures up to 700 bar) . electrode assemblies) and production processes. These devices pose many problems regarding safety reg- Unfortunately, big companies seem to have little enthu- ulations in passenger transport and at refuelling stations. siasm for investing here.

37 If, on the other hand, methanol-fed FCs are considered, In contrast to this is the attention in, and the expecta- the ultimate fossil conversion efficiency is estimated to reach tion of fuel cell technology by the general public. This 27% which is low compared to today’s best internal com- may be due to appealing prototypes (see for example bustion engines (ICE), e.g. diesel motors which target 40% the NECAR vehicles by Daimler-Chrysler, Stuttgart with and are on the way to coping with the highest standards DIR-DMFC, or the micro power plant (SOFC) for the res- 38 in pollution (CO2 and NOX) abatement, too. However, the idential home - Sulzer Hexis, Winterthur). Thus, the methanol FC could be the trump card when fuel oil reserves public impact may be ambivalent: on one hand, inter- have been exhausted – a situation which is not expected est is drawn to energy matters and pollution abate- in any models and scenarios for the next 30 years – see [26] ment, which is positive; on the other hand, the expec- with further references. tations for available and affordable systems may be too high which can lead to disappointment and rejec- tion. This was the case when, in the seventies, heat pumps for space-heating were introduced on to the 34 See JOE3-CT95-013 (HYDRO-GEN. Second generation PEM). market prematurely – an ‘innovation’ from which the 35 As seen in JOE3-CT95-0038 (Compact Methanol reformer test-design, heat-pump market has never recovered. Fuel cell construction and operation of a 25 kW unit) as the threshold to mass market. 36 See JOE3-CT95-0013. research and demonstration is surely a challenge at the 37 CH3OH which is liquid at atmospheric conditions and is produced from European level: without international co-operation, natural gas but can only be manufactured economically in large-scale many consortia would not have been able to cover all industrial plants. 38 So-called HCCI homogenous-charge compression-ignition engines. For an overview, see [2].

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the complex aspects and tasks. Through this approach 5. The results: Socio-economic European fuel cell technology represents the latest state of the art, ranking ahead of the United States and and environmental way beyond Japan39.

Last but not least, there is an often overlooked military 5.1 Socio-economic impacts aspect in fuel cell technologies. The navies are very What economic impacts can be expected from the RUE interested in PEM for submarines while the armies are projects? Answers cannot be given readily40 but, first of interested in high-performance, compact and mobile all, using energy more sparingly and reducing energy DMFC for the ‘electronic soldier of tomorrow’. costs frees resources for either investing in energy-saving measures or other necessary expenditures. 4.5 Summary Thus, the effects of successful RUE projects on employ- As a rough estimate, nearly 70% of the research projects ment should be fairly neutral: a slight, if any, increase hit, or came near to, their technical targets, which appears in employment in engineering firms and companies to be a fair assessment and is surely better than what can manufacturing and installing components may be off- be expected considering the inherent risks of research. set by cuts in utilities and transportation. Even for the REN product industry (solar plants, wind turbines, etc.), Demonstration projects did better by achieving about the discussion is controversial: in Germany, for instance, 90% of their technical objectives, but fell short in the optimists claim that there has been a total gain of market presentation. Only about one-third produced employment in REN industry over the last ten years of commercially viable results, e.g. products/solutions with 130 000. The real figures are most probably lower, commercially acceptable payback periods of less than which can be concluded from a comparison to the three years in industry and less than seven years in turnover per capita in other industries. buildings. Project coordinators estimated that an average of another three years (time-to-commercialisation) The RUE approach has had surprising effects in engineer- would be necessary to enter the market with the devel- ing companies engaged in building and HVAC design: oped products. ‘soft air-conditioning’ solutions require higher and very complex calculations and therefore advanced skills – Successful projects in industry often combine multiple it is not possible to simply take a stereotype solution benefits, e.g. out of the drawer. However, on the other hand, the pay- • savings in energy or water, ment of engineers’ fees is proportional to the worth • abatement of pollution, in many cases over-propor- of the technical equipment in the building, which is tional to the energy savings by enhanced process reduced simply through the application of these control, techniques. This creates a ‘pinch’ and a revision of salary • more compact equipment/plants (process intensifica- tables and reimbursement methods for architects and tion), leading to lower investment and operating costs, engineers – on a common European basis – would be • better quality in the end-product, and very useful here. • safer and healthier working areas. In general, RUE research has an inherent effect on Complex industrial projects, as well as the electric vehi- employment or – better – preservation of jobs. Since cle and fuel cell research, demonstrate European added practically none of the projects would have been value at its best: without the multinational partner- launched without the aid of the EC, the work on RUE ship of technology leaders, many of the projects could projects – with an overall budget of 220 M41 – created not have been launched or successfully concluded.

40 See also [1]. 39 Based on personal communications with researchers. 41 Of this, it is assumed that only approximately 50% is personal cost.

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employment for more than 200 researchers in Europe 5.2 Environmental effects each year over this five-year period. In addition, 100 man- or woman-years’ experience in research is an Direct environmental benefit (EB) of energy-saving invaluable investment in human capital, enabling Europe measures is the reduction of pollution, e.g. GHG to compete successfully with the United States of (greenhouse gases [CO2]), toxic gases (CO), nitric oxide America, Japan and other countries, not to mention the (NO ) and other volatile organic compounds (VOC), e.g. indirect effects of improved training and education of x soot, etc. and, in the long run – most probably – young researchers and associated staff. Without a doubt, the avoidance of global warming. fostering European cross-border relations and networking among the researchers promoted quality in the scientific In general, EB is proportional to the achieved energy community. However, women researchers remain scarce in savings but even higher when fuel is substituted by the RUE business: less than a handful of the researchers renewables. Industry can contribute a bit more when were women, and only three project coordinators were reducing exhaust gases and/or cleaning them by apply- identifiable as female on the payrolls. There is no simple ing optimised process control and well-suited equipment. and logical way of explaining this phenomenon. However, the anti-pollution effect is and will be Other socio-economic effects are more diffuse, but highest in transport if modal switching (e.g. from nonetheless important: car to rail) is considered as an additional feature and the electric vehicle as a mid-term perspective. A far-off goal • Cleaner air, either in our cities (through improved pub- is ‘clean’ automotive traffic driven by fuel cells based on lic transport) and in our offices (through well designed hydrogen, ideally produced without fossil fuel input. and maintained HVAC plants) improves the quality of life and health; this, in turn, attracts public interest in energy matters.

• Healthier and safer working areas through new production processes, diminish the handling of toxic substances such as molten lead in steel wire drawing plants.

• Improved hygiene through optimised steel pipe air- conditioners for cheese ripening42 factories.

• New concepts and products for public transportation improve both the mobility and the acceptance of public users. They also make private transport easier by reducing traffic jams, and have indirect positive effects like lowering noise emissions or diminishing the risks of traffic accidents.

• Early consideration of common European guidelines and standards for products and safety avoids duplicating national efforts and creates the basis for high quality and fair competition.

` 42 Project JOE3-CT98-7028: this project had the largest number of partners in any consortium – 16.

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6. Project and programme Targeted actions and clusters Some very similar targeted actions were found in the management building sector concerning glazing, and in the industry sector dealing with expert systems, which raises the question of whether it would not have been better to Management by the Commission ‘cluster’ these projects, as was done with transport In general, project coordinators were very content with demonstration projects. There are pros and cons for the Commission’s management of the projects. In some these considerations: by clustering, projects may gain cases, less rotation of EC officers in the course of a proj- more momentum and reach the critical European mass, ect would have been beneficial and appreciated, as well but it may tend towards homogenous solutions, ham- as a higher contractual flexibility when changes in proj- pering innovation. ect partnership occurred. Partnerships More than 90% of the project coordinators stated that The most important factor in a successful project was the they would have done the project in much the same way composition of the partnership. Although there is no rule if they had to do it again. However, some project coordi- for the optimum number of partners in a consortium, nators reported that they based their project on wrong it appears that partnerships of up to five work well, assumptions about the availability and performance of a whereas larger consortia often crystallise to a nucleus certain process or component, thus leading to delays and of two to five active partners. Having a big company higher costs; the project itself may have reached its objec- in, or leading, the project does not necessarily guaran- tive had the Commission agreed to an extension and/or tee success. In some cases, co-operation with industry was an additional budget. It would be wise to consider whether described as problematic and often SMEs are more projects facing such a predicament could have the chance engaged than their larger counterparts and may provide of an ‘add-on’, after evaluation by independent experts. better continuity in research44; in very large enterprises, business policy can change quickly, bringing research to Project management and dissemination of results an abrupt halt, regardless of the state of research In general, the time, effort and cost of project manage- already achieved. The Commission should, therefore, ment and coordination seemed to be underestimated, consider contractual models which offer and bind com- which may be the reason why many projects fell short in panies to continue the research in the case of positive their efforts to dis-seminate and promote the results at or results. This could be particularly useful when aiming at after completion of the project. the transfer of components and techniques to third world countries – see below. This may be partly due either to non-convincing results or to the lack of a convincing strategy, but in many cases the lack of funds at the end of a project was addressed. Quite surprisingly, only about two-thirds of the projects used the Internet as a forum and in many cases the web pages were found to be out of date. The Internet presentation of research institutes and large companies was generally better and more professional than that of SMEs43 – which may correlate with the budget available for this matter.

Therefore, it could be a good idea to define an intangi- ble reserve for those activities at the outset of a project.

43 Small and medium-sized enterprises. 44 It is a bit disappointing, therefore, that in the THERMIE RUE demonstration projects the participation of SMEs was practically non-existent.

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7. Conclusions and the even bigger problem of getting these techniques and products into the real world, which demands pay- recommandations back periods of five to eight years maximum.

• Renewables in buildings – i.e. mainly solar appliances46 – still have a certain potential, but face the problem of 7.1 General not being ideally suited for an economically justifiable installation in mid- and northern European countries. In general, the FP4 objectives were achieved but, understandably, not to the same degree in all sectors/sub- • RUE seems to have more potential in industry than sectors. Particular successes and shortcomings will be in buildings, but the incentive to apply the findings discussed in the following sections. Many projects came of research is often not strong because of relatively low close to their technical target – only two research proj- energy prices and an acceptable payback period ects and one demonstration project ‘died’ or were ter- of three years at the most. Furthermore, an under- minated prematurely, which is less than 3% of the total standable conservatism determines changing proven projects. Most of the project coordinators or consortium technique: in some branches, a two-day production loss speakers stated that their company would not or could due to a failing device may easily annihilate annual not have performed the research project without EU energy savings. funding or support from a national programme. Moreover, it appears that even with typical EU contri- • Public passenger and goods transport seems to have a butions of 40 to 55%, some issues may not be tackled huge potential. Here, research and demonstration in the future. promise the highest technical and socio-economic 7.2 Scientific and technical impacts, as was shown for the clustered urban traffic projects in this sector. To some extent, the impact of Research in the various RUE sectors was launched from transport research is correlated with FC development, quite different starting points in 1994, energy saving but FC is only one option here and the affordable fuel- in buildings, for example, being the topic with the cell-driven vehicle is not yet in sight. longest history in national and EU programmes, began in the mid-seventies. The RUE sub-sectors may be ranked • Fuel cell research is at the lower end of the learning in a simplified manner according to the expected curve: it is relatively ‘young’ and has a long way to go benefits of research (or maturity of a technology) vs. the to become commercially applicable. Here, real break- necessary research efforts, as in Figure 11, projected throughs can be expected. That this area is rated on the on to an imaginative ‘learning curve’. steep growing part of the learning curve does not mean that progress will come cheaply, however. Even • The techniques for RUE in buildings have certainly with major efforts, which the FC industry is not enthu- reached the highest level, and further research can siastic about at present, the problem remains that the be expected to bring only incremental progress. technical optimum seems a long way off (the target is This does not mean that research here would not be a specific weight of 1 kg – state of the art today is 4 kg worthwhile: even a strategy or device with tiny 5% – and a specific volume of 1 litre per kW electric power), savings and a market penetration of 10% would hit and this is also true for economic feasibility: 47 the costs with 0.5% on a volume of approximately 400 Mtoe45. of about 100 k per kW electric power for a DMFC- However, it should be made clear that no radical inno- based engine prototype, as compared to 30 for a con- vation could be expected in the mid-term. Moreover, ventional series motor, show the scale. a significant price has to be paid for research in order to gain any additional percent of efficiency, disregarding

46 Now there are ideas of integrating wind turbines in buildings and urban surroundings, as well. 47 FC researchers estimate up to ten years from now (2002) as the time-to- 45 See figures in Table D-1 (‘Tables’ section below). market in volume.

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Figure 11: Research benefit vs. research effort in All in all, the demonstration projects showed the various RUE sub-sectors (qualitative, best ‘compound impacts’ in saving energy, bringing tech- approximate state in European countries nology to the market, and making the public aware of after FP4 ~ 2000) energy issues; furthermore, demonstration projects showed the highest ‘leverage effect’ for employment by launching projects with a total project ‘value’ of about three times the EC contribution (14.9 M EC contribution RUE Bldgs. to projects with an overall budget of 42.1 M).

Industry 7.4 Organisational

REN Bldgs. The following section summarises the lessons learned, and comments on the organisational aspects of the projects managed under FP4, as well as on the execution of the

Transport assessment exercise.

7.4.1 Framework Programme Management Fuel cells Selecting projects

Expected Researchers Benefit Expected Researchers It appears that partial or total failure of some projects could have been prevented had there have been a more thorough check in the evaluation phase of the Research Effort proposals. Thus, projects could have avoided dealing with issues: • Already covered or being covered at the same time in 7.3 Socio-economic other EU or non-EU countries; • Being to far away from technical or commercial viability Direct economic impact remained behind expectations: only at a mid-term horizon; and an approximate 10% came near to bridging the market • Lacking the prerequisites of available technologies or gap. This may be an inherent dilemma in research and expertise in the consortium. demonstration projects: if the product or target is too close to the market, EC contributions could be regarded as Interim project evaluation a mean biasing competition; if the way to the market is too To avoid projects which fail due to problems in distant, commercial interest and further engagement is lost reaching their technological targets or in their partner and the chances for replication or exporting the technol- relationships, introduction of a mid-stage project event ogy are nil. In-between is a small ‘verge’ for projects which was suggested where CEC officers and/or independent can be regarded as successful in every respect. Perhaps that experts could perform an intermediate evaluation. is one of the reasons why, to the knowledge of the experts This could lead to an early halt to a project which does making the assessment, only one project went so far as to not have any perspectives, or it may help to change the export its product to third world countries – a “fuzzy con- tack or the team needed to conclude it successfully. trol” device for arc furnaces used in steel production (IN/6/1995). Thus, the intention of FP4 – see page 2 above Project coordination – fell short in this respect. Future programmes should Large and complex projects may need a ‘full-time’ bring this more to the forefront: according to cost-bene- and independent project coordinator who may be recruited fit reasoning it would be more ‘profitable’ to spend a from EC scientific staff or externally. Some projects would RUE-euro in developing countries where it may ‘return’ 50 have done better with an independent professional proj- cent as the result of an efficiency boost, whereas the same ect manager who was neither engaged in the research RUE investment in Europe may bring a meagre 10 cent. directly nor employed by a member of the consortium.

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Software forum • It would be essential for interpreting and aggregat- As the number of IT (information technology) related ing eventual energy saving results to have at least products, (i.e. models, simulation programs, CAE (com- two variations of the questionnaire, one for research, puter-aided engineering) software, expert systems, etc.) and the other for demonstration projects49. used and developed in the course of energy research will increase in the future, it may be worthwhile consider- • The filling out of the questionnaire should be part of ing an open forum for software and engineering tools the project coordinator’s contractual obligation. for EU researchers. Otherwise, there is the danger that It should be requested directly after the conclusion of the software developed in the course of a project ‘stays’ the project, delivering more accurate information on the developer’s hard disk so that the research com- with less effort – in the course of this study, some munity has no knowledge of it and it cannot be applied. project coordinators were no longer available or sim- Of course, this implies finding solutions to copyrights, ply declined to go to the archives five years after the documentation rules, etc. project’s completion.

Continuity and follow-up projects • For answering post-project enquiries, which should be Another option which should be considered by the EC made mandatory in the contract, a new efficient is the creation of incentives and/or procedures for scheme must be devised and multiple approaches follow-up actions (dissemination and marketing activ- avoided – the latter being something which annoyed ities, successor projects, etc.) for those projects which many project coordinators in the course of this survey. were completed successfully – independent experts may evaluate whether continuing is worthwhile. This option • The time needed to assess a project was, on average, would ensure that immanent progress is not lost because longer than the three days foreseen, particularly when of the lack of some minor additional resources. on-site visits were made. On the other hand, all experts agreed on the usefulness and the benefits of on-site Streamlining the research focus in EU FP and national communication with project co-ordinators and/or proj- programmes ect participants; the project’s aims, methods and circum- In FP4, no effort was made to tune national and EU stances could be better understood, which would sig- research strategies and funding or to harmonise the nificantly increase the quality of the report accordingly. research focus. Although this is not easy, due to the independent policies in the Member States, bundling and • The database with the project coordinates should be complementing public-funded research would be updated and validated regularly. a worthwhile effort, saving research manpower, time and budget to achieve progress and true European • It would be extremely useful for project assessors as momentum. well as policy-makers if EU, IEA, and national governments could agree upon a common terminology 7.4.2 Impact assessment exercise and classification for projects and research areas, leading to consistent and compatible statistics on proj- Here, a lot of deficits and problems were observed, ects, sectors, and funding. both by the project coordinators and the experts making the assessment. These experiences led to the following recommendations:

• The assessment questionnaire needs to be revised completely (design, structure, content). In particular, data input should be devised as an interface interact- 48 Thus, it would be possible to have the statistics at the time when the ing directly with a customised, ideally web-based summary reports are produced. 49 It was also suggested to have a different scheme to assess CRAFT projects, database. This would enable more efficient data col- in which an SME is not engaged directly in research but gets paid for lection, early plausibility checks, as well as instantly specific services of a research institution, since this creates special project aggregated results for various queries and analyses48. structures.

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[ 16 ] Pilavachi, P.A. and J.D. Isdale , European Community R&D References strategy in the field of heat exchanger fouling: projects, in: Heat Recovery Systems & CHP, Vol 13 (1993), No. 2, pp. 133-138. [ 1 ] Airaghi, A., Busch, N.E., Georghiou, L., Kuhlmann, S., [ 17 ] Pilavachi, P.A., An overview of thermal Sciences Ledoux, M.n van Raan, A.F.J and J.V. Baptista, Options in Europe – The role of the European Union JOULE and Limits for Assessing the Socio-Economic Impact of Programme, in: Proceedings of the 2nd Eurpean European RTD Programmes, Report to the Commission Thermal-Sciences and 14th UIT National Heat Transfer DG XII, Jan. 1999. Conference 1996, pp.57. [ 2 ] Ashley, St., A Low-Pollution Engine Solution, in: Scientific [ 18 ] Pilavachi, P.A ., CFD for Energy Efficiency in the Process American, June 2001, pp. 75-79. Industry, in: Computational Methods in Applied Sciences [ 3 ] Capros, P. and L. Mantzos, The European energy outlook '96, pp. 333 – 341. to 2010 and 2030, in: International Journal of Global [ 19 ] Pilavachi, P.A., Chemical Engineering and Europe Energy Issues, Vol. 14 , Nos. 1-4, 2000, pp. 137. through the JOULE Programme, in: Revue Général de [ 4 ] Capros, P., N. Kouvaritakis, L. Mantzos, V. Panos and E.L. Thermique, tome 34 (Nov. 1995), pp. 691-698. Vouyoukas, Scenarios Related to the security of Supply [ 20 ] Pilavachi, P.A., European Union initiatives to promote of the European Union. Report for EU15 (ENER/4.1040/ energy efficiency in the process industries, in: Revue 001), Athens Nov. 2000. Général de Thermique, tome 37 (1995), pp.159-164. [ 5 ] Council Decision of 23 November 1994, adopting a spe- [ 21 ] Pilavachi, P.A., Power generation with gas turbine cific programme for research and technological devel- systems and combined heat and power, in: Applied opment, including demonstration, in the field of non- Thermal Engineering, 20 (2000), pp. 1421-1429. nuclear energy (1994 to 1998), 94/806/EC. [ 22 ] Pilavachi, P.A., Systems Modelling as a Design Tool for [ 6 ] European Commission – Directorate-General for Energy Efficiency-Research within the European Union, Research. Energy Storage – A key technology for decen- in: Computers in Chemical Engineering, Vol. 20 (1996), tralised power, power quality and clean transports, EUR pp. S467-S472. 19978 (2001). [ 23 ] Pilavachi, P.A., The Role of the European Union in [ 7 ] European Commission – Directorate-General for Promoting Energy Efficiency in the Paper Industry, in: Research. Socio-Economic Projects in Energy and Applied Thermal Engineering, Vol. 16 (1996), No. 6, pp. Environment, EUR 19886 (2001). [ 8 ] European Commission - Directorate General for Energy 539-548. and Transport, EU Energy and Transport in Figures, [ 24 ] Raven, P.H., Science, Sustainability and the Human Statistical Pocketbook 2001. Prospect, Science, Vol. 297, pp. 854. [ 9 ] European Commission - Directorate-General for [ 25 ] Rossetti, D. di Valdalbero, Energy Technologies and Climate Research, Clean and efficient energies for Europe- Change: A World and European Outlook, in: Global Results of individual projects, EUR 19465/1. Warming and Energy Policy, New York, 2001. pp. 139. [ 10 ] European Commission – Research Directorate General, [ 26 ] Schrattenholzer, L. , Y. Fujie, P. Criqui, L. Soete, A. European Fuel Cell Projects 1995 – 2000, Eur 19368 (2000). VanZon and D. Herrman, A, longer term outlook [ 11 ] European Commission – Research Directorate General, of future energy systems, in: International Journal of Fuel Cells Powering the Future. Sustainable Power for Global Energy Issues, Vol. 14 , Nos. 1-4, 2000, pp. 348. the European Union, EUR 19367EN (2000). [ 27 ] Yellow Windows NV/SA, Technofi SA and Wise Guys [ 12 ] European Commission –Directorate General for Energy Ltd., Identifying the constituent elements of (DGXVII), Technologies for Improved energy services, the European Added Value (EAV) of the EU RTD Overview 1995-1998 (1999). programmes: conceptual analysis based upon practical [ 13 ] European Commission JOULE-THERMIE. RTD actions, experience, Nov. 2000. including Demonstration, in the field of Non-Nuclear energy (1994-1998). Work programme. [ 14 ] European Commission, SENSER – Synergies between European and Member States Energy RTD, March 1998 (EUR 18527). [ 15 ] European Commission, Technology Implementation Plan, Part 1 Project Identification, Part 2: Project Results, Versions FP4 (V 2.2).

