Solar thermal power for Talitha Kumi

Corporate support where it matters

Turning Ideas into Reality. MAN Ferrostaal

Message by Minister of State Werner Hoyer, Federal Foreign Office

Peace and stability in the Middle East are one of the key objectives of Germany’s foreign policy, as well as a matter close to the hearts of many people in our country. The German Government is strongly committed to the peace process with the political goal of a two-state solution which will allow Israelis and Palestinians to live together peacefully as neighbours. Unfortunately, however, everyday life is still very difficult for people in the region.

This is the focus of the “Future for Palestine” initiative which former Foreign Minister Frank-Walter Steinmeier launched together with Prime Minister Salam Fayyad in January 2008. With this initiative we want to help people in the Palestinian territories through concrete projects which make their daily lives easier and have a quick impact. We have joined forces with a view to improving the quality of life locally and, in particular, young people’s prospects. For only those who have confidence in their own future will also have confidence in their government. And governments cannot successfully conduct political negotiations without support among the population.

We have already initiated many projects together with foundations and companies, such as the extension of schools and health centres, or funding for cultural institutions and exchange programmes. The “Future for Palestine” initiative complements our traditional development cooperation and the broad spectrum of Germany’s engagement in the region.

Bolstering the education sector is one of the main focuses of this initiative. In my view, one very successful project in this field – and also a showpiece project for the meaningful use of renewable energies – is the solar thermal plant on the roof of Talitha Kumi School in Bethlehem. This new installation will allow the school, which is German-run and provides a broad-based education for boys and girls of every faith, to considerably lower its energy costs, thus lightening the burden on its budget. This will release urgently needed funds for important and valuable teaching work. For at this school young people are encouraged to play a responsible role in shaping their future.

I would like to sincerely thank MAN Ferrostaal, the company which is installing and funding the school’s solar thermal plant within the framework of the “Future for Palestine” initiative. I would also like to thank the German Energy Agency (dena), which is supporting this project as part of its solar roof programme. I wish the project every success and hope that our initiative continues to gain the backing of such dedi- cated supporters.

Werner Hoyer, Minister of State, Federal Foreign Office Talitha Kumi Centre of learning for 900 students

“Talitha Kumi enables children and young adults to live a normal life in a ­difficult region, to receive a good education, vocational training, and even to enrol in university later on. The practice of mutual respect, tolerance and of bringing people together, play an especially important role in that.”

(Dr. Matthias Mitscherlich, Chairman of the Executive Board of MAN Ferrostaal)

In addition to a primary and secondary school, Talitha In recognition of the school’s excellent work, the Federal Kumi encompasses a kindergarten, a boarding school, a Republic of Germany supports Talitha Kumi by dis­ hotel management college and several common rooms patching teachers to maintain the German tradition ­­ for social activities. The school offers its pupils an excel­ of the school, which began with its founder Theodor lent education, perspectives in vocational training and Fliedner in 1851. In 1997, Talitha Kumi was accepted as a preparation for university studies after graduation. member of the international UNESCO school circle.

