The Arabian Desert Solar Energy Consortium Proposal

Feasibility Study Part 1 1 GW/h Power Plant

DesertEnergyProjectAugust2011

2 Contents Emerging solar energy market Primary goal of the Consortium Political and Social Benefactions Location Cost of the Project Detailed Costs Shareholders Duration of the Project Technical Outfit Solar Thermal Power Plants and ISCC Hydrogen Production to Store Electricity The Transport Cable Funding and Cooperation of the European Governments Summary Conclusion of Part 1 Annex 1: From Electricity to Hydrogen 2 3 3 4 5 5 6 6 7 7 8 8 9 9 10 11

Emerging solar energy market

The awareness of climate change created an emerging energy market. The European Union plans to use 20 per cent of its total energy from renewable sources, and 10 per cent of fuel for transportation will be covered by bio fuel. Solar energy may thus become highly appreciated by industrial countries avoiding Carbon Trade payment. With the production of electricity the Arabian Countries open a new energy market segment. This may secure their dominance in the future energy economy. Solar energy does not compete with oil economy because electricity in western countries is mainly won from nuclear power or from brown coal, or wind turbines which are generating about 18 per cent of electricity of the grid in Denmark and are planed to be increased up to 50 per cent. Solar energy is the greatest wealth of the Islamic world which has not been exploited yet and is an emerging energy export article. The Arabian deserts have both important qualities needed for the project: 1 - Sufficient area which does not compete with agriculture or other uses. 2 - High solar incidence during all seasons.

Primary goal of the Consortium

Develop the solar energy of the Arabian deserts. The Consortium wants to secure the renewable energy market for the Arabian Countries adding electrical energy to their energy portfolio. Europe is extremely dependent on electricity. Importing solar energy from the deserts will improve climate conditions and is a secure economy for centuries to come. Electricity in Europe is mainly produced by nuclear power plants and burning brown coal. Both are seen as extremely unfriendly to nature. Solar electricity is being supported by the European governments but will never produce the bulk amounts demanded by the growing European market. Solar incidence is to low and there is not sufficient area available. The Arabian countries may open a new business exporting green electricity and hydrogen to the European Union. Starting the hydrogen economy Arabian countries will secure leadership in a new emerging technology ahead of other energy global players.

Political and social benefactions

Profitable business is the best way to bring political harmony between nations. The possible shareholder Kingdom of Saudi Arabia, the State of Kuwait, the Emirate of Abu Dhabi, the Republic of Syria, the State of Egypt will be tighter united by economic relations operating and profiting from the project. Poor countries are struggling to survive in urgent need of food and energy to prepare their meals, to pump water for people, cattle as well as irrigation. This situation destabilizes large regions of Africa and Asia. Making energy available at no charge at regions of extreme poverty will help to reduce human distress.

4 TheSaharacoveranenormouspartofNorthAfrica.Togetherwithextensivedesert areasoftheMiddleEastitisthepartoftheworldwithoptimalconditionsforthe installationofphotovoltaicarraysandsolarthermalparabolictroughpowerplants. TherearetwolocationsseenasfavourabletostarttheProject. Algeria TheAlgerianDesertneartheTindufregioncouldbepromisingwhileaccountingawidearea whichiseligibleforaverylargescalephotovoltaicpowerplantsystem. TheproximitytoEuropeandacommercialconnectionsresultingfromtheAlgeriangaspipeline haveinitiatedafeasibilitystudyforaphotovoltaicprojectbytheEuropeanUnion. Itisnotimpossible,butitwillturnouttobeextremeexpensivetobuiltaconductingcable throughtheMediterraneanSea. PoliticalinstabilityoftheRegionandrecentterroracts,togetherwithagrowingfriendshipof FrancewithLibyabringsadisharmonyintheEuropeanabilitytoactonenergymatters. TheArabianPeninsulastart TheArabianPeninsulapresentsthebestconditionstostartaverylargephotovoltaicproject. TheStartinSaudiArabiabearstheadvantagetohavethePV/heatconvectionpowerplantsnear thedevelopment/controlcentre.Thisisveryhelpfulintheinitialphaseoftheprojecttorespond rapidlyduringthedevelopmentphase.

Location

Anotheradvantageisthatthesuperconducting gridconnectedtotheEuropeanGridhasto bridgeoveronlyshortdistancesofwater.Using theBosphorusBridgenodeepwatercableis necessary. Sunshineis2hoursaheadofthemainpartof theEU.Thepeakelectricitydemandatthe earlypartofthedaymaythusbeensured. Source:Wikipediamap TheConsortiumcanproduceenergybeginningrightfromthestart.sellingforthehomemarket andexportingelectricitytocountriesonthewaytotheEuropeanGrid. Conclusion: The present feasibility study strongly supports the start of the Project in the northern region of Saudi Arabia and Kuwait. The government of the implicated countries must determine the precise location ant the transit way of the grid.