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Tables

Table D-1: Final energy consumption in the EU by fuels and sectors (1999)

1999- Mtoe B DK D EL E F IRL I L NL A P FIN S UK EU %

By Fuel 37,3 15,1 221,2 18,1 74,3 152,1 9,7 128,2 3,3 48,5 22,9 16,0 24,7 32,6 150,7 954,9 100

Solid fuels 3,3 0,3 10,8 0,8 1,7 6,0 0,6 3,7 0,1 1,4 1,4 0,4 1,2 1,0 7,8 40,5 4,2

Oil 17,4 7,5 101,1 12,6 43,9 73,0 6,4 57,6 2,1 16,0 9,4 10,1 7,8 11,9 62,1 438,9 46,0

Gas 9,5 1,7 55,7 0,2 10,0 31,4 1,0 37,9 0,6 20,4 4,2 0,6 1,9 0,6 52,4 228,2 23,9

Electricity# 6,4 2,8 40,2 3,5 15,2 32,2 1,6 22,4 0,5 8,1 4,3 3,1 6,4 10,8 27,5 185,1 19,4

Derived heat 0,4 2,3 8,7 0,0 0,1 - - - 0,0 2,1 1,0 0,1 2,8 3,8 - 21,4 2,2

Renewables 0,3 0,5 4,7 1,0 3,4 9,5 0,1 6,6 0,0 0,3 2,6 1,7 4,6 4,5 0,9 40,8 4,3

By Sector 37,3 15,1 221,2 18,1 74,3 152,1 9,7 128,2 3,3 48,5 22,9 16,0 24,7 32,6 150,7 954,9 100

lndustry 13,51 3,0 56,4 4,2 22,4 36,4 2,0 39,2 0,9 12,8 6,3 5,3 12,0 11,7 37,4 263,5 27,6

Domestic & tertiary 4,2 7,3 98,1 6,6 20,0 65,3 4,1 48,1 0,7 21,9 10,4 4,7 8,2 13,2 63,0 385,6 40,4

Transport 9,6 4,9 66,8 7,5 31,9 50,4 3,7 41,0 1,7 13,8 6,2 6,0 4,4 7,7 50,4 305,8 32,0

• Road 7,6 3,8 57,5 5,3 25,3 41,8 3,0 36,7 1,4 9,5 5,4 5,2 3,7 6,4 38,0 250,5 26,2

• Railways 0,2 0,1 1,9 0,1 0,8 1,3 0,1 0,8 0,0 0,2 0,2 0,1 0,1 0,2 1,2 7,4 0,8

• Air 1,6 0,9 7,0 1,3 4,2 6,5 0,5 3,3 0,3 3,4 0,5 0,7 0,5 0,9 10,2 41,9 4,4

• Inland navigation 0,2 0,1 0,3 0,9 1,6 0,8 0,0 0,2 - 0,7 0,0 0,0 0,1 0,1 1,0 6,1 0,6

Source: Eurostat

# Mtoe(el), to be multiplied by a primary energy conversion factor of app. 2.5

* published in: Statistical Pocketbook 2001 (ed. by the European Commission in co-operation with Eurostat)

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Table D-2: Public budgets for Energy RTD&D in Europe 1994-1998

Public budgets for energy R&D. Total EU(15). 1994 - 1998.*

A PRODUCT A BE DK FIN FR D EL IT NL NOR PT ES S UK 1a Industry 8,1 17,6 12,7 66,0 7,9 25,5 3,3 61,9 152,4 6,2 1,9 14,9 20,1 6,8

1b Residential Commercial 13,8 7,5 10,7 40,0 9,5 30,1 2,3 61,9 39,1 4,4 0,1 7,3 20,5 1,8

1c Transportation 15,9 19,0 0,5 8,3 11,1 0,0 0,1 58,9 43,9 2,9 0,3 2,5 34,7 2,5

1d Other Conservation 2,4 2,4 4,9 12,1 0,8 13,0 2,9 60,4 15,7 2,0 0,0 0,0 7,6 0,0

1 TOTAL CONSERVATION 40,2 46,5 28,7 126,4 29,4 68,6 8,7 228,4 251,2 15,5 2,3 24,7 82,9 11,0 % 4,2 4,8 3,0 13,1 3,0 7,1 0,9 23,7 26,0 1,6 0,2 2,6 8,6 1,1

2 TOTAL FOSSIL FUELS 5,2 6,5 20,1 19,1 155,0 35,8 7,4 0,0 65,3 109,7 0,7 17,5 1,3 59,8

3 TOTAL RENEWABLE ENERGY 35,5 12,3 76,6 34,6 19,4 359,6 12,5 160,2 137,2 26,7 3,6 67,0 49,3 53,1

4 TOTAL NUCLEAR FISSION/FUSION 8,1 141,1 6,4 34,8 2.078,9 728,2 0,8 493,0 104,1 40,6 2,2 137,6 33,5 160,5 5 TOTAL POWER & STORAGE TECH. 18,6 19,4 18,6 66,7 0,0 53,2 0,4 72,3 88,0 14,3 0,1 1,2 27,1 17,1

6 TOTAL OTHER TECH./RESEARCH 10,3 6,7 25,0 32,0 0,0 47,6 4,4 210,9 57,8 25,1 0,2 53,1 50,5 81,5

7 TOTAL ENERGY R&D 118,0 232,5 175,5 313,6 2.282,7 1.293,0 34,3 1.164,7 703,7 231,9 9,1 301,1 244,4 382,9 % 1,6 3,1 2,3 4,2 30,5 17,3 0,5 15,6 9,4 3,1 0,1 4,0 3,3 5,1

TOTAL ENERGY R&D NNE B PRODUCT TOTAL % 1a Industry 405,3 5,4

1b Residential Commercial 249,0 3,3

1c Transportation 200,6 2,7

1d Other Conservation 124,2 1,7

1 TOTAL CONSERVATION 964,4 12,9 RUE estimate: 964 + 0.33 * 397 2 TOTAL FOSSIL FUELS 503,4 6,7 + 0.33 * 605 ~ 1.300 3 TOTAL RENEWABLE ENERGY 1.047,7 14,0 4 TOTAL NUCLEAR FISSION/FUSION 3.969,9 53,0

5 TOTAL POWER & STORAGE TECH. 396,9 5,3

6 TOTAL OTHER TECH./RESEARCH 605,0 8,1

7 TOTAL ENERGY R&D 7.487,3 100,0

* Source: IEA and SENSER. No figures available for Ireland and Luxembourg (94-98), Greece 98. All figures in million US $ (prices and exchange rates 2001).

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This present report represents the work of a number of specialist experts who assessed the impact of the individual research projects, and a coordinator. The coordinator wrote the present report on the basis of the experts’ brief summary reports. The report was then reviewed by the Core Group of the Panel of Experts.

Coordinators: Institutions Martin Kaltschmitt (overall coordination) Institute for Energy and Environment (IE), Germany Claudio Andrea Casale CESI, Italy Felix Avia Aranda CIEMAT, Spain

Individual Experts: CIEMAT, Spain Esther Rojas Bravo Freelance Consultant, Greece George Andritsopoulos IT power Solar Group, UK Jonathan Bates Maria Teresa Costa Pereira de Silva Ponce INESC, Portugal de Leao ENEA, Italy Luisa Pirozzi Kanenergi, Norway Jonas Sandgren Universidad de Oviedo, Spain Jorge Xiberta Energy Consultant, Germany Johannes Stierstorfer Oxford Brookes University, UK Michael Hutchins Risoe National Laboratory, Denmark Poul Erik Grohnheit WIP, Germany Ingrid Weiss

Core Group INNOVATION E.E. Nicolas Chrysochoides (Chairman) CIRCA Groupe Europe Ltd Tom Casey (Rapporteur) ENERDATA sa Bruno Lapillonne (Rapporteur) CIRCA Groupe Europe Ltd Julie Roe (Statistician)

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Executive summary

he Joule/Thermie programme is the research pro- of waste as feed-stock for energy conversion, for exam- Tgramme in the field of non nuclear energies (NNE) ple, in fluidised bed reactors. These projects investi- within the Fourth Framework Programme (FP4). It was gated successfully the interaction of feedstock and bed intended to contribute significantly to the stimulation of material. Significant break-throughs and encouraging growth, to the strengthening of competitiveness, and to results were also obtained by some photovoltaic (PV) the creation of employment in the Community by the projects which made significant improvements to the development and a wider utilisation of efficient energy efficiency of multicrystalline silicon cells and the tech- technologies. This report deals with "Renewable Energies", nology and manufacturing processes of thin-film cells, one of four parts of Joule/Thermie. The following themes leading to a cost reduction for photovoltaic energy. are summarised under "Renewable Energies": • Integration of renewable energies, The integration of renewables into buildings offers a • Photovoltaics, great potential for using clean energy and energy sav- • Renewable energies in buildings, ings. Renewables in buildings opened a new market for • Wind energy, enterprises not active within the energy area so far. • Energy from biomass and waste, and Following the integration of renewable energies, some • Others. companies, especially those in photovoltaics, found a market niche for their products. Under these headings, research and development (R&D) The investigation of wind energy application on uncon- projects as well as demon-stration projects were carried ventional sites might contribute to a wider market pene- out by a wide variety of consortia within a large num- tration of wind energy in the future. The basic research in ber of projects. The partners involved came from nearly wind energy led to a better understanding of the behav- all European countries and pro-fessions, i.e. industry iour of windmills under certain conditions and to improved (small and medium-sized enterprises (SMEs) as well as designing tools. Enhanced wind forecasting and a quali- large com-panies), research institutes, universities and fied and controlled wind field database, which is widely end- users. The research work under this heading has used for planning of wind energy plants, have improved been carried out with the following main objectives. the chances of wider market penetration for wind energy. • To encourage research and technological develop- The research efforts under "Renewable Energies" dis- ment activities; covered that to achieve a broad dissemination and mar- • To speed up the development and dissemination of ket penetration for renewables, a suitable legal and technologies; organisational framework has to be set up. Besides • To encourage partnerships between universities, indus- this, a comprehensive awareness of the benefits, try, utilities and end-users; achieved by enhanced information tools (e.g. internet • To develop decentralised use of local resources; platform), is seen as a basis for wide market penetration. • To establish a long-term, stable market place for dif- The costs of converting renewable energy sources into ferent options using renew-able sources of energy useful energy played an important role in the RTD for the provision of heat, electricity and/or fuels; and work. Many projects sponsored within the EU supporting • To make Europe more independent from an import programme investigated technical improvements leading less dependent on imports of fossil fuel energy. to efficiency increase and reduction of production costs.

In many of the projects, pilot plants and prototypes The great majority of funded projects contributed to a were designed, manufactured and tested. Other proj- more environmentally sound performance of the energy ects dealt with the development of simulation models supply by reducing greenhouse gas CO2 and other and software programs to predict and simulate the potentially harmful emissions. performance of new plants and technologies. Attention is drawn to some critical aspects of the assessed Some of the Joule/Thermie projects assessed achieved projects and their results, so that future programmes significant breakthroughs. Projects that dealt with might bear them in mind in order to continue the bio-fuels made from biomass and waste achieved the use successful work of FP4.

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The majority of the assessed projects neared or even For example, an increase in employment, greater market fulfilled their goals. However, some did not – the reasons penetration of renewables, and an improved acceptance for this are manifold, and some are summarised below. of renewables by end-users and neighbours of renewable Projects that set out with goals which were too ambitious energy conversion plants are all expected to result from could not achieve the expected results. In other projects, an these projects. It is very hard to assess these aspects because, inadequate partnership resulted in failure. Another prob- first, such emphases were not within the focus of FP4 and, lem was the size of the consortium – to manage consortia secondly, such aspects are not at all sharply quantifiable. with too many partners and/or a too heterogeneous partnership was often reported as being very difficult. Below certain conclusions and recommendations are summarised very briefly: Nevertheless, among the projects that could not reach • A funding window for small projects and small enterprises their targets some can be reported as successful: on one with innovative expertise is important for future EU hand they revealed needs for further investigation, and on funding. For small companies which are mostly very the other the participants gained valuable experience for innovative, it is desirable to have more frequent dis- their future work and made contact with new partners. bursements and more generous funding. • More flexibility, within reason, with regard to changes in A clear and thorough description of the duties of every sin- schedule, project- end, consortium and tasks might lead gle partner was seen as a very important prerequisite for to better results. a successful performance by the project and usable results. • It is necessary to strengthen assessment and dissemination Under "Renewable Energies" there appeared to be little activities for the acceptance and success of future projects. interaction between the different projects. Linkage between • To bring an idea or a product to market maturity, it projects might lead to positive interaction through exchange might be helpful to facilitate follow-up projects in cases of experience and information, and could avoid duplication. where the results gathered are promising. • An information network should be created, or an existing Some projects seem to have been over ambitious in one used to disseminate the project results very quickly, at addressing many topics, such as design and architectural project-end, among possible interested parties as well as considerations, materials development, prototype man- the interested public. Project results should be presented ufacture, performance and durability testing, and outdoor in a standardised form. Better dissemination such as this trials and monitoring, all within a single project. A more is indispensable for a more successful EU research policy. selective approach and a clustering structure imposed by • In addition, a support structure for technological imple- the programme management could have enabled indi- mentation plans should be created. vidual areas, where research was necessary, to be prioritised and tackled with the appropriate expertise. Such an At the end of the impact assessment exercise it is pertinent approach could have avoided unnecessary duplication and to point out that funding within FP4 contributed towards resulted in more widely applicable solutions. fulfilling EU commitments to the Kyoto Protocol. Many of In several cases the project documentation has been very the participants' projects investigated here point out that poor. Results have only been reported qualitatively. It is without EU funding the establishment of the consortium expected from R&D projects that, after the development dealing with the respective topic would not have been pos- of innovative procedures and ambitious methods, new sible. Overall, the results of the "Renewable Energies" testing and extensive measurements will reach some quan- part are encouraging for the integration of renewables into titative results. the energy system, with respect to the energy supply market and the environmental performance of future energy The majority of projects were technological R&D projects. supply. In addition, there has been tremendous technology Their economic and social impacts and results were poorly transfer between different European regions and states as addressed because the main focus had deliberately been a result of EU-funded research, and existing know-how in put on technology development according to the call for some EU countries has made a significant step forward proposals. In addition, social and to some extent economic thanks to these EU-funded projects. This will help to build impacts could only be estimated for a time horizon up a European research and industry area and strengthen beginning two to five years after project termination. the role of Europe in markets worldwide.

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1. Introduction To approach this target, participants should prepare guidelines for PV pro-duction. The demonstration of PV should raise awareness and confidence in PV gen- The European Parliament and Council decided on 26 April erators and stimulate larger markets for PV deploy- 1994 to establish a Fourth Framework Programme (FP4) ment in both the EU and in developing countries. for Community activities in the field of research, technological development and demonstration (RTD) for the • Renewable energies in buildings (43 projects, funding: period 1994 to 1998 [OJ No L 126, 18.5.1994, p1]. One part 26,219 k , 18%) of this Framework Programme concerns the support of The work undertaken on this field should provide for RTD activities in the field of non-nuclear energy (NNE). On the development of sustainable energy use in build- 23 November 1994, the Council of the EU adopted a spe- ings and achieve improved indoor living and working cific programme for research and technological develop- conditions. This area includes the demonstration of ment, in-cluding demonstration, in the field of non- both active and passive tech-nologies using solar nuclear energy (1994 to 1998)[OJ No L 334/87, 22.12.1994]. energy for heating, cooling and lighting. In its decision, the Council of the EU pointed out that the overall "objective of Community's activities in the field of • Wind energy (63 projects, including three Thermie A, non-nuclear energy must be to design and demonstrate funding: 16,672 k , 11%). efficient, cleaner and safer technologies to make energy The objectives of this area were to stimulate wider production and use compatible with the balance of nature market penetration of wind energy in the EU by improv- and with various aspects of economic development" [OJ ing wind turbine reliability, public acceptability and L 334/87, 22.12.1994]. The programme should contribute decreasing the cost of wind-generated electricity. significantly to the stimulation of growth, to the strengthening of competitiveness, and to the creation of employ- • Energy from biomass and waste (48 projects, includ- ment in the Community by the development and a wider ing two Thermie A, funding: 25,540 k , 18%) utilisation of efficient energy technologies. The work under this heading aimed at increasing the utilisation of biomass for energy supply on a large To address this the Programme was divided into four scale. New technologies were to be developed that sectors: would allow for the use of less expensive and more • Energy RTD Strategy, environmentally friendly biomass. • Rational Use of Energy, • Renewable Energies and • Others (21 projects, including five Thermie A, funding: • Fossil Fuels. 8,376 k, 6%) Projects within this area, which deals with wave power, The current paper deals with Renewable Energies which solar thermal energy, geo-thermal energy and energy are divided up as follows: storage, are summarised. • Integration of renewable energies (18 projects, funding: 8,557 k, 6%) EU-funded research projects are not undertaken for their The work carried out within this area should favour own sake. The results should contribute towards achiev- the integration of renewables into the everyday life ing the EU policy objectives in the funded area. Therefore, of society and the leverage of renewable energies the European Commission (EC) placed great importance into the energy market. The technical (both supply and on and gave significant attention to the impact assessment demand side), economic and social aspects of renew- of the EU-funded programmes and projects. ables have been addressed.

• Photovoltaic) (70 projects, including seven Thermie A, funding: 58,639 k, 41%) The work carried out in this area should contribute to reducing the cost of PV systems significantly in order to make them competitive in the electricity markets.

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2. The objectives and should also help to mitigate significantly the anthro- pogenic greenhouse effects and assist the EU in meeting commitments agreed with respect to the Kyoto Protocol. The research work to be assessed and reported in this report was undertaken within the Fourth Framework Based on these preconditions, the main objectives Programme (FP4) under the specific 'Joule/Thermie' addressed under "Renewable Energies (RE)" can be sum- Programme – the research programme in the field of non- marised as outlined below. nuclear energy (NNE). The Fourth Framework Programme was established with three fundamental objectives: 2.1 Integration of renewable energies • Support to the competitiveness of European industry; • Contribution of science and technology to the satisfac- The projects under the heading "Integration of renew- tion of society's needs; and able energies" could be subsumed under the general • Support to the Community's common policies. aim to establish a long-term, stable market place for renewables. These very general objectives have been adapted by the Joule/Thermie Programme to reflect the objectives of To achieve full benefits, renewables must be thoroughly Community energy policy, i.e. to ensure a sustainable integrated into the economy and the daily activities of EU energy supply which meets the needs of society and is citizens as well as within the energy system of the compatible with the environment. Within this frame the European Union. Of critical importance to strategy devel- Joule/Thermie activities aimed to develop and demon- opment and implementation will be the availability of an strate effective, cleaner and more reliable non-nuclear integrated system to: energy technologies while always bearing in mind the • Assess the realistic rate of increase in the use of compatibility between energy conversion and usage, the Renewable Energies (RE) under a given set of (com- equilibrium of the biosphere and economic develop- plex) economic, policy, environmental and regional ment, as well as social aspects. Thus, the objectives of the assumptions. Joule/Thermie Programme have been defined as follows: • Provide an integrated approach and methodology for • To encourage research and technological develop- resource assessment, on a ‘bottom-up’ basis, linked to ment activities in the field of clean and efficient energy particular geographical areas. technologies to secure energy supply and sustainable • Develop tools to assess the value and impact of this new development. source of energy within existing electricity systems. • To speed up the development and dissemination of • Evaluate the potential for renewable energy within technologies that are almost mature but whose tech- European countries with regard to the geographical, nical and economic viability still need to be improved. technological, economic and social situation. • To encourage partnerships between universities, indus- • Assess the barriers to the deployment of RE by analysing try (both small and medium-sized enterprises (SMEs) as the economic, financial and legal framework. well as large enterprises), operators of energy networks and end-users. These objectives fit into the overall objectives of the RE • To develop appropriate energy sources suitable for sector that aim to enable and stimulate the introduction decentralised use, utilising local resources. of renewables into the energy system and enhance the integration of RE into the economy and everyday life of The EC wishes to establish a long-term, stable market place society. The projects carried out under "Integration" for different options using renewable sources of energy addressed all the above objectives. for the provision of heat, electricity and/or fuels. Full details are to be found in the White Paper on In a few projects the integration of RE into the economy Renewable Energy, adopted by the European Commission has been investigated, but, in general, the integration into in November 1997. According to this and, in addition, to everyday life of society has been addressed very poorly. provide a source of energy able to make Europe less dependent on imports of fossil fuel energy, renewables can

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2.2 Photovoltaics 2.4 Wind energy

Under the heading of photovoltaics (PV), the overall The general objective for the wind energy area was to stim- aim was to achieve a major cost reduction per unit of ulate a wider penetration of wind energy within the EU by electricity generated, as this was (and remains) the decreasing the cost of wind-generated electricity and by essential prerequisite in order to attain a substantially improving wind turbines in relation to reliability and pub- higher share of PV-generated electricity in the European lic accepta-bility (e.g. noise and visual intrusion). Another electricity supply structure. The high generating cost of objective was to help the European wind-turbine industry PV is, in turn, the result of high plant cost (i.e. investment to maintain its position as the world's technology leader. costs), in particular the cost of PV cells with respect to modules and the other system components needed The objectives of the wind energy projects could be sum- (such as DC/AC inverters). To reduce module cost down marised as follows: to the target of /WP (current costs are around 3.5 • To reduce wind energy costs; • To increase the penetration of wind energy generation /WP), the PV projects focused on: • Development of cheaper manufacturing processes for in Europe by using new unconventional sites; existing cells; • To develop autonomous wind systems especially for • Improvement of cell efficiency in existing technologies; and remote areas; • Research and development of new materials and tech- • To integrate wind energy into the grid; nologies for cells and modules that can achieve higher • To increase acceptability by local communities; and efficiencies and/or cheaper manufacturing processes. • To solve the difficulties of scaling-up (as a result of increases in wind turbines and towers). In addition to cost reduction, the development of PV modules and cells offering new application fields for 2.5 Energy from biomass and waste photovoltaic technology were another focus of the photovoltaic projects. All of the projects within the "biomass and waste" area were aimed at improving the technical, environmental 2.3 Renewable energies in buildings and economic viability of gasification, combustion and co-combustion of biomass, as well as biogas production and The objectives addressed under this heading were the use. There were three projects dealing with pyrolysis besides following: the majority of "biomass and waste" projects. Due to a cer- • Strengthening and expanding the direct use of solar tain lack of fundamental knowledge in this field, the pyrol- (thermal and PV) energy in buildings; and ysis projects were orientated more towards basic research. • Looking for more efficient buildings in terms of their energy performance, while maintaining high indoor air The areas and objectives addressed by the R&D work quality and good use of daylight. under "biomass" are as follows: • To develop new and cost-effective bio-energy feedstock; It should be stressed that, in general, economic aspects • To solve environmental and operational problems were given special consideration in projects dealing with related to specific properties of biomass fuels; and the application of renewable energy in buildings. For • To develop facilities to enter the "hydrogen century" instance, when replacing parts of the overall building and by focusing on the production, storage, safe distribu- its components with renewable energy devices, the aim tion and usage of hydrogen as a fuel. was to offer alternative solutions that could compete from Socio-economic objectives have been addressed rather the cost standpoint with conventional solutions when con- poorly within this section. Only within a feasibility study sidering significant advantages, such as energy saving by investigating the harnessing of cotton biomass for energy better use of daylight and electricity generation by pho- conversion has any particular focus been put on social tovoltaic modules. aspects of the new technology. However, socio-economic aspects were not the centre of attention in FP4.

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2.6 Others 3. The projects

Geothermal Energy Within the area of "geothermal energy" the projects In the following section some projects are discussed and focused on strengthening areas where Europe is a world explained using examples for each of the different sub- leader. This is true, for example, for district heating sys- sectors. tems running on geothermal energy. 3.1 Integration of renewable energies Energy storage The main objective was to develop new pilot storage Overview devices (e.g. batteries, flywheels, hydrogen). The projects under the heading "integration" mainly addressed economic and environ-mental problems caused Small Hydro by the integration of renewables into the existing energy The main objective of this area (limited to demonstration) supply system. These projects also aimed at analysing the was to exploit a broader range of sites for the construc- true and fair value of grid-connected electricity generation, tion of small hydropower plants in order to increase establishing a common accessible information base, pro- overall hydroelectricity production within the EU. viding broad information about renewables (e.g. product information, know-how), and other related goals. Only four Solar Thermal projects dealt with concrete technical problems. The main goals of projects dealing with solar thermal applications (either for electricity generation through Subjects thermal processes or for direct production of heat) have The following specific subjects have been summarised been to: under the heading "integration": • Improve the technical performance of existing systems; • Economy and environment, • Develop new and innovative systems; • Technical issues, • Make them more environmentally sound; and • Economic, financial and legal frameworks, • Reduce costs. • Dedicated tools, providing product information and know-how about renewables, and Wave Energy • Natural resource potential The main objective within this area was to develop and Another important subject dealt with in this field is related improve systems for electricity generation from wave to the evaluation of the technical impact of renewable energy. energies, power systems, planning principles, standards and tariff structures on the competitiveness of renewables.

3.2 Photovoltaics

Overview As regards Joule projects on photovoltaic systems, most aimed at improving performance goals, developing better designs, evaluating performance and reliability, manufacturing and testing innovative prototypes, and performing an economic evaluation of the technology or the process. The partnerships established to reach these goals covered a wide-ranging mix of academic institutions, industry and research centres. The partners involved came mainly from the EU Member States.

