Young Energy Professional Forum

Young Energy Professionals Forum

Thursday 8 May 2014

EY are proud to support the Young Energy Professionals Forum Dr Luke Warren, CEO, Carbon Capture & Storage Association

EY are proud to support the Young Energy Professionals Forum Future Energy Solutions: What’s Next?

Luke Warren, CCSA Young Energy Professionals 8th May 2014 CCSA Members

Members across the full CCS chain (capture, transport, storage) as well as service sector and academic community

2Co Energy Clean Energy Systems Linklaters Scottish Carbon Capture & Allen & Overy CO2 DeepStore Lloyd’s Register Storage Alstom Power CO2Tech Centre Mongstad Maersk Oil & Gas Scottish Enterprise AMEC Costain Masdar Senergy BG Group Doosan Power MMI Engineering SGS United Kingdom BOC Drax Power National Grid Shell BP EDF Energy National Physical Laboratory Siemens Calix EON Nottingham Centre for CCS Statoil Capture Power Ltd ESB Poyry Energy Consulting Tees Valley Unlimited Carbon Clean Solutions Gassnova Progressive Energy UK CCS Research Centre CCS TLM GDF Suez Rhead Group Vattenfall Centrica Herbert Smith Freehills Sasol Zurich Chevron Howden Group Schlumberger

www.ccsassociation.org [email protected] Role of CCS technologies

CCS contribution to reducing emissions

• Fossil fuel use in the power sector can

be compatible with CO2 reduction goals

• Industrial sectors, only technology to reduce process emission

• CCS & sustainable biomass opens the opportunity for “negative emissions”.

CCS: Globally vital technology

IPCC Fifth Assessment Report

• Meeting climate goals significantly more expensive without CCS (+138%)

• Achieving the 2⁰C target may be impossible without CCS

• Given current emissions CCS with sustainable biomass (“BECCS”) may be essential

Important opportunity for UK

• CCS as part of the energy mix electricity costs 15% lower by 2030 (Households save £82)

• Creates and retains jobs • 15,000-30,000 jobs created by 2030 (10 to 20 GW CCS) • Retention of energy intensive & fossil fuel industries

• World class storage resource 80

bn tCO2 (>100 years storage)

www.ccsassociation.org [email protected]

UK CCS Commercialisation programme

CCS Commercialisation programme launched April 2012 • Outcome: “As a result of the intervention, private sector electricity companies can take investment decisions to build CCS equipped fossil fuel power stations, in the early 2020s, without Government capital subsidy, at an agreed CfD strike price that is competitive with the strike prices for other low carbon generation technologies”

CCS Competition • Support; £1 billion capital and Electricity Market Reform (EMR) revenues • Two preferred projects selected & undergoing FEED studies

Second phase of projects (potentially developed alongside competition) • Primary support from EMR – world’s first mechanism to deploy CCS • At least three commercial scale CCS projects under development

www.ccsassociation.org [email protected] CCS Commercialisation Competition

White Rose • Drax, North Yorkshire, England • 304MW oxy-fuel project • Alstom, Drax, BOC, National Grid • FEED contract signed 20 Dec 2013 and commenced 13 Jan 2014 • FID in 2015/2016 • Design work on a larger capacity

24” CO2 pipeline enabling shared infrastructure and facilitation of further CCS projects http://www.whiteroseccs.co.uk/

www.ccsassociation.org [email protected] CCS Commercialisation Competition

Peterhead

• Peterhead, Scotland • 340MW Post-combustion capture plant retrofitted to existing CCGT • Shell and SSE • Storage offshore in depleted gas field – Goldeneye • FEED signed 20 Mar 2014

• 10 mt CO2 stored over 10 years

http://www.shell.co.uk/gbr/environment-society/environment-tpkg/peterhead-ccs-project.html www.ccsassociation.org [email protected] UK CCS Policy – Cost Reduction Task Force