Costs of the Project

Initial plan to built a plant of 1 Gigawatt Photovoltaic array in 4 construction phases: Construction Phase1 Phase2 Phase3 Phase4 Total Capacity 100MW 300MW 300MW 300MW 1GW Modules 570000 1.710000 1.710000 1.710000 5.700000 Areakm 2,6 7,8 7,8 7,8 26 Completion 2012 2013 2013 2014 2014 CostMEuros 895 910 910 910 3,63

It is recommended to install the mentioned four groups of arrays in the north of Saudi Arabia/Kuwait covering a total area of 26 km, for a best location.

Detailed Costs
First Phase: 100 MW PV modules 190,000,000 EUR Planing, supervision, geologic tests 2,400,000 EUR Construction and supplements 80,000,000 EUR [1] Buildings 2,500,000 EUR Inverters 40,000,000 EUR Electrolysers 30,000,000 EUR Transmission and cable to Europe 550,000,000 EUR 894,900,000 EUR Phase 2, 3 and 4: 300 MW each PV modules 1 710,000,000 EUR Construction and supplements 720,000,000 EUR Buildings 21,000,000 EUR Inverters 9,000,000 EUR Electrolysers 270,100,000 EUR 2,730,100,000 EUR Total Cost of 1 GigaWatt Plant Pay off Pay off in the Sunbelt Operating life guarantee of The actual price of 1 kW/h in Europe is The first 30 Terra Watt will cost The net export price to Europe will then be Totalproductionin25years75TerraWatt/h 75TW0,19Euro14.25BillionEuro TotalCostPhase1to43.7BillionEuro Nettgain10.55BillionEuro
[1] Material for 30 tilt mounting (such as Solar Mounting System from Schletter PvMax2-S http://www.dahlmann-solar.de/befestigungssysteme.php?ln=en ) http://www.dahlmann-solar.de/datenblatt-en/SchletterBrochure2006systems.pdf [2]1Year=300dayswith10hoursofsunshine

3,625,000,000 EUR 10 years 25 years +5 % 0.19 EUR/kWh 0.19 EUR/kWh 0.07 EUR/kWh
[2]

FixedMounting:6 Fastmounting,lowprice,avoidsdamagestotheterrain,simplerenaturationwithoutanydisposalcostsarethe mainadvantagesofthecombinationofthesystemPvMax2withspecialscrewfoundations.Thescrewfoundations areplacesonsitewithappropriatemountingdevicesandreplacetheconventionalconcretefoundations.

Phase 1: With 10 hours sun irradiation an export volumina of 7.5 Terra Watt/h will be achieved in 25 years. Phase 2 to 4: With 10 hours sun irradiation an export volume of 67.5 Terra Watt/h. Together with phase 1 it amounts of Million Euro as revenues from export and 3 024 Million Euros subsidies from European states. After 7 years no subsidies will be needed any more. [1] The initial investment will therefore be pay back in 7 years.
[1] A Subvention of 0.12 Euro/kW/h for 30 TerraWatt/h to stimulate renewable energy in Europe is conceivably, and will turn solar electricity and hydrogen pricing very attractive at and consumer price of 0,07 Euro kW/h and resulting in a price of 0.19 Euro to pay to the Arabian Consortium at EU border.

Additional1GW/hPlants
Investmentinadditional1GW/hplants3,075BillionEuro Will produce electricity and hydrogen in 25 years 14,755 Billion Euro These figures considered the worst-case scenario. Increasing demand of energy will let future prices of electricity soar up and consequently the revenues of the Arabian Desert Solar Energy Consortium.

Shareholders
The following Shareholders and their shares are being suggested as follow: The Kingdom of Saudi Arabia 45% The State of Kuwait 20% The Emirate of Abu Dhabi 15% The Republic of Syria 10% The State of Egypt 5% Other States 5% A small participation of European countries would easy political and economic export agreements with European countries which fear to get dependent of Middle East energy supply.

Duration of the Project

Planing, contract phase Duration 6 month Completion June 2012 Construction solar plants and grid Duration 2 years Completion 2014 Note that in this period electrical energy will be available at the regions already covered by the growing grid in its way through Jordan,Syria and Turkey, resulting in revenues.

Technical outfit
PV arrays , static system: The present feasibility study recommends single-crystalline silicon (mono-crystalline)modules, and the static PV array system for an initial construction. Static system reduces installation costs, avoids system failures and further maintenance service costs. The modules should face south with an inclination of 20. One-axis tracking system: A one-axis East-West sun-tracking would increase energy output of the PV array around 26%. Initial cost, however, would increase by 10 % ( total 150 Mio Euro). Maintenance of moving parts will account for a continuous budgeting of 10 men power. Initial construction should therefore refrain from using tracking systems. Kurokawa writes that a tracking system turns the whole installation extreme vulnerable to failures. He strongly recommends a static system. [1]
[1] Kurokawa, Kosuke: Energy from the Desert . Feasibility of Very Large Scale Photovoltaic Powert Generation (VLSPV) Systems. James & James 2003.

