Introducing KACARE’s Technology Localization and Commercialization (TLC) Initiative Round 3 RFPs

K∙A∙CARE TLC Department Driving value for our stakeholders June 2020 Table of Contents

Sr. No Topic Slide Number

1 Introduction: K.A.CARE and the TLC Initiative 3

2 The TLC Initiative and Programs 8

3 The TLC Initiative: Value Proposition for Stakeholders 15

4 The TLC Initiative: On going Projects and Summary 20

5 The TLC Initiative: Technology Focus Areas for Round 3 RFPs 25

6 The TLC Initiative: Round 3 RFP Proposal Process and Timelines 41

7 Website registration and match-making page 43

2 K∙A∙CARE is a Saudi government agency with a mandate to support renewable and atomic

K.A. CARE aspires for the Kingdom to play a leading role in the atomic and renewable energy sectors, regionally in the short term, and internationally in the long term, by sustainably building these sectors to reach the optimal national energy mix.

Maximizing economic impact, Introducing renewable energy into Introducing atomic energy into the driving positive environmental the national energy mix, according national energy mix in accordance impact, and focusing on to local requirements, while with domestic requirements and sustainable development staying oriented to regional and international obligations global demand Empowerment and Capacity Building

Innovation and Research

3 The Initiative focuses on technology localization and commercialization

Promote and facilitate technology localization to enable sustainable development of the Renewable Energy sector in the kingdom OBJECTIVE

STRATEGIC GOALS

A. Introducing Technologies B. Finding mechanisms to C. Enabling the Private to the Kingdom create a Sustainable Supply Sector to Commercialize of Emerging Technologies Renewable Energy Technologies

4 The Technology Localization & Commercialization Team Outlining our areas of focus

PROGRAM PROMOTION PROJECT MONITORING AND EXECUTION • Provide technical and management support for • Draft communications for increasing program funded projects awareness to technical external audiences • Conduct post-project business monitoring and • Plan and execute program events impact assessment • Develop program promotion process (institution) • Perform all tasks related to project contracting

PROGRAM SUPPORT PROGRAM DEVELOPMENT • Support pre tendering , tendering and evaluation • Utilize market reports and analyses to design stages programs • Consultancy services management • Define and implement localization mechanisms • Quality check all deliverables produced • Develop technology roadmaps • Operation execution and monitoring • Develop and release RFIs and RFQs

5 The Technology Localization & Commercialization Department Roles and Responsibilities ROLES

Utilizing reports to identify Planning and developing technology targeted technologies localization programs

Cooperate with the private Developing and implementation sector to execute technology of technology localization plan localization programs

Monitoring the localization and Supporting the industry as commercialization of necessary to create a technologies sustainable economy

6 THE TLC INITIATIVE Facilitating the development of the Kingdom’s renewable energy sector, by providing a range of funding programs

7 The TLC Initiative administers four programs which convert technology research into industry solutions

01 02 03 04

PROOF OF PRODUCT FEASIBILITY DEMONSTRATION CONCEPT DEVELOPMENT STUDIES PROJECTS

8 The four programs have different outputs

Commercial Product Feasibility Commercial Program Proof of Concept Development Study Demonstration

A business plan, and A complete, installed Prototype of a Adaptation of products to conceptual design for a renewable energy system, Project Output component, subsystem, or meet Saudi market needs commercial paid for by a Saudi system demonstration customer

Saudi universities, Saudi company or Saudi International or Saudi Project Lead research centre, and Saudi Saudi company research institution company SMEs

Funding Fixed price contract 50% of project cost Fixed price contract 50% of project cost Mechanism (no cost share) (no cost share) Maximum 4 M SAR 8 M SAR 375 K SAR 20 M SAR K.A.CARE Investment Maximum Project 18 months 18 months 12 months 36 months Duration

9 10 11 12 13 THE TLC INITIATIVE Value Proposition for Stakeholders

14 Value Proposition for Technology Providers

(A) EXPAND (B) SHOWCASE (C) PARTNER (D) COMMERCIALIZE Into one of the world’s Your technology To deliver more Your technology, subject fastest developing innovations, capabilities effectively to meet the growing renewable energy and business offerings to demand markets a wider audience