“UK gas and coal power stations equipped with CCS have clear potential to be cost competitive with other forms of low-carbon power generation, delivering electricity at a levelised cost approaching £100/MWh by the early 2020s, and at a cost significantly below £100/MWh soon thereafter”

www.ccsassociation.org [email protected] Priorities going forward

• Develop two competition projects – Prove the CCS commercial model – Initiate infrastructure development

• Commence 2nd phase CCS projects – begin commercial deployment

• EMR must drive investment in CCS – CfDs have to be investable for CCS projects – Access to Levy Control Framework

• Industrial CCS: Currently no policy framework to support investment

www.ccsassociation.org [email protected]

Dr David Powell, VP European Nuclear Power plant sales GE- Hitachi

EY are proud to support the Young Energy Professionals Forum Solving some of the UK’s nuclear legacy issues using PRISM

David Powell Energy UK – Young Professionals Forum Vice President Europe region London Nuclear Power Plant Sales 8th May 2014

Wilmington, NC Tokyo, Japan Wilmington, NC Wilmington, NC Peterborough, ON USA USA Yokosuka, Japan Canada

•Nuclear Power Plants, ABWR, •Uranium •Nuclear Fuel Fabrication ESBWR, and PRISM Enrichment ….BWR and CANDU •Nuclear Services … Third •CANDU Services •Advanced Programs … Generation •Fuel Engineering and Support Recycling, Isotopes Technology Services

GE in Europe • Operating here for over 100 years • 90,000+ employees • Annual revenues of €22.5B in 2011 (~20% of GE’s global revenue)

General Electric Hitachi • Operating in >100 countries • 100+ year history • 125+ year legacy • >360,000 employees worldwide • >300,000 employees worldwide • 2011 global revenue ~ €94 B • 2011 global revenue €110B

Hitachi in Europe • Operating here since 1982 • ~10,000 consolidated employees • Annual revenues of ~€7.4B (~8% of Hitachi’s global revenue) Combined • over 225 company years of history • More than 660,000 employees globally and 100,000 in Europe • Over €200B in revenue globally and ~ €30B in Europe

Over 18,000 GE employees with 25 manufacturing sites in the UK

Over 3,000 Hitachi employees in over 20 locations in the UK

Operational Gen III Evolutionary Gen III+ Revolutionary technology technology technology with a rich, 40-year heritage

Lowest core damage • Lowest core damage • Passive air-cooling with no frequency of any Gen III • operator or mechanical actions reactor frequency of any Gen III or III+ reactor needed Extensive operational The answer to the used fuel • Passive cooling for >7 • experience • dilemma - can reduce nuclear days without AC power or Licensed in multiple waste to ~300-year • operator action countries radiotoxicity while providing • Lowest projected operations, maintenance, new electricity generation and staffing costs

• NDA initiated steps to develop the policy for the long term management of plutonium. • DECC consultation ran from February to May 2011. • The cost of options considered were:  Long term storage £ 8billion  Immobilisation £ 5-7billion  Re-use as MOX £ 3-4billion*

All figures are undiscounted from DECC consultation, February 2011. * After taking account of around £2billion potential MOX sales from plant costing £5-6billion Copyright 2013 GE Hitachi Nuclear Energy - All rights reserved DECC statements December 2011

“The reuse option is the only option available that can make use of the significant energy potential contained within the UK’s accumulated plutonium.”

“This preliminary view will be conditional in that it will have to be tested to show that it is affordable, deliverable and offers value for money, taking into account safety and security requirements, before the UK Government will be in any position to take a final view.”

“The government remains open to any alternative proposals for plutonium management that offer better value to the taxpayer.”

• On 20th January 2014, the Nuclear Decommissioning Authority announced that PRISM is a “credible option” for managing the UK’s plutonium stockpile following 2 year review process.

• Number of benefits of PRISM noted including “simplified fuel manufacturing process and reactor construction, and the ability to utilise the full inventory of plutonium which should consequently reduce the overall costs”.