Solar thermal power plant: Parabolic trough power plant concentrate the sunlight onto an absorber tube that runs along a caustic line. The solar radiation concentrated in the absorber tubes heats water via a heat exchanger to temperatures of around 400 C. The resulting water vapour drives a generator, as with conventional steam or gas turbine power plants. Parabolic trough power plants, as the currently least expensive variant of solar electricity generation. This system needs a vapour driven generator, similar to conventional power plants. Abrasion of sand storm can easily damage the reflector surface, which need a special protection of all reflectors. High technical maintenance and operation of the system are required. Solar thermal power plants should be included in the system only after consolidation of the first phase of the PV system. It may then be considered to storage solar thermal energy in melted salts for night operation. The solar thermal power parabolic trough and also the ISCC technology must be equipped with a steam driven turbine to generate electricity. The system requires continuous maintenance, it handles high temperatures which may lead to accidents. Construction cannot be handled in a modular way. It starts to work after all the installation is complete. The installations and pipelines are vulnerable to external influences like aircraft accidents, terrorist attacks. The photovoltaic arrays produce direct current which may be exported and used for electrolysis of water without any change. The system produces revenues right from the start. It may be modified , enlarged or reduced according to the amount of energy demanded by the market. The production of hydrogen may be performed at any place which is connected to the grid. In case of external damage, remaining arrays may be immediately reconnected with cables and the function of the system restart. These security features will be highly appreciated by investors.

Comparing the specific investment of power plants [1]

Photovoltaic Nuclearpower Windpower CSP Oil Hydropower Coal Naturalgas BillionEuro/kW 3.66 2.66 2.00 2.00 2.00 1.20 7.73 0.33 Remarks Noprimaryenergyneeded Highprimaryenergycost Noprimaryenergyneeded Naturalgasoroilasfuel Oilasprimaryenergy Noprimaryenergyneeded Coalasprimaryenergy Naturalgasasprimaryenergy

Photovoltaichasthehighestinvestmentcost,however,itmaybeeasilyinstallated.TheSizeofthe plantmaybechangedaccordingtothedemandsofthemarket.Thesystemdoesnotneedspecial operatorstolookafter.Nooperatorisnecessary.ItdeliversDCcurrent,directlyusedinelectrolyser togeneratehydrogenasfuelforcarsandstabilisesthegrid.

[1]GermanAerospaceCenterDLR:Study:TransMediterraneanInterconnectionforConcentratingSolarPower (TRANSCSP),2006. http://www.dlr.de/Portaldata/1/Resources/portal_news/newsarchiv2008_1/algerien_trans_csp.pdf

Hydrogen production to store energy

It is recommended to plan early installation of an hydrogen facility to store energy during daytime. this may then be reconverted into electricity at night. Hydrogen production and storage has no limits. and presents advantage in comparison with solar thermal storage which are limited to the capacity of the salt storage containers. The hydrogen may be used to generate electricity at night. The surplus of hydrogen is a precious fuel for transportation on land and at sea for German submarine, or as fuel for space shuttles. An early installation of hydrogen facility is strongly recommended to secure the emerging electricity and clean fuel market.

The transport cable

Overhead line using High-Voltage Direct Current light technology ( HVDC light ) for a grid of 2.500 km. DC/AC converter can extract small amounts of energy from this grid. Supplying electricity to local population is thus possible. Underground cable transmission can be used in environmental sensible areas instead of overhead lines.

Funding and cooperations of European Government International Feed-in Cooperation [1]

The International Feed-in Cooperation was initiated by the governments of Spain and Germany at the International Conference for Renewable Energies in Bonn in June 2004 (renewables2004) in order to promote the exchange of experiences so as to improve the feed-in system design in each country. Thereafter, a joint declaration between both governments was signed on October 6, 2005 in Madrid. Slovenia joined the cooperation on January 29, 2007. Since feed-in systems have proven to be the most effective and efficient option to promote renewable energies, the International Feedin Cooperation aims at demonstrating the advantages of a feed-in system. In this context, the member countries intend to stimulate the enhancement of feed-in tariffs worldwide by including other countries into their information exchange process. For instance, existing knowledge and experiences gained in the three countries can serve as valuable information for other countries planning the introduction or further development of feed-in tariffs.