The guest house of Talitha Kumi is popular with travel­ Talitha Kumi is open for students of all religions and lers who like to explore the West Bank and the many reli­ faiths, so that they may learn from early childhood to gious sites nearby. At the same time the guest house is a interact with each other tolerantly and respectfully. model project for the student body of the hotel man­ Boys and girls at Talitha Kumi are educated to become agement college, providing them with the opportunity self-confident and self-determined personalities who of on-the-job training. value diversity, the freedom of worship and opinion, and social commitment. Talitha Kumi was originally founded as an Arabic girl’s orphanage over 158 years ago. The school has had an Located directly at the West Bank border with Israel, the outstanding role in female education ever since and has school is situated in a place of political dispute which continued to set great value in future-oriented positive imposes great difficulty on the institution. After the education throughout its history. construction of the West Bank barrier, it became impos­ sible for some students to enter the school’s premises. A second entrance needed to be set up to provide access for all students – whether from Israeli or Palestinian terri­tory. Over the last few years the school has become a meeting The new solar thermal plant, with a total collector sur­ point for discussions and has hosted exchanges be­ face of more than 200 square metres, supplies over 26 tween Israelis and Palestinians. Talitha Kumi acts as percent of the school’s energy demand by providing the an intermediary between present and past, between main school building and subsidiary facilities as well as people of both sides of the border and various religions the kindergarten, the gymnasium, the dormitory and – Greek Orthodoxs, Lutherans and Muslims to name the attached guest house with warm water and central only few. heating. The plant saves expenses for Diesel fuel of about 21,000 EUR per year at the current price rate. The Berlin Mission in (BMW) has patronage over Talitha Kumi and finances the school’s budget. None­ Saving energy costs is of obvious concern to Talitha theless Talitha Kumi relies on donations to maintain its Kumi. An equally pressing concern is to save costs by activities. ­using ecologically sustainable, regenerative energy. The children attending the school should learn early and Therefore even the most essential expenditures bur- with lasting effect about the value of energy and about den the budget greatly. Utility costs alone amount to environmental awareness. Visualizing the full asset of 80,000 EUR per year. A large part of these costs are the new solar plant, a digital display in the main hall of spent on warm water supply and central heating. the school building documents the plant’s output and

avoided CO2 emissions. The latter amount to 57,000 kilograms of CO2 saved alone in the first year, which is equal to the avoided emissions of 24 middle-class passenger cars with an an- nual mileage of 15,000 kilometres.

Corporate support from Ferrostaal and its partner ­Deutsche Energie-Agentur GmbH (dena) – German Energy Agency – helps Talitha Kumi to supply itself with envir­ onmentally friendly ­energy and to reduce its utility costs sustainably. Clean and renewable energy Solar thermal power for warm water and heating

The solar power division of MAN Ferrostaal realizes large-scale concentrating solar thermal power plants, offering the full scope of services from project ­financing, project development and management to plant construction. At the same time MAN Ferrostaal advances new solar power technologies with its partners and markets system solutions for solar cooling.

Knowing of this expertise, former German Federal Foreign Minister Frank-Walter Steinmeier approached the board of MAN Ferrostaal with his “Future for Palestine” initiative, bringing to attention the situation of Talitha Kumi, a school in the Palestinian territories. The fully integrated school is widely known for its excel- lent curriculum, its pupils from multi-cultural and multi-religious backgrounds, and its various social engage- ments in Palestine. Talitha Kumi, however, relies on donations and sponsorship to maintain its activities. A great burden on the budget are expenses for utility costs.

In order to help and support the school, MAN Ferrostaal issued a formal donation offer to Talitha Kumi over the supply and installation of a state-of-the-art solar thermal power plant for warm water and heating. The solar plant was to bring down Talitha Kumi’s energy costs and provide sustainable energy for the school in the future.

In a successful Public Private Partnership, the project was jointly realized by MAN Ferrostaal and the Deutsche Energie-Agentur GmbH (dena) – the German Energy Agency – and co-financed by the German Federal Ministry of Economics and Technology (BMWi) within the framework of the “dena Solar Roofs Programme for Foreign Market Development,” which is part of the German Renewable Energies Export Initiative. While MAN ­Ferrostaal contri­bu­ted the larger part of the project costs and saw to the installation of the plant, dena coordinated the project.

Aside from recognizing the excellent work of Talitha Kumi, the donation of the solar plant and the partnership with dena has given MAN Ferrostaal the chance to demonstrate the great potential of solar thermal power systems even when used for modestly scaled non-industrial purposes. It gives the company the chance to show its capability in the field of solar systems and the possibility to enhance their market share.

The new solar plant of Talitha Kumi is foremost meant to help the school directly but also to hint at the vast untapped potential for solar thermal power generation in the whole Middle East. dena Solar Roofs Programme for Foreign Market Development

German technology is used across the globe and reliably supplies electri­ city in both on-grid and off-grid applications. Based on long-standing experience and their close cooperation with research institutes, German solar producers offer high-quality, advanced and long-life products.