• Further work to be undertaken on technical and commercial aspects.

www.gehitachiprism.com

Copyright 2013 GE Hitachi Nuclear Energy - All rights reserved 10 PRISM solution PRISM solution for UK plutonium • Re-use of 140* tons of plutonium that meets the disposition goal: Safe, proliferation resistant and value for money. • GEH has proposed PRISM with integral fuel

fabrication and storage as an economic and Sellafield flexible plutonium disposition solution. • Designed to include the following benefits: • Capable of accepting nearly all stored plutonium oxide for fuel • High tolerance for impurities e.g. americium, chlorine, iron • High incorporation rates of plutonium in fuel • Acceleration of plutonium disposition rate • Relatively low amount of spent fuel for ultimate disposal • Capable of being expanded for advanced fuel recycling

*Note: Estimate includes plutonium owned by Japan entities, but which is located at Sellafield

Copyright 2013 GE Hitachi Nuclear Energy - All rights reserved 13 PRISM Power Reactor Inherently Safe Module • Power block consists of 2 reactors (840 MWt each) that power 1 turbine-generator (622 MWe). • Liquid sodium is the reactor coolant and superheated steam drives turbine. • Passive air-cooling capability with no operator or mechanical actions needed . • Simplified design prevents loss of coolant accident. • Based on over 30 years of safe operation of EBR-II reactor in the US. Copyright 2013 GE Hitachi Nuclear Energy Americas LLC All rights reserved PRISM passive decay heat cooling

Air Inlet (8) 37.00 ft RVACS 32.75 ft Flow Air Outlet Paths 31.58 ft 30.08 ft Stack 29.50 ft Grade Vessel Liner (1 in) Containment Reactor Vessel (2 in) Inlet Containment Plenum Vessel (in) Concrete Inlet Plenum Collector Overflow Cylinder (1n) Thermal Path Insulation (2 in) Collector Cylinder Normal CORE Flow Path Containment Vessel Flow Annuli & Silo Reactor Vessel Cross Section 37 ' 0 " Reactor Silo Silo Cavity ELEVATION Sustain a loss of all power indefinitely without fuel damage

Copyright 2013 GE Hitachi Nuclear Energy Americas LLC All rights reserved An opportunity for West Cumbria Embracing PRISM provides…. • Fast, economic and flexible Pu re-use generating low carbon electricity – an integrated solution.

• A local Sellafield solution minimising Sellafield transport and building on significant heritage and expertise. • Sustainable UK job creation and a global centre of excellence. • A pathway to re-engaging in an advanced next generation technology and future direction for nuclear in the UK.

140t Pu over 60 years or 140t Pu faster*

*as fast as policy requirements dictate

Increase burn-up of 140t Pu over 60 years

1) Plutonium management over 60 years or faster depending on policy objectives. 2) Increase low carbon generation by adding PRISM power blocks. 3) Add recycling capability to fully utilise plutonium - potential to generate 25% of UK’s electricity needs for the next 100 years. Future Sustainability Extending PRISM… recycling used LWR fuel closes the nuclear fuel cycle with two technologies . . .

NFRC - Electrometallurgical

Benefits include: •Waste half-life ... 300-500 years •Uranium energy … extracts 90% •Non-proliferation … no plutonium separation •Environmentally responsible … dry process

Advanced Recycle Reactor - PRISM

Copyright 2013 GE Hitachi Nuclear Energy – All Rights Reserved Transuranic disposal issues The 1% transuranic (TRU) content of nuclear fuel is responsible for 99.9% of the disposal time requirement and policy issues

Year Removal of uranium, plutonium, and transuranics makes a 300,000 year problem a 300 year problem Copyright 2013 GE Hitachi Nuclear Energy Americas LLC All rights reserved Advanced recycling of used nuclear fuel

Stephen Tindale, former Executive Director of Greenpeace: “The PRISM reactor offered by GE-Hitachi (is) a fourth-generation fast reactor design which can generate zero-carbon power by consuming our plutonium and spent fuel stockpiles, thereby tackling both the nuclear waste and climate problems simultaneously; it is currently under consideration by the Nuclear Decommissioning Authority as a promising alternative to Areva’s MOX fuel for plutonium management.” 15 March 2012, “A Letter to David Cameron” (co-signed by George Monbiot, Fred Pearce, Michael Hanlon and Mark Lynas)