The German Electricity Fedd-in Act [2]

Under the new electricity Feed-in Act (EEG), feed-in prices are no longer linked to electricity retail prices, but fixed for 20 years. The German governmentr subsidies photoivoltaic electricity with 32 and 47 cents/1kW depending on the type of installation. [3]
[1] Documents on Feed-in Cooperation http://www.erneuerbare-energien.de/inhalt/36356/ [2] The Electricity Fedd-in Act: Feed-in systems in Germany, Spain and Slovenia Updated comparison http://www.feedincooperation.org/images/files/ific_comparison_of_fitsystems_de_es_sl.pdf [3] Handelsblatt:GabrielbevorzugtWindkraftaufSee.11.11.07 http://www.handelsblatt.com/News/Politik/Deutschland/_pv/doc_page/2/_p/200050/_t/ft/_b/1335634/default.aspx/gabri elbevorzugtwindkraftaufsee.html

Summary
The new addiction of the European Union and other industrial countries to the protection of environment will open new fields of energy supply. To make low cost electrical energy available worldwide will significantly increase living conditions in many countries, will eliminate hunger and obsolete wars and will help to stop further desertification. Starting a photovoltaic solar energy array in the Arabian Peninsula The Arab Consortium may enter the global electricity market. Hydrogen produced from solar electricity from the grid may be used for transportation in crowded areas. The common internal combustion engine, usually fueled with petrol or diesel liquids, can be converted to run on gaseous hydrogen. However, the more energy efficient use of hydrogen involves the use of fuel cells and electric motors. Researches on hydrogen storage built on metal hydrides and compression are .

10 The Project will be self financing through the proceeds of selling electricity and hydrogen. The export revenues may finance follow projects to complete the global grid.

Conclusion of Part 1
Solar energy from desert regions is predicted to become a strong new market. It may fill the gap of fade out of nuclear power plants. Belgium, Germany, Netherlands, Spain and Sweden decided not to build new plants or intend to phase out nuclear power, although still mostly relying on nuclear energy. Exporting solar energy to Europe will open the market of electricity for Arab countries adding a new item to their energy export portfolio. The start of the project should consider 2012 for planning contracting and early constructions and modular increase. The feasibility study of the project favours specifically the main array location at the Arabian Peninsula. The photovoltaic array version is easy to install, the project is may be changed during construction. It does not depend on water in desert area. It works with a minimum of maintenance.

Annex2Fromelectricitytohydrogen11

More informations at www.desertenergyproject.net/Global_Initiative

The Arabian Desert Solar Energy Consortium Proposal

Feasibility Study Part 2 Hydrogen Production

Desert Energy Project

August 2010

2 Contents Executive summary The market for hydrogen Conclusion of the Hydrogen Market Technology and Safety Hydrogen Production and Payoff Total Revenues after 25 Years 2 3 4 5 6 7 The Hydrogen Economy 8 Location of Hydrogen Plants 9 Hydrogen Production in Egypt 10 Conclusion Contact 11 11

Thedemandsforenergyarecontinuouslyincreasing.Pricesforcrudeoilandnaturalgasare soaring.Increasingtrafficonroad,rail,seaandairrisedeepconcernsaboutpollution. PoliticalandpublicawarenessofclimatechangeinEurope,AustraliaandpartiallyintheUnited Statesspurthedevelopmentofnewgreentechnologiestoreducetheemissionofgreenhousegases. Thesearebasicapproachesofanewgenerationofenergybreakthroughintoanewmarketwith incrediblyhighpotentialsongreenfuelandstorageofenergy. Usinghydrogenfuelcellvehiclesinheavytrafficdensityregionswillimprovequalityofairof cities.Countriescommittedtoanuclearenergyphaseout,suchasGermany,mayprofitfroma cooperationwithArabiancountriestoestablishasolar/hydrogeneconomyenergypolitic. NaturalgasfromUKoffshorefieldsareexhausted.Thereforein2008,UKgetsinvolvedwith Francetosharenuclearenergytocompensatetheoutage.ThemarketforsolarEnergy,and absolutelyforhydrogen,willcausearuntothesenewmarketslocatedintheArabiandeserts.The winnerofthisrunwillbetheownersofthedeserts. Hydrogenisalsothebestsuitedairindependentfuelforuseinclosedcompartments,like submarines,mining,warehouseorundergroundfacilities.[1] Hydrogenfromwaterhydrolysis,usingsolarenergyfromthedesertswillbethealternativefuelfor thenextdecadesincarsequippedwithfuelcellsorwithdirecthydrogenfuelinjection.[2]

Part2 ExecutiveSummary Hydrogeneconomy

[1]SiemensAG:FuelCellPropulsionofSubmarines.Dr.AlbertE.Hammerschmidt,SiemensAG,Erlangen.Paper presentedat:AdvancedNavalPropulsionSymposium2006,October3031,2006,Arlington,VA,USA Dr.AlbertE.Hammerschmidt21.08.2006SiemensAG.I&SOGMMASFC.GuentherScharowskyStr.191058 Erlangen/Germany.Tel:++499131722342 [2]SiemensAG:USC,Siemens,XRDiannouncepartnershipfordevelopinghydrogenpoweredengines.ByChristinaE. JohnsonMechanicalEngineering.UniversityofSouthCarolina.October17,2005 http://www.me.sc.edu/PDF/HydrogenPoweredEngine.pdf

TheMarketforHydrogen Hydrogenisstoredenergy.Excesswindhydroorsolarenergymaybeusedforelectrolysisofwater producinghydrogenforstorage,transportationandchemicalindustry,suchashydrogenperoxide, ammonia,andoxygenforindustrialusesandavarietyofapplications.