In order to maintain and further expand the excellent The programme is part of a larger support structure for position of the German solar industry, the Deutsche foreign market development, namely the German Re- ­Energie-Agentur GmbH (dena) – the German Energy newable Energies Export Initiative. Agency – has launched the “dena Solar Roofs Pro- gramme for Foreign Market Development”, which is In 2002, the German Bundestag (the lower chamber of supported by the Federal Ministry of Economics and the German parliament) decided upon bringing the Ex- Technology (BMWi). Its goal is to support the first steps port Initiative Erneuerbare Energien (the German Re- companies take into a new market by installing solar newable Energies Export Initiative) into being. One of ­reference and demonstration facilities on the roofs of the initiative’s central tasks is to showcase German re- designated institutions with multiplier effects in differ- newable energy technology products and companies ent countries around the world. Furthermore the solar abroad. Many years of experience at the national and energy systems are to function as “lighthouse” projects international level as well as the innovative state-of-the- for public demonstration purposes, promoting the art technology they offer make “renewables Made in ­deployment of sustainable energy solutions. Germany” ideal for applications all over the world. “The plant for Talitha Kumi shows clearly what can be realized with solar solutions in the region. The dena Solar Roofs Programme is an ideal plat­ ­form to showcase and communicate the positive effects of the use of solar energy from an economical, environmental and social point of view.”

Stephan Kohler, Chief Executive, Deutsche Energie-Agentur GmbH (dena) – German Energy Agency

Deutsche Energie-Agentur GmbH (dena) – German Energy Agency. The Deutsche Energie-Agentur GmbH (dena) – the Ger- man Energy Agency – is the German competence centre for energy efficiency and renewable energies. Its mani- fold objectives include the rational and thus environ- mentally friendly production, conversion and use of energy, and the development of sustainable energy sys- tems with a greater emphasis on renewable energy sources.

To this end dena initiates, coordinates and implements innovative projects and campaigns at a national and ­international level. It provides information to end con- sumers, works with all social groups active in politics and the economy and develops strategies for the future supply of energy. Its shareholders are the Federal ­Republic of Germany, the KfW Bankengruppe (KfW banking group), Allianz SE, Deutsche Bank AG and DZ BANK AG.

The initiative brings together decision makers from the political arena, industry and public institutions and provides German renewable energy companies with expert knowledge. At the same time it assists in the trans- fer of knowledge and expertise abroad and presents “renewables Made in Germany” in other countries. Solar power potentials in the Middle East Future markets

Tom Koopmann, MAN Ferrostaal Senior Vice President of Solar Energy and chief strategist for the MENA region, describes the potentials of solar thermal power generation in the Middle East.

Ferrostaal has donated a solar plant for Talitha Kumi, a school in Palestine. What were the reasons for the decision? “We have been approached by former German Foreign Minister Frank-Walter Steinmeier with the idea and found a reliable partner in dena. The decision to donate a solar thermal plant was obvious as Ferrostaal has ex- pert competencies in realizing solar power projects. Of course, we usually build large-scale solar thermal power plants with an output of several hundred megawatts. The Talitha Kumi plant is a small and symbolic project in comparison. But it demonstrates very well the great potential of solar energy even when used for modest ap- plications. Most importantly, the school immediately benefits from the plant.”

Why did Ferrostaal decide to strategically develop its But renewable energies rely on subsidization. solar power business? “It is correct that most renewable energies are being “Fossil fuels are limited and the climate change is a fact. subsidized at the moment, whether directly or indirectly. That is why renewable energies are a trend-setting busi- In solar power generation, power purchase agreements ness model. Many have understood this, we are already and regulated feed-in-tariffs are the predominant acting accordingly. Solar power has special potential – means of support. In terms of competitiveness, we can because the energy resource is substantially greater see a quite natural development taking place in the con- than that of any other renewable resource, and we pos- centrating solar power (CSP) market. With an ever in- sess reliable, bankable technologies to use it. The annual creasing number of CSP projects worldwide and the solar radiation on less than half of one percent of the ­improvement of components, manufacturing costs MENA deserts suffices to generate enough energy to ­inevitably become lower and the technology econom­ supply the worldwide demand. Again, this is a fact.” ically more efficient in the process. This tendency will continue. Fossil feedstock prices, on the other hand, will very likely continue to increase.” Parabolic trough plant, a mature and bankable concertrating solar power technology

“Fossil fuels are limited and the climate change is a fact. That is why re- newable energies are a trend setting business model. Many have under- stood this, we are already acting accordingly.”