George Monbiot, environmentalist and writer: “The technology with the potential to solve these problems (of climate change, future energy shortfalls and cleaning up nuclear waste) is the fast reactor, ideally the integral fast reactor (IFR) … IFRs, once loaded with nuclear waste, can, in principle, keep recycling it until only a small fraction remains, producing energy as they do so.” 2 February 2012, “We cannot wish Britain's nuclear waste away”, The Guardian (blog)

Mark Lynas, environmentalist and writer: “The most compelling reason to look seriously at the PRISM is that it can burn all the long-lived actinides in spent nuclear fuel, leaving only fission products with a roughly 300-year radioactive lifetime. This puts a very different spin on the eventual need for a geological repository.” 1 March 2012, “UK moves a step closer to nuclear waste solution”

The reuse of the UK’s plutonium stockpile sets a long-term nuclear direction…

PRISM provides the UK: • the ability to fulfill its long-term management of plutonium with a solution that provides value. • an option to close the fuel cycle. • a world technical leadership position and a new future for West Cumbria

“The last generation to talk about solving the back end, or the first to do it?”

EY are proud to support the Young Energy Professionals Forum Photovoltaic technology: ideas about integration

Young Energy Professionals Forum 8th May 2014

Dr Paul Westacott

Photograph by Jason Hawkes Why solar PV?

• One of the only energy technologies that has consistently out-performed forecasts: Estimates of cost reduction1  lead to greater levels of deployment • Already at grid parity in a number of countries and is forecast to reach grid parity in the UK by early 2020s • Fuel-less technology, can benefit energy security • An almost unique opportunity to turn a consumer into a “pro-sumer” • Consistently scores very highly in public opinion surveys

Challenges?

• Variable electricity generation • Integration into the electricity network at high levels of penetration • Improved aesthetics?

[1] Presenting the future: an assessment of future costs estimation methodologies in the electricity generation sector. UKERC, 2013 What makes up a “PV system”?

1) PV modules 2) DCAC inverter

Self- Alternating consumption current (AC)

Direct current (DC) Export to grid

3) Other “Balance of system”

Wiring Mounting Generation meter What makes up a “PV system”?

1) PV modules 2) DCAC inverter

Self- Alternating consumption current (AC)

Direct current (DC) Export to grid

3) “Balance of system” 4) Enabling technologies To allow better integration of Wiring Mounting Generation meter PV

PV modules – state of the art?

Mono- and poly-crystalline silicon: • Cells up to 25% power conversion efficiency • Long lifetime • Established manufacture and supply chains • Turnkey production lines • Comprise around 85% of global supply

Thin-film: (Cadmium telluride, copper indium selenide) • Record cell efficiency: 20.4% • Lower manufacture cost ($/Wp) compared to silicon • Comprise essentially all remaining market (~15%) • Typically shorter lifetime • Can be flexible PV modules – the third generation

Multiple emerging technologies with novel properties:

• Processable via roll-to-roll coating (c.f. newspaper printing) • Semi-transparent • Lightweight • Flexible

Perovskite • Record cell efficiency: 19.3% (May 2014) • Currently a very hot-topic in research • Most efficient materials contain water soluble lead

Organic • Record cell efficiency: 12% • Based on carbon- highly abundant element • Very short energy payback time • Lifetime challenges

Dye-sensitized, quantum dot, hybrid… • Lots of nascent technologies under research Building Integration – a new frontier for PV

• Substituting conventional building materials can have an economic benefit, as little additional labour/material costs

• No longer limited by roof space  cities

• Can take steps towards this using existing technologies

• Many emerging PV technologies have desirable properties: • Semi-transparent • Tuneable colours • Applied as thin coatings

• New technologies diversify applications of PV: • Transparent building façades • Window shades What enabling technologies can help to integrate PV into the electricity system?

As we continue to add PV to the electricity network, there may be challenges and opportunities relating to how the network behaves and how it can be managed.