InvalidstatementoftheWorldNuclearAssociation TheWorldNuclearAssociationstatesthat"Sun,wind,tidesandwavescannotbecontrolledto providedirectlyeithercontinuousbaseloadpower,orpeakloadpowerwhenitisneeded.In practicaltermstheyarethereforelimitedtosome1020%ofthecapacityofanelectricitygrid,and cannotdirectlybeappliedaseconomicsubstitutesforcoalornuclearpower,howeverimportantthey maybecomeinparticularareaswithfavourableconditions.""Theremustbereliableduplicate sourcesofelectricity,orsomemeansofelectricitystorageonalargescale.Apartfrompumped storagehydrosystems,nosuchmeansexistatpresentandnorareanyinsight.""Relativelyfew placeshavescopeforpumpedstoragedamsclosetowherethepowerisneeded,andoverall efficiencyislow.Meansofstoringlargeamountsofelectricityassuchingiantbatteriesorbyother meanshavenotbeendeveloped.[1] Thisisnotvalidanymore.Thestatementdoesnotconsideractualdevelopmentsinsolarenergy focusedonthesunbeltofthedeserts.Tostoreenergyhydrogenproducedbyelectrolysersmake batteriesobsolete.Hydrogencarswillbethefuturefuelforcleantransportation. ThestatementoftheWorldNuclearAssociationisaclearfighttoprotecttheireconomicinterests. UKandFrance,asnuclearpotentatesarejoiningtheirshortsightnuclearenergypoliticsbuildingan allianceonnuclearenergy,isolatingGermanyfromthisdeal.[2]

ThechanceofGermanytoquittheBadBoysClub[3]
GettingoutofanenergyisolationinducedbytherecentUK/Francenuclearenergyalliance, GermanycouldutilisetheenormouseconomicchanceoftheMiddleEast.Germanywouldgetrid ofnuclearpowerplantsandalsoavoidfurtherdevelopmentofthecoallobby. GermanyisstillanhonouredmemberoftheBadBoysClubwhichpromotesnuclearpower,coal, fossilenergy,andincreasingpetrolbasedtransportationongroundandsupportingfurther developmentofairtraffic. SourcesofElectricityinGermany 2001 2006 Browncoal 29% 23% Hardcoal 22% 21% Nuclearpower 23% 27% Naturalgas 7% 12% Hydro+renewables 7% 12% Oil+others 2% 5% TheCO2capturestory Germanystickstoamixofsmallsolutions,coal,combinedwithCO2captureisacoreelementof it.However,CO2capturetechnologyisnothingbuteyewash: AccordingtotheOfficeofTechnologyAssessmentattheGermanParliament(TAB),CO2capture willbecomeavailableforlargescaleusein2020attheearliestandincreasetheactualpricefrom twoorthreecentsuptosevencentsperKilowatt.

4 SpiegelOnlinecitesJrgenMetzger,fromtheUniversityofOldenburg,undergroundstorageis unsafebecauseofearthquakes.Thetechnologyhasneverbeentestedonalargescale. Theresearcherstressedthatcapturinggreenhousegastakes20percentoftheproducedenergy, reducingtheefficiencyofthepowerplant. Germanyswaytojoinsustainableenergybusiness JoininganArabianConsortiumtoexploitthesolarenergyoftheArabianDesertscouldfree Germanyfromthesuffocatingoppressionoftheenergylobby. ElectricityfromPhotovoltaicandparabolictechnologytogetherwithhydrogenasfuelandas storageelementasdescribedinthisfeasibilitycouldaddanewdirectiontoaheadlessGerman energypolitic. Theeggorthehen? AccordingtoDr.RobertW.ShawJr.ofAretCorporation,hydrogenpreparedbyelectolysisof waterwithsunlight,isclearlytheenergycarrierofthefuture.Themostfrequentconcernrelatedto theinstallationofahydrogeneconomyarethetimingoftechnologyreadiness;costofthe infrastructure;buildoutstrategy.[4] Thequestioniswhatcomesfirst,theeggorthehen?TheDesertEnergyProjectmeetsallthese points. Theprojectbeginswiththeinstallationonphotovoltaicmodule.whichmaybefedintothelocal electricalgrid.Revenuesstartattheverybeginning,assoonthefirstgroupofsolarcellisinstalled. Furtherconstructionmayproceedwithoutinterferingintheoperationofalreadyrealisedgroups. Productionofhydrogenmaystartassoonenoughenergyisprovidedbytheplant.Thishydrogen canbeusedasfuelforpowerplantsfornightandpeakloadsoperation.Hydrogenforcarsmaybe offeredatspecificpetrolstationsinrechargeablecontainers,orlaterfromtheelectricalgrid.