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Most of the projects assessed were involved with the Partnership testing and analysis carried out mainly by research and The projects partners within these demonstration proj- academic institutions. Industrial partners tended towards ects mainly consisted of utilities, national and regional providing materials for testing, and analysing the poten- authorities, rural electrification authorities, user groups, tial for industrial up-scaling. manufacturers, suppliers, engineers, and architects. Such consortia had the necessary expertise needed to overcome All projects specifically concerning research on solar cells technical problems and other non-technical barriers. and modules recognised the need to increase the cost- Most technical problems that arose during the projects effectiveness of photovoltaic-generated electricity through could therefore be solved. Non-technical problems were the combination of higher energy conversion efficiency of a financial and administrative nature, and often led to and lower production costs. All projects aimed to reach significant delays. Some projects were officially extended that major goal either directly or indirectly. and others speeded up to finish the work within the proposed schedule. Major setbacks came, among others, Subjects from delays in receiving co-funding from national and The following subjects have been addressed: regional authorities, which is important for large-scale proj- • Cell processing, ects including heavy deployment of hardware in the field. • High-efficiency multicrystalline and thin-film solar cells and modules, 3.3 Renewable energies in buildings • Transfer processes from laboratory stage and pilot-line scale into a production environment, Overview • Transfer of high-efficiency cell and module features, such The projects dealing with the application of renewable as surface texturing, and laser-grooved buried con- energy sources in buildings can be subdivided into two tacts, to production lines, with low investment, main categories. On the one hand, some projects aimed • Upgrading metallurgical silicon stocks, and at expanding and strengthening the direct use of renew- • RGS (Ribbon Growth on Substrate) solar cells. able energy by improving conventional systems, reducing system costs, and studying innovative ways of integrat- Demonstration Projects ing them in other building systems. On the other hand, The strong research efforts made within the PV projects there were projects pursuing healthier and environmen- carried out in the Joule section of FP4 has been comple- tally friendlier buildings and more energy-efficient urban mented by a demonstration action under Thermie A, layouts. Among applicable renew-able sources, solar totalling seven projects within the PV field. The need for energy (through PV and/or thermal collectors) was taken demonstration projects is particularly important within into consi-deration in nearly all cases, even though one this sector, where the gap between the research and project sought to develop solutions for integrating wind development phase and the full commercialisation of turbines in, on and around buildings. products is still rather wide. Therefore, the Thermie-A PV projects played an important role both in decreasing Subjects costs even further through the setting up of significant The majority of these projects should be considered as production and generation capacity in the field, and in "technological research" projects – very few of them increasing awareness of this technology among the pub- can be classed as "basic research" projects. Therefore, most lic. In particular, they targeted key decision-makers (e.g. projects were based on established physical concepts, architects, national and regional authorities, national and research was directed to apply different techniques parks, the communication sector, PV user groups) to to achieve new solutions and make them technically fea- demonstrate the potential of PV applications through the sible as a whole. The main subjects are listed below. setting up and running of both stand-alone systems sup- • Solar building facades, plying residential housing in remote or environ-men- • Modified silica gel as storage for thermal energy, tally protected areas, and grid-connected units often • Incorporating PV cells in facades, and integrated into buildings. • Developing and improving mathematical models.

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Partnership both good and successful. Without support from the Another outstanding feature of this group of projects was research programmes it is unlikely that progress would the particularly strong participation of partners from have been made so quickly in the specific fields under industry. Most projects had more than 50% industrial part- investigation. The findings were of use to all parties. ners and, in most cases; these partners were from several European countries in the same project. It is worth point- Partnership ing out that, even though most projects looked at the Partnerships in the wind energy projects varied widely application of solar energy systems, industrial partners did between academic institutions, industry and research not come from the solar energy sector alone (such as col- institutions. Partners from most EU Member States were lector manufacturers, etc.). Companies whose products involved, having been chosen for their relevance to the and services were initially not related to the solar energy research subject. world also participated, apparently with a view to expanding their markets and services further. The number of partners varies from the minimum required (three) up to 12. The most common project 3.4 Wind energy structure comprised four partners with one industrial company. The projects with a large number of part- Overview ners were those related to the development of standards Wind energy is currently often cost competitive at loca- and the development of design tools or windmills (basic tions with a good wind resource. The current cost of elec- research). The majority of the projects had between tricity from wind power at such favourable sites can be as three and seven partners. Only a small fraction of proj- low as 0.05 /kWh (the best sites are probably lower than ects (22%) did not include an industrial company within 0.03-0.04 /kWh). When the FP4 NNE Programme started, the consortium. Most of the leading manufacturers of wind energy was already a mature technology competi- wind turbines and their components in the EU were pres- tive with other ‘conventional’ energy resources under ent in one or more of the projects investigated here. The specific circumstances. The situation as regards the matu- majority of those projects without any involvement rity of wind-energy technology facilitated identification from industrial partners dealt with basic research. of the drawbacks and critical areas for further development of both the technology and the market. Many of these projects were developed by a high-quality triple partnership: industry, research centres and Subjects universities, which have resulted in more than satisfac- A large number of projects performed basic research. tory results in the majority of projects. This is also true That is due to the fact that, as a stochastic energy for projects within other sub-sectors. The analysis showed source, wind is not easy to model, and much effort is still also that, in general, projects carried out by a consor- needed to understand fully the complex behaviour of tium with too many partners were not so successful. The wind and its interaction with turbines. The wind energy co-ordination effort for such large projects is tremendous projects mainly addressed the following subjects: and the exchange of information problematic. On the • Using wind energy at unconventional sites (offshore, other hand, research projects need a critical mass. The extreme climatic conditions, complex terrain), desirable number of partners must therefore always • Design and technical adaptation of windmills to the be determined by project topic and not by administra- increasing size of wind-energy turbines and towers, and tive preconditions. • Development of new materials and concepts for windmills. Problems which occurred during the project duration Four years after the end of the Programme, the European were of both a technical and non-technical nature. wind industry is leading the world panorama more Although most of the technical problems were more or strongly, and the future looks promising for European less easy to solve, the non-technical ones were of a manufacturers in this field. The projects performed financial and administrative nature, which usually led under the Joule and Thermie programme contributed sig- to delays in the projects. nificantly to this success. The research undertaken was

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In general, and also in the demonstration projects, the In some projects, mainly because of delays (caused, for partners were selected well. They included utilities, example, by technical problems) and project changes dur- national and regional authorities, rural electrification ing the pre-testing period, the tests were carried out in a authori-ties, user groups, manufacturers, suppliers, engi- very short time. This is one reason why it was sometimes neers, and architects. Their staff were well qualified difficult to achieve reliable results and to draw solid con- and had technical expertise, and were usually directly clusions. However, after successful development and test- involved in the project, providing support in overcoming work, some projects ended with the construction of pilot ing technical problems and other barriers. plants demonstrating the achievement of their objectives. Delays in receiving financing from the EC and regional authorities caused delays in project schedules. This was a Primarily, the projects aimed at overcoming specific oper- particular problem for large-scale projects involving many ational and environmental problems barring market pen- partners. It was also reported that co-operation with etration for today’s state of the art. Only in a few projects national and regional authorities occasionally proved dif- were fundamentally different approaches investigated ficult. Almost all projects were delayed to some extent due because basically the technology is available throughout the to these and various other reasons (such as goals which overall supply chain but is not yet fully commercially viable. were too ambitious). Some projects were officially extended and others speeded up to finalise the work Partnership within the proposed schedule. Project delays were caused The partnerships varied widely between academic insti- by administrative, organisational and technical problems. tutions, industry and research institutions. Partners from most of the EU Member States were involved. But the In general, market deployment of the components/tech- number of partners from countries where biomass niques starts between two and five years after the end of already plays an important role within the energy sys- the demonstration projects. For example, the NEG-Micon tem was above the average. offshore wind converters are currently being deployed on the market, up to five years after the end of the project. 3.6 Others 3.5 Energy from biomass and waste Overview The projects assessed under the heading "Others" were Overview all R&D projects. Most aimed at designing, manufactur- Energy from biomass and waste is seen as a promising ing, and testing pilot plants to prove the capabilities of but less well developed energy which could contribute the new or improved technologies. through low costs to a reduction in greenhouse gas emissions. However, to achieve a wider use of biomass Subjects to cover given energy demand, technological problems The projects under the heading "others" addressed the along the overall supply chain have to be solved. following subjects: • Developing new equipment for the use of geothermal Subjects energy, Under the heading "energy from biomass and waste" both • Improving the technologies and the plant reliability, research and development and pilot-plant operating proj- • Developing pilot devices for energy storage, ects have been carried out, the main subjects being: • Improving storage systems for remote PV installations, • Simulation models, • Improving system components for solar thermal sys- • Socio-economic impact of biomass production and use, tems, and • Development and investigation of isolated compo- • Improving and innovating the thermal process. nents rather than the whole supply chain, • Sintering of bed material, Partnership • Emissions reduction, The partnerships were very inhomogeneous. Partners • Cheaper feedstock, and from academic institutions, industry and research insti- • Reliable quality of bio-fuels. tutions were involved, as well as representatives from The overall system has only been tackled in a few cases. most of the EU Member States.

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4. The results: technical • Within this group of projects, for example, an inventory of types of biomass that are already available or could be available in the future has been established. As a Many projects resulted in significant breakthroughs. result, a report has been compiled identifying the char- For example, a breakthrough was reported in photo- acteristics of the regions under investigation, not only voltaics in the field of flexible thin-film cells: a CuInS2- with regard to the available biomass resource but also based mini module was produced with an efficiency of the economics, the population, and the energy statis- 9.3%. As regards the use of biomass for energy conver- tics regarding forestry, agriculture, the wood-process- sion, a breakthrough was reported concerning the use ing industry, the food industry, and municipal solid biomass feedstock within fluidised beds. waste and wood wastes in industrial solid waste sectors. • The output from another project concerns an internet Important results and interesting findings are discussed platform providing infor-ma-tion on PV and wind below and some conclusions are drawn. energy. Using this platform, interested people can quickly access product information and know-how 4.1 Integration of renewable energies about the respective technology. Other aspects In the field of integration of renewable energies, the vast Very high expectations were placed on projects that majority of the assessed projects provided new techni- should result in products ready for demonstration. On cal advances. Almost all accomplished the schedule and account of the dimension of such projects, of unforeseen reached the estimated results. Even the few projects that difficulties, and of the chronological dependency of were unable to reach the final goals presented some the tasks, some projects were unable to follow the orig- important achievements. inal schedule in full. Examples of this can be found in Highlights the following: Some results from the "integration" projects are high- • The Hot-Dry-Rock project, which aimed to develop a sci- lighted below: entific geothermal pilot plant, had to be deferred on • A quantification of externalities was made under the account of the availability of data from a previous phase. ExternE-Project. The methodology used in this project • The ImproveStore project, which aimed to develop a provides one possibility for the evaluation of pollutant new type of battery characterised by low life-cycle cost emission and therefore its effects on global warming, and a long life-time, and able to withstand the usage health, and natural and man-made environments. patterns encountered when used for the Solar Home This analysis was presented in two of the four projects System (SHS) in rural areas, faced a drawback that and quantitative results regarding this point were could be overcome. On considering the technical results reported. Pollutant emissions were quantified and a of phase three of the project, it became evident that comparative analysis presented regarding solid fuels. intensive research work, far behind 12 months work, • In another study, important barriers preventing the would have to be done to improve the battery charac- broad market penetration of renewables were identi- teristics before starting to develop the prototype. This fied, in most cases, as an inadequate legal framework phase could not be pursued. Nevertheless, problems and and a lack of awareness regarding the benefits of points requiring further investigation were identified. renewables to society. Among the identified barriers highlighted are difficulties in guaranteeing the availabil- Techniques were developed for assessing the impact ity of cheap biofuels, and inadequate rules allowing ‘val- of renewable power generation on the technical and orisation’ of the sector at the start of investment. economic performance of distribution networks. There • A demonstration of the feasibility of a bio-fuel chain was a focus on developing models able to deal with in a Mediterranean coun-try was achieved by another uncertainty – mainly of stochastic nature – of renewable "integration" project. The analysis tracked the chain energies. As a result of these developments, tools were through the agro-production, transformation for use, made readily available. as well as consequences on the environment, and the resulting economic and social impacts.

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These projects, which aim to develop tools for analysis as 17% were reported in pilot production lines. of renewable energies, produced some major develop- Improved cell tabbing combined with high module fill ments, as the following example illustrates. A pilot elec- factors (77%) resulted in PV modules with a record tronic market place was developed as an internet robot. power for multi-crystalline silicon above 90 W each. This This tool has proven efficient for an electronic market is an important milestone regarding a breakthrough in place providing product information. In particular, it the efficiency of industrial multi-crystalline PV module showed promise for PV modules and wind turbines, production. New technologies, such as conductive adhe- but it needs further effort to be fully exploited. The work sives in combination with printed circuit boards, were needed to put this system in place was the subject of a applied to rear-contact solar cells. further proposal that has not yet been approved. • Other high-impact results concerned the development of processes and the design of manufacturing equip- 4.2 Photovoltaics ment allowing the transfer of thin-film CIGS (copper- indium-gallium-di-selinite) technologies from laboratory The more technology oriented PV projects resulted in scale to indus-trial scale without significant loss of cell advanced technology for the consortium performing the efficiency (the effort necessary for the up-scaling of R&D. In addition, PV systems have been significantly excellent laboratory results to an industrial scale is improved. For example, the performance of PV systems mostly under-estimated). Different technology con- has been significantly enhanced by the development of cepts were further developed and one can expect that an improved control system offering better performance. competition between them will speed up market devel- This product, developed within an EC-funded project, opment and lead to more competitive products. The is considered to be able to make PV systems more flex- results from one of these projects have already been ible and sufficiently adequate to answer the specific used to set up a pilot production line. needs of end-users in rural and isolated areas. • New concepts, such as molecular solar plastic cells – which achieved an increase of efficiency from 1% to In general, PV research projects often led to notewor- more than 3% – appear very interesting. These successes thy technical advances. Even where projects did not triggered a major growth in research activities into achieve their goals as originally planned within the molecular solar plastic cells. This technology seems to proposal, they were often reported as having built up have the potential for huge impact on energy supply some knowledge that could be of use to the scientific for consumer goods (initially there might be applications community, and could also help to shape follow-up such as electricity supply for displays on chip cards, activities. All technology oriented PV projects showed etc.), but developments are still at an early stage and some success in improving cell efficiency and identify- a real market product remains a long way off. ing improved materials and processes for cell and module production. Results from these projects have been Other aspects published in the scientific literature and at European PV Projects specifically aiming at developing PV systems for conferences. There is also evidence that individual proj- integration in building roofs or facades demonstrated ects and their participants had a good awareness of varying degrees of success. There was a strong focus on advances made in all areas of cell and module develop- materials selection, panel construction and electrical ment and production. Some duplication of effort was interconnections combined with performance and dura- inevitable, but contributed to confirming the priorities bility testing. The most outstanding results appear to for medium and long-term developments. have come from a project demonstrating prefabricated building-integrated PV elements. The element is manu- Highlights factured under con-trolled conditions, guarantees a The following results are highlighted from the broad watertight PV roof, and provides a high cooling effect field of PV research and development projects: which lowers PV operating temperatures, thereby increas- • Using industrial process technology, cell efficiency of ing conversion efficiency and extending service lifetime. multi-crystalline silicon cells was improved from 12.5% Lamination and encapsulation options were analysed in to an average of 15.5 to 17.5%. Cell efficiencies as high other projects. One promising option was reported to be

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PV glass plates encapsulated with silicone gel between a activities seem to have been kept mainly within the ‘solar glass pane and a sheet of transparent polymer (Tedlar). energy world’, so that other research fields may have Other options turned out to be unsuitable. Generally derived only limited advantage. speaking, the long-term temperature resistance of sheet lamination materials was always a major problem. Highlights Results to be highlighted were achieved by a project Many common problems were experienced by the proj- which improved visual comfort and succeeded in reduc- ects on PV for building integration, but there appeared ing energy consumption for lighting windowless areas by to be little interaction between the different projects. means of intelligent and energy-optimised systems based Sometimes it may have seemed over-ambitious to have on the combination of daylight and artificial light from addressed so many topics, such as design and architectu- sulphur lamps. A pilot unit was operated to demonstrate ral considerations, materials development, prototype the achievements in comfort in living conditions and manufacture, performance and durability testing, and out- energy saving. This project is also a very good example door trials and monitoring, all within a single project. A of collaboration between universities and industry. more selective approach and a clustering structure imposed by the programme could have enabled indi- Among specific technical achievements coming from vidual areas where research was necessary to be priori- other successful projects were the design and manufac- tised and tackled with more appropriate expertise. Such ture of devices for measuring the energy output of an approach could have avoided unnecessary duplication thermal solar systems; the prevention of stagnation and resulted in more widely applicable solutions. conditions with vapour-induced thermal stress in the same systems; and the design of new solar thermal col- Among examples of particularly successful demonstration lectors featuring different solutions, such as compound projects, the fitting of PV modules in structures of 22 parabolic con-centrators, flat plates with honeycomb dwellings in the Netherlands should be mentioned, as it led transparent plastic insulation, and elastomer pipes to a cost-effective integration of solar modules in shading embedded in metal profiles to be used as metal roofs devices and facades. The architects paid special attention or facades. Several prototypes were built and tested. to the design of the houses to ensure that PV elements were integrated harmoniously. About 35% of the energy demand Other projects developed innovative solar facades for could be covered by the system developed. This project cer- buildings, e.g. by combining a double envelope for the tainly helped to encourage further commercialisation of PV building with an air channel to reduce thermal losses in devices in the building environment. winter and overheating in summer. Different options were studied including, for instance, glass walls and Another very successful project resulted in the initiative that led to the installation of 41 grid-connected PV systems PV modules in the outer wall, and transparent insula- spread all over France. This project played a major part in tion materials and phase-change materials for the inner supporting a policy change in France concerning the con- envelope. Different PV facade mounting concepts were nection of renewable energy systems to the public grid. developed, two of which have a good chance of commercialisation. Some innovative solutions for heating 4.3 Renewable energies in buildings and air-conditioning systems exploiting renewable energies were developed based on different principles. Under the heading “renewable energy sources in buildings” great effort was placed on improving and validating phys- Other aspects ical models. It can be stated that the heat transfer phenom- In certain projects dealing with the integration of PV into ena involved are now much better understood and the buildings, the key objective was not achieved. However, in related correlations and coefficients have been enriched. others the objective of using PV modules had a catalytic In principle, this could benefit not only the solar energy effect on improving more conventional components for field but also other research fields sharing similar physical ventilation or lighting, opening up a large potential for configurations and conditions. In most cases, dissemination energy saving.

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The aim of another group of projects was healthier Highly innovative as well as optimised components for and environmentally friendlier buildings and neighbour- large wind turbines were developed: blades, generators, hoods. One developed a model that links the emissions electric brakes, hydraulic yaw systems, control systems, from building materials and ventilation strategies in order etc. Complete new wind turbines have been designed, to improve indoor air quality. Another produced a tool for manufactured and tested. However, there were no assessing retrofitting needs of office buildings in compli- major scientific or technical breakthroughs. The possi- ance with improved energy performance. Other projects bility of using thermoplastic materials to develop a new examined advanced glazing concepts for windows, e.g. generation of lightweight wind turbine blades in the vacuum windows or gasochromic windows with variable MW range, along with other user-friendly materials solar transmittance. The latter concept has already entered (wood-epoxy), have also been investi-gated. These demonstration and pilot production and is being pur- analyses have shown interesting potentials, for indus- sued within FP5. In addition, guidance was developed tries other than wind turbine blade manufacturing, for architects, planners and others on urban and building too. New devices developed for improving the stall reg- design strategies for the integration of renewable energy ulation of wind turbines have already gone into series generators, solar gain control, optimal use of daylight, and production of large blades. passive cooling. The common theme was the creation of an integrated approach to tackling urban, energy and envi- Other aspects ronmental issues. Specific wind energy applications were demonstrated, such as sea-water desalination projects, and analysis of the possibility of exploiting alternative sites for wind 4.4 Wind energy power production, like offshore wind farms and com- Different types of results were obtained for the broad plex terrain installations, was carried out. Several designs scope of wind projects performed within FP4. However, the were produced to adapt turbine technologies to meet main group of results concerned the development of new these new requirements. tools and improvement in the understanding of the aerodynamic and structural behaviour of wind turbines oper- A new methodology for power characterisation of an ating under different conditions. These tools will facilitate autonomous wind system was developed, while interest- the improvement of future designs. Several projects dealt ing results were obtained by the desalination projects with the improvement of aero-dynamic computing mod- powered by wind systems. It was established that an off- els to simulate the detailed flow behaviour experienced by grid system, comprising the reverse osmosis desalination a wind turbine. In addition, new tools were developed for plants connected to the wind farm, is able to operate sta- the prediction of noise emissions, as well as new aerody- bly without the use of diesel engines or batteries. namic profiles to reduce aerodynamic noise. A new model Several models were developed for wind power forecast- was created to determine the extreme response of wind ing (for a period of up to 48 hours). Implementation and turbines to gusts, in such a way that it can be implemented evaluation of the models were successfully established. in state-of-the-art design packages for wind turbine design, These results are relevant for a better scheduling of con- as used by the industry. A greater understanding of the ventional power plants as well as for a better integration interaction between the wind turbine rotor blades and the and acceptance of wind energy in the existing electric tower was also established. energy supply systems. Accuracy in the prediction of wind resource was also improved, enabling a more reli- Highlights able assessment of possible sites for wind farms. The development of important standards and certifica- tion methodologies was covered by six projects. In par- A well-documented and quality controlled wind field data- ticular, the end-result of one project in this field was a base was created, covering a wide range of environments. set of guidelines that proved very useful in the devel- This database is of vital interest to wind planners and design- opment of the IEC Wind Turbine Standards which are ers as well as to wind engineering in general. This data already in existence. source is currently being used as a primary source of information for more than 100 different companies, research lab- oratories and universities, in Europe, Japan and the USA.

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Achievements from three demonstration wind power proj- In some cases the results led directly to marketable ects include technical improve-ments and also the possibil- technologies or products, especially if big research ity of connecting the plants to weak local grids, which institutes and industrial enterprises were part of the requires specific developments. Wind parks were erected consortium. The majority of pilot plant projects revealed on land in extreme climatic conditions, and offshore, which and specified the needs of further research to be done required special designs and technical considerations. before commercialisation was possible.

The innovative technologies adopted in the demon- Examples of results achieved using pilot plants are high- stration projects comprise: lighted below: • Intelligent control systems and voltage control units • Production of calcium-enriched biomass oil to c for the weak grids, apture acid gases; • Epoxy blade articulations and adaptation of the wind • Production of thermal and electrical energy by burning turbine, poultry litter, without environmental contamination; • Solid construction of the foundation and logistics for • Part or total substitution of fossil fuels (coal, petroleum) the installation of the off-shore plant, and by biomass (wood residues, bio-oil) within conventional • Specific sea-water cable. technology; • Demonstrating low emissions of air pollutants such as CO, All the demonstration projects involved new concepts NOx and particles when using biomass feedstock for and techniques which led to improvements in efficiency, energy conversion; when compared to previous typical efficiency values • Improving energy efficiency by using a specially designed for the techniques. and adapted gas engine for direct use of a high calorific value fuel gas produced from the gasifi-ca-tion of biomass with steam; and 4.5 Energy from biomass and waste • The successful development and testing of new measurement devices that have become increasingly important Most of the projects in the field of "biomass and waste" in the light of new emission regulations. Besides meet- revealed improvements for energy conversion tech- ing the regulations, new measurement equipment led to nologies with regard to biomass and waste. economic and environmental optimised combustion processes. Highlights Very interesting results have been achieved on the Other aspects interaction between fuel and bed material in fluidised In almost all these projects, serious attention was paid to beds, and on the treatment of gases and exhausts for the environment, and interventions were made to the sys- the abatement of environmental problems. Much of the tems concerned in order to improve their environmental work has been devoted to the study of the properties performance. However, some projects were devoted of different biofuels, ranging from bark and other entirely to the environment and investigated the reduc- wooden residues to sewage sludge, as well as meat tion of emissions from the processes being studied. The and bonemeal. Investigations have also been performed results show that pollutant emissions can be significantly on how these fuels interact with different additives reduced by means of measures taken on combustion and bed materials in fluidised bed boilers. In many chamber design, fuel and combustion air staging and cases, new understanding has been accompanied by a control, as well as by catalytic and non-catalytic processes. deeper insight into which parameters are important for either causing or avoiding problems. Other projects presented mathematical models for sim- ulating the performance of plants converting biomass Many "biomass and waste" projects successfully demon- and/or waste into energy. The developed models were strated energy conversion from biomass and waste with tested and verified mainly with pilot plants or existing existing, more or less modified technologies such as full-scale plants. The models contributed to a deeper combustion, gasification and fast pyrolysis. Within such insight into the performance of processes and helped to projects, pilot plants have been installed and tested. design better and more efficient biomass-to-energy

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plants. The technological innovation involved the mod- • Pipelines with optimised diameters; elling of complete processes – for example, a combined • A highly efficient storage facility for thermal water, heat and power process – within a single model. including an intelligent regulation system; and • An optimised heat and well pump with special Overall, the projects carried out here have been success- regulations. ful. The majority reached their objectives within the foreseen schedule. However, this success must be qualified Through the implementation of new concepts and tech- by some critical remarks. In some cases, the time used nologies, an improvement in efficiency of up to 40% was for testing the technical performance of individual achieved compared to previous concepts. Besides the devices and components of a sub-system or the overall technological developments, geothermal projects also conversion system was rather short. This limits the cred- contribute to significant reductions in greenhouse gases ibility of the technical results obtained and the validity such as CO2, CH4 and H2S. of the conclusions, and it may be that the quality of the results was sacrificed in favour of progress according to Small Hydro plan. Several coordinators reported that they had been The innovative technology demonstration plants under pressure because European Commission staff resulted in: have not accepted delays. Complete lack of information • Optimised and efficient small hydropower turbines, concerning the experimental accuracy or error limits including innovative regulation of the flow rate and characterised many of the R&D projects. water level; • An intelligent control system; In several cases, the technical results obtained were poorly • Innovative design concepts for the intake and outlet documented in terms of concrete quantitative results, of the water; and although there were exceptions, of course. Many results • Utilisation of a new efficient aspirator. were more qualitative than quantitative, for a number of • New structural parts, such as floodgates and retaining reasons. However, following the development of innova- walls, that have been proved to better withstand the tive procedures and ambitious methods in R&D projects, rough environment and operating conditions of hydro new testing and extensive measurements are expected to power plants. reach some quantitative results, and the projects should not conclude with statements such as "better performance", A remarkable improvement in efficiency of up to 100% "increase of energy savings", and "improvement of the compared to previous technology concepts was achieved with environment" without presenting corresponding values of the innovative technologies used in the demonstration various measured quantities. In general, it is important that plants. A positive impact on the ecology of river water and any project, whether research of demonstration, should the fisheries (e. g. through new fish ladders) was also achieved, have goals that are quantified in such a way that it is pos- resulting in a significant environmental improvement. sible to verify whether a goal was achieved or not. Solar Thermal 4.6 Others Nearly every component of a Dish/Stirling system has been redesigned. The concentrator is built up of Geothermal Energy segments from glass fibre reinforced resin, supported The large-scale geothermal plants supported results in by a space frame ring truss. A new erection procedure providing heat for district heating systems and/or min- and the required tools have been developed. The eral water for drinking purposes. The plants comprise cooling system has been simplified, the insulation several innovative technologies to increase thermal chamber around the heat exchanger (receiver) has power generation, to reduce heat and electricity losses, been replaced by a water-cooled version, the packag- and to reduce investment and operational costs. The ing optimised and the receiver manufacturing ratio- innovative components, which were implemented in the nalised. The drive system, needed to orientate the developed plants, could be summarised as follows: concentrator to the sun, was redesigned both to • Efficient water-treatment system for geothermal water reduce cost and to enhance tracking accuracy. for district heating systems and purification to use Although further improvements, related to stiffer the heating water later as drinking water; concentrator ribs, should be carried out, the new

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concept was successful and will be the technological 5. The results: economic, base for forthcoming projects. environmental and social In addition, a new European trough solar collector has been developed which should allow thermal solar electricity generation costs of 0.16 to 0.20 /kWh to be The projects assessed were basically R&D projects span- achieved in Southern Europe. ning a large spectrum of applied research and development in the field of renewable energies, with a varying Wave energy degree of potential market penetration. Under these cir- Two types of wave energy systems were developed and cumstances, there are only very limited possi-bilities tested. The simplest kind of wave energy device is the oscil- for a reliable assessment with regard to direct eco- lating water column (OWC) comprising an air chamber nomic and social impact. which is open to the sea below the surface. This chamber is compressed and decompressed alternately by wave Social and Economic Impact action, and the air movement between the air chamber In general, the social and economic impacts of the proj- and the outside is used to drive an air turbine. The other ects on their own have been limited. It should be noted device is the Wave Dragon, a floating wave energy con- that the social and economic impact issues were not verter consisting of two wave reflectors focusing the amongst the main selection criteria for FP4, and that waves towards a ramp. Behind the ramp there is a large most of these projects consisted of feasibility and eval- reservoir where the water is collected and stored temporar- uation studies whose outcomes cannot be objectively ily before leaving the reservoir through hydro turbines. measured regarding socio-economic impact at present. The impacts of such work can only be measured in the Energy storage long term. In the field of energy storage, an air metal hydride battery was developed for the power supply for electric But, if the techno-economic feasibility studies that have vehicles. The testing of a prototype showed that the sys- been carried out, and the technical results obtained tem did not attain all the expected properties, but the are relied on, almost all projects show an indirect eco- results were encouraging. For example, in comparison nomic and social impact. Most of the developed and with the commonly used nickel hydride batteries, the improved devices, materials and integrated systems weight was significantly reduced, and a fast charging show a serious market penetration potential with sig- time (gas charging) of ten minutes was achieved. With nificant European added value. In addition, there would additional effort, the system could become competitive be an important positive economic impact for the end- with the heavy and bulky nickel hydride batteries. users, the local authorities and the national economies, from the expected reduction in energy consumption, due to energy savings, and energy efficient improvements with regard to the use of renewables.

For the above-mentioned reasons, there is no direct social impact resulting from the projects assessed. However, when this research effort reaches the expected targets – for example, the full implementation of an innovative bio- energy technology embedded within an overall supply chain (and the prospect of this implementation is very high, at least for some of the technologies developed and investigated within FP4) – then the social impact will be significant, as far as it concerns enhancement of employment and quality of life, particu-larly in rural agriculture areas, as well as reduction of environmental impact and therefore for securing a more healthy environment.

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Environmental Impact have been difficult to achieve in other ways, and also This is one of the reasons why almost all of the assessed facilitates the transfer of results from universities, via projects paid special attention to the environment. It is research organisations, to the private industrial sector. – for good reasons – supposed that the new concepts, Furthermore, the building of partnerships involving designs, developments and technical improvements will research institutions, industries and end-users con- lead, if they become marketable, to significant emission tributes to a wide dissemination of research results and reductions. Thus one can predict that EU-funded research know-how. under FP4 has contributed to making the energy sector significantly more environmentally friendly. The fact that more or less the whole work of the Renewable 5.1 Integration of renewable energies Energies sector considered emission reduction, particu- The economic, environmental and social results of proj- larly the reduction of the greenhouse gas CO , in one 2 ects dealing with the integration of renewable energies way or another, gives some hope for reaching the EC’s into the existing energy system are particularly hard to emission reduction target commitment within the Kyoto assess due to the fact that most projects have had only Protocol. But it has to be mentioned that it was not only carried out ‘paperwork’. the reduction of greenhouse gas emissions that was within the environmental focus of the projects investi- Highlights gated. The possibilities for reducing other harmful air- At first sight, some of the projects appear to have had borne emissions such as NOx and SO2 have also been only limited results. However, a closer inspection of investigated thoroughly. To an extent, this is also true these results revealed the development of small but for emissions into soil and water. helpful tools. For example, the availability of studies demonstrating large opportunities in Mediterranean The projects undertaken by large research institutions countries could be helpful for European companies that with extensive experience of being involved in many are worldwide leaders, mainly in wind and PV tech- such projects have probably had a greater direct impact nologies, to acquire new markets. than projects carried out by researchers working in smaller, and perhaps more isolated, environments. This Other projects that have dealt with financing renewable is due to the fact that, in general, such research institu- energy projects in Mediterranean regions concluded tions (such as research centres and research companies) that international funding agencies and other potential have wide research programmes (for example, in the investors were informed of investment opportunities area of combustion and gasification). In addition, they during the course of the financing tasks, and that the have been continually active in a field for a long time Mediterranean partners have become more aware of the (20 to 30 years). In general, these organisations have eligibility criteria for various sources of funding. good relations with the relevant manufacturing industry. While the projects investigated here possibly have Other aspects low direct social, economic and environmental impacts Another important result relates to institutional, organ- because they are a long way from market penetration, isational and cultural barriers that have to be over- they have probably had an important role in disseminat- come if Europe wants to increase the deployment of ing and sharing experiences and results among the dif- renewable energies. Europe should seriously address a ferent partners. It is more difficult to pinpoint the long- way of clearing obstacles, such as inadequate legal term benefits of such research investments, but they may frameworks and misinformation in society, with regard be substantial if strong research environments are devel- to the use of renewables. oped, based on EU-research. It is, of course, important that EU-funded research does not contribute to a Some projects have taken a closer look at the external ‘monopolisation’ of research work within a few institu- cost of energy conversion and supply. The results might tions. EU- funded research has brought and still brings contribute to a fairer and more comprehensive eco- networking between universities, research organisa- nomic comparison between conventional energy supply tions and companies in different countries that would and the use of renewables in future.

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Most projects show significant similarities in terms of demonstrative in character, have not yet reached this impacts. In general, they are expected to contribute to stage, as to do so usually takes more time after comple- improved sustainable economic development and have tion (this depends on the technologies and concepts an effect on the reduction of unemployment and preser- implemented, but up to five years can be required, espe- vation of the environment. cially if a thoroughly new production line has to be set up and certified). Nevertheless, some of the projects seemed to be very prosperous in achieving commercial- 5.2 Photovoltaics isation, e.g. the one related to multifunctional PV facades.

An immediate economic impact is often difficult to Other aspects quantify, especially for PV research projects. It could, in Projects dealing with the management of hybrid PV most cases, be predicted on a medium- to long-term systems, inverters and battery techno-logy are likely to range, generally in the order of five to seven years. bring about economic benefits of reduced unit cost The majority of projects investigating photovoltaic sys- through a combi-nation of new design, new technology tems looked for new manufacturing process techniques and smaller number of components. and new cell technologies, the ultimate aim being to reduce the cost of PV systems substantially and to In the PV sector, environmental benefits will be obtained improve energy conversion efficiency significantly. Only from the reduced use of materials for the production of the development of significantly cheaper and more new cells and reduced energy consumption resulting efficient PV modules, down to the target of 1 /W, from progress in manufacturing processes. Further ben- could open the future PV market dramatically, and also efits will come from the replacement of toxic elements, improve the competitiveness of the European PV indus- such as cadmium or selenium, with non-toxic elements. try with companies in this market from the USA and, in As a consequence, working safety will be improved and particular, Japan. less toxic waste produced.

Highlights The environmental benefits derived from an increased Therefore, to date the social impact of these projects has use of PV systems in the future will clearly include the off- been rather poor as far as the creation of new jobs is con- setting of conventional fossil-fuel-based electricity gener- cerned. However, some exceptions can be recorded, ation and consequently the reduction in CO2 emissions and such as the case of a PV project on CIGS cell technology other polluting substances. There will also be a reduced which has led to the setting-up of a pilot production line, environmental impact from the uptake of PV in remote sites creating about 25 jobs and a capacity of several hundred where power would otherwise have to be supplied by kW in 2002, with plans to expand capacity up to 10 MW generating sets driven by internal combustion engines or per year. Another project that has approached commer- by costly grid connection through overhead power lines. cialisation aimed to develop industrially prefabricated PV elements for integration into buildings (this concept For photovoltaic demonstration projects, the main eco- was reported to enable lower costs than state-of-the-art nomic benefits come from the lowering of capital and techniques for both on-site building and PV systems). operating costs by the implementation of innovative and Apart from these few cases, however, any significant cheaper components. Such new system elements reduce impact on job creation can only be predicted for most the labour needed for the completion of overall PV projects in the coming decade, if the commerciali-sation systems. The increasing efficiency of components resulted of products and expansion of the market share of the in improved system performance and hence more energy European PV industry takes place as expected. being sold to the users or the grid.

In the course of the demonstration projects a small num- Most PV demonstration systems were rather small and ber of new jobs were created for work performed dur- placed in decentralised and widespread locations, which ing the life of the project. A significant number of new also increased public awareness and interest. The proj- jobs can only be created when products have reached ect that led to the installation of 41 grid-connected PV their full commercial stage. Most projects, even though systems spread all over France is a good example of this.

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5.3 Renewable energies in buildings to the development of low-cost devices to measure the energy delivered by solar thermal systems can also be With regard to research projects on the application of considered important for green labelling as they provide renewable energy sources in buildings, generally speak- the tools necessary to assess a standard minimum effi- ing, it can be noted that they helped to create an impor- ciency of such systems. tant link between the renewable energy sector and the much larger sector of the building industry. As for the environment, wider use in buildings of renew- This important industry sector has been made aware of able energies in general and solar energy in particular, the possibilities offered by these new techniques and along with higher energy efficiencies of buildings as a concepts. whole, and proper urban planning, will eventually lead to a reduction in the consumption of conventional Highlights energy sources such as fossil fuels. This will also help to The companies involved in the projects investigated reduce the emissions of greenhouse gases as well as here were quite confident about long-term benefits, not other airborne emissions which have a toxic impact on only economic but also from the point of view of image the environment. In addition, the projects related to air- and leadership. The expected time for market deploy- conditioning can provide the additional benefit of ment, where applicable, differed depending on the avoiding the use of environmentally hazardous refrig- type of project. In general, this ranged mainly between erants, not only by identifying better fluids, but also by three and five years. For heating and air-conditioning applying new techniques such as chilled ceilings coupled systems the estimated time was longer (between six to close wet cooling towers, and passive down-draught and eight years). evaporative cooling.

Shorter-term repercussions are exceptional but they 5.4 Wind energy exist. For example, mention is made of the recent foundation of a new company introducing thermal energy The overall benefit from wind energy projects is greater storage technology based on the adsorption of water penetration and leadership in the wind energy market vapour in silica gel on to the market. The relevant proj- worldwide. In addition, some research projects will ect was to be considered as basic research, but the increase future European employment opportunities. encouraging results allowed for rapid market introduc- The research projects will also support, through more tion which could not have been foreseen at the begin- cost-effective renewable energies, the EU goal of 12% ning of the project. Other examples are the contracts of Gross Inland Consumption for renewable energy by already acquired by industrial partners for selling systems 2010, outlined in the EC Directive on the Promotion of developed and/or improved in some projects. Examples Electricity from Renewable Energy Sources in the Internal here include innovative air-conditioning systems based Electricity Market. The research will also assist in reduc- on chilled ceilings and closed wet cooling towers. The ing greenhouse gas emissions, as set down in the Kyoto shorter-term repercussions have not only arisen in eco- Protocol, through the greater uptake of renewable nomic terms but also in terms of quality, as can be seen energy. by the example of one industrial company which has changed its procedure for testing collectors for leakage Of course, not all research projects have been a success: because of the results of the project in which it was new materials for rotor blades have proved too expen- involved. sive; software models have proved to be insufficiently robust, standardi-sation has been more difficult to Other aspects achieve, and so on. However, the projects have increased In several projects, a remarkable effort was made in European knowledge and the European wind industry’s assisting standardisation and endorsing mechanisms technology and commercial viability. This research for the establishment of ‘green labelling’. Procedures for helped to strengthen the European wind energy indus- the thermal and electrical evaluation of hybrid PV sys- try in its bid to become more competitive on the world tem components have been laid down. Projects related market.

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Highlights designs has also had a very positive economic effect, not The benefit of the research programme to the project only for wind turbine manufacturers, but also for the partnerships came from the competi-tive advantage developers of wind turbine projects. obtained in the development of new technologies and an improvement in existing ones. Also, collaboration For example, the installation of the first offshore wind between project partners provided faster product devel- farm (2.5 MW) in Sweden demonstrated that by com- opment as experts were brought together. bining innovative techniques an offshore wind farm can be constructed more economically than previous con- The benefits of R&D in the wind energy sector have been structions. Lessons learnt and experiences obtained clearly demonstrated by increasing sizes and lowering were published at technical conferences and in maga- prices per installed production capacity. Production zines, promoting the use of these results for future off- costs of the wind turbines have been reduced by a fac- shore wind projects. Today, the commercialisation of off- tor of four from 1981 to 1998. Today, wind energy is shore projects has begun and several companies are partly cost competitive with other forms of electricity building wind converters for this application, as sites with generation at locations with very good wind resources. a high wind energy supply onshore are limited. This is especially true for islands and costal areas. Thanks in the main to successful R&D and favourable framework Projects concerned with the use of unconventional sites, conditions, the wind energy market is in a state of as well as projects related to the development of tailored rapid development. wind turbines to be used at these unconventional sites, have contributed to stimulating the growth of the cur- An improvement in basic knowledge, as well as new rent wind market. Consequently, the research projects tools developed in the projects supported under FP4, have helped to increase the use of this clean source of have clearly contributed to the consolidation of the energy, with all its economic, environmental and social competitiveness of the European wind turbine industry benefits, within the EU. (manufacture of turbines as well as project development). The new components developed for large wind The wind projects have contributed to the improve- turbines (blades, electric brakes, etc.) have helped the ment of the environmental performance of wind energy European wind turbine industry to maintain or even systems. Several have dealt with the development of increase its share of the world market. design tools for reducing the noise produced by wind turbines. In addition, new aerodynamic profiles for the Other aspects blades were developed with better characteristics for The development of international standards applied aerodynamic noise reduction. A new code was devel- to wind energy will benefit the growth of the wind oped for the prediction of noise in wind farms. This energy market, contributing positively to its deploy- research helps to achieve a certain acceptance on the ment. The results of the projects in this field are now con- part of the people living close to the sites where wind- tributing to the preparation of better-founded stan- mills have been erected. Therefore such activities have dards. This will lead to a more economical designs and a direct social impact. an increase in design safety. The successful development of the wind energy market Some project results have allowed for a better adjustment in Europe has created a large number of jobs and has of wind turbine designs to different sites. Furthermore, this contributed to the development of some regions. will extend the lifetime and minimise main-tenance, hence increasing both the availability factor and the eco- The know-how developed in these projects is shared nomic value of wind power. The results have been satis- between several European research centres, currently factory because optimised site-specific designs have shown participating in development projects, together with reductions in energy cost of up to 15% achieved from an European manufacturers. Project results will contribute increase in annual energy yield and a reduction in man- to strengthening and enhancing the position of European ufacturing costs. The possibility of tailoring wind turbine manufacturers on the world markets. Both aspects have

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a direct influence on the proliferation of wind-energy for some of these technologies), then the social impact power plants. Hence, although somewhat indirect, these will be significant, as far as concerns the enhancement projects will have a positive impact on job creation in wind of employment and quality of life, particularly in rural energy related sectors. agricultural areas.

5.5 Energy from biomass and waste Other aspects Almost all the projects assessed paid special attention The innovative components developed within "Biomass to the environment. Along with the new concepts, and Waste" projects – for example, new boiler concepts designs, developments and technical improvements, and decentralised combined heat and power plants reductions in the emission of environmentally harmful (CHP) with biomass gasification – is supposed to improve solid and gaseous pollutants were of great concern. the market position of European companies´. For exam- The results relating to the environment can be consid- ple, a small enterprise that participated in the new ered as satisfactory, graded from highly successful to less boiler concept project now produces one of the boil- successful, as in the case of projects dealing with the ers designed therein, and which is close to being intro- com-bus-tion process, where technical improvements duced on to an important market where conventional were not always followed by corresponding improve- heat production could be replaced by biomass fuel. ments in the environmental performance of the developed system. An intensive effort in this matter will The use of bio-fuels offers the possibility for realising small, have a significant positive impact when bio-energy decentralised power supply concepts with significant tech-no-logy is commercially exploited. advantages for remote areas. As bio-fuel can be obtained close to power plants in a decentralised system, this 5.6 Others could create jobs, especially in remote spots, and thus reduce unemployment both in EU rural areas and also in The projects carried out under the heading "Others" developing countries. Furthermore, improved access to have been first and foremost techno-logical research and electricity in remote areas resulting from the installa- development projects. Therefore, the social, economic tion of decentralised energy conversion devices using and environ-mental impact of such projects is harder to renewables, might contribute to a better quality of life. assess. It could be said that if the investigated technologies mature in the future the environment would Highlights be significantly disburdened from harmful emissions Most of the developed and improved performance caused by fossil fuel energy use by replacing "fossil devices, materials and integrated systems offer serious energy" with, for example, wave, solar thermal, geot- market penetration potential with significant European hermal and hydro energy. added value. However, to reach the market penetration stage a substantial amount of R&D work is needed in Without doubt, the market penetration of energies order to improve the efficiency, the long-term reliabil- investigated here would certainly bring about social ity and, most importantly, a reduction in manufacturing and economic changes by introducing decentralised and maintenance costs. A period of five to ten years is energy systems, but this cannot be foreseen precisely nor envisaged before industry and the public would accept estimated from an actual point of view. even the most advanced technologies for biomass and waste conversion into energy. The economic impact of the demonstration projects, under "Others" in particular and in the renewable For the same reasons, there is no direct social impact energy sector in general, cover reductions in the follow- resulting from those projects assessed. However, when ing categories: this research effort reaches the expected targets, i.e. full implemen-tation of bio-energy technologies (and the • Maintenance and operational costs are reduced through prospect of such implementation is very high, at least the implementation of innovative components, which

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cut down the labour needed on the system during 6. Improving the programme every year of operation, and by increasing component efficiency, which also usually result in the improved and project management performance of the overall system. Less energy is used in the production of energy per unit and more energy can be sold to the user. Partnerships In general, the partnerships and consortia that have been • Decrease of investment costs is also achieved through built up to carry out research work concerning the reduction of operatio-nal costs and through the "Renewable Energies" have been well suited to their redundancy of components in the systems, e.g. heat respective pur-poses. For the majority of the project exchanger, or by minimising the storage facility coordinators, the partnerships functioned smoothly through an improved control system. without any major troubles and, in most cases, the co- operation within the research teams was good. The environmental impact of projects depends on project size. Generally speaking, a significant reduction of Consortia comprising various partners undertook the greenhouse gas emissions could always be achieved. In projects. The most successful partnerships were those addition, for example, the small hydropower projects consisting of research institutes/universities, industries also focus on the reduction of the environmental and and, in some cases where the goal was product devel- ecological impact on water directly. Similarly, the nature opment, end- users. Within these partner-ships the part- of the small demonstration projects involves decen- ners contributed their special experience and know- tralised and widespread locations, which also increase how in their specific field to a thorough analysis of the public awareness of and interest in such renewable problems and to successful and comprehensive results. energy systems. The industrial partners involved ensured that the application-related projects did not get lost in details that The current situation of wave energy can be compared would have been of little interest as regards future with the development of wind turbines in the early application. In general, most partnerships created for 1980s, and the future costs expected for wave energy projects within the Joule/Thermie programme were are comparable to today’s wind energy costs. According considered to be efficient and successful. However, a to an ambitious plan for the next 15 years by one of the ‘strong’ project management and well-defined roles projects, a successful deployment – leading to electric- for each partner – based on a clear work plan – is impor- ity generation of 12 TWh/a in the North Sea – will estab- tant for successful project execution. In addition, the con- lish a whole new industry. The impact on job creation sortium should be a ‘real’ consortium; i.e. the partners could be of the same order as today’s wind industry. Most should be selected according to their skills, know- how of the jobs will be established in areas where the off- and experience. Therefore, more help in creating prom- shore oil and gas industry is set to decrease its activities. ising consortia should be provided by the EU because some projects failed due to inappropriate partnerships.

For an immediate and significant economic impact it is positive to have at least one partner with a strong interest in exploiting the results in the form of commercially available products. Of course, this is not always possible with research projects. Some-times, the start-up of a new, purpose-built company could even be considered as a feasible route for the exploitation of project results rather than relying on existing industrial firms.

When the industrial partners are small companies, it should also be borne in mind that they have limited

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cashed resources which may cause them to suffer cash-flow For various reasons, consortia which were too large difficulties during the work. In this respect, some small com- often had serious problems in reaching the overall panies have reduced their availability for embarking on goal of the project. However, where the size of the con- European projects. This unfairly penalises smaller firms, sortium fits the subject of the project even a very large even though the technical standard of their work may be partnership can perform a successful project. In conclu- high and valuable to other partners. Also, such small sion, both the partnership and the size of the consor- companies are usually very innovative with a very prom- tium in an EU-funded project should be appropriate, i.e. ising cost structure compared to big companies. In some the project’s topic and objectives, rather than admin- cases, skills within those small companies which are unwill- istrative preconditions, should define the partnership. ing to become partners in a project can be brought into a consortium by subcontracting, which should therefore Coordination often turned out to be a heavier burden be regarded as an unavoidable way of enlisting special- than expected. Periodic reporting and other centralised ist support that would otherwise be lost. Another prob- bureaucracy involved in project coordination were often lem for such small companies is co-funding as they only found to consume too much time and effort, especially receive 50% of the overall costs. For very small companies by industrial companies. If these procedures cannot be with good and innovative ideas it is often impossible to simplified, it would at least be advisable that universi- ‘survive’ these conditions without receiving additional ties and research centres are allowed to act as project co-funding, for example, from local or regional govern- co-ordinators in most circumstances because their man- ment. In addition, the rules whereby the EC distributes the age-ment infrastructure and coordination capabilities funding throughout the overall funding period some- and availability are usually greater than those of indus- times caused tremendous problems for companies with try, especially those of SMEs. In addition, it might be only a limited amount of liquid cash resources. problematic for administrative and financial reasons for an SME to handle a large EU-funded project which, Since such small and medium-sized enterprises (SMEs) for example, exceeds the financial balance of the SME are most important for creating jobs, especially in inno- by a factor of two or three. But such SMEs are often the vative areas, it has often been mentioned that the rules driving force behind these projects. Therefore it is wise for EC funding should be adapted to better suit the for the EC to try to develop adequate solutions ensur- needs of such innovative SMEs. Improvements in that ing that the innovative potential of such SMEs could be respect could include more frequent disbursements and used most efficiently for the benefit of our society. more generous funding. There are several examples of relatively small projects Having a limited number of project partners whose where R&D organisations co-operated successfully with task within the project is right in the centre of their core SMEs. A small project can give very good scientific business often seemed to be very helpful for efficient results at moderate costs, while a very large project may project management. For example, within one large PV appear less attractive to SMEs because of, generally project (up-scaling project) only two partners were speaking, a lower focus on their special problems and involved, but this did not seem to be disadvantageous greater overheads. For the future, EC programmes for successfully reaching the ambitious project goals. seem to favour very large integrated projects and net- However, this does not lessen the importance of hav- works. It will be essential that such large projects be ing, in any case, a good consortium made up of well- clearly subdivided into well-focused sub-projects to defined partners and including bodies of good scien- give innovative SMEs a real chance to participate in such tific and industrial standing, so as to form a ‘critical mass’ projects. There is also the common opinion between that reduces the risks of failure and activities overlap- coordinators that a financing window for smaller proj- ping and sets the conditions for the more likely exploita- ects is needed to guarantee SME participation in tion of results in a long-term perspective. The consor- European R&D programmes. This is because they might tium should always be selected according to the skills be hesitant to become involved in very large projects of the partners and not to administrative precondi- and networks because of the additional administration tions, as long as there is a clear European focus. work inherent in such initiatives.

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Some partnerships in the projects assessed had been The final assembly of results from the different work established over many years and in many other related packages into the project's final report was sometimes projects. Therefore, these projects were managed by poor with no apparent editorial thought and little well-experienced project coordinators who knew the regard for the end reader. Good editing and docu- partners well. Many of the partners continued to co- ment structuring should be a must for final reports, operate beyond the end of the project. It is worth especially when they are written by people whose recalling here once again the success story of a PV native language is not English. Even if research on sin- project on CIGS cell technology, which came from a gle topics has been in-depth, the final report should be whole series of projects that started in 1985. The part- readable by anyone with knowledge in the field, stat- ners stated clearly that this success was based on the ing clearly the project objectives, the method by which whole series of projects supported by the EC and not they were researched, and project outcomes and con- just the success of the last project. A clear commit- clusions. Suggestions for improving final reports are: (1) ment from the Commission to sponsor projects that a wider distribution of the results to avoid a duplica- need support over many years is recommended in order tion of work, and (2) independent reviewing of the to create more success stories such as this. The maximum results by others active in the same field. Such measures length of EC-funded projects should better reflect the – possibly supported by the precondition to publish at needs of the project and less so administrative pre- least some of the results – would put pressure on the conditions. consortium to improve the quality of the final report.

Projects Although in most projects the partners proved to be Projects with well-defined, verifiable and realistic goals well suited, it failed in some others. There were many clearly set out from the beginning have proved the most different reasons for this, ranging from commercial successful. The project partnerships worked well where con-flicts between partners, to company merging and partners had detailed and realistic goals. One of the les- restructuring, to changes in a partner's staff that pre- sons learnt was that a new project must be built on real vented some activities from going on, etc. Therefore, exigencies, and/or of a market niche, of the scientific one improvement to be considered in future pro- and industrial community to obtain any real impact grammes could be a mechanism for introducing one or from the technical, economic, social and environmen- more new partners during the course of the project, tal standpoint. If this is not the case the work often without increasing total project funding, providing remains on a merely academic level, bringing no durable the other partners agree to readjust their project plan- output. To set a framework for this, it would be help- ning in such a way that means are made available for ful to have a clear outline of the general objectives to the new partner. More flexibility is needed here by be achieved in the overall EC research and demonstra- both the project coordinator and the EC to ensure that tion programme. This would mean defining preferen- the project goals are reached successfully. tial research and demonstration lines and offering clear and coherent support. Unexpected problems often appear during a project and the time for solving even expected problems might be Nevertheless, the majority of projects were considered to difficult to estimate. This is especially true for projects have been well managed. It should be noted that in some dealing with experimental work in pilot and/or demon- large complex projects it appeared that each partner stration projects. In solar technology, trials are nor- undertook to carry out a certain part of the work with- mally planned for the summer season. In some projects out paying very much attention to the work of others. that suffered from delays, tests had to be performed in Thus, although some individual parts of the project were winter when the sunshine was far from optimal. Similar successful, the project as a whole ended with a rather poor setbacks arise with other ‘uncontrollable’ renewable performance. The lack of efficient coordination could be sources, such as wind. the reason for the delays that occurred in some of the projects. Therefore, improved coordination and management should be established, especially in large projects.

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Several of the project coordinators remarked that they projects are important tools for bringing technologies could have achieved higher quality results if they had closer to market acceptance, industry may also encounter been allowed a little more time (three to six months). hurdles to market introduction for which demonstration Most of these projects had been delayed due to reasons is not a satisfactory answer. A funding instrument for beyond their control. Usually, the EC is very strict on supporting other measures to promote market introduc- completion dates. However, when there is sufficient jus- tion of new products and concepts is worth considering. tification, it is reasonable about granting a limited Such a funding programme should be designed to be extension of project time. attractive to SMEs, too.

With this in mind, it would help to ensure good-qual- Dissemination Activities ity results in order to have more flexibility to modify the The importance of dissemination activities has to be initial timetable and/or to extend the project's lifetime. stressed for both research and demonstration projects. This requirement is also particularly relevant when Many projects have already done so, and their outputs the target is either a user-friendly software or a mar- have been disseminated widely through scientific mag- ketable product. One alternative could be to facilitate azines and conference proceedings. Others have so far a follow-up project if the outputs are deemed worthy done too little to spread the information they have enough, taking into account project results. One way gathered within such a project, which is partly funded could be to allow for a different and possibly more slen- by public money. To reach a really broad and diverse der evaluation procedure for these follow-up projects. audience, publication in media beyond the merely academic journals should be recommended. It is not very In future, demonstration projects will also help to likely that reviewed papers are read and understood by bridge this gap by supporting development of applica- the educated layman. Therefore, strong emphasis should tions that are midway between the research stage and be put on publication in magazines read by the indus- full market deployment. For such demonstration proj- try concerned with the topic the project deals with. This ects it should be underlined that an important phase is considered to be a very efficient, safe and quick way of for enhancing their effectiveness is the plant-monitor- disseminating results. In addition, a shift of emphasis ing phase. To perform this in a reliable way, accurate from managerial reporting to the production of public- and detailed guidelines should be drawn up by inde- domain output could be considered in this respect. pendent bodies and handed out to coordinators of all renewable energy projects for carrying out measure- With regard to demonstration projects, dissemination ments, processing, and evaluation of the measured activities play a key role in the public's perception of data. Such guidelines have already been made available renewable energy applications. To increase acceptance for photovoltaic systems, but are still lacking in several of renewable energy projects, people have to be pro- other sectors. In addition to providing guidelines, exter- vided with ample information about the technologies nal independent bodies such as the EC’s Joint Research and environmental advantages coming from the Centre could also provide assistance in recognising mal- installed plants. This in turn will affect the length and functions and ensuring a detailed analysis of systems. outcome of permitting procedures and support wider market penetration by these systems. Therefore, work Even with the involvement of industrial partners, the programmes should also be required to include a clear financial risks in moving research products from the strategy for dissemination activities, with suitable time laboratory to the market are often too great to warrant and funding allotted for this specific purpose. investment. This is because the gap between research and getting a product ready for the market place is con- Last but not least, it is hard to get some information from siderable and requires long-term commitments (at least EC-funded projects once the project is officially termi- three to five years) and a reasonable likelihood of nated. But the dissemination of results gathered by return on investment. This is the main reason why there means of public money is important, and not only from may be some research concepts which are lost that may the perspective of the taxpayer. To take full advantage otherwise have been a success. While demonstration of the important added value of FP4 or of future

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Programmes, the project results should be provided in better in terms of risk, and also to give credit to the pro- a short, systematic and structured form. These data posals that are ‘more down-to-earth’. A good project should be easily accessible to a broad audience, and the must not necessarily achieve top scores on all criteria – information should be published shortly after project- there may well be contradictory criteria because the EU end. A systematic and structured collection of accurate needs to develop solutions for both today and tomorrow. qualitative and quantitative data should be put in force, It is also important to encourage realistic estimates as to relying on standardised reporting formats. This seems when a given technology might be ready for the market, to be an important point to make EU-funded research and to fund projects with both longer and shorter per- more useful, more easily accessible and more widely spectives for market introduction. Unrealistic claims for disseminated. a given technology can do a lot to damage market introduction of innovative energy technolo-gies when such The OECD has a fairly well-functioning information technologies fail to live up to unrealistic, premature network in the field of energy efficiency and renewable expectations. energy technologies (Caddet) that could be used either as a model or even directly. A compulsory measure could be introduced whereby coordinators have to prepare a brief information brochure for publication through a "research Caddet" network. In principle, information on demonstration projects could be disseminated through the existing Caddet network, or a similar instrument could be set up.

Technological Implementation Plans To prevent promising results sinking into oblivion, a support structure should be created for technological implementation plans. The main objective of this would be the identification of promising results and making sure that they do not stay as just that – promising.

To gain more results ready for use in future EU-funded programmes, it might be helpful to support technology development by linking projects in time. That means not stopping the funding of promising efforts after a first project because of administrative reasons. It might be very fruitful and effective in terms of return on investment of public money to continue with a promising project idea (promising in terms of huge market impact) until a demonstration phase has been successfully completed. It is much better to have a few projects which are allowed to mature to market introduction rather than to have many innovative projects which simply stop after their innovative phase.

Generally speaking, the more innovative a project was supposed to be, the better the chances were of getting funding. However, the more innovative a project is, the higher the risk of failing is in terms of technical results. There is a definite need to balance the project portfolio

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7. Reference to national RTD As regards wind energy, the following two tendencies can be identified. The research funding changed from programmes onshore to offshore applications because the first technology is supposed to be market mature and competitive. Future work will be carried out with onshore applica- The research in FP4 is not the only research work on tions to address and understand any non-technical issues renewables carried out within the EU. A great effort has that may hamper a wider market penetration of wind been made and will continue to be made on renewable energy. For example, some very special problems which energy by national RTD programmes. This section gives occurred on the surface of the blades during the opera- information about the national RTD programmes in tion of the turbines have also been addressed. The future some EU Member States. focus will be on offshore applications, in particular on foun- dations and installation techniques. In other countries, the Basically, all regarded countries follow the EU research main focus for future research work will be to overcome programme with their global statements. All pro- the cost difference between wind electricity generation grammes want to widen the use of renewables, estab- and conventional electricity generation. lish a sustainable energy supply with a greater share of renewable energy, help renewables to a broad market In some research programmes in certain EU Member States penetration and strengthen the competitiveness of there is a direct linkage to EU-supported RTD programmes both renewable energy sources and national enter- such as FP4. In addition, the same companies and institu- prises. Research funding, among others, is supposed to tions carried out national-funded as well as EU-funded be a suitable means of reaching energy policy objectives. projects. In that way, the international and EU experiences are integrated into national programmes. Besides the various renewable energy sources such as wind, solar radiation, biomass and waste, geothermal To give some quantitative insights into research all over and wave energy, the following fields in particular have the EU, figures showing RTD funding for renewables in been addressed: commercialisation (including regulatory comparison with funding in FP4 are summarised in the framework), competitiveness and export, management, table on page 79. administration, and marketing.

A key issue in all national research programmes investigated was the cost reduction on renewable energy conversion. Great efforts have been put on both increasing energy conversion efficiency and decreasing plant and equipment production costs. This issue is related more or less to all renewable energy options, although PV is supposed to have the greatest demand and potential with regard to efficiency increase and production cost reduction.

A very brief overview of national research programme options on renewables shows that the main points addressed by the Renewable Energy section in FP4 have also been covered by the majority of national research programmes within the Member States. Nevertheless, some countries put emphasis on areas other than those in the EU programme. For example, some States focus on the use of biomass and waste for energy conversion in combination with combined heat and power (CHP) concepts.

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Research funding in EU Member States and FP4 from 1994 to 1998 (according to IEA)

Solar Wind Biomass Others Total

in Million ECU (1996 prices and exchange rates)

Austria 8.99 28% 2.88 4% 31.45 47% 13.35 20% 66.66

Belgium 8.13 34% 2.96 12% 8.82 36% 4.31 18% 24.22

Denmark 4.69 19% 29.97 39% 27.95 36% 3.99 5% 76.60

Finland 5.11 9% 4.74 8% 45.10 75% 4.99 8% 59.94

France 2.17 37% 2.83 9% 10.73 32% 7.50 23% 33.24

Germany 396.01 61% 186.24 29% 33.10 5% 30.03 5% 645.37

Greece 2.59 13% 7.45 37% 3.98 20% 6.30 31% 20.32

Italy 148.72 52% 46.86 16% 58.87 21% 31.28 11% 285.74

Netherlands 127.47 56% 48.50 21% 42.60 19% 8.56 4% 227.13

Portugal 1.67 30% 0.041 1% 0.85 15% 2.97 54% 5.53

Spain 42.81 57.5% 13.47 18% 17.78 24% 0.357 0.5% 74.42

Sweden 6.52 18% 7.51 21% 21.85 16% 0.432 1% 36.31

UK 10.58 26% 12.42 31% 15.02 37% 2.67 7% 40.70

Total 795.45 43% 365.88 21% 318.10 25% 116.74 11% 1 596.16

EU FP4 (assessed projects) 84.86 63 % 16,67 12 % 25,54 19 % 8,38 6 % 135.45

According to the table, research funding on renewable (FP4) are taken from different sources. Bearing this in energies in individual EU Member States differs both in the mind, it should be said that the EU FP4 funding fits budget and in the main emphasis. The difference in main well with the government-funded research activities focus is due to varying regional conditions as well as to the in the Member States. The majority of the funding by different levels of knowledge, experience and intention far was spent on solar projects, followed much further with regard to different renewable energy options. behind by projects dealing with energy from biomass and waste and by wind projects. The sector "Others" It is very interesting to see that the share of funding on received the lowest funding by far. the single options, summed up over all regarded countries, is very similar to the corresponding share of EU funding, represented by FP4. Any differences may be caused to a certain extent by the fact that the figures from the individual Member States and from the EU

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8. Conclusions energy consumption takes place within the building sector. In addition, this sector contains a significant and recommendations reduction potential, and building integrated concepts offer important potential for low cost. Therefore, the efforts to develop high energy-efficient and energy- The work carried out in the field of Renewable Energies saving solutions for buildings should be strengthened. under the Joule/Thermie programme in the Fourth Frame- Retrofitting is especially interesting because of the vast work Programme (FP4) is regarded as having been very suc- energy potential in actions in existing building mass, but cessful by the majority of participants in the RTD work, as measures that primarily target new buildings should also well as by those involved in the impact assessment exercise. be strengthened within future funding programmes.

Conclusions The building sector has been regarded as a suitable In the following section conclusions are drawn from the one for many companies with other former origins. assessment work and recommendations are made. They joined the research projects to get involved in any promising developments and to find new market Integration of Renewable Energies niches for their products. A major conclusion to be drawn is that, in the main, renewables are neither integrated into everyday life of Research projects focusing on the integration of renew- society nor into energy supply structures. It was discov- ables may have important spin-offs on conventional com- ered that such integration of renewables requires an ponents for ventilation and lighting, and these projects adequate legal and organisational framework and aware- may be a catalyst for the further introduction of energy ness of the benefits of renewables within society. performance standards in Member States’ building codes. Guaranteed availability of cheap biofuels and adequate rules to allow for ‘valorisation’ of the sector from the An integrated approach seems to be most promising for beginning of investment in renewable energies are con- promoting the use of renewable energies in buildings. sidered to be some of the most important basics for the Such an approach should tackle urban, energy and envi- integration of renewables. Their integration in the every- ronmental issues. day life of society has been poorly addressed. Photovoltaics To help establish a truly sustainable energy supply the Despite the significant cost reduction and efficiency integration of renewables in everyday life should be improvements achieved in recent years, the high gen- thoroughly investigated in future programmes. For erating cost of PV is still due to high plant cost, partic- example, this could be done by putting greater weight ularly the cost of PV cells and modules. Therefore, one on questions concerning the benefits of renewable outstanding aim of the PV projects has been and remains energies in the everyday life of society, the acceptance the reduction of module cost and the improvement of by end-users and the conditions of acceptance (i.e. efficiency. The long-term target for the module price is socio-economic and social aspects) with regard to the about 1 /Wp – current costs are around 3.5 /Wp – so installation, operation and use of renewables. If a tech- future programmes should tackle this objective. nology is widely accepted a demand will be induced that might help to develop renewable energy markets. In the field of PV, the development of solar cells based on innovative materials (such as CIGS and other thin-film cells Future funding should also be spent on investigating the or molecular plastic cells) seems very promising and has best suitable legal and organi-sational conditions for given rise to an increase in R&D activities in this field. This renewable energies. This might be an interesting sub- has led to the recommendation to look for other solutions ject for an Integrated Project. besides the improvement of the silicon solar cell technology to convert solar energy into electricity or chemical Renewable Energies in Buildings energy, because sustainable and secured energy supply The use of renewables in buildings should be given should not be based on a single material. much greater attention as a significant share of total

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Wind Energy To achieve a sustainable energy supply, the social and Among many very interesting and innovative results, the economic aspects and how they could be influenced following are supposed to help wind energy towards should be addressed within future EU-funded pro- broader market penetration and better acceptance by util- grammes, but there is still a considerable need for fur- ities: models for wind power forecasting (for up to 48 ther technological research, too. hours), and a well-documented and quality controlled wind field database, covering a wide range of environments. Others In particular, the development of energy storage systems Due to the tremendous growth in wind turbines and that could help market penetration of any renewable towers during recent decades, the objectives for future resource should be the focus of future programmes. projects should be to focus further on the technical prob- However, improvements in energy storage technolo- lems of growth and on social problems such as acceptance gies should not be overemphasised. Combinations of dif- and related technical problems such as noise reduction. ferent renewable energy sources within the same region, or even within the European electricity market, will Energy from Biomass and Waste have some of the same features as electricity storage, The main achievements of the biomass projects were the e.g. wind, wave, small hydro, geothermal and solar, or successful use of waste streams and various biomass even wind at different locations connected to the feedstock within fluidised beds for energy conversion, European grid, as obstacles to international electricity and measures to avoid negative interaction of bed trade are being removed. material and feedstock. Biomass and waste are supposed to be promising energy sources and it was demon- In those projects using geothermal energy, an efficiency strated that it is possible to substitute fossil fuels with improvement of 40% was achieved. The experts were biomass and waste in conventional technologies. satisfied with the technological progress that led to this improved efficiency. Nevertheless, there is still a For small-scale applications, it will probably be impor- further need to investigate underground conditions at tant to develop biofuels with well-defined properties so the depth required to reach a sufficient temperature for that these fuels can be used with a minimum of oper- electricity generation. A summary of the results of the ational or environmental problems at low cost. For geothermal projects lead to the conclusion that geot- medium-sized and large plants, important opportunities hermal energy is an interesting and promising energy lie in developing technologies to handle environmen- source for electricity generation. But more R&D work is tally problematic waste streams (since these can give the needed to achieve full market maturity and economic plant high incomes) and in intelligent process integra- viability within the framework conditions currently tion that can improve plants’ economic viability. existing in the energy system. Environmental performance of the plants will probably be achieved by integrated measures, to an increasing Improving the Programme and Project Management extent. These measures should be further investigated. To facilitate the founding of appropriate partnerships with partners selected according to their skills, know- Basically, the technology that enables the use of biomass how and experience, the EC should support interested and waste for energy conversion is available through- companies and institutions. Many of the projects assessed out the overall supply chain but is not yet fully commer- benefited from the expertise, skills, flexibility and inno- cially viable. The primary focus of the next EU-funded vation of small and medium-sized enterprises (SMEs). programmes should therefore be on developing today's Small companies might find it helpful to be brought into state of the art into commercially viable biomass for a consortium by subcontracting, which could therefore energy systems. However, there should still be an oppor- be regarded as a way of enlisting specialist support tunity for funding highly innovative solutions – for that might otherwise be lost. Other suggestions include: example, when there is a potential for particularly high • Making co-funding possible; added value from the system. • Securing more frequent disbursements and more generous funding; and • Having small projects.

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Support over a long period could help a successful part- The overall conclusion is that EU-funded R&D projects will nership with promi-sing ‘ideas’ up to the demonstration still be needed in the future. EC funding is able to influ- phase and even to market maturity for the ideas. ence the direction of European research, create net- Previous examples show that continuous funding for works, and adapt research to EU energy policy. EU-funded promising projects has led to some very successful results. projects contribute to a fruitful co-operation between partners across European borders – in many cases, part- New projects must be built on real exigencies – and/or nerships even last beyond the project period, with follow- a market niche – of the scientific and industrial commu- up projects being formulated and executed. nity to obtain a real impact. They should also have well- defined, realistic goals. The experience in FP4 showed The objectives of the Non Nuclear Energy (NNE) part of that such projects achieved the best results. FP4 have been addressed comprehensively. The research work discussed here achieved some significant break- It is very important for the success of a project to show throughs, with some approaches suitable for getting flexibility with regard to the time schedule and timing closer to reaching the targets committed to in the Kyoto of the various activities. Chronological dependency Protocol. Others did not, although they did uncover between activities often result in bottlenecks that could the need for further investigations into finding a prom- lead to serious delays. ising and encouraging way towards a sustainable, reliable and environmentally sound energy supply. To avoid losing very innovative and encouraging results it is essential that the results and other project informa- The building of partnerships and the development of tion are made available rapidly to members of the pub- decentralised energy sources could be regarded as the lic who might be interested. An information network most significant of the objectives fulfilled. Two other such as the OECD’s Caddet network could serve as a main objectives have also been tackled as well, but model for this. there is still a lot of work to do before finding an energy system that is compatible with sustainable develop- The project information should be presented, for exam- ment. Many projects can speed up the development and ple, in standardised brochures in a short, systematic dissemination of almost mature technologies, but these and structured format. objectives could never be totally fulfilled. Hopefully, new subjects and technologies will continue to come to Future work programmes should be required to include light that could contribute towards more sustainable a clear and thorough strategy for dissemination activ- development. It is noteworthy that the work supported ities as well, with suitable time and funding allotted for within FP4 achieved significant steps towards a sustain- this specific purpose. able and secure energy supply system. These steps have to be pursued in future European-funded programmes To achieve more results ready for use within future EU- and projects. funded programmes, it might be helpful to support technology development by linking projects in time. That means not stopping the funding of promising attempts after a first project, because of administrative reasons.

Besides funding demonstration projects, a funding instrument for supporting other measures to promote market introduction of new products and concepts is worthy of consideration.

There is a definite need to balance the project portfolio better in terms of risk, and also to give credit to proposals that are more down-to-earth.

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IV. RTD STRATEGY Socio-Economic Research and Modelling (JOULE)

This current report represents the work of a number of specialist experts who assessed the impact of the individual research projects, and a coordinator. On the basis of the experts’ brief summary reports, the coordinator wrote this report, which was then reviewed by the Core Group of the Panel of Experts.

Coordinators: Institution Dr. Helene Connor HELIO International

Individual Experts: Dr. Houda Allal Obsevatoire Mediterraeen de l’Energie Core Group: Prof. Nicolas Chrysochoides INNOVATION E.E. (Chairman) Mr. Tom Casey (Rapporteur) CIRCA Group Europe Ltd Dr. Bruno Lapillonne ( Rapporteur) ERNERDATA s.a. Mrs. Julie Roe (Statistician) CIRCA Group Europe Ltd

Executive summary

The 23 November 1994 Council decision adopting a spe- barriers to the implementation of energy efficient cific programme for research and technological develop- and renewable energy technologies, and ways to over- ment, including demonstration, in the field of non nuclear come these barriers. They formulated recommendations energy (1994-1998) stressed the need for the definition and to decision-makers for the implementation of energy implementation of a global strategy for energy research efficiency policies and renewable energy technologies in technological development (RTD). The research took place order to obtain tangible results. within the Programme “Joint Opportunities for Unconven- tional or Long-term Energy Supply” (JOULE) and the results • In the field of energy modelling, the results allowed for of these Fourth Framework Programme (FP4) projects are model-based analysis on energy technology dynamics assessed in the current report. and advanced energy system modelling. They also improved and extended a large-scale energy-envi- The research lead to the introduction in the Programme ronment-economy (E3) model so that the many differ- of socio-economic research linked to the production ent policies targeted at greenhouse gas (GHG) abate- and utilisation of energy. It also required the development, as well as the economic implications of European ment and application of new models for the analysis of directives (e.g. recycling, the valorisation of waste scenarios consistent with the evolution of the energy energy, and the creation of green labels) could all be scene in the medium and long-term future. These meas- examined and quantified in turn. Finally, these results ures were designed to allow for a build-up of knowledge should provide a tool for the consistent evaluation of about the interactions between energy, the environment policy measures in terms of their different implications and the economy, and finally to enable analysis of the for individual EU countries, sectors and consumers, at impacts of the energy RTD strategy. the level of detail needed to support concrete policy- making. This possibility is accomplished by the use of The FP4 projects assessed here dealt with two areas: an extended version of the GEM-E3 general equilib- socio-economic policy research, and modelling: rium model which was developed on behalf of the Commission for DG Research. • The results of the energy policy research undertaken permitted a better understanding of the non-technical

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Globally, the common goal of the projects undertaken 1. Introduction: role of energy under FP4 was to contribute to energy and climate policy and hence to the sustainable development of EU RTD in FP4 and its European countries. added value

The 24 projects assessed in this report were well-suited to the objectives outlined in FP4 and led to substantial Decisions made on how to orient research have the improvements both for socio-economic policy research potential of changing the world we live in. They carry and energy modelling. They were, however, too dis- a major responsibility and depend to a large extent on parate to permit the development of a proper overall the results of previous research, hence the need for this cohesive synthesis as each model is a world unto itself first exercise in assessing the success of the research and does not lend itself easily to direct comparison done within FP4. The 23 November 1994 Council deci- with the findings of other models. Furthermore, it is sion adopting a specific programme for research and obvious that the number of projects is too low to per- technological development, including demonstration, mit important and diversified progress in acquiring in the field of non nuclear energy (1994-1998) stressed knowledge within one FP. Since the results of such proj- that: ects are tools which are to be used to decide on technical research to be undertaken subsequently, the “In order to support the technological action, specific Commission should be conscious of the lack of empha- activities for the definition and implementation of a sis on upstream policy research. global strategy for energy research technological development (RTD) will be developed within the frame of the Programme. This requires the introduction of socio- economic research, connected with the utilisation of energy as well as the development and application of new models for the analysis of scenarios consistent with the evolution of the energy scene in the medium to long term; such initiatives will allow the improvement of our knowledge on the interactions between energy, environment and economic growth and the analysis of the impact of the energy RTD strategy.”

If the progress of a country is positively correlated to the efforts made in the field of research and development, nowhere is it more true than for the energy sector which shapes the type of economic development and the social welfare of a nation, in this case a group of nations. In this assessment report we want to start by outlining the European added value of FP4 at different levels: 1) fulfilling EU objectives, 2) improving tools and methods, and 3) providing outputs leading to future benefits.

Investment in RTD is particularly profitable in the European Union (EU) as it benefits not one but 15 countries – in fact, even more nowadays thanks to the links created by the planned accession of several Central and Eastern European countries. By merging research activities in one common effort, EU countries can save resources and spread the risks on innovative research that no one country could really

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afford to undertake alone. At a later stage, this translates The EU took the commitment of diminishing its green- into better social and economic cohesion as those coun- house gas emissions (GHG) by 8% of their 1990 level by tries share similar realities, strategic interests and lifestyles the first Kyoto budget period (2008-2012). Modelling compared to countries outside the EU. Their firms will also tools had to be adapted to include this new requirement. work better together, in an efficient and co-operative Energy efficiency (EE) modelling had to be improved and way rather than in a cut-throat competitive manner where renewable energy sources (RES) introduced more accu- only the largest survive and SMEs are fighting a losing bat- rately in data banks. The results of technical research and tle for markets. of the ExternE Project, in particular, were able to provide good data for the models, enabling the analysts to Energy issues are global and interact in a global field use realistic evaluations of impacts and costs. larger than the EU. Furthermore, for some time to come the EU will remain a net energy importer, i.e. a debtor. This The results of this research were obtained by teams in var- situation limits the capacity of member countries to develop ious EU countries and are now available to every European autonomous energy policies but creates a need for all EU country for the development of their own national climate countries to co-operate and develop alternative beneficial action plans, for instance. These results, in turn, trig- solutions by pooling their physical and intellectual resources. gered the implementation of programmes in various Projects in FP4 have definitely contributed to this type of Directorates-General (DG) such as the Special Action pro- planning for the medium and long term. They have focused gramme for Vigorous Energy Efficiency (SAVE) for energy on European goals and contributed to building a viable efficiency in the former DG Energy and Environment. European Research Area (ERA). With the results of its research on EE and RES, the EU can now securely advocate a strong climate stabilisation pol- Since the first ‘energy crises’ of 1973 and 1979, energy icy. The European Climate Action Plan states that 40% of efficiency and renewable energy technologies have the Kyoto target can be achieved by energy efficiency and been considered as very important means to achieve RES could help fill the gap and displace fossil fuels. Such security and diversification of supply, especially in EU potential, however, should be better known and pro- countries. With the increase in environmental concerns, moted within the EU because not enough is being done they were the subject of renewed interest. However, the to put them into practice. The European Commission results obtained up to now in these fields are still too (EC) has a critical role to play in gradually phasing out per- limited in comparison with their potential, which is explained by the existence of barriers that constrain their verse energy subsidies to polluting forms of energy, and large-scale development and dissemination. in translating RTD results into actions, if the appropriate investments are ever going to be made. In the past few years, the leadership of the EU has asserted itself in the development of directives, policies Finally, a short but non-exhaustive list of future bene- and measures geared towards the protection of the fits made possible by FP4 also includes: environment. These have allowed the EU to play a - the creation or reinforcement of coherent teams of remarkable role in promoting better environmental researchers in various European countries, bringing policies in Member States, as well as in structuring EU them to an equal and upgraded level of expertise; positions during the United Nations Framework Climate - the creation of a sense of EU common interest and Change Convention (UNFCCC) climate negotiations. goals based on scientific research; and - the orientation of future research according to regional At present, the post-Kyoto period is emphasising a needs which will inform the national and EU deci- growing need at EU level for specific decisions con- sion-making bodies. cerning the implementation of policies aiming to reduce greenhouse gas emissions. Any policy mix to be consid- We should note here that even though European added ered for implementation must take into account several value is often forgotten or poorly outlined in project interrelated issues and requires a number of new or reports, it nevertheless appears repeatedly, being an improved tools provided by FP4. unavoidable positive by-product of RTD projects.

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2. Objectives of the impact 3. The projects and their assessment of FP4 projects technical achievements

The FP4 projects assessed focus on two areas: socio- Most of the projects undertaken were, to a large extent, economic policy research, and modelling. inspired and guided by the intense debate around the Kyoto Protocol. They studied the possibilities of reduc- In the 1994-98 European context, the objectives of the ing greenhouse gas emissions in developed countries socio-economic policy research undertaken were: and, more specifically, the role that existing technolo- • to better understand the non-technical barriers to gies, spending on R&D and public EE and RES policies the implementation of efficiency and renewable could play in the mitigation of climate change. energy technologies; • to analyse the ways to overcome these barriers; and The socio-economic research projects focused on a better • to formulate recommendations to decision-makers understanding of barriers to energy efficiency, demand- for the implementation of energy efficiency policies side management and renewable energy development in and renewable energy technologies, and to obtain tan- different sectors, and analysis of options including pub- gible results. lic policy to overcome these barriers. A special emphasis was also put on the analysis of the experience gained in In the field of energy modelling, the objectives were: the field of energy efficiency and renewable energy and • to research and develop model-based analysis on the lessons learned from these experiences. energy technology dynamics and advanced energy system modelling; As regards modelling, a major part of the projects dealt • to improve, extend and apply a large-scale energy-envi- with the improvement, completion, extension, and ronment-economy (E3) model to examine and quan- application of models and tools. Most of these models tify in turn the many different policies targeted at and tools have already been established with the sup- greenhouse gas (GHG) abatement, as well as the eco- port of the European Commission (DG Research). Here nomic implications of European directives (e.g. recy- is a brief characterisation of the models and the ways cling, valuing waste energy, and creation of green in which they were improved within FP4. As mentioned labels) and at specific national policies; and in the Executive Summary, each model is a world unto • to provide a tool for the consistent evaluation of pol- itself and it is not genuinely possible to make an ana- icy measures in terms of their differential implica- lytic comparison of the findings of the models. tions for individual EU countries, sectors and con- Nevertheless, each model has achieved substantial sumers, at the level of detail needed to support progress within FP4, as will be seen below. concrete policy-making. This is accomplished by the use of an extended version of the GEM-E3 general equi- The ExternE project is the first comprehensive attempt librium model which was developed on behalf of the to use a consistent 'bottom-up' methodology to evalu- Commission for DG Research. ate the external costs associated with a range of different fuel cycles. The European Commission launched the In general, the common objective of the projects under- project in collaboration with the US Department of taken was to contribute to energy and climate policy and Energy in 1991. Jointly, the EC and US teams developed hence to the sustainable development of EU countries. the conceptual approach and the methodology, and shared scientific information for its application to a range of fuel cycles. During this first phase, the EC side concentrated on the nuclear and coal fuel cycles which together were expected to raise most of the fundamental issues. The main objectives were to apply the methodology to a wide range of different fossil, nuclear

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and renewable fuel cycles for power generation and of the very different mechanism and global nature of the energy conservation options, and to a series of National impact. Priority impacts, such as occupational or public Implementation Programmes to implement the method- accidents, are not included either because the quantifi- ology for reference sites throughout Europe. The cation of impacts is based on the evaluation of statistics methodology was extended to address the evaluation rather than on modelling. Version 2.0 of EcoSense cov- of externalities associated with the use of energy in ers 13 pollutants, including the 'classical' pollutants SO2, the transport and domestic sectors, and to a number of NOx, particulates, and CO, as well as some of the most non-environmental externalities such as those associated important heavy metals and hydrocarbons, but does not with security of supply. One of the main technical results include impacts from radioactive nuclides. of the projects was the extension and improvement of the ExternE accounting framework. The ExternE project GEM-E3 is an applied general equilibrium model for the has been recognised worldwide as being at the forefront EU Member States taken individually or as a whole, which of work in this area. In this phase of the work the major provides details on the macro-economy and its interaction technical achievements were: with the environment and the energy system. It is an • Substantial improvement of the ExternE methodology empirical, large-scale model, written entirely in structural in the assessment of global warming impacts and major form. A major aim of GEM-E3 in supporting policy analy- accident scenarios, and a more rigorous treatment of the sis is the consistent evaluation of distributional effects, levels of uncertainty associated with the results; across countries, economic sectors and agents. The burden- • Extension of the methodology to the assessment of sharing aspects of policy, such as for example energy sup- new technologies including co-generation, fuel cells ply and environmental protection constraints, are analysed and domestic heating systems; in full while ensuring that the European economy remains • Development of a computer tool for assessing trans- in a condition of general equilibrium. Another technical port-related externalities; result of the Programme also concerned the development • Up-to-date maintenance of the data sets used to of a tool for the consistent evaluation of environmental pol- ensure that the methodology continued to encompass icy measures in terms of the various implications for the EU, the latest scientific data in a number of very rapidly individual EU countries, sectors and consumers.Various developing fields. Without this, the methodology issues extended the already established GEM-E3 model. A would very quickly become out of date; major effort by the projects concerned the implementation • Demonstration of the application of the use of exter- of different forms of technological change. In addition, new nalities in decision-making. Case studies were success- model versions were developed with different regional fully undertaken including cost-benefit analyses of dimensions. policy options in support of the Large Combustion Plant Directive and the EC’s Acidification Policy. The The E3ME model was built by a European team under the results were also used directly as input to the EC’s EU JOULE/THERMIE Programme as a framework for assess- energy-environment-economy E3 models; ing energy-environment-economy issues and policies. • National implementation of the accounting frame- The model has been used for general macro analysis and work, and generation of comparable results; for more focused analysis of policies relating to green- • Wide dissemination of project results via professional house gas mitigation, incentives for industrial energy journals, other publications, newsletters, websites and efficiency and sustainable household consumption. Its pan- by team participation in workshops and conferences. European coverage is appropriate for an increasingly integrated European market. The E3ME model has also EcoSense is part of the ExternE modelling exercise which been completed and extended with new research in sev- was developed to support the assessment of priority eral areas of economic behaviour such as producer expec- impacts resulting from exposure to airborne pollutants, tation, consumption, trade and projection of input-out- namely impacts on health, crops, building materials, put coefficients. An application of the E3ME model has forests, and ecosystems. Although global warming is cer- been made in order to assess the industrial benefits and tainly among the priority impacts related to air pollution, costs of greenhouse gas abatement strategies. The main this impact category is not covered by EcoSense because breakthrough with the use of the E3ME model was to

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provide a set of results that are available at a detailed sec- Because of the heterogeneity of the energy market, no toral level (far more detailed than any similar model of single methodology can adequately describe all demand, the EU economy) and are consistent, i.e. not derived supply and conversion processes. On the other hand, the from a separate collection of country models. economic structure of the energy system itself facilitates its representation through largely separable individual The POLES (Prospective Outlook for the Long-term Energy units, each performing a number of individual functions. System) model is a simulation model for the development of long-term (2030) energy supply and demand SAFIRE (Strategic Assessment Framework for the Implemen- scenarios for the different regions of the world. The tation of Rational Energy) is an engineering-economic model structure corresponds to a hierarchical system of bottom-up model, designed for the assessment of first-order interconnected modules and articulates three levels of impacts of 'rational' (i.e. renewable and new non-renew- analysis: i. international energy markets; ii. regional energy able) energy technologies on a national, regional or local balances; and iii. national energy demand, new technolo- level, against a background of different policy instruments gies, electricity production and primary energy production and scenario assumptions. SAFIRE is a framework com- systems. It has been developed by IEPE/CNRS in Grenoble prising a database and a computer model that provides deci- (France) for the European Commission as part of the sion-makers with a tool to evaluate the markets and impact JOULE Programme and is maintained by both IEPE and the of new energy technologies and policies. It was used as the IPTS. A detailed version of the POLES model for the basis for the development of the targets presented in the Mediterranean countries, called MEMA, allowed for the EC’s White Paper on Renewable Energy Sources. design of scenarios for energy demand, supply and trade, SAFIRE was initially funded by the European Commission taking into account the expected evolution of energy and is one of its “E3” models. It has had numerous technologies efficiency and costs. high-profile EC applications, including monitoring its own renewable targets (MITRE - 2001-2003), the devel- PRIMES is a modelling system that simulates a market opment of indicative targets for the proposed equilibrium solution for energy supply and demand in EU Renewables Directive (2000), the TERES II study (1997, Member States. The model determines the equilibrium by used for the EC White Paper on Renewables), and the finding the cost of each energy form such that the quan- European Cogeneration Study (TECS - future cogen). tity that producers estimate profitable to supply matches The SAFIRE database covers 32 countries in Europe, and a the quantity that consumers wish to buy. The equilib- further eight worldwide. The database is continuously rium is static within each time period, but repeated in a being updated to expand its coverage. SAFIRE can be time-scaled path, under dynamic relationships. applied to assess the impact of energy technology and The model is behavioural but also represents, in an associated policies on a number of economic indicators – explicit and detailed way, the available energy demand market penetration, net employment creation, pollutant and supply technologies and pollution abatement tech- emissions (six types), value added, import dependency, cap- nologies. The system reflects considerations about mar- ital expenditure, external costs, and government expendi- ket economics, industry structure, energy/environmen- ture. The time horizon of the model version is up to 40 years. tal policies, and regulation. The model has been used for a variety of applications, Although behavioural and price-driven, PRIMES simu- ranging from micro-level local planning to market lates in detail the technology choice in energy demand assessment for companies and international agencies, and energy production. The model explicitly considers from cost-benefit analyses for public institutions to the existing stock of equipment, its normal decommis- local, regional, national and EU policy and planning. sioning, and the possibility for premature replacement. Stimulating results were achieved using an updated At any given point in time, the consumers or producer version of the SAFIRE model, including a demand-side selects the technology of the energy equipment on an management (DSM) module. It showed that, with sim- economic basis and can be influenced by policy (taxes, ple energy efficiency measures such as efficient lights, subsidies, regulation) market conditions (tariffs, etc.) fridge/freezers and insulation, two very different EU and technology changes (including endogenous learn- countries could meet their Kyoto targets by 2008 at a ing and progressive maturity on new technologies). fraction of the cost of any other approach.

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Certain model refinements were also done covering 4. The results: economic, the perfect foresight of economic agents, the inclusion of environmental feedback, and the integration of environmental and social engineering-oriented bottom-up formulations espe- aspects cially for the energy sector into the typical top-down approach of computable general equilibrium modelling. With each of these model types, specific simulations of In general, the projects and especially the models devel- policy scenarios were conducted. oped were designed to measure the economic effects of environmental policy and give specific quantitative To control EU GHG emissions in a national context with information on the economic implications of European an international perspective, policy and technical options directives (e.g. recycling, valuing waste energy, creation were studied using three models: the GEM-E3 com- of green labels, development of renewable energy putable general equilibrium model for the EU-14 (EU technologies) and of specific national policies. The CEC countries minus Luxembourg), PRIMES partial equilib- and EC member governments are also aiming to reduce rium model for the European energy system, and POLES, emissions of greenhouse gases (GHGs) and of a number a world energy system model. of other pollutants.

The study of existing voluntary agreements – sometimes The ExternE project played a key role in the EC’s will to touted as a smart solution to avoid taxes and regulations move towards the internalisation of environmental costs. – revealed, in fact, that achieving their expected results The methodology and the results obtained have subse- required very high implementation efforts. quently been used extensively in the appraisal of options in support of environmental decision-making. This, in In the field of transport, software was also developed in turn, has contributed to a wide range of social, environ- modular form. It included two major components: mental and industrial benefits. The work has been used a modelling chain which provides projections of transport extensively at a European level in DG Environment stud- supply and demand and calculates the corresponding ies for the cost-benefit assessment of different policy energy use, emissions and environmental impacts, and a options in air quality and waste management. It has also module which supports data visualisation and decision- been used in support of policy-making in several EU making on the simulation results, using single and multi- Member States, and researchers in other parts of the ple policy criteria. This module, together with a tailored data- world are now using the ExternE study as the central ref- base of projections for user-defined policy packages, erence for their own externalities work. supports real-time comparison of options by the end-user. The E3ME model allows for quantification of the eco- A database, the Priority Setting Initiative (PSI), has also nomic impacts of taxes and tradable emissions permits been established where specific information about each EU in terms of reduced CO2 emissions or realisation of a ‘de- country’s energy technologies and energy related issues can pollution’ objective of economic consumption and pro- be obtained. With the PSI database, it is possible to com- duction. It will allow for a more precise definition of the pare different energy technologies and to assess which conditions for the successful application of these policies. countries will be most interested in international co-operation on a certain energy technology. The database is One simulation study with the GEM-E3 EU-14 version therefore a useful tool to improve the coordination between dealt with the implications of investments on energy- countries in the field of non nuclear energy RTD. Finally, it saving technologies. Another study analysed the impact is important to underline that the results of the PSI project of direct environmental expenditures. Further analysis were and still are being taken into account in the formu- of macroeconomic outcomes of emissions reduction lation of policy in the EU, as well as in several projects scenarios for the EU was carried out, giving insights being undertaken by different DGs: Transport and into the structure of an environmental tax reform. In Environment (TREN), in particular. spite of all the uncertainties related to externalities assessment, the output of the project will prove to be

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very useful for policy-making, both at national and EU 5. Conclusions level. The results obtained provide a good basis for the study of the internalisation of energy’s external costs, which has frequently been cited as one of the objectives of EU energy policy. Given the data and methodological problems involved, most of the results obtained must be seen as illustrative. The main result of the projects – the development of The work carried out in the context of the projects con- a unified methodology for the evaluation and quantifi- firms that endogenous technological learning is a very cation of energy externalities – have an indirect bene- promising new feature in energy system models. A key ficial impact on the quality of life. Once quantified, conclusion is that the incorporation of learning mech- externalities can be internalised into prices thereby anisms in energy models is possible and feasible. Models achieving a more efficient allocation of resources in extended in this way can deliver new ideas and provide the market. As a consequence, the most polluting a framework to illustrate insights from innovation the- energy-generation technologies will be used at a lower ory in a quantitative and coherent manner. Despite sig- rate, while cleaner and renewable energies will gain nificant differences between models, a number of gen- more importance in the generation mix, reducing pol- eral conclusions can be drawn: luting impacts on the environment. • Incorporating the learning-by-doing concept makes an important difference. A comparison between the orig- The economic results will be very useful for establishing inal models with exogenous cost projections (either as market, fiscal, financial and other incentives, such as envi- constant costs over time or assuming a regular decline ronmental taxes, or subsidies for renewable energies, or over time) shows that the resulting technology for energy planning measures. Results may be also used prospects differ substantially. directly for planning processes – for example, to under- • There are benefits of investing early in selected emerg- take a cost-benefit analysis of policy measures, or for ing technologies that are not competitive at the choosing between different energy alternatives. moment of their deployment. • Several types of R&D interventions can accelerate the market penetration of new technologies. The directions into which such interventions might lead have been illustrated in some of the projects.

The results of the post-Kyoto analyses indicate that estimates of the cost of CO2 reductions will be lower if the concept of endogenous technology learning is adopted. Policy measures aiming at CO2 emissions reduction are shown to have a clear and often decisive positive impact on the market prospects of clean technologies, under- lining their important role in guiding technology development in more sustainable directions.

As regards the part of the Programme that dealt with a better understanding of the non-technical barriers to the implementation of efficiency and renewable energy technologies, the projects show that no single factor or limited group of factors has a simple deciding role in shaping the uptake of energy efficient and renewable energy technologies. Uptake occurs as a consequence of a complex interaction of a wide variety of social, economic, organisational and technological developments.

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However, the range of phenomena to be included in the To conclude, the socio-economic research has been picture is perhaps related to a second overall conclusion: essential for different EU policies (energy, climate, envi- that few enterprises address energy saving as a strate- ronment, taxation, competition…). Without the tools gic priority of the first order. Most only give attention developed through DG RTD activities, no scientific ref- to energy if and when they see it is related to primary erence would have been rapidly available at the EU-level. business objectives. The results of the projects can be usefully exploited within at least four different contexts: within EC policy- The results of the Programme emphasise the point that making, within national or regional level policy-making, no actor can work alone in developing energy effi- at the company level, and within the research and aca- ciency and renewable energy technologies: all actors are demic domain. dependent upon each other to a greater or lesser extent. The weakest link in project development will deter- From this assessment of FP4 Energy RTD, it can be clearly mine whether the project is successful or not. Changes confirmed that “Policy DG” (TREN, ENV, TAXUD…) have in non-energy policy can be made that may benefit a pressing need for the tools and measurement meth- not only the non-energy field, but also RET implemen- ods developed by EU researchers, but they generally do tation. An example of this is the development of inter- not have the capacity (time, resources, cross-cutting national standards: these are common to many sectors policies) to implement and maintain them. Indeed, the of industry to ensure conformity and reproducible qual- importance and the diversity of policy issues to be ity. They also contribute to international competitiveness. addressed call for important financial support for such The RET industry is embracing the concept of standards energy socio-economic research activities in the future for various components of the industry, such as the and for a better follow-up to actually reap the full ben- quality and origin of the electricity supplied. Such stan- efits of the research already done. dards applied across the RET industry, if strictly implemented, may increase confidence in the product and lead to improved uptake of RETs both within the EU and outside Europe.

Many of the barriers to energy efficiency and implementation of renewable energy technologies result from a lack of confidence in the energy efficiency and renewable energy technologies industry, from a low level of knowledge about the commercial opportunities available to the developers, and from an inherent resistance to change. By giving actors a broad overview of the non-energy policy actions available, the framework presented here may help to overcome these types of barriers. This could then help to increase understanding and confidence in RETs, and to shift the direction of the energy market towards a greater implementation of both RETs and energy efficient technologies.

Results of inquiries showed that consumers were concerned about the environment, and that if they were properly informed they would be willing to make investments and change their consumption habits to reduce energy use and protect the environment. Most people seemed willing, in particular, to make a deliberate effort not to waste energy.

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6. Recommendations: improving • On the subject of project management, one of the problems underlined is the way the consortium functions the programme and project and the partners’ commitment to the project. It appears management that there is a positive correlation between the size of the consortium and the problems that can occur in the course of the project. The main difficulty seems to be the • As regards the tools developed and the results of the timely elaboration of cost statements and progress Programme in general, one important issue is related reports. Coordination of projects, especially those with to the involvement of potential users at an early stage a large consortium, is a difficult task that should receive of project development, so that the tools to be devel- more support from the EC. In some cases, there are also oped could be adapted fully to the needs, widely problems with partners who do not respect their com- used afterwards and the results could be widely dis- mitments in the project and consequently a kind of seminated, thereby improving the impact of the proj- ‘false marriage’ that negatively affects the develop- ects. This early and wide public participation could help ment and outputs of the project. Sometimes partners act maximise the success of the Programme and the imple- as ‘free riders’ and simply follow the flow of work, min- mentation of the final objectives. imising their own input. Close attention should thus be given to the consortium at an early stage of the project. • Another important issue is linked to updating the It is recommended that the EC “evaluates” the contri- models. In fact, the methodologies developed in the bution of each partner (this could be done in a transpar- projects, which gave the EU leadership in this field, ent way by the Scientific Officer) during the progress and need to be regularly updated. This requires better final meetings. A way must be found to make partners support from the EC for the models to be improved aware of the importance of really fulfilling their com- and regularly updated. There is also a crucial need to mitments within the project framework. disseminate the information within a short time frame. These commitments require new approaches, taking • Another important condition to be taken into account into account the second budget period of the Kyoto while carrying out projects is that the communica- Protocol, the accession of new Member States, resource tion between the partners is very effective through- depletion, the management of radioactive wastes, out the entire project. The establishment of an intranet and long-term sustainable and equitable develop- or shared website, whereby partners have complete ment, among other concerns. access to all communications and e-mails can be reg- istered, would be a great help because problems can The recommendation in this regard is to create a spe- arise with electronic mail. This should be included in cific budget dedicated to such activities and also to all projects as a starting point, even though it cannot improve the dissemination of results. In fact, the dis- replace regular meetings in person. semination of final results – such as was done for the ExternE project – has very important and positive • The eventuality of a programme assessment should impacts. The amounts requested for such activities have been announced when FP4 was launched along are not very high but they would provide important with the need to maintain a link between all project benefits. In all cases, it is advisable to have short partners and the EC. The information given by the coor- delays to publish final results. Indeed, it was underlined dinators during the assessment was, for a large part, their that although it was a very positive initiative by the own viewpoint and not necessarily that of all partners. EC to decide to publish the results of the ExternE This is explained mainly by the long delay between project, the two-year delay in this publication unfor- project completion and the impact assessment. Most tunately diminished its positive benefits for the pro- coordinators were no longer in the same institutions and motion and visibility of the project. Quick and fast it was difficult to reach some of them. It is thus easy to answers are also essential to meet new and unex- understand that it is a hard task to contact all partners. pected policy needs. Some coordinators were also either reluctant or unable to co-operate actively in this exercise because of the time

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they would have to spend on this. Such work was not • A final recommendation to increase the usefulness of mentioned in the initial contract with the EC. A num- RTD must be that the initial selection of projects be ber of summaries have thus been prepared by the made very carefully, bearing in mind the real poten- expert and then discussed with project coordinators. This tial future needs of policy-makers. To reach coherent second-best solution suggests that the actual impacts of decisions, all energy RTD projects, nuclear or otherwise, the projects would be more important than they seem should be selected in the same process, and compete to be, especially regarding the exploitation of the fairly, as the relevance of some energy production results. projects promoted by the EU would seem to be at odds with modelling results. For instance, FP4 results pointed • The EC should be more involved in the projects. In some clearly to the economic and environmental benefits of cases it was mentioned that there was little or no inter- EE and RETs which subsequently have not been devel- est expressed by the Commission in the project, which oped. The tools developed by RTD are designed to help led to some discouragement among the partners. More decision- and policy-makers to make enlightened deci- communication could take place with appropriate sions. The EC should ensure a follow-up of results to Commission officers during the unfolding of the projects, see that they are consistent with its own programmes and the output could be better geared to actual policy and to enhance the investment made in RTD. needs. Furthermore, for projects on global issues, such as climate, since every single partner is not necessarily able to follow climate negotiations as well as the research done by the Intergovernmental Panel on Climate Change (IPCC), it might be advisable for project coordinators to include specialised analysts or ENGOs among the partners in order to have a broader viewpoint from the start of the project.

Some project coordinators have mentioned the annoy- ance caused to their organisation by “the different and apparently un-coordinated requests received for the same project from different sources within the EC, and addressed to different people in the same organisation”. It reveals that more clarity and coordination were needed at the beginning of the FP4 assessment to explain the aims, the organisation and also the off- contractual duties which this process of evaluation implies. It should be mentioned here that the possibility of visiting the project coordinator greatly improves the chance of getting replies and candid declarations about the projects and the difficulties experienced.

However, most coordinators seemed satisfied by their interaction with the EC and other civil society actors. They seemed genuinely very attached to their project and its outputs despite the time elapsed since the end of the work. Actually, some of the coordinators had arranged project follow-up without EC support and their activities resulted in active interest by community associations and local authorities.

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7. List of energy RTD strategy - Non-technical aspects of demand side management in projects European electricity markets, JOS3-CT97-0024 - Scenario-based framework for modelling transport technology deployment: energy-environment deci- - European scenarios on transport-energy-environment sion support, JOE3-CT95-0037 for metropolitan areas, JOE3-CT95-0016 - Mediterranean energy markets appraisal: trends and - Method for integrated evaluation of benefits, costs and prospects for new technologies, JOS3-CT97-0016 effects of programmes for promoting energy conservation, JOS3-CT95-0007 - Maintenance, improvement, extension and application of the ExternE accounting framework, JOS3-CT95-0002 - Effective policy instruments for energy efficiency in residential space heating – an international empirical - External costs of transport in ExternE, JOS3-CT95-0004 analysis, JOS3-CT97-0014 - Completion and extension of E3ME, JOS3-CT95-0011 - Social and organisational issues in the adoption of advanced energy technologies in manufacturing, JOS3- - Energy technology dynamics and advanced energy CT95-0012 system modelling, JOS3-CT97-0013

- Consumer user patterns of electrical vehicles. - External costs of energy conversion – improvement Application feasibility technical options, mobility pol- of the ExternE methodology and assessment of energy- icy and environmental assessment of electric cars, related transport externalities, JOS3-CT97-0015 JOS3-CT95-0003 - European emission mitigation policy and technologi- - Climate technology strategy within competitive energy cal evolution: economic evaluation with GEM-E3-EG markets: towards new and sustainable growth, JOS3- model, JOS3-CT97-0017 CT95-008 - Industrial benefits and costs of greenhouse gas abate- - The implementation of renewable energy technologies: ment strategies: application of E3ME, JOS3-CT97-0019 non-technical barriers and policy responses, JOS3- CT95-0001 - The national implementation in the EU of the ExternE accounting framework, JOS3-CT95-0010 - Interdisciplinary analysis of successful implementation of energy efficiency in the industrial, commercial and - Priority setting initiative: synergies between European service sector (INTERSEE), JOS3-CT95-0009 and national energy RTD priorities, JOS3-CT97-0023

- An expert system to integrate renewable energy sources in European energy supply system, JOS3-CT97-0020

- Voluntary agreements – Implementation and efficiency, JOS3-CT97-0021

- Reducing barriers to energy efficiency in private and public organisations, JOS3-CT97-0022

- International Working Congress and Training Seminar on: “Sustainable Development in the Islands and the Roles of Research and Higher Education”, JOS3-CT98-2001

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V. Support Activities (THERMIE B)

Coordinators: Institution Eric Strecker Linden Consulting Partnership Individual Experts: Paula Mota Alves Independent Consultant Alex Sorokin INTERENERGY s.r.l. David Chiaramonti Energia Trasporti Agricoltura Henk Barten Netherlands Agency for Energy and the Environment Simon Burgess ETP Consulting Ltd Core Group: Nicolas Chrysochoides (Chairman) INNOVATION E.E. Tom Casey (Rapporteur) CIRCA Group Europe Ltd Bruno Lapillonne (Technical Rapporteur) ENERDATA s.a. Julie Roe (Statistician) CIRCA Group Europe Ltd

Executive summary

n impact study has been completed of THERMIE B spite of accounting for more than 80% of Community' Aactions supported under the Fourth Framework energy use. Dissemination projects represented the Programme. A sample of 220 completed THERMIE B largest group of actions and reflected the importance projects was selected and an impact analysis question- of introducing users to the opportunities arising from naire forwarded to the project coordinator for comple- the EU RTD programme and thus accelerating the take- tion. Completed questionnaires were analysed and the up of innovative technology and allowing the full ben- results are presented in the General Report. efits to be realised.

Reports from the sample population were reviewed in All THERMIE projects were essentially a mix of: five batches by nominated experts, individual reports • information gathering and analysis; prepared, and a synthesis report produced, which is • identification of players, definition of markets and presented below. development of mechanisms to assist the programmes; • diffusion of information to potential users; and THERMIE B actions are concerned with preparatory, • assistance in overcoming barriers and elimination of accompanying and support measures and should com- obstacles to project realisation. plement and support the RTD programme. Whilst the projects are concerned with Rational Use of Energy Virtually all the projects succeeded in ensuring that (RUE), Renewable Energy Sources (RES) and Fossil Fuels, valuable, useful and needed information was dissemi- the actions are either Strategic, in support of Small to nated to potential users. However, it was felt that an Medium Enterprises or concerned with Dissemination. even stronger and structured dissemination element Fossil fuels represented the least number of projects in within the projects would further assist realisation of the

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benefits offered by the projects and provide even port of the implementation of project results or infor- greater added value for the Programme. mation dissemination. A frequent cause for concern expressed by project coordinators was that the level of It is recognised that whilst THERMIE B projects offer work required to provide an effective project outcome valuable beneficial impact which the quality of the had been underestimated. project concept and the effectiveness of the mechanism for delivery will influence, the ultimate success will depend upon the capability of the recipients • The programme is effective in drawing together key actors; to appreciate the opportunities and deliver useful results. All • Projects were complementary and underpinned EU RTD actions; projects would benefit from a • Participants should seek a greater awareness of how greater awareness of how infor- project information is used; mation is used. • The Commission should provoke suitable submissions; Many of the THERMIE B actions • Impact assessment should be an element in project submission; were particularly effective in drawing together the key actors • Projects should aim to develop action plans associated with specific innova- for potential users; tive non nuclear energy tech- • Adequate project time should be allocated to support nologies. The ability to bring implementation of project results or information dissemination; together this ‘critical mass’ again offered significant added • Stronger and more structured dissemination elements should value and helped accelerate be provided within projects; market penetration. • Aim for strong participation of industrial and commercial partners; Very few projects examined the impact of their activities or • Review the approach to sector categorisation; ensured that the impact could • Adopt a more proactive approach to project identification; be effectively assessed by tracking beneficiaries or receipt of • Reassess the number of projects in relation information. Future projects to sector importance; should strive to ensure that • Reduce the period from project call to conclusion of contract; impact assessment is a promi- nent element in their design. • Strive to achieve self-sustainability on project completion; Projects that were closer to the markets and developed action • Ensure the actions are in keeping with EU policy and objectives and plans that were introduced to contribute to the benefits arising from the EU RTD Programme. potential users and suppliers offered the shortest route to success.

The outcome of many projects would benefit from It is clear that THERMIE B actions provide an essential more realistic estimates of project workload so that suf- stage in the overall process of bringing innovative non ficient time could be allocated to more effective sup- nuclear energy technologies to the point where they can

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be deployed successfully. The THERMIE B actions not only Supported projects provided an extremely wide spread provided the route to allow for the realisation of proj- of actions and were complementary to and under- ect implementation, but also helped to accelerate the pinned EU RTD actions. stages to achieve that realisation. In general, therefore, THERMIE B projects are well con- The most successful projects were those that were sidered, are fully in keeping with EU policy and objec- designed from the outset to achieve self-sustainability tives, and contribute significantly to realising the ben- on completion – this approach should be introduced efits generated under the RTD programme. wherever possible.

Strong participation of industrial and commercial partners confirms the usefulness of the project and is a strong indicator of success.

The scope of activities covers most of the required sector areas. However, the number of transport projects was disappointing, particularly when recognising the mag- nitude of the adverse impact of transport on emissions. Similarly, the number of fossil fuel projects did not reflect the importance of this sector.

It is recommended that more projects are sought in these sectors and, if necessary, a more proactive approach is adopted to provoke the submission of suitable projects.

It was also considered that the categorisation of projects to a particular sector was fairly arbitrary and sector distribution can be misleading. The SME sector appeared to be poorly served in this respect.

A major criticism of EU programme management is the long gestation period from project call to notification to proceed. This can dull innovation, reduce the number of submissions and can have an impact on the quality of projects submitted. Improvement on the time taken to conclude contracts would be welcomed and would accelerate the overall attainment of the EU objectives.

The study has confirmed that THERMIE B projects adhere closely to EU policy and provide an effective basis for contributing to the key objectives of the EU’s White Paper on economic growth, employment and competitiveness.

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1. Introduction This report is concerned with THERMIE B actions which include: Research, Technological Development • studies in support of the RTD programme and in preparation for future activities; and Demonstration • support for exchange of information, conferences, seminars, workshops or other scientific or technical Effective production, transformation and use of energy meetings, including inter-sectorial or multidisciplinary are fundamental to the success and well-being of the coordination meetings; European Community. • use of external expertise, including access to scientific databases; Under the Fourth Framework Programme, the European • scientific publications and activities for the dissemina- Community supported energy research, technological tion, promotion and exploitation of results in coordi- development and demonstration (RTD). nation with concerted actions; • analysis of possible socio-economic consequences and Energy RTD actions are based on the following three technological risks associated with the programme; main considerations: • training actions related to RTD covered by this (i) the provision of assured reliable energy services at Programme in order to stimulate technology transfer affordable costs and conditions; and enhance employment skills; (ii) due regard to the environment in relation to the • independent evaluation of the management and exe- production and use of energy; and cution of the programme and of the implementation (iii) the policy must recognise the complete cycle and of activities; extend beyond RTD and encompass dissemination, • measures in support of the operation of networks for the introduction of technology into the market, increasing awareness and providing decentralised and the influence of economic operators. It must also assistance to SMEs in coordination with the Euro- integrate the different regional dimensions (local, management auditing activity of RTD; and national and global) and must act with other • concerted actions comprising the RTD projects in the Community instruments. Programme and those already financed by public authorities or public bodies. RTD should also favour actions leading to job creation.

The European Communities research, technological and demonstration actions (RTD) (note 1) addresses the fol- Approach lowing areas: • rational use of energy (RUE); A sample of 220 THERMIE B actions was selected for • introduction of renewable energies into Europe's detailed assessment. energy systems (RES); and • improved production and conversion and cleaner util- Figures 1, 2, 3 and 4 (see next pages) identify the isation of fossil fuels (FF). distribution of the sample population projects in terms of area of activity, country of origin of lead project The implementation of actions in the above sectorial partner, and sector/sub-sector of interest. areas has involved three associated and complementary programmes.

JOULE research projects THERMIE A demonstration projects THERMIE B preparatory, accompanying and support measures

Note 1: RTD is also concerned with nuclear energy and thermonuclear fusion.

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Figure 1: Distribution of projects per area of activity

Strategy

Small and Medium- Sized Enterprises Area of activity Area

Dissemination

0 20 40 60 80 100 120 140

Number of projects

Figure 2: Distribution of projects per country of origin of lead project partner

UK Sweden Spain Portugal Netherlands Italy Ireland Greece Germany France Finland Denmark Belgium

Country of origin of lead project partner Country of origin lead project Austria

0 10 20 30 40 50 60

Number of Projects

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Figure 3: Distribution of projects per sector

Fossil fuels

Renewable Energy Sources Sector

Rational Use of Energy

0 10 20 30 40 50 60 70 80 90 100

Number of Projects

Figure 4: Distribution of projects per sub-sector

Wind

Transport

Solid Fuel

Solar Energy

PV & Solar

Hydrocarbons

Industry Sub-Sector Hydro Small

Geothermal

Environment

Building

Biomass

0 10 20 30 40 50 60

Number of Projects

A questionnaire was sent to all project coordinators and the findings of the survey are presented in the main report. The results of the study are presented below and are discussed according to horizontal area of activity.

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2. Area Whilst THERMIE B actions offered those benefits identified, the EU Programme could only assist the process. The full realisation of the benefits of the actions depended upon those in the industry making good 2.1 Strategy use of the information and opportunities provided. In terms of the sphere of geographical application, 2.1.1 Objectives although an underlying theory was to develop long-term ties between the EU and the regions concerned, This area is concerned with the support and develop- differences were observed in terms of the emphasis ment of a European energy RTD strategy. Projects of some projects. were sought for the analysis of the role of demonstration and dissemination in global energy policy, that pro- 1. For projects addressing EU Member States and specific vide a clearer understanding of the interaction of EU regions, emphasis was placed on the identification socio-economic elements with energy technology and characterisation of market needs as well as pro- demonstration and dissemination, and that will posing solutions for the development of relevant improve market penetration by lowering barriers technologies and for the application of those tech- and providing information on mechanisms that assist nologies. In recognition of the maturity of relevant project deployment. EU markets, the projects looked at specific issues or requirements that needed to be addressed in order The majority of strategic projects underpinned the to promote the development and implementation of objective of assisting market penetration either through innovative energy technologies. the acceleration of the deployment of innovative non- 2. Projects focusing on Central and Eastern Europe nuclear energy technologies or identification of market placed particular emphasis on meeting regional pri- opportunities for EU equipment, manufacturers and ority needs – i.e. identifying and characterising large- the suppliers and providers of services. scale energy efficiency investment and exploring the scope for the replacement of technically obsolete The approach adopted with strategic projects fully sup- and uneconomical plant and equipment. Each of ports the EU’s prime objective of assuring the provision these approaches offered not only immediate bene- of affordable and reliable energy services through fits to Central and Eastern Europe in terms of energy, broadening the market and strengthening the techno- economic, environmental and social terms, but also logical base, thus ensuring a larger, more viable and to the European Union. The EU benefited directly secure EU non nuclear energy industry. through supporting and servicing these opportunities and indirectly because of a broadening and strength- Successful projects therefore: ening of the EU industries market base and a conse- • aimed to stimulate the wider use of innovative quential improvement in its long-term sustainability. technologies; 3. Projects that targeted other regions aimed to build • defined the market and actions for specific areas bridges between the EU and those regions, identified of non-nuclear technology; and market needs, local capabilities and key players in the • identified follow-on areas of RTD. field of innovative non nuclear energy and, where appropriate, created the conditions whereby solu- In all cases, the objectives were designed to ensure tions to local energy problems could be developed and close involvement of relevant EU industry. This offered implemented. the benefit of strengthening EU industry by signposting business opportunities, helping to improve EU market share, providing a larger market and generally improving the viability and security of equipment supplies and service providers in the field.

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2.1.2 Projects 2.1.3 Results

Generally, strategy projects were designed to facilitate Technical involvement of EU industry in geographical markets by: These projects varied as to the degree to which the • identifying the background to markets; following technical results were achieved, but overall • identifying solutions to overcome barriers that retard these outcomes were seen throughout the projects: deployment of specific technologies; and • presented a clearer picture of the current status of • assisting equipment suppliers and service providers promising innovative, non nuclear energy technology; to move closer to realising the market opportunities. • identified the potential for increased take-up of a given technology in a specific geographical region; Projects were concerned essentially with data collection, • identified key actors in the market or region; analysis and dissemination of results. A number of proj- • defined the barriers to successful implementation; ects targeted specific innovative technologies, and the • detailed the process by which improved take-up could more comprehensive projects provided specific action be achieved, including mechanisms for overcoming bar- plans to move the outcome of their studies closer to mar- riers and realising enhanced market penetration; and ket implementation and realisation. • presented the immediate steps needed to initiate the strategy and, in some cases, to realise the objectives. In all the projects, information gathering was the basis of the studies. The effectiveness with which data was col- Overall, the strategic projects provided an effective lected and analysed was a key element in the success of basis to support the objective of the Community’s activ- the projects. The research process helped to build up a clear ities in the field of non nuclear energy. appreciation of issues such as who the key players in the field are and the steps that need to be taken to ensure Economic, Social and Environmental development and utilisation of the technology. Analysis In the case of the impact on economic, social and envi- of data frequently accounted for the most extensive part ronmental issues, the strategic projects provided signif- of the projects and provided valuable market information icant support to allow valuable benefits to be achieved. that could strongly assist the realisation of EU policies. Many of the projects were concerned with ensuring Development of an appreciation of the most effective the stability and security of appropriate EU industries in routes for improving awareness-raising and for informa- the fields of RES or RUE by introducing new market tion dissemination was often identified as part of the opportunities both technically and geographically, or study. In many cases, targeted dissemination of the through the provision of solutions to overcoming barri- findings of the Strategy projects, through workshops or ers to development or expansion of market opportuni- seminars, was often part of the study itself. However, in ties. Effective development and market penetration of a number of cases a stronger dissemination phase would new energy technologies and development of EU and have greatly assisted take-up of the project findings and energy markets has a positive impact on employment and thereby accelerate realisation of the benefits. the competitiveness of EU industry.

Invariably, the projects were undertaken by organisations Virtually all of the projects examined offered a positive which had the relevant expertise and, importantly, had benefit in terms of the environment and reduced pol- a strong interest in supporting a successful outcome, as lution through promotion and subsequent realisation well as ensuring wide involvement of other parties of more efficient energy technology or by substitution which would add substantively and positively to the proj- of fossil fuel energy with RES. Presentation of these ect concerned. opportunities in developing countries offered particularly effective leverage since it gave the developing market the opportunity to bypass or leapfrog more-polluting technologies.

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It must be recognised that these projects do not in them- interaction with research centres and universities and in selves deliver the ultimate benefits required by the the dissemination and exploitation of RTD results. The Community, but they do provide a solid platform to ini- SME project objectives reflected the Community’s aim tiate the process whereby the benefits can be attained. of encouraging and stimulating SME participation.

The project activities do offer a valuable contribution to Strong emphasis was placed on ensuring that SMEs the stimulation of growth, strengthening competitive- were aware of the opportunities; many projects aimed ness and to the development of employment in the to introduce SMEs to relevant commercial opportunities Community, and also contribute to the objectives of in the energy sector in terms of involvement with tech- the EU's White Paper on Economic Growth, Employment nological development and markets, both in the EU and Competitiveness. and elsewhere throughout the world.

In a number of projects, the abilities, skills, products and services of SMEs were directly promoted to appropriate markets and thus directly linked Member State SMEs to • The approach adopted by the Strategic projects export opportunities. fully supports the EU’s prime objective of assuring the provision of affordable and reliable energy Participation of SMEs was also assisted by the promotion services by broadening the market and strength- of joint ventures, collaborative projects, co-operation ening the technological base, thus ensuring and exchange of information between SMEs in the EU a larger, more viable and secure EU non nuclear and elsewhere. energy industry. In general, the objectives supported the overall areas of • The effectiveness with which data was collected the THERMIE B Programme to stimulate the take-up of and analysed was a key element in the success of efficient and clean non nuclear energy technology and projects. did so whilst satisfying the additional requirement of promoting SME participation. • Projects of themselves do not deliver the ultimate benefits required by the Community but they do 2.2.2 Projects provide the basis by which the benefits can be The projects fell into three general areas: attained. • generation of awareness and presentation of information; • development of interaction between SMEs with markets and other organisations; and 2.2 SMEs • analysis of markets, development of solutions to obstacles, and provision of frameworks for action. 2.2.1 Objectives Many projects sought to engender awareness amongst The EU recognises that collectively SMEs represent the SMEs of new markets, innovative energy technologies, largest single group of actors in the Community and, for etc. through the organisation of targeted workshops, a Community RTD Programme to realise its full potential seminars, newsletters and various publications as well it is essential that SMEs are included and contribute to that as the use of electronic media. The optimum approach Programme. to improving SME awareness for specific opportunities has also been examined and the best way to overcome The THERMIE Programme actively seeks the involve- barriers to information considered. ment of SMEs in technology stimulation measures in Community RTD activity and aims to foster close SME

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The active inclusion of SMEs in the THERMIE B One significant outcome is the involvement of SMEs and Programme and stimulation of SME involvement in the their introduction to international opportunities, thus RTD process has been a feature of this project area. strengthening their business base and promoting their This has included the direct involvement of SMEs with long-term viability. key market players both in the EU and elsewhere. A body of knowledge is being created that will allow SMEs more ready access to information technologies, The more successful projects realise that many SMEs often markets, technology development strategies, method- have very local horizons and are regionally based. The ologies for market penetration, and the RTD process. drawing up of some actions has not always considered the characteristics of the SMEs that are being targeted. Targeting SMEs and providing assistance to identify and develop innovative energy technologies and renew- Comprehensive studies have been undertaken which pro- able opportunities have yielded a number of opportu- vide detailed scenarios and clearly defined frameworks that nities for both EU and national programmes that might will greatly facilitate the more immediate and direct par- not otherwise have been considered. ticipation of SMEs. Particularly appropriate for SMEs have been projects that identify solutions to project achieve- The promotion of SME participation and the application ments and provide action plans for implementation. of the THERMIE B Programme provide dual added value and dual benefits for the Programme. In a number of cases, technical co-operative agreements have been established be-tween SMEs in the EU Social, Economic and Environmental and in other markets in other regions, with technology transfer leading to both immediate short-term benefits SME projects do impact on economic, social and environ- and potentially longer-term opportunities. mental aspects and provide a more immediate and direct effect than is the case with Strategy projects. Provision of market analysis to SMEs and the highlight- ing of opportunities for the application of technical The involvement of SMEs in various stages of new technol- expertise have stimulated the involvement of SMEs in ogy development and implementation helps enhance eco- the RTD Programme and will help to accelerate the nomic and industrial competitiveness and profitability, realisation of Community goals in non nuclear energy. while the sustainable growth provides the necessary confidence to increase employment. 2.2.3 Results For the majority of SMEs involved, the THERMIE B Technical Programme assisted in improving the stability of the Overall, the technical results of the SME projects were industry, improved the level of security, and encour- consistent with the aims of THERMIE B and will achieve, aged employment opportunities. particularly for the SME community: • enhanced awareness within the EU and non-EU regions The emphasis on efficient and clean energy technolo- of appropriate technologies, their applicability, the gies and RES offers reduced pollution and an improved markets that are available, and the suppliers of the environment – factors which improve social well-being technology; and within communities. • an industry with an improved understanding of the mechanisms to increase awareness and how to over- Overall, SME projects supported a wide range of real- come barriers to effective information dissemination. isable benefits in terms of energy saving, improved environmental impact, job creation, etc., but still offered Many SMEs will have been introduced to opportunities even greater opportunities if further rigorous actions in the non nuclear energy field offering potential com- were to be pursued. mercial benefits that will ultimately lead to increased stability and security for the SMEs involved.

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identified benefits and offered a clear presentation of the status of technology, barriers to growth and the • The THERMIE B Programme assisted the SMEs potential for the technology both in Europe and glob- involved by improving the stability of the industry, ally, as well as providing vehicles for dissemination and improving the level of security, and encouraging implementing the dissemination activity. employment opportunities. Essentially, dissemination activities aimed to overcome information/knowledge barriers to the development • The Programme provided the dual benefit of pro- of markets for, or greater penetration by, innovative EU moting the participation of SMEs and stimulating technologies. the take-up of efficient and clean non nuclear energy technologies. Therefore, dissemination projects sought to improve • Particularly appropriate projects for SMEs were the level of awareness of innovative technologies, sup- those that identified solutions to project realisation pliers of technologies and related services, financing, new markets, etc. to ensure that those involved in the of innovative technologies and provided action industry had good knowledge of the markets they were plans for implementation. operating in and that they had a better level of under- • A significant outcome of many of the projects was standing of the technologies and instruments which the involvement in and introduction of SMEs to could assist their activities. international opportunities. The projects varied in their scope and range of activities. However, in all cases the objectives were designed to provide the EU energy industry with specific information to allow greater involvement and produce a more successful outcome. 2.3 Dissemination The more comprehensive projects completed extensive 2.3.1 Objectives reviews of technologies, identified benefits, drivers and obstacles to success, and mechanisms for overcoming Dissemination projects accounted for almost 60% of barriers, and made every effort to deliver the informa- the sample population of projects, emphasising the tion to a precise targeted audience. fact that effective diffusion of information to potential users is essential if the benefits of the RTD programme Other projects were equally comprehensive but are to be appreciated. The importance of dissemination restricted their activities to two or three Member States is now clearly recognised and the projects reflect the and depended upon replication throughout the EU to need to understand the dissemination process, the provide additional leverage. More strategic projects mechanisms that are involved, and the appropriate- aimed at facilitating the establishment of organisa- ness of the medium being used. tions that would act as the focus and initiator of the use of non nuclear energy technologies. The most Generally, the projects covered the full spectrum effective projects had clear commercial goals and aimed of activities associated with effective dissemination, to ensure real decisions could be taken on project ranging from collection and collation of opportunities implementation. through identification of benefits and barriers to the introduction of information to potential users via In all cases, the project objectives were very specific, a wide range of delivery mechanisms. Project content tightly focused and helped to move forward the uptake demonstrated a significant variation – some projects of opportunities in and awareness of the targeted were very simple and restricted, such as a single work- energy sectors. Projects offered a strong European shop for a given technology, while other were compre- dimension either by looking specifically at the interac- hensive and involved extensive reviews of technologies, tion of EU players directly within the EU, or on a global

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scale, or as a result of joint Member State activities in Focused delivery of information and advice comprised replicating specific opportunities. the major activity in this field, encompassing the development, organisation, promotion and execution of the Many dissemination projects not only helped to engen- information diffusion process. der improved awareness but also contributed to the knowledge and understanding of markets, technology Mechanisms for delivery included the more traditional opportunities, and improved mechanisms for dissemina- workshops, newsletters, brochures, study tours, and tion. In the case of the more comprehensive projects, exhibitions but increasingly involved electronic media these activities were essential elements of the projects. via the international World Wide Web.

Therefore, the projects provide an important stage in Workshops, seminars and conferences demanded con- securing the benefits that arise from the implementa- siderable effort in ensuring that the agenda, delegates tion of innovative technologies. and information delivered were appropriate and effective. Similarly, attendance at exhibitions inside and 2.3.2 Projects outside the EU to promote innovative energy technologies, the THERMIE Programme itself or European assis- The projects fell into distinct areas of activity and used tance and funding opportunities involved detailed the best of effective dissemination. Where knowledge organisation, design and manning of a stand and some- gaps existed or were in need of being drawn together, times included a trade/business mission dimension. a number of projects undertook detailed investigations Recruitment of appropriate companies to exhibit on or completed extensive data records to provide a clear these stands was a key requirement. context for engendering awareness of opportunities for users and suppliers of beneficial energy technologies Where projects were involved in opening up new mar- and techniques. This might involve providing back- kets, the availability of accessible information in their ground information on available technologies, areas of native language was important to avoid creating addi- application, market opportunities, etc. tional barriers to information dissemination.

All the projects have helped to accelerate the realisation Projects involving support for the production of newslet- of opportunities to improve EU energy use by increas- ters encompassed a wide range of skills in terms of cre- ing the awareness of effective energy technologies. ating an editorial team, identifying projects and articles, They encompass all the different dissemination tasks: and preparing the necessary copy. Well-produced • analysis; newsletters with effective circulation management offer • provision of information; a very cost-effective mechanism for promoting aware- • distribution of information; ness – this was evident from a number of projects. • provision of advice; and • training. One project that aimed to assist the process of information dissemination in the field of RES helped to create Analysis or studies, in particular of potential markets for the structure that will take on the role of stimulating and new energy technologies, undertook comprehensive promoting renewable energy sources in the EU. data gathering and provided valuable understanding of Achieving this necessitated the completion of a database opportunities and how to overcome barriers to project of interested major actors and groups, contacts and implementation. Projects that offered good value were promotion of their involvement as members. This oper- those which completed case studies. In one particular ational approach offered valuable leverage for sus- project action plans were developed for defined case tained information dissemination. studies. In this specific case, these plans moved the opportunities closer to market realisation and will significantly help to accelerate the uptake of technology.

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dations which enhance and accelerate the take-up of Development of a permanent forum for renewable innovative energy technologies and help overcome bar- energy sources in the EU riers to the full realisation of market opportunities. The basic structure of a permanent forum for renewable energy sources in the EU was developed, in terms The more comprehensive projects provide extremely of membership and mechanisms, to allow enlargement detailed and well categorised information and, in some of organisational, political and financial resources cases, define the additional RTD needs. and to ensure the forum’s self-sustainability. The project supported the identification and com- Those projects concerned purely with the diffusion of pilation of a database of major actors/groups active information (e.g. workshops, seminars, exhibitions, etc.) in the field of renewable energy sources which also reported encouraging levels of delegate attendance had a potential interest in joining the forum. The and visitor numbers. This provided a double benefit in potential members identified were contacted to terms of the increased leverage that larger numbers discuss and seek their involvement, provided with a offer and also gave the opportunity for a greater degree of interaction and contact between representatives of portfolio of information on RES activities in the EU, the targeted groups. In spite of these benefits, imme- and urged to become forum members. diate direct action is only achieved when the dissemi- The project effectively engendered awareness amongst nated information is used. key players of renewable energy sources in the EU, helped to secure the forum as an important element The ultimate measure of the success of dissemination in accelerating the use of these resources, provided concerns the number of actions that are implemented associated benefits on employment and economic which pursue the overall objective of the project. The resource utilisation and, importantly, ensured the number of attendees at a particular promotional event forum was self-sustaining and would continue to or the number of requests for information gives an undertake and develop the foregoing tasks on com- indication of success, but the level of project impact in pletion of the THERMIE projects. terms of meeting its original aims and contributing to EU policy objectives is in direct proportion to how effective the project is in targeting the correct recipients of In common with SME/Strategy projects, each Disse- information, its ability to attract appropriate delegates mination project: to participate in workshops, etc. • set out to identify and implement the most appropriate type of activity which seemed to offer the best poten- The THERMIE umbrella was particularly effective in tial for achieving the project’s specific objective; bringing together technology suppliers and end-users • incorporated essential information gathering ele- at exhibitions, seminars, conferences, etc., and this ments which helped to ensure the value and ultimate clearly promoted technology take-up and fostered effectiveness of the activity pursued in each case; and valuable commercial relationships which offered further • was coordinated by organisations with appropriate cre- potential to aid technology implementation. dentials and a genuine commitment to the imple- The practical demonstration of knowledge (e.g. field mentation of results. trips, working demonstrations) was seen as an important element in reinforcing theoretical information and 2.3.3 The Results were considered to be a powerful dissemination tool.

Technical In addition, raising awareness of the THERMIE Program- Although the primary requirement of the dissemination me and available EU support helps to speed up the process is the transfer of information, the provision and process of technology identification and development and analysis of the information to be disseminated has resulted assists in improving the quality and effectiveness of in considerable useful technical and quantified data being technologies developed within the EU. made available, particularly from study/ review projects. These have provided new concepts, tools and recommen-

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Social, Economic and Environmental 3. Thematic analysis Dissemination projects, whilst not directly delivering the potential for social, economic and environmental improvements, do provide the basis for their attainment. For a successful project outcome there are four key stages that must be satisfied for all THERMIE B projects: The promoted technologies can provide energy cost • objective assessment of a technology’s potential in savings for the user that will help improve economic and terms of its technical capabilities and the demands of industrial performance, competitiveness and profitabil- the market for the technology; ity and which, in turn, stimulates growth and encour- • identification of barriers to technology take-up and ages employment. provision of solutions to these obstacles; • information dissemination to raise awareness; and Use of efficient technologies reduces pollution and • demonstration of a technology's capabilities/benefits adverse environmental impact. The accelerated use of (this is a function of THERMIE A). those technologies as a result of an effective dissemination process further reduces the adverse emissions of Whilst individual projects do not necessarily cover all the energy consumption. above actions identified, a successful project outcome does depend upon each action being successfully com- The increasing trend in the use of less-polluting or more pleted at some stage. environmentally benign technologies fostered by effective dissemination strengthens the EU industry, providing 3.1 Rational use of energy a secure base and promoting sustainable economic growth. In general terms, all the projects offered increased Rational Use of Energy is concerned with improving awareness and, in many cases, successful implementa- demand-side energy efficiency. Projects in the RUE the- tion laid the basis for increased economic benefits. It was matic sector aim to reduce energy consumption and stim- apparent for a number of projects that although major ulate market penetration of innovative efficient and benefits might be provided, significant barriers still clean energy technologies. remained in terms of R&D market activity, etc. before the benefits could be realised. The impact of RUE is targeted in five areas: • buildings; • Projects that offered good value were those that • industry; moved the opportunities closer to market realisation • energy industry (energy fuel cells); • energy storage; by the provision of case studies with action plans. • transport and urban infrastructure. • Well-produced newsletters with effective circulation management offer a very cost-effective mech- In general, strategic RUE projects aimed to define anism for promoting awareness. the market or provide a framework that would aid • The THERMIE umbrella is particularly effective in market penetration of a potential technology or group bringing together technology suppliers and users. of technologies. • Effective projects ensured dissemination continued after THERMIE involvement. Dissemination and diffusion of information provided the largest group of projects and encompassed assessment, examination of barriers, and raising awareness.

Overall, the diffuse nature of the impact of information dis- Projects generally had an effective spread of involve- semination makes it difficult to quantify a project’s influ- ment from the Member States and were effectively man- ence on social, economic and environmental aspects. aged and executed. Project outcomes would however However, the general trend is positive and projects that are benefit from a stronger emphasis on direct user contact closer to the market have a greater influence on these issues. and sustainability. In the case of some projects, sustain-

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ability was the primary objective of the project; in other The areas of RES activity include: cases, particularly those involving dissemination via • Integration of renewable energies; electronic media, insufficient attention was paid to • Solar photovoltaic electricity; website maintenance and sustaining continuity on com- • Renewable energies in buildings and industry; pletion of the project. • Wind energy; and • Other activities (wave and tidal, production and use Perhaps the single most important factor influencing the of hydrogen, etc.). level of success of an RUE project was the implementation of effective information-gathering techniques RES technologies of generally less well-developed than which achieved the following benefits: RUE and overall the market is less mature. Therefore, • involvement of appropriate organisations in the there is an even greater need to provide knowledge of actions, e.g. as collaborators, hosts for RUE demonstra- the technologies and sources of power, and to under- tion projects, etc.; stand the markets and opportunities. This requirement • accurate assessment of a technology’s capabilities and is reflected in the high level of activity in this sector. the status of the market for it; The RES projects that were assessed and their varying • successful targeting of relevant organisations as recip- degrees of success also highlighted the importance ients of information disseminated during projects; of substantial variations in local conditions and their • the appropriate tailoring of the information dissem- importance in relation to renewable energy and inated; and its development. Conditions in one region may not • accurate identification of the priorities and needs of match those in another and such variations can include technology providers, technology end-users, local climatic conditions, resource availability, availability of companies, etc. local expertise, commercial legal and regulatory frameworks, etc. The projects demonstrated the importance of developing effective lines of communication at all levels and The localised nature of RES therefore demands a rigorous between all parties. These lines of communication approach to data collection and analysis, and successful proj- should not only operate during the project but also be ect implementation requires a satisfactory knowledge of robust enough to remain in place afterwards. the local conditions and close liaison with local companies and organisations familiar with such conditions.

The more successful projects recognised the boundaries • The most important factors influencing the level of of the RES technologies concerned and this restriction success of RUE projects are the acquisition of appro- often allowed the projects to develop detailed action priate data through the implementation of effective plans able to move the technologies closer to the markets, information-gathering techniques. suppliers and user needs.

The projects fully support the EU’s THERMIE objective 3.2 RES to promote wider utilisation of RES and also complement EU RTD actions and support EU policies. In many case, renewable energies, unlike fossil fuel sources of energy, are still at an early stage of develop- As with RUE, a number of projects demonstrated ment and exploitation. Renewable energy sources offer the benefits of drawing together the active elements clean and localised sources of energy with significantly in RES, i.e. information on technology, RES opportuni- reduced potential for pollution. Greater use of RES aids ties, and the active players in the field. This approach, the Communities' long-term energy security while the coupled in particular with detailed action plans, provides development of RES technology also assists enhanced stronger and more diverse nuclei for action and reduces industrial activity and improved sustainable employment. the chance of the initiative being stalled.

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projects, except for one conference which examined • The more successful projects recognised the local the exploration and use of natural gas – the rest defined nature of RES activities, had a clear appreciation strategic options for clean technology for solid fuels. of local conditions, and maintained close liaison with local actors. The global nature of fossil fuel sources has dictated a very outward-looking approach and projects have therefore fostered: • Promotion of state-of-the-art EU technologies within 3.3 Fossil fuels the EU and elsewhere, thus broadening the base of the EU equipment supply and service industry and ensur- Fossil fuels still provide the major source of energy in the ing it can compete more effectively with non-EU com- world economy – currently the consumption of coal, oil petition; and and natural gas accounts for around 80% of the over- • Increased awareness in non-EU markets of the EU’s abil- all energy consumption of the European Community. For ity to supply products and services that offer a major the foreseeable future, fossil fuels will remain the most beneficial impact on efficiency, profitability and envi- important energy source and many predict that they are ronmental performance. likely to increase their share of the energy economy over the coming decades. Fossil fuel projects closely followed the EU’s scientific and technological objectives and the actions helped to stimu- A major problem with fossil fuels is the adverse environmen- late growth, strengthened competitiveness, and assisted tal impact in terms of CO2 emissions and other pollutants. in the development of employment in the Community. The emphasis of THERMIE B is therefore directed towards: • Cleaner technologies; • The number of fossil fuel projects supported under • Generic combustion; THERMIE did not reflect the importance of this • Hydrocarbons and new fuels in transport; and energy source in the European energy economy. • Exploration and production of hydrocarbons.

Whilst fossil fuels accounted for the largest source of energy, this thematic sector provided the smallest sam- 3.4 Comparison of the sectors ple population. The fact that there are fewer projects To some extent, categorisation of particular actions on fossil fuels may be explained by two possible reasons: into thematic sectors is fairly arbitrary since many of the first of all, within this sector many energy companies are projects satisfy the criteria of several sectors. already involved in significant R&D effort, whereas in other sectors there is less private effort so a larger public effort is necessary. However, a number of points emerge. In general, opportunities for RUE are more widely appreciated by the indus- Secondly, rather than taking into account the present try and background information on technological markets, role of each energy source, RTD focuses on those energy etc. is more readily available. In the case of RES, it is a less- technologies that can play an important role in the mature area in terms of the availability of information on next 30 years. Much of the activity concerned hydrocar- energy sources, technologies and markets, etc. In addition, bons, with particular emphasis on new and expanding RES tends to offer more localised opportunities which is markets and the opportunities offered for EU goods and often reflected in the actions under RES being very closely services. Consequently, Dissemination projects predom- tailored to an area or energy source opportunity. inated in this sector. SME projects were concerned almost entirely with introducing SMEs to niche markets Because of closely defined boundaries, a number of RES proj- in the oil and gas sector that could be serviced by ects have provided a comprehensive package of actions smaller companies. There were relatively few strategic which not only identify the opportunities and the market

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but also provide detailed action plans which offer nearer 4. Project and programme market solutions and hence accelerated market penetration. management In the case of fossil fuels, much of the emphasis was concerned with hydrocarbons. The number of projects did not fully reflect the importance of fossil fuels in the A major criticism of EU programme management is the European energy economy. Similarly, transport action long gestation period from the project call to notifica- appeared to be under- represented. tion to proceed. A long time period can dull innovation, reduce the number of submissions and can have an Clearly, even greater effort should be placed on provok- impact upon the quality of projects submitted. ing the submission of suitable projects in order to Improvements in the time taken to conclude contracts achieve a more representative mix of projects. would be welcomed and would accelerate the overall attainment of the EU objectives.

For viable projects, the programme management should • Effort should be directed at ensuring a more also ensure all elements of the project cycle are com- representative mix of projects through the pleted to maximise the value of the project; e.g. demon- Commission actively provoking the submission of stration of an innovative energy-saving technology suitable projects. should have an effective dissemination phase and a proactive approach to replication associated with it, either as part of the project or as a follow-on.

It is appreciated that categorisation of projects into specific sectors is not a precise activity since some projects can fall into more than one category. However, it was noted that in a number of cases, Strategic and SME sector projects appeared to be inappropriately categorised. This may well have been influenced by the range of projects submitted and budget availability, but it can result in less support being provided in areas of need. SMEs account for the largest group in the business sector and, if fully involved, can significantly influence a successful project outcome. Because many SMEs have limited resources, it is often difficult to mobilise their involvement in specific programmes. Therefore, it is important that if they are under represented in the Programme, greater efforts must be made to secure their participation.

Projects were, in general, technically well managed and, in most cases, partnerships drew together the skills needed to achieve success. Generally speaking, however, project coordinators had stronger technical skills than management skills. This imbalance may have contributed to one problem identified by many project coordinators – that the workload for the project had been underestimated. This mismatch should be carefully assessed for all future submissions since it can impact upon the

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effectiveness of a project. This impact can also be dis- proportionately high since the shortage of resources occurs at the end of the project when results are being analysed and information is being disseminated.

A strong involvement of industrial partners was less evident in the sample population. It is • The period between the call for projects and notification for the important to ensure that this is contract to proceed is excessive and should be reduced. not a consistent trend since a • Greater effort is required and should be brought to bear to mobilise the strong industrial involvement involvement of SMEs. confirms the value of the action, • A successful demonstration project should always have an effective adds credibility to the project, dissemination phase and proactive replication activity associated with it. and ensures experienced man- • All submissions should be carefully checked to confirm that the proposed agement input. effort is appropriate to the output to ensure that dissemination and repli- Both programme and project man- cation activities are actively implemented. agement should strive for continu- • The involvement of industrial partners should be actively pursued. ity and sustainability on comple- • Both programme and project management should strive for continuity tion of the THERMIE B action. and sustainability on completion of the THERMIE B action. Some of the more successful projects were concerned with setting up self-sustaining actions that could continue to function at the end of the project. At the very least, the communication links and networking set up to prolong the action should be encouraged to continue beyond project completion.

Impact activities help to make future programmes more focused and effective, while accurate feedback on the impact of projects is essential. To do this cost effectively it is important that the requirements for an impact study are considered as part of the project design. It is recognised that there is a cost implication and a balance is necessary when obtaining information to facilitate a future impact study. However, all presentations should obtain feedback on the value of the event for those attending, dissemination projects should strive to ensure that recipients of information are identified and, generally speaking, information should be made available in the project report to allow potential users of the technology and information to be identified.

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5. Conclusions • Some of the more successful projects were considered to be those formulating strategies from the mar- and recommendations ket studies and/or detailed case studies provided and action plans that brought the opportunities closer to the market. • Virtually all projects provided valuable and useful information in the form of market studies, opportu- Whilst all projects cannot be formulated to provide nity identification, details of technologies, identifi- action plans, where appropriate they should be con- cation of barriers to project implementation, etc. and, sidered since they offer easier access to project imple- in general, delivered the information to potential menters and accelerate the implementation and real- users. However, very few projects examined the impact isation of results. of their activities and invariably the time to complete the projects successfully was underestimated. • The ability to draw together all the main actors and Therefore, future project designs should ensure that to closely focus action on selected technologies is an mechanisms exist to allow an impact assessment to be important element of the Programme and provides the carried out, ideally as part of the project or following EU with significant added value. Strong participation completion, e.g. at all workshops, conferences and of industrial and commercial partners is the most seminars, techniques should be employed to assess the effective confirmation of a project’s usefulness and value of the event or the information presented. For indicator of success. Attention should be paid to other projects, such as dissemination activities, the ensure the quality of the partnerships. provision of information should be tracked to a recip- ient or user. • Projects offered a range of benefits and some or all of the following, including: • The partnerships formed to carry out the projects were generally well founded and provided an appro- - reduction in pollution and improvement in environ- priate mix of expertise and knowledge. Whilst project mental impact; management was generally good, a frequent cause for - improved energy efficiency and cost saving; concern expressed by project coordinators was that the - improved security of supply and more sustainable level of work required to provide an effective project energy use; and outcome was often underestimated. This shortfall in - strengthening of the EU energy industry, improved effort is inevitably felt at the end of the project when competitiveness, and enhanced employment oppor- most effort is required to achieve success. tunities.

Many projects would benefit from more accurate esti- Although the benefits were implicit in the project mates of project workload and sufficient time allocated outcomes they were not always clearly defined or to stronger support for the implementation of proj- presented. The importance of environmental benefits ect results or information dissemination. should always be emphasised. Similarly, the economic and social benefits should be easier to appreciate in • The ultimate success of THERMIE B projects, whilst the project results. influenced by the quality of the concept and the effectiveness of the mechanism for delivery, will always • Projects were generally timely and well focused in depend upon the capability of the recipients to appre- terms of objectives and target audience. However, a ciate the opportunities and deliver useful results. This number of projects lost their impact because of delays aspect emphasises the need for adequate effort to be in delivery and did not always reach their target audi- placed on identifying the correct target audience and ence. Timing and delivery of project results should ensuring the results or information is delivered effec- be closely examined and monitored, and long gesta- tively. All projects should strive for a greater appreci- tion periods avoided. ation of how information is used.

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• The categorisation of projects is often arbitrary and inappropriate assignment of projects can lead to a lower sector representation than originally intended. Greater care should be taken therefore in ensuring that projects do in fact support the sector in which they are categorised. The SME sector appeared to be poorly served in this respect.

• THERMIE B project actions provide an essential step in the overall process of bringing innovative non nuclear energy technologies to the point where they can begin to be deployed successfully. Projects were also complementary to, and underpinned, EU RTD actions. However, it did appear that fossil fuels, as the primary source of energy, and the transport sector, as a prime user, should be better represented in the scope and number of projects. It is recommended that more projects are sought in these sectors and, if necessary, a proactive approach is adopted to provoke the submission of suitable projects.

• The period between project call and the conclusion of a contract is considered too long and can have an adverse effect on project quality and number of submissions. The period should be reduced as this would help to accelerate the overall attainment of EU objectives.

• Particularly successful projects were concerned with setting up self-sustaining actions that could continue to function at the end of the project. Wherever possible, this approach should be engineered by both programme and project management.

• THERMIE B projects have adhered to EU policy and THERMIE B objectives and have provided an effective basis for contributing to the key objectives for the EU’s White Paper on economic growth, employment and competitiveness.

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