There are a large range of technologies that can facilitate this:

• Consumer-side – e.g. demand-side management • Distribution-network – storage, network reinforcement • Interactive – export of PV controlled by DNO (c.f. Germany)

Here we’ll focus on this from an end-user perspective Pro-sumer Home Area Networks – promoting self-consumption

Smart meter roll-out (2020) • Demand-side management • Flexibility to operate locally or as part of wider smart-grid

Active management

Electrical storage Electricity Energy • Li-batteries/EV spillover? generation storage • Number of countries Solar PV incentivising storage

OVO energy proposed Amazon-style market place? Summary

In my opinion the two most interesting technology streams related to PV are:

In the shorter term: The enabling technologies that facilitate better management of generated energy to maximise self-consumption. The development of battery technologies, may play an important role within this – and opens up the potential for more integrated consumer systems.

In the longer term: Materials development for novel PV with a new range of properties. These properties may provide useful for accessing new markets for PV, much of which could be centred around building integration.

Thank you for your attention

Dr Paul Westacott e: [email protected] t: @paulwestacott

Photograph by Jason Hawkes Hugh Yendole, Programme Manager for UK project Development DONG Energy

EY are proud to support the Young Energy Professionals Forum Can we afford Offshore Wind?

Hugh Yendole, Programme Manager East Irish Sea May 2014 Release 1.0

DONG Energy is one of the leading energy groups in Northern Europe

Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe.

DONG Energy has 6,500 employees and is headquartered in Denmark.

2013 EBITDA 15 004 DKK million Revenue 73 105 DKK million

CO2 g/kWh generated 445

Exploration & Production

Wind Power

Thermal Power

Customers & Markets

28 DONG Energy – four business units

DONG Energy EBITDA 2013 (post HCT) £bn

WIND POWER EXPLORATION & PRODUCTION THERMAL POWER CUSTOMERS & MARKETS

. Development, construction and . Oil and gas exploration and . Electricity and heat generation . Midstream and downstream operation of offshore wind production from power stations gas and power supplier farms . Production of 100 000 . #1 in Denmark with 48% of . Leading gas, power and . Global leader in offshore wind kboe/day available thermal generation energy solutions business in with 1.7 GW installed capacity capacity Denmark . Geographic focus in North by end of 2012 Western Europe . Replacing coal and gas with . Centralised unit for commodity . Largest pipeline among all biomass in Danish plants exposure management . Balanced mix of production, players development and exploration . Emerging new biomass technologies 0.7 0.4 1 0.2 0.1 This is what we do

London Array Offshore Wind farm

630MW

2 years EUR 2.2 bn

30 Reduce CO2 emissions

CO2 reduction target

gCO2/kWh Previous target Achieved Target 650

600

550

500

450 443 400

350 320

300 260 250 2006 2008 2010 2012 2014 2016 2018 2020 UK Energy flows 2012 million tonnes of oil equivalent

32 Source: DECC UK power capacity retirements and demand growth towards 2030

Power capacity retirements Power demand GW Storage Renewables Oil Gas TWh Interconnectors Nuclear Coal +13% 354 101 22 314 -22% 33 -55%

201 Retirement Retirement 203 201 203 3 s s 0 3 0 2013-2020 2021-2030

SOURCE: DECC Updated Energy & Emissions Projections (Sept. 2013). Reference case. 33 Why the need for Renewables (UK Perspective)?

The UK needs to reach 30% electricity UK generation mix (2013) UK renewables mix (2013) from renewable sources by 2020 to meet its EU renewable target

100%

Hydro Nuclear Gas Bioenergy 9% 30% 19% 35% Renewables Non- 15 32% renewables Oil1% Onshore % 1% Wind 1% 0% 40% Wave/TidalSolar 30% Net imports 21% Coal Renewables Offshore Offshore wind wind

2012 2020

Renewable generation in 2012 Offshore wind provides 21% of the DECC's Renewable Roadmap shows represented 15% of electricity UK's renewable electricity offshore wind could contribute 18 GW by production (52TWh) production (11TWh) 2020, subject to cost, from 3GW today