15 Value Proposition for Business Developers

(A) PARTICIPATE (B) CONTRIBUTE (C) PARTNER (E) NEW BUSINESS in global energy to KSA’s targets through our AVENUES transition for renewable matchmaking Expand into new energy platform with business linesthat companies that can are emerging in the bring technologies in region’s Energy sector

16 Value Proposition for Universities

(A) SHOWCASE (B) COMMERCIALIZE (C) DEMONSTRATE ongoing research and by engaging through impact of your R&D development the platform with programs through process private technology KACARE’s programs developers

17 Value Proposition for Off Takers

(A) REDUCE (B) CONTRIBUTE (C) BENEFIT FROM (D) SAVE ON OPERATING COSTS NEW TECHNOLOGY CAPEX For energy consumption To your country’s That is evaluated to After being approved by opting to implement plans to embrace be fit for purpose for participation in validated technologies renewable energy by a panel of the cost share at your site (Vision 2030) international experts program

18 On-going Projects

19 On-going Projects

PV-DIESEL SOLAR COOLING SOLAR HEATING Desert GreenAire Qudra Energy Technologies Company

20 Technology: PV Diesel Awardee: DESERT Technologies Objective • PV-diesel hybrid systems in the Kingdom. • Economic competitiveness of PV-diesel hybrid systems compared to conventional fuel systems . Project Cost Breakdown • Competitive business case to deploy PV-diesel hybrid systems in the Kingdom. • PV/diesel hybrids represent a major opportunity for a "quick win" for solar energy in the Kingdom with clear and immediate economic benefit Desert 5.7 M Technologie's Project Contractor Desert Technologies 38% Share 9.3 M KACARE's Share 62% Project Off taker/ Location Southern Can Making Company (SCMC) Factory Jeddah Makkah Highway, Makkah Duration of the Project 27 Months KACARE’s share is 38% of the total Total Project Cost SAR 15,024,550 project completion cost

21 Technology: Solar Cooling Awardee: GREENAIRE Objective • GreenAire will demonstrate that locally manufactured air conditioning units, integrated with photovoltaic solar panels and parabolic solar panels can save 70 – 90% of energy used for cooling. Project Cost Breakdown • Working with the Center for Engineering Research of the King Fahd University of Petroleum & Minerals (KFUPM), GreenAire will test and prove the efficacy of their technology using indirect and direct evaporative coolers (IDEC). • GreenAire technology will provide comfortable air conditioning 1.1 M superior to traditional units by lowering the temperature while 20% controlling the indoor humidity level. For high humidity areas, GREENAIRE's Share IDEC can be integrated with existing traditional ACs. Project GreenAire for Air Conditioning Company and Renewable Energy 4.6M KACARE's Share Contractor Trading Company (RECO) 80% Project Off taker/ 6 test sites (four in the dry Central region and two in the humid Location Eastern region) Duration of the 20 months KACARE’s share is 80% of the total project completion cost Project Total Project Cost SAR 5,794,449

22 Technology: Solar Heating Awardee: QUDRA Energy Company Objective • Recognizing that demand for medium-temperature process heat represents a large percentage of global demand for process heat, Qudra Energy (QE) has proposed a game- Project Cost Breakdown changing, locally-developed solution that can bridge the wide gap between the high demand for medium-temperature process heat and the lack of economically viable solar process heat solutions that meet that demand. • In collaboration with King Saud University (ΚSU), QE developed a unique concept that provides a cost-effective 1.4 M and robust method to focus sunlight on a fixed receiver using 27% its patented heliostat design. QUDRA's Share Project Contractor Qudra Energy Company KACARE's Share 3.8 M Project Off taker/ Watania 73% Location Duration of the 36 Months Project KACARE’s share is 73% of the total project completion cost Total Project Cost SAR 5,237,500

23 Technology Focus Areas for Round 3 RFPs

24 Topic Area Selections Defined on the basis of techno-economic analysis, market studies, and factoring in expert opinions

Building Integrated Renewable Energy Systems

Solar Thermal Applications

Renewable Energy in Water Management

Renewable Technologies for Grid Management

Common Shallow Geothermal Applications Renewable Solar Cooling and Cold Storage Energy Topic Areas for Green Hydrogen K∙A∙CARE TLC Waste to Energy THEMES Initiative Other Promising Renewable Energy Technologies

25 Solar Thermal Applications (1/2)

RENEWABLE POLYGENERATION SYSTEMS SOLAR HEAT FOR INDUSTRIAL PROCESSES (SHIP)

A renewable polygeneration system is defined as any power system Solar Heat for Industrial Processes (SHIP) refers to use of solar energy to heat incorporating a heat engine with secondary energy streams, integrated with up a fluid, such as water, to produce hot water or steam, for use in industrial renewable power sources. An RE based polygeneration system offers the processes effectively reducing the cost of energy to the industry in the long potential to reduce both diesel and electricity consumption. run and conserving the Kingdom’s own fuel resources.

26 Solar Thermal Applications (2/2)

HOT THERMAL STORAGE Hot thermal storage means storing heat at temperatures above 100°C. Because of the importance of process heat, there may be opportunities to deploy hot thermal storage to enable solar energy to supply all or most of a facility’s process heat needs.

Hot “Cold” Molten Salt Tank Molten Salt Tank T = 380 – 550°C T = 290°C

27 Renewable Energy in Water Management (1/2)

RENEWABLE POWERED DESALINATION The water demand in Saudi Arabia is expected to increase steadily due to population growth, rapid industrialisation, and agricultural and commercial development placing significant importance on desalination processes. Energy accounts for about 50% of the total cost of potable water. Use of solar PV, solar heat or wind offers great cost reduction by reducing the amount of diesel currently being used for production of desalinated water.

PV and Wind-powered reverse osmosis Solar-driven thermal desalination

28 Renewable Energy in Water Management (2/2)

RENEWABLE ENERGY IN WATER TREATMENT Traditional water treatment processes can be intensive, in terms of energy and chemical use. Renewable energy based water treatment systems have the potential to lower costs, increase efficiencies, and reduce environmental impacts.

29 Renewable Technologies for Grid Management (1/2)

RENEWABLE ENERGY INTEGRATED MICROGRIDS DEMAND MANAGEMENT

Renewable energy integrated microgrids are discrete energy systems consisting of distributed energy sources (including demand Energy demand management, also known as demand-side management, storage, and renewable energy generation) and loads management (DSM) or demand-side response (DSR), is the capable of operating in parallel with, or independently from, the modification of consumer demand for energy. Demand main power grid. Integrated solutions, such as renewable management provides a low cost alternative to additional microgrids, are needed to reduce the dependence on fossil fuels generation capacity. mitigating supply constraints for energy security, cost and efficiency.

Loads Solar PV BkUp #1 Solar PV

Energy Storage

Prime Generator

Distribution

BkUp #2

IID/PCC

Example

Load: Substation Peak 7 MW, Ave 4 MW, (switching) 20% critical, 30% Operational

Generation: Prime - 2 MW Utilty Other BkUp #1 - 750 kW Transmission Feeders BkUp #2 - 250 kW Solar PV #1 - 1 MW Solar PV #2 - 100 kW Energy Storage - 1.5 MW, 1 MWh 30 Renewable Technologies for Grid Management (2/2)

ENERGY STORAGE POWER ELECTRONICS

The integration of high levels of renewable energy penetration will Energy storage systems are key to managing variations in energy change the operating dynamic of the electric grid in KSA. Coupled demand and more importantly so with deployment of variable with this, growing electricity demand will necessitate investments generation resources such as solar and wind. Technology options for to manage congestion and ensure stable grid operation. Many energy storage include electrochemical batteries; flow batteries; advanced grid management and control strategies are empowered fuel cells; flywheels; hydroelectric storage; compressed air energy by power electronics devices and can be applied in KSA to support storage (CAES); supercapacitors; and gravity-based storage the anticipated growth in demand and the renewable energy sector.

Electrochemical batteries

Potential Hydrogen energy storage storage

31 Building Integrated Renewable Energy Systems

RENEWABLE ENERGY BUILDING RETROFITS

Most buildings in KSA have not been designed and built to be energy efficient or to integrate renewable energy systems. A suite of energy efficiency measures applied to retrofitting an existing building, combined with high-efficiency cooling technologies and PV panels for renewable electricity, can significantly reduce a building’s energy costs.

Direct DC Energy Recovery Chiller Ventilation

32 Shallow Geothermal Applications

GEOTHERMAL COOLING GEOTHERMAL HEATING

Cooling energy demand in residential and commercial buildings Geothermal heating systems employ the same type of systems used represents the largest use of electricity in KSA. Use of shallow for cooling and can be employed for hot water supply and space geothermal heat pumps offers an opportunity to improve cooling heating during the winter months. Of particular interest is the use efficiency with a well-known technology that exploits the earth as a of alternate forms of renewable energy to drive heat pumps. renewable resource

Horizontal ground exchange loop

Vertical ground Aquifer exchange exchange loop loop

33 Solar Cooling and Cold Storage

COOLING WITH RENEWABLES COLD THERMAL STORAGE

The electricity consumption for air-conditioning in Saudi Arabia’s The least expensive renewable sources are wind and PV, but these hot desert climate exceeds 70% of the total electricity consumption sources have intermittent power output necessitating the need for during the summer months. Reducing the use of conventional storage. Cold thermal storage is particularly well-suited to the needs energy for cooling, and increasing the use of renewable energy for of Saudi Arabia since most of the electricity demand is for cooling cooling, is therefore essential for KSA. To reduce it cooling electricity uses. Systems for storing ice or chilled water can shift the time of requirement during peak periods. electricity consumption from the time the cooling is actually used.

No inverter and reduced equipment and transmission losses

Ice or chilled water reservoir

Solar PV and solar thermal driven cooling systems Cold Thermal Storage

34 Green Hydrogen

HYDROGEN GAS SYSTEMS Hydrogen gas is a versatile fuel that can be burned to produce heat, or utilized in an electrochemical fuel cell to produce electricity. Hydrogen gas is considered to be a clean alternative to the use of gasoline, diesel fuel, methane, and other energy sources derived from fossil fuel sources. The production of hydrogen gas has been considered as a possible solution for storing excess generation from renewable energy sources, such as solar and wind. Instead of curtailing excess renewable generation, the energy can be used to produce, compress, store, and distribute hydrogen gas, which can then be used as a fuel or electricity source upon demand.

35 Waste to Energy

RENEWABLE ENERGY IN WASTE SYSTEMS Waste to Energy is the process of generating energy, in the form of heat, electricity, or fuel, from waste sources, including municipal solid waste (also called garbage, or trash), municipal wastewater treatment plants, agriculture and livestock operations, industrial processes, medical facilities, and landfills. Renewable energy in waste systems specifically entails the use of renewable energy to power waste-to-energy systems, recycling systems, or innovative uses of renewable energy that divert or prevent waste streams.

Solar thermochemical gasification of agricultural waste Solar thermal anaerobic bioreactor

36 Other Promising Renewable Energy Technologies

OPEN SUBMISSIONS This RFP has set out a number of areas of particular interest. Nevertheless, K∙A∙CARE is keen to support any company seeking to localize or commercialize viable renewable energy technologies that fall outside of the scope previously described. Applicants under this category can freely submit proposals for well-formulated demonstration projects and feasibility studies on other renewable energy topics that show promise. It is the responsibility of the applicant to prove the relevance of the technology they are proposing. POTENTIAL TOPICS INCLUDE, BUT ARE NOT LIMITED TO:

Green and Wind related Dust Design for Renewable Technologies Cleaning for High Fuels Solar PV Temperature Systems Operation

37 Round 3 – Proposal Process and Timeline

38 Round 3 Proposal Process and Timeline

Negotiation and Contract Evaluation Signature and Pre-development Proposal Due Conditional Date Engagement with LOI/ Concept Award local companies, LOI/ Concept Paper Paper Feedback industry experts RFP Acceptance and key Release

stakeholders 18 June 2020 20 Aug 2020 07 Sept 2020 09 Dec 2020 25 Jan 2021 21 March 2021

39 Our Website

40 • Contact us at [email protected] • Visit K.A.CARE kacare.gov.sa • Visit the TLC Website for more info: https://www.energy.gov.sa/en/tlc/Pages/default.aspx

THANK YOU شكراً