ConclusionoftheHydrogenMarketStrategy
Hydrogenisanidealenergystorageandapromisingfuelforemissionfreetransportation.Solar energyandhydrogenroundouttheportfolioofcompaniesdealingwithenergysources.Timingof thetechnologicalreadinessofelectricity/hydrogen/hydrogencar/energystorageforpowerplantsis managedturningallbasicpointsinterchangeableinonehand. [1]Wikipedia:Economicsofnewnuclearpowerplants. http://en.wikipedia.org/wiki/Economics_of_new_nuclear_power_plants [2]SpiegelOnline:BlackoutAlarmundNuklearAllianz.BritenundFranzosenbereitengroes AtomComebackvorDeutschlandplanlos.23.03.2008 http://www.spiegel.de/wirtschaft/0,1518,542933,00.html [3]SpiegelOnline:MakingdirtyPowerGreen.IsCarbonCaptureaFalseHopeforCoalPower? 20.03.2008. http://www.spiegel.de/international/business/0,1518,542508,00.html [4]AreteCorporation:2002 http://www.aretemicrogen.com/GlobePres3.15.02F.pdf

Technology
Electrolyser: Inthisfeasibilitystudytheelectrolysers485ofStatoilHydrowereconsideredascoreelementofthe hydrogenproductionelectrolysingwaterusingsolargeneratedelectricity.

CarRefuelling:StatoilHydroFastFillingHydrogenDispenser40kgHydrogenin5minutes Therefuellingstationhasimprovedsafety,faultdetectionfeaturesAllcomponentsareCEmarked andexplosionproof.Thestationhaseasilyreadabledisplayshowinghydrogenamountand percentagefilled. Theconvenienceofthepetroleumbasedfueldistributionsystemisakeyfactorinthecontinuing dominanceofvehiclesrunningonliquidfossilfuels.Itexplainsinlargepartwhygasolinehybrid electricvehicleshavebeensuccessfulinpenetratingtheconsumermarket,whilegridconnected electricvehicles(includinggridconnectedhybridelectricvehicles)havenot. Positioningsmallhydrogentanksandfastfillinghydrogendispensersmayovercomeinitial problemstointroducehydrogeninthemarket.Thesesmalltankscaneasilybereplacedandrefilled atcentraldistributioncentres.

HydrogenHandlingSafetyIssues Hydrogenhasahighdiffusivity,ithasextremelylowdensityasagasandliquid,andhasabroad flammabilityrangerelativetohydrocarbonsandlowmolecularweightalcohols. Thetechnologyorstorage,transportationanduseofhydrogenissafe.TheTVSD,Industrial Servicescontrolsandcertifiessafetyofallinstallationsofhydrogensystems.[1] [1]TVIndustryServicesGmbH.Westendstrasse19980686MunichFon(+49)8957913313 Contact:RalfSzamerEmail:ralf.szamer@tuevsued.de http://www.tuevsued.de/uploads/images/1178632913057724530634/Anwendung_Wasser Brennstoffzelle.pdf

HydrogenProductionandPayoff Equipmentnecessaryforconvertinghalfoftheelectricityofthethesystem (500.000KW/h)inhydrogem HydrogenPlant

Ammountofunits PriceEuro[1] Electrolyser ElectrolyserStatoilHydroNr485 765000000 Extrasforfullinterconnecting 70000000 25000000 110000000[2] 400000[3] 250000

450 450

Building ProtectionfromSandstorm 500Kmcablebetweenpower plantsandmaingrid TVSDsafetycertification Certificationofsafetyof [1] installations,hydrogenplant, storageanduseofhydrogenat 4powerstationsatMiddleEast TVSDsafetycertification Certificationofthetransport cableSaudiArabiaEurope TVSDsafetycertification Certificationoftransportation, installationandcarrefillingat fuelstationsinMiddleEastand inEurope200units Building ABBcable

Totalcostofplant

350000 971000000

[1]PriceaccordingEmailIainAlexanderRussell 11.02.200813:37Subject:Pricesofelectrolysers [2]ABBLtdAffolternstrasse44.P.O.Box8131.CH8050Zurich.SwitzerlandTel.+41(0)43317 7111Fax+41(0)433174420 ABBLtdAlAhsaMainStreet.11491RiyadhSaudiArabia.Phone+96614762644 Fax+96614769622 [3] TV Industry Services GmbH. Westendstrasse 199 80686 Munich Fon (+49) 89 5791 3313 Contact: Ralf Szamer Email: ralf.szamer@tuevsued.de

HydrogenProductionCosts
Electricityprice(cent/kWh)Productioncosts(cent/Nm3H)[1]
742 637 532

Production costs vary according the costs of electricity. In the present feasibility study a 7 cent/Nm3H has been calculated for the worst scenario. Asthesystemgrows,electricitycostwill

dropandhydrogenbecomesincreasinglyattractive.

ComparingHydrogen/gasolinePrices[2] Gasoline Price1Litre PriceHydrogen Comparableto 1litregasoline Europe USA 1.301.40EURO(includingalltaxes) 0.560.64EURO(includingalltaxes)

Forexport toEurope 1.06EURO(freeoftaxes)[*]

[*]Note:TointroduceafuelfreeofemissionEuropeshouldmakehydrogenfreeofalltaxes. AddingTransportandretailcostthepriceofhydrogenwillbecompetitivewithfossilfuel.

[1]StatoilHydro:HydrogenTechnology.December2007.Presentation [2]EnergyInformationAdministration:USRetailGasolinepricesincl.alltaxes03.27.08 http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html

HydrogenProductionCapacity[1] 4,3kWh 1Nm3hydrogen 500MWhproduces 25Years Totalrevenues25Years[2] Costequipment Costelectricity NettincomeofH2Production 1Nmhydrogen 0.396Litregasoline 116279Litresgasoline/hour 8.721BLitresgasoline/h 9.244BEur 0.971BEuro 7.125BEuro 1.148BEuro[3]

[3]Electricitywithapriceof0.19EurofromthePVplantwillbeused.

[1] 1 Year = 300 days with 10 hours of sunshine [2] Equivalent of 1 Litre gasoline = 1.06 Euro

TotalRevenuesafter25Years
Netrevenuesofelectricityplant3.425BEuro Netrevenuesofhydrogenplant1.148BEuro 4.573BEuro

TheHydrogenEconomy

Theinvestmentwillpayoffin25yearsandleaves4.573BEurorevenues.Thesecondplantbuilds onexistentinstallationsoftheforegoingplant.Theelectricitywillbesoldat0.07Euro/kW7h. Togetherwithhydrogenproduction Combiningphotovoltaicelectricityexportandhydrogenproductionenablestochangebetweenthe bothenergyformswithoutdelay.Thisturnsthewholecompoundveryversatile,aschangesfrom onetoanotheroperationcanbeperformedwithoutdelay.Aperfectadjustmenttothedemandsof themarketarethusalwayspossible. ItisbeingsuggestedtostartexportingthemainelectricitytoEurope.Productionofhydrogenmay beginusingone485Nm/hrelectrolyserproducing1224litresgasolineperhour.Buildingand numberofelectrolysersmaybeaddedcontinuouslyasthedemandforhydrogengrows.

LocationofHydrogenPlants
Productionofhydrogenshouldbelocatednearoratexistingconventionalpowerplants.Thebest positionwillbeanadditionalhydrogensectionatthelocalpowerplant.Transportationanduseof hydrogenwouldbeunnecessaryandmaintenanceandoperationcanbehandledbythestaffofthe powerplant.[Seeposition#1ofFigure1]

Figure1LocationofProductionandStorageofHydrogen[1]

9 Asthehydrogenprojectdevelops,electrolysismaytakeplaceatpetrolstationsusingsolar electricityfromthegrid.[Seeposition#7ofFigure1] Thefinallocationshouldbedeterminedbycompetentlocalauthoritytomeettherequirementsof thecountry. [1]DesertEnergyProject:PRESENTATIONInternationalClimateProtectionProposal(ICPP), Slide30. http://www.desertenergyproject.net/Proposal

CentralizedproductionofHydrogen Startingthehydrogeneconomyacentralizedproductionisrecommended. ThestationaryequipmentofStatoilHydrodescribedbefore,canprovidesufficienthydrogenfor peakloadsofconventionalpowerplantsatnightorperiodswithreducedsunincidence. Thesecentralizedhydrogenmanufacturingstationsmayincludelargecentralstationplantsormid sizeplantsforregionalmarkets.Theyshouldbelocatednearoratlocalelectricalpowerplantsas surplusisintendedtobeconsumedasfuelbythepowerplantsduringnightoperation.An advantageofthislocationisthatdailyoperationmaybeexecutedbythepowerplantstaff. Asfuelforthepowerplantthehydrogenmaybestoredin2000litrecontainersat33PSIprovided bytheelectrolyser. Fromthesecontainerssurplushydrogenmaybecompressedat8000PSIin500litrescontainers tobeusedasfuelforcarsshould.Thesecontainersmustbesuitablefortransportationtothecar refillingstationswhereitreplacesemptycontainers.Thusnospecificstoragefacilitiesareneeded atthecarrefillingstations. Thecentralizedmanufactureofhydrogenrequirestransportationconventionalseacontainerswhich permitadistributionaswellasintermediatestoragecapabilities,whiledistributedmanufacturewill likelyrequireonlystorageatthevehiclefillingfacility. Distributedmanufacturingofhydrogen Later,asthehydrogeneconomyturnouttobecomemorepopular,distributedmanufacturingmay takeplaceattheconventionalEuropeanpowerplantsforuseasfuelfornightoperationandasfuel fortransportation. Alaststageofthehydrogeneconomywillbetheproductionofhydrogenattherefillingstations usingtheelectricityofthegrid.

10

HydrogenProductioninEgypt
ThelocationofthehydrogenplantintheproximitiesoftheNileRiverprovideswaterfortheplant, andtransportbycontainershipovertheMediterraneantoEuropewillbepractical. Itisbeingsuggestedtostarttheprojectwithphotovoltaicarrays,becauseofthesimpletechnical compoundeasytomanageanddoesnotneedhighlyskilledpersonal(installandforgetsystem). LateronParabolicTroughsystems,CSPandevenISCCmaybeaddedtotheevolvingsystem withoutproblem.TheGermanAerospaceCenterDLRinitsstudyin2006[1]didnotconsidered theproductionofhydrogenfortheuseasfuelforcarbecauseatthattimeconditionsinEurope werenotpropitiousforsuchuse.Theenergypolitics,however,evolvesrapidlyinthisdirection. Photovoltaiciscapablebeinstalledimmediatelywithoutanydelay,beforeotherinternational corporationstaketheleadership. TheregionhasthebestrequirementstoproducebothelectricityandhydrogenfortheEuropean marketwhichisdespairinglyseekingsolutionstopresentattheUNConferenceinCopenhagenin 2009whererootoftheKyotoProtocolwillbesettled.Germanybacksonitsplanstoincrease alcoholincarfuelbecauseofheavyproblems.SupportingtheArabianprojectofhydrogenwillbe extremelywelcomeforGermanytofindanalternativetoalcohol.TheArabiancountrieshavethe bestpositiontoleadthenewhydrogenbusiness. TighteningthebusinessbondsbetweentheEuropeannationsandtheArabiancountrieswill incr5easefriendshippeaceandunderstandingbetweenthecooperatingstate.
[1]GermanAerospaceCenterDLR:Study:TransMediterraneanInterconnectionforConcentratingSolarPower (TRANSCSP),2006. http://www.dlr.de/Portaldata/1/Resources/portal_news/newsarchiv2008_1/algerien_trans_csp.pdf

Conclusion

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ConsideringtheactualeffortsoftheEuropeanUnionandotherindustrialcountriestotacklethe climateanenvironmentalproblemsaninitialsubsidiseofphotovoltaicelectricityandanexemption ofalltaxesonhydrogenasfuelforhydrogencarsisconceivable.Hydrogenfromsolarenergymay becomeanimportanttooltheachievethecommitmentsoftheKyotoProtocol.Thesetargetswill befixedattheconferenceinCopenhagenin2009. Asseeninthepresentfeasibilitystudy,hydrogenasfuelisaveryattractivenewfieldofenergy economyandpresentsanextraordinaryinvestmentenvironment.WiththerevenuesofthefirstGiga plant,anextplantmaybeinstalledandadividendpayout4.2billionEuroispossible.All calculationsweremadeconsideringtheworstscenario,anda300days/yearofsunshinewere considered. Duetotheflexibilityinrespondingtothedemandsofthegrid,changingbetweenelectricityand hydrogenoperation,theprojectaddsapowerfultooltocompensatepeakdayloadsofEurope.The mostimportantachievementoftheproject,howeveristheintroductiononhydrogenasfuelfor transportation.Thisneweconomywillbethebasisoffutureenergypolitics.

Annex1 Conversionfactors

1Euro1.500USDollar(March2008) 1USDollar0,6667EURO(March2008) 1liter0.2642gallonsU.S. 1kgHydrogen11.13Nm3(0degreesCelsiusand1atmosphere) 1Nm3hydrogen12.7MJ(HHV) 1gallongasoline121.3MJ(LHV) 1poundofhydrogen64.4MJ(HHV) 1kghydrogen415.6scf(StandardCubicFeet) 1cubicmeter(m3)35.31cubicfeet 4.3kWh1Nmhydrogen 1Litergasoline32.1MJ[LHV) 1Nm3hydrogen0.396Litregasoline 1USGallon3.785411784Litre 1kWh0.092litregasoline 1Litregasoline10.858hWh 0,9litredemin.water1Nmhydrogen Contact Karl Heinz Wilm Muelenweg 5 26419 Schortens Germany Email: wilm@desertenergyproject.net Coordinator of Desert Energy Project

Fon +49 (0) 4461 80440 Fax +49 (0) 4461 967612 Site: www.desertenergyproject.net