OSMOTIC POWER

- A NEW, RENEWABLE SOURCE OF ENERGY

Berlin Stein Erik Skilhagen
January 2012 Head of Osmotic Power
 1
No.
WITHIN RENEWABLES
IN EUROPE

89% RENEWABLE
ENERGY

283 POWER AND DISTRICT

HEATING PLANTS

33%
OF NORWAY’S
POWER
GENERATION

3200 20
...IN MORE THAN

EMPLOYEES... COUNTRIES
 STATKRAFT’S STRATEGY
Deliver growth in pure energy
Flexible European generation and market
operations

International hydropower

Wind power

District heating
Small scale hydropower
3
  Meeting future energy and climate needs requires
high growth and huge investments in renewables,
across a broad range of technologies

 Osmotic power forms a natural part of the

new renewable energy portfolio, providing clean
baseload energy with low environmental impact,..

...requiring cost reductions, a conducive policy

framework and a critical mass of developers to succeed

4
COMBATING CLIMATE CHANGE AND SECURITY OF SUPPLY
ARE THE MAIN DRIVERS FOR ALL RENEWABLES

Source: IEA
 OSMOTIC POWER PART OF SOLUTION

Renewable electricity
Wind
generation
in Europe (TWh)
~800-
3 000
Ocean Hydro

2°C
2050
Bio-
~600
Solar energy
~600

Geo-
thermal
Today by by
2020 2050
Source: Statkraft, EREC, ECF
  Meeting future energy and climate needs requires
high growth and huge investments in renewables,
across a broad range of technologies

 Osmotic power forms a natural part of the

new renewable energy portfolio, providing clean
baseload energy with low environmental impact,..

...requiring cost reductions, a conducive policy

framework and a critical mass of developers to succeed

7
 OSMOTIC POWER
A NEW, RENEWABLE
SOURCE OF ENERGY

8 Company
presentation 2009
THE OSMOTIC POWER CONCEPT
WHY OSMOTIC POWER?

Constant power generation - “Base load”

Small ecological footprint

Decentralised source of energy

Based on proven technology, except Membrane & Module

 ABUNDANT RESOURCES

Resource criteria
• Salt water with
sufficient salinity
• Fresh water
availability and
Global potential: 1600 - 1700 TWh/year* quality
• Short distance
European potential: 180 TWh/year* between salt water
11
* Source: Statkraft
and fresh water
2009 – WORLD FIRST PROTOTYPE

• “Proof of concept”
• System scale-up
• Membrane and component testing and optimisation
• Operation and maintenance experience
MATURE AND IMMATURE COMPONENTS
Osmotic Power illustration (prototype)
Examples of immature components
Membrane Pressure Pre-
elements exchanger treatment

Fresh water
Sea water
Water Brackish water
Valves Turbine
pipes
Examples of mature components
 PROTOTYPE – MAIN ACTIVITIES
Operation since 2009 Main activities

Test membrane performance and monitor operation

Develop cleaning and maintenance of membranes

Test of high pressure units (turbine, energy recovery

unit, valves etc.)

Pretreatment fresh water optimization

Pretreatment seawater optimization

Design and operation of single membrane module test

units
 MEMBRANE PARTNER

Statkraft and Nitto

Denko/Hydranautics
have entered into an
agreement in June 2011
for the development and
supply of membranes
for osmotic power to
accelerate the
development.

MARS 2007
sid
e
15
 THE NEXT STEPS

2 MW 25 MW
Feasibility Prototype Vision towards 2030
Pilot Demo

2009  2013  ~2018: 

OP is spreading across the world

OP an important business for Statkraft

Statkraft operated
Other utility operated
 PILOT PLANT KEY CHALLENGES
Technology “good enough” for scaling up
and reducing cost of energy

Available site with good water resources

Concession for building a 1-2 MW pilot

plant

Governmental support for developing osmotic power as a new,

promising renewable source of energy

Utilization of the pilot plant for industry development and bringing

the technology down the learning curve
  Meeting future energy and climate needs requires
high growth and huge investments in renewables,
across a broad range of technologies

 Osmotic power forms a natural part of the

new renewable energy portfolio, providing clean
baseload energy with low environmental impact,..

...requiring cost reductions, a conducive policy

framework and a critical mass of developers to succeed

18
 COST OF ENERGY

Pilot plant (1-5 MW) Full scale demonstration plant (25 MW) Commercial plants
LCOE1 = high LCOE = 120 €/MWh Reduction towards 70-80 €/MWh within
2030

EUR/MWh
125 ~120
LCOE
€/MWh
125
100
Base case
High learning case
100
Low learning case
75
75

50 50

25

25
0

2018 2020 2022 2024 2026 2028 2030

0 Year
Control Proj. Pipes Constru Pro- Mem- OPEX LCOE
sys. mng ction cess brane

1. Levelized cost of energy

Note: Base case with RO & OP combined for membrane-related learning, High learning case with only OP for all learning, Low learning case with RO and OP combined for all learning
Source: EU Second Strategic Energy Review (2008), moderate fuel price scenario, osmotic power strategy and BCG team analysis 2009
 A JOINT EFFORT TO BUILD THE INDUSTRY
Manufacturers
• Technology suppliers
integrated in the development
of the technology
• In a wide time-frame,
competition contributes to
industrial growth
• Osmotic power to be perceived
as an attractive business
opportunity for membrane &
component manufacturers
Utilities
• Deployment of osmotic power
• Define needs and
requirements towards
technology suppliers and
policy makers
Governments
• Increase awareness of osmotic
power among policy makers
and governments
• Establish regulation for site
development and support for
deployment
• Secure access to sites for pilot
plant and demonstration plant
 VISION FOR OSMOTIC POWER:
“A GLOBAL FOOTPRINT BY 2030”

OP is spreading across the world

30 plants in operation worldwide
Support schemes have helped OP move
down the learning curve
Price of OP power is 50-100 €/MWh1

OP an important business for Statkraft

Statkraft operated
Other utility operated
OP breakthrough has given a major
publicity boost to Statkraft and the
government
Statkraft has a leading position in OP
operation in Europe
 Statkraft is organising the 3rd Osmosis Membrane summit in
Barcelona – April 26-27. Past events in has been sucessfully
organised in 2008 in Amsterdam and 2010 in San Diego

Organised as a post-event for EDS’ Desalination Conference

Conference web site: http://osmosis-summit.event123.no/ or

send an E-mail to bo@statkraft.com

St 22
atk
raf
Page 23