AREVA Renewable Energies and Indiabiomass fired power plants world wide. 12 Stricly Confidential...

Stricly Confidential

AREVA Renewable Energies and India

Philippe PouxVice president, Business Development & M&A

[email protected]

Stricly Confidential2

Agenda

1. AREVA Group context

2. Renewable Energies Market and environment

3. AREVA activities in Renewables


AREVA: a strategy based on three pillars

T&D Renewable

Nuclear

Interconnections & HVDCCommercial synergies –contact with utilities, international footprintPortfolio synergies

Integration of renewable in the grid & Smart Grids Energy storage

CO2 free electricity generation Complementarities (base & intermittent)Technical, financial, and commercial synergies R&D leverage

“One-stop shop for CO2 free energy generation”


Key Financials 2008

Sales: 13,160M€Operating income: 417M€Consolidated net income: 589M€Employees: 75,414

Standard & Poor’s recent RatingShort-term: 'A-1’

Long-term: ‘A’ on balance sheet strengtheningOutlook: Stable


Agenda


2. Renewable Energies market and environment



Renewable energy, like nuclear, is an answer to 3 major concernsand a factor of local industrial development

Electricité

41%

Energy dependence

CO2 world emissions

Source : AIE 2008, AREVA

0%

20%

40%

60%

80%

100%

Japan EU India USA ChinaSource : BP Statistical Review 2008, AREVA

Import part of country energy consumptionFossil energy price volatility

0

50

100

150

200

250

02/01/07 02/07/07 02/01/08 02/07/08 02/01/09

$/t, $/bl

0

2

4

6

8

10

12

14$/MBtu (Gaz)

PétroleCharbonGaz

Source : Bloomberg, AREVA

Local industrial development(example of on-shore and off-shore wind in EU)

H2 production7% * Direct and indirect employment in Europe for on-shore and off-shore wind

sector. Includes direct and indirect employment in component manufacturing, utilities, developers, O&M, engineering and consultancy, R&D, financial, etc. (source: European Wind Energy Association, Jan. 2009)

370330

210

155

050

100150200250300350400

2007 2015 2020 2025

5% CAGR(2007-2025)


Renewable energy, like nuclear, is little dependenton raw material prices

Source : Based on d’E-On estimations for Europe (Janvuary 2009), using carbon cost of 20 €/t ; AREVA’s estimation for biomass

70%

10%

Fixed operational

cost

Combustible and other variable cost

Capital cost

20%

Nuclear MWh cost breakdown

Capital cost

70%

2%

Fixed operational cost


15%

Carbon

12%

Combined gas cycle MWhcost breakdown

Note: fuel can be “free of charge” (wind, sun), sometimes even cost negative (waste)

Renewable MWh cost breakdown: example of biomass (Brazil)

35%

6%

Fixed operational cost


Capital cost

33%

Carbon

25%

Coal MWh cost breakdown

67%

11%

Fixed operational

costCombustible and other variable cost

22%

Capital cost


Fast growth and consolidation on theon-shore wind segment have favored early movers

On-shore wind market performance to date

CAGR ‘01- ’08

52%

89%

60%

* 23.5 GW of new build in 2008

Acquisition of Enron Wind in 2002 (transaction size: 325 M$)

*

Market share (2008)

Development strategies

Acquisition of Bonus Energy in 2004 (transaction size: 325 M€)

Acquisition of NEG Micon in 2004 (transaction size: 330 M€)

Installed capacity equivalent to 14 EPR =

Sources: New Energy Finance, BTM Consult APS

Vestas20%

GE19%

Gamesa12%

Enercon10%

Suzlon9%

Siemens7%

Other23%

2008


0

200

400

600

800

1000

1200

2008 2015 2020 2030

* Excluding hydro-electricitySource : WEO 2008 – reference scenario

Renewable energies installed base projection*

Strong growth continues to be expected in short- to mid-term

207 GW

401 GW

580 GW

960 GW

Installed capacity (GW)

% world electricity generation capacity

4.7% 7% 9.3% 12.8%

Increasing share of “new”renewables into the electricity generation assets worldwide lead to a significant investment level to be captured in the renewable industry

A market of 65-90 bn$/year average of new capacity asset finance between 2008 and 2030

Strong growth expected in off-shore wind (42% CAGR, 2008-2030) and Solar CSP (38% CAGR, 2008-2030)

On-shore wind remains the most important renewable energy (48% of total ENR in 2030)

New capacity market

(asset financeyr av.)

66 bn$/yr(2008-2015)

85 bn$/yr(2015-2020)

89 bn$/yr(2020-2030)

CAGR‘08-’30

42%38%

24%

10%

13%


Agenda


2. Renewable Energies Market and environment



Comprehensive portfolio of CO² free power generation technologies and services

Specialized EPC company for CO² free 50-100 MW solar power plantsOwnership of critical solar thermal technologies and possibly others (CPV)

Solar

Design & deliver CSP plants

R&D center for Renewable EnergiesDevelopment of next generation storage solutions and Hydrogen production

Energy Carrier & Storage

Provide marketable solutions to foster

renewable penetration

Off-shore leader globallyStrong on-shore position in target geographies

Wind power

Become a major playerin wind energy

Specialized EPC company for CO² free 50-100 MW power plants –biomass firedOwnership of range of critical technologies (combustion, gasification, pirolisis, etc.)

Bioenergies

Design & deliver biomass fired power

plants world wide


Wind powerproduct line


Biggest wind turbine for off-shore market (5 MW)Positioned vs. Multi MW turbines

Unique product offering for wind off-shore

Source: New Energy Finance 11/04/2008, Companies

Eolienne Multibrid M5000Eolienne Multibrid M5000

Successful installation Alpha Ventus (1st off-shore wind parkin German North sea)

Design certified by GL Off-shore

Broad range of services for the off-shore industryDesign and manufacturingMaintenance

5 MW 3.6 MW


Manufacturing and sourcing


Installation and erection


Alpha Ventus project – 1st off-shore project in German North Sea


Off-shore for India – Key success factors

1. Wind speed?

2. Shallow waters?

3. Tariff and regulatory environment?

4. Existence of local players able to:

Manufacture some of the equipment

Install and erect the turbines

Develop projects

Finance projects


Bioenergiesproduct line


Biomass – Rice HuskBK URUGUAIANAPlace: Uruguaiana – RS (Brazil)Customer: BK Energia Ltda.

Boiler:40t/h – 43bar – 420ºCRice husk

Steam turbine and generator:8MW – 13,8kV – 60Hz (condensing)

Connecting substation:7,5MVA – 13,8kV – 60Hz

Scope of Supply:Design and Management Electric and mechanic assembly Electric panels (power and control)Automation and control systemCommissioning, start up and assisted operation

URBANOPlace: São Miguel – RS (Brazil)Costumer: Urbano Agroindustrial Ltda.

Boiler:15t/h – 22bar – 445ºCRice husk

Steam turbine and generator:2,2MW – 380V – 60Hz (condensing)

Connecting substation: 2,0MVA – 380/23kV – 60Hz

Scope of Supply:Design and Management Electric and mechanic assemblyElectric panels (power and control)Commissioning, start up and assisted operation


2,430 MWetotal installed capacity

98 Power plantsunder operation or construction

Main references around the world

INDIA3 biomass

+ 2 waste heatpower plants for

47 MWe

THAILAND

2 Biomasspower plants for

20 MWe

GERMANY

2 biogas

+ 5 mine gaspower plants for

57 MWe

BRAZIL

83 biomasspower plants for

2,296 MWe

CHILE

1 biomasspower plants for

10 MWe


Key technologies

Existing technologies for biomass conversion

Aerobic Digestion Compost

CO2

Anaerobic Digestion Leachate

CO2 + CH4

Sugar and starchPlants

(sugar beet, cereals)

Combustion(complete oxidation) Heat

Gasification(incomplete oxidation)

Alcoholic ferment. + distillation Stillage

Ethanol

Pyrolysis(thermal decomposition)

Charcoal and pyrolisys gas (CxHy+ tar + CH4)

Wet Biomass(organic waste,

manure)

Pressing, esterification

Synthesis Gas (CO, H2)

Bio-diesel

Solid Biomass(wood, straw)

Oil crops(rapeseed, sunflower)

Physico–chemical conversion

BiologicalConversion

Thermo chemicalconversion

Bioenergies focus :Biomass power plant (combustion): bagasse, rice husk, wood, etc…Biogas process (Anaerobic digestion):

Ending market in EuropePotential market in Brazil, with a economical study underway

Bioenergies R&D subjects :Gasification (with possible applications in 5/10 years) Pirolysis (or production of bio-oil)

AREVA

AREVA


Launched in Sept 2008 at the Clinton Global Initiative

Plan to develop twelve 50 MW biopower energy plants in the continental U.S. for green electricity customers

First biopower partnership in the United States between major energy companies, AREVA and Duke.

Will develop biopower plants that use wood waste to produce electricity.

Similar agreement with Astonfield, an Indian renewable project developer, signed in July 2009

Fleet of 10 x 10 MW bioenergy plantsAREVA will design and build biomass power plantsAstonfield will manage operationsCo-ownership of plants: 60% Astonfield, 40% AREVA

An innovative business model: ADAGE with local adaptation in India with Astonfield


Hydrogen powerproduct line


Standalone 16 – 80 kWfuel cell back-up power

systems

Innovative technologies… For hydrogen power

Strategic deliverablesStationary and embedded power generation based on fuel cells

Current deliverables

HospitalsTélécoms Data Centers Industry

Getty Images: Digital vision – John Foxx – Kim Steele - Stockbyte

Didactic fuel cell systemsfor higher education

An industrial didactic bench based on a 1 kWeand 1 kWth fuel cell


Innovative technologies… For hydrogen production

PEM Electrolyser Systemup to 50 barg

Endurance tests > 5000 h

High pressure PEM electrolyser

High temperature electrolyser

Strategic deliverablesBreakthrough industrial solution for Carbon-free Hydrogen production by water electrolysis

Current development


Innovative technologies… For energy storage

BatteriesEnergy management

and storage

Wind Turbines

PV Panels

Production from renewable sources

Technical remote sites

µ-grids - Housing

Insular grids

Stable and continuouselectrification requirements

Control

Electrolyser

Gas storage

Fuel Cell

Local grid

Strategic deliverablesSafe and scaleable Storage solution for Renewable Energy generation

Current developmentHydrogen storage: Electrolysis and Fuel Cells

Electrochemical storage & Thermal storage


Hydrogen for India: “Green Onshore Island”?A decentralized energy solution for:

Remote areas where installing a transmission network would be too expensivea back-up power clean alternative solution to UPS and diesel in particular sensitive areas where existing electricity infrastructure is weak

A green friendly environmental solution:Primary energy is renewableNo liquid pollutionNo noise, no vibrationNo CO2Only limited water required : 45 l/h/MW

A solution adapted to India: Where the market is much bigger than Europe or USA: many sites withno energy, low reliability networksIndustrialization in India is possible to reach competitive CAPEX pricesEasily maintained in India to reach competitive OPEX prices


What is Green Onshore Island?

A RES: Renewable Energy SolutionA primary renewable