34 Source: DUKES 2013 Wind power – healthy growth

2013 additions DONG Energy is leading the offshore market

1932MW Total capacity in operation and under construction (end 2013)

1088MW 1000MW 875MW 702MW

375MW 161MW

36 Offshore wind cost comparison with conventional energy technologies

Technology cost comparison £/MWh, 2012 & 2023 Commissioning

2012 2023

140 93 100+ 85 75

Offshor Cost Offshor Nuclear CCGT Coal 4 e reductio e 3 CCS4 wind n wind today 1 target 2 1 2012 off-take price Walney II (UK) 2 UK market – 2020 FID, including transmission costs with commissioning in 2023 3 Hinkley Point announced strike price for 35 years 4 DONG Energy modelling based on DEA technology assumptions and World Energy Outlook 2013 fuel prices (Current policies scenario), UK carbon price floor and CCGT load factor of 90% NOTE: EUR/GBP exchange rate of 1.18 (Jan. – Oct. 2013 average) SOURCE: Danish Energy Agency, IEA, DONG Energy, DECC 37 Clear targets defined to reach 100 €/MWh by 2020

Cost of Electricity roadmap towards 2020, €/MWh

Release 1.0 - for external usage 38 19-05-2014 Industrial experience shows that all relevant levers can be addressed through standardisation and modularisation

Examples: Industrial track records

20-30% improvement in value through Oil & Gas Combined Cycle Gas Power Plant • 10-15% in direct cost savings on platform (e.g., procurement, engineering) • 5-10% in overrun reduction on projects • 5-10% via early delivery due to reduction in cycle time

. Standardised, repeatable plant concept introduced in 1990's . Cost of electricity reduced by 25-35% • 1990 - start of the standardization • Platform concept developed - 75% . Throughput for commissioning of plant commonality between models on Automotive reduced to 28 months from 40 months same platform • Average 5% cost reduction every year

Release 1.0 - for external usage 39 19-05-2014 Simplified offshore wind farm set-up

40 Offshore substations (AC), 2003 - 2012

2003 2007 2008

Rodsand DK Horns Rev DK Barrow GB Princes Amalia (Q7) NL Lillgrund SW Robin Rigg 1 & 2

Alpha Ventus DE Horns Rev 2 DK Gunfleet GB Rodsand 2 DK Gabbard GB Thanet GB

Bard DE Walney 1 GB Galloper GB Belwind 1 BE Ormonde GB Sheringham GB

2011 2012

Baltic 1 DE London Array 1 & 2 GB Lincs GB Walney 2 GB Anholt DK GYM 1 & 2 GB Thorntonbank

Acknowledgement to Matthew Knight, Siemens Standardisation of offshore substations

Standardised modules Applied over several projects Main benefits 1. Majority of design Example: Project Installation # work performed only Offshore substation once standardised at topsides 330 MW Burbo B Ext. 2016 2. Systematic design for cost approach

Race Bank 2016 3. Convoy procurement (scale, competition)

Walney Ext. 2018 4. Earlier certification, reduced throughput time.

Release 1.0 - for external usage 42 19-05-2014 DONG Energy in the East Irish Sea

Barrow 90 MW Burbo Bank 90 MW Walney 1 184 MW Walney 2 184 MW Total 547 MW

West of Duddon Sands 389 MW Burbo Extension 258 MW Walney Extension 750 MW First Flight Wind 600 MW Celtic Array 4200 MW Total 6197 MW 43 West of Duddon Sands builds on Walney experience

London Eye WestWalney of 1 Duddon Sands

120m Wind Turbines – Siemens 3.6-120 with blade improvements Gunfleet Sands Demo 2x Siemens 6MW

12/9/13 46 Westermost Rough (2014)

47 London Array

Anholt, August 2013

48 FinalOffshore pep slide Wind: a sunrise industry Can we afford it?

Price competitive Security of supply Indigenous resource UK jobs/export No CO2

49 Panel Q&A

EY are proud to support the Young Energy Professionals Forum