How best to describe the Ferrostaal solar business vance the development of an improved Fresnel collect­ ­ model? or, also a CSP technology. A demonstration plant, which “We have excellent technology partners and are there- we have built and operated for two years in Spain, has fore in a position to realize and lead large-scale power proven the technological feasibility. The first commer- plant projects as a general contractor. Our work may cial plant of this type will be constructed shortly. Besides ­begin with the proposal of a financing model, continue these two technologies, we have a partnership for mar- with project development and planning, proceed with keting a system for solar cooling. The system has been project management, engineering, procurement and designed for air-conditioning of larger buildings, for in- construction (EPC), concluding with the turn-key hand­ stance shopping malls, airports or hotels. All our tech- over to our customer. We offer our customers the full nologies are concentrating solar thermal technologies, scope of services in one package. In addition to our tech- which generate energy from direct sunlight. In contrast nology partners, we always work with local partners to to photovoltaic, we can store thermal energy to produce ensure a sustainable local added value. One should electricity even after sunset. There is, of course, always ­never underestimate the importance of bringing local the option to `just´ generate process steam for indus- partners into projects when one wants to establish one- trial purposes or use the power for seawater desalin­ self in emerging markets.” ation. Another advantage is the possibility to combine CSP technology with conventional power plants to build Which solar technologies does Ferrostaal market? a hybrid plant or to retro-fit existing capacities. CSP is “Together with our partners we build parabolic trough very versatile.” plants, for instance in Spain and the US. The technology has existed for some twenty years and has proven to be reliable in commercial operation. Meanwhile we ad- MAN Ferrostaal Solar Power Full scope of services in one package

Solar thermal plant Fresdemo, Plataforma Solar de Almería, Spain

Why is the MENA region an attractive location for solar Pursuing large-scale power plant projects in regions thermal energy generation? which some consider not to be fully stable, is this not The region is located in the sun belt of the earth. Aver- too great an entrepreneurial risk to take? age solar radiation levels reach 2,500 kWh – 2,800 kWh Frankly, no. The United Arab Emirates, Saudi Arabia, per square metre and year. These are ideal conditions Bahrain, Oman, Kuwait, Egypt, and many other coun- for concentrating solar power. The economies grow and tries offer very good conditions and have very well regu- with them the energy demand in almost all countries in lated energy markets. Only few countries are a bit more the region. In the short- and midterm, substantial infra- complicated. But this is where Ferrostaal can contribute structure projects in the energy sector will have to take its competencies and decades of experience in opening place there inevitably. And lest we forget, the required developing markets. investment capital is available in most countries. It is notable that in some places in the Middle East the cli- mate is such that up to 80 percent of all consumed ­energy is being used for air-conditioning. What better way than to use the sun itself for cooling. Also most MENA countries have not enough freshwater supplies to exceed the water poverty line. Coincidentally, a loca- tion with an ideal solar resource – such as the MENA ­region – is likely to have great demand for secondary CSP applications by nature. Ferrostaal: Best Partner for Solar Power At home in the sun belt

Decades of experience as a general contractor for the construction of industrial plants all around the world enable Ferrostaal to offer its customers the full scope of services for the development and realization of solar thermal power solutions. We combine project development with the competencies of an experienced plant constructor and the financial strength of a large industrial company.

In more than 60 countries around the world, Ferrostaal has a strong reputation of reliability, commitment to sustainability and trustworthiness. We know the regions suitable for the economically efficient gener­ ation of solar thermal power and large-scale solar power plants.

We have maintained foreign offices in all major solar markets for many years and use the close proximity, our experience, our international infrastructure and connections to guarantee the success of our projects – in time, on budget and with professional risk management. www.manferrostaal.com www.solardach-palaestina.de www.dena.de

MAN Ferrostaal AG Hohenzollernstr. 24 45128 Essen / Germany Phone +49. 201. 8 18-01 Fax +49. 201. 8 18-28 22