AREVA Renewable Energies and India
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AREVA Renewable Energies and India Philippe Poux Vice president, Business Development & M&A [email protected] Stricly Confidential Agenda 1. AREVA Group context 2. Renewable Energies Market and environment 3. AREVA activities in Renewables 2 Stricly Confidential AREVA: a strategy based on three pillars Nuclear X CO2 free electricity X Interconnections & HVDC generation X Commercial synergies – X Complementarities contact with utilities, (base & intermittent) international footprint X Technical, financial, and X Portfolio synergies commercial synergies X R&D leverage T&D Renewable X Integration of renewable in the grid & Smart Grids X Energy storage “One-stop shop for CO2 free energy generation” 3 Stricly Confidential Key Financials 2008 Sales: 13,160M€ Operating income: 417M€ Consolidated net income: 589M€ Employees: 75,414 Standard & Poor’s recent Rating Short-term: 'A-1’ Long-term: ‘A’ on balance sheet strengthening Outlook: Stable 4 Stricly Confidential Agenda 1. AREVA Group context 2. Renewable Energies market and environment 3. AREVA activities in Renewables 5 Stricly Confidential Renewable energy, like nuclear, is an answer to 3 major concerns and a factor of local industrial development Energy dependence Fossil energy price volatility Import part of country energy consumption 100% $/t, $/bl $/MBtu (Gaz) 250 Pétrole 14 80% Charbon Gaz 12 200 60% 10 150 8 40% 6 100 4 20% 50 2 0% 0 0 Japan EU India USA China 02/01/07 02/07/07 02/01/08 02/07/08 02/01/09 Source : BP Statistical Review 2008, AREVA Source : Bloomberg, AREVA CO2 world emissions Local industrial development (example of on-shore and off-shore wind in EU) 400 370 5% CAGR 330 350 (2007-2025) 300 Electricité 250 210 41% 200 155 150 100 50 0 H2 production 2007201520202025 7% * Direct and indirect employment in Europe for on-shore and off-shore wind sector. Includes direct and indirect employment in component manufacturing, utilities, developers, O&M, engineering and consultancy, R&D, financial, etc. Source : AIE 2008, AREVA (source: European Wind Energy Association, Jan. 2009) 6 Stricly Confidential Renewable energy, like nuclear, is little dependent on raw material prices Combined gas cycle MWh Nuclear MWh cost cost breakdown breakdown Fixed operational cost Combustible Fixed and other operational variable cost Carbon Capital cost 2% cost 12% 10% 15% 20% 70% 70% Combustible and other variable cost Capital cost Coal MWh cost Renewable MWh cost breakdown: breakdown example of biomass (Brazil) Fixed operational Fixed cost Combustible and other operational Carbon variable cost cost 6% Capital cost 11% 25% 22% 33% 67% 35% Capital cost Combustible and Note: fuel can be “free of charge” (wind, sun), other variable cost sometimes even cost negative (waste) Source : Based on d’E-On estimations for Europe (Janvuary 2009), using carbon cost of 20 €/t ; AREVA’s estimation for biomass 7 Stricly Confidential Fast growth and consolidation on the on-shore wind segment have favored early movers On-shore wind market performance to date Market share (2008) Other 23% CAGR ‘01- ’08 Siemens 60% 7% Suzlon 9% 89% Enercon 10% Gamesa 12% 52% GE 19% * Ves tas 20% * 23.5 GW of new Installed capacity build in 2008 = equivalent to 14 EPR 2008 X Acquisition of Enron Wind in 2002 (transaction size: 325 M$) Development X Acquisition of NEG Micon in strategies 2004 (transaction size: 330 M€) X Acquisition of Bonus Energy in 2004 (transaction size: 325 M€) Sources: New Energy Finance, BTM Consult APS 8 Stricly Confidential Strong growth continues to be expected in short- to mid-term Renewable energies installed base projection* X Increasing share of “new” renewables into the electricity generation Installed capacity (GW) CAGR 1200 ‘08-’30 assets worldwide lead to a significant investment 960 GW 1000 level to be captured in the 42% renewable industry 800 38% 24% X A market of 65-90 580 GW 600 bn$/year average of new 10% capacity asset finance 401 GW 400 between 2008 and 2030 207 GW 13% 200 X Strong growth expected in off-shore wind (42% 0 CAGR, 2008-2030) and 2008 2015 2020 2030 Solar CSP (38% CAGR, % world 2008-2030) electricity 4.7% 7% 9.3% 12.8% generation capacity X On-shore wind remains New capacity the most important market 66 bn$/yr 85 bn$/yr 89 bn$/yr renewable energy (48% (asset finance (2008-2015) (2015-2020) (2020-2030) yr av.) of total ENR in 2030) * Excluding hydro-electricity Source : WEO 2008 – reference scenario 9 Stricly Confidential Agenda 1. AREVA Group context 2. Renewable Energies Market and environment 3. AREVA activities in Renewables 10 Stricly Confidential Comprehensive portfolio of CO² free power generation technologies and services Wind power Bioenergies Solar Energy Carrier & Storage Become a major player Design & deliver Design & deliver CSP Provide marketable in wind energy biomass fired power plants solutions to foster plants world wide renewable penetration X Off-shore leader globally X Specialized EPC X Specialized EPC X R&D center for X Strong on-shore company for CO² free 50- company for CO² free Renewable Energies position in target 100 MW power plants – 50-100 MW solar power X Development of next geographies biomass fired plants generation storage X Ownership of range of X Ownership of critical solutions and Hydrogen critical technologies solar thermal production (combustion, technologies and gasification, pirolisis, possibly others (CPV) etc.) 11 Stricly Confidential Wind power product line 12 Stricly Confidential Unique product offering for wind off-shore Eolienne Multibrid M5000 Eolienne Multibrid M5000 X Biggest wind turbine for off-shore market (5 MW) Positioned vs. Multi MW turbines 3.6 MW 5 MW X Successful installation Alpha Ventus (1st off-shore wind park in German North sea) X Design certified by GL Off-shore X Broad range of services for the off-shore industry Design and manufacturing Maintenance Source: New Energy Finance 11/04/2008, Companies 13 Stricly Confidential Manufacturing and sourcing 14 Stricly Confidential Installation and erection 15 Stricly Confidential Alpha Ventus project – 1st off-shore project in German North Sea 16 Stricly Confidential Off-shore for India – Key success factors 1. Wind speed? 2. Shallow waters? 3. Tariff and regulatory environment? 4. Existence of local players able to: 9 Manufacture some of the equipment 9 Install and erect the turbines 9 Develop projects 9 Finance projects 17 Stricly Confidential Bioenergies product line 18 Stricly Confidential Biomass – Rice Husk BK URUGUAIANA Place: Uruguaiana – RS (Brazil) Customer: BK Energia Ltda. Boiler: 40t/h – 43bar – 420ºC Rice husk Steam turbine and generator: 8MW – 13,8kV – 60Hz (condensing) Connecting substation: 7,5MVA – 13,8kV – 60Hz Scope of Supply: Design and Management Electric and mechanic assembly Electric panels (power and control) Automation and control system Commissioning, start up and assisted operation URBANO Place: São Miguel – RS (Brazil) Costumer: Urbano Agroindustrial Ltda. Boiler: 15t/h – 22bar – 445ºC Rice husk Steam turbine and generator: 2,2MW – 380V – 60Hz (condensing) Connecting substation: 2,0MVA – 380/23kV – 60Hz Scope of Supply: Design and Management Electric and mechanic assembly Electric panels (power and control) Commissioning, start up and assisted operation 19 Stricly Confidential Main references around the world 2 biogas + 5 mine gas power plants for 57 MWe GERMANY 2 Biomass power plants for 20 MWe 83 biomass power plants for THAILAND 2,296 MWe INDIA 3 biomass BRAZIL + 2 waste heat power plants for 47 MWe CHILE 1 biomass power plants for 10 MWe 98 Power plants 2,430 MWe under operation or construction total installed capacity 20 Stricly Confidential Key technologies X Existing technologies for biomass conversion Combustion (complete oxidation) Heat AREVA Solid Biomass Pyrolysis Charcoal and (wood, straw) (thermal decomposition) pyrolisys gas (CxHy + tar + CH4) Gasification Synthesis (incomplete oxidation) Gas (CO, Physico–chemical H2) conversion Oil crops Pressing, esterification Bio-diesel Biological (rapeseed, sunflower) Conversion Ethanol Thermo chemical Sugar and starch Alcoholic ferment. conversion Plants + distillation Stillage (sugar beet, cereals) Anaerobic CO2 + CH4 AREVA Wet Biomass Digestion Leachate (organic waste, manure) Aerobic CO2 Digestion Compost X Bioenergies focus : Biomass power plant (combustion): bagasse, rice husk, wood, etc… Biogas process (Anaerobic digestion): z Ending market in Europe z Potential market in Brazil, with a economical study underway X Bioenergies R&D subjects : Gasification (with possible applications in 5/10 years) Pirolysis (or production of bio-oil) 21 Stricly Confidential An innovative business model: ADAGE with local adaptation in India with Astonfield X Launched in Sept 2008 at the Clinton Global Initiative X Plan to develop twelve 50 MW biopower energy plants in the continental U.S. for green electricity customers X First biopower partnership in the United States between major energy companies, AREVA and Duke. X Will develop biopower plants that use wood waste to produce electricity. X Similar agreement with Astonfield, an Indian renewable project developer, signed in July 2009 Fleet of 10 x 10 MW bioenergy plants AREVA will design and build biomass power plants Astonfield will manage operations Co-ownership of plants: 60% Astonfield, 40% AREVA 22 Stricly Confidential Hydrogen power product line 23 Stricly Confidential Innovative technologies… For hydrogen power Strategic deliverables X Stationary and embedded power generation based on fuel cells Current deliverables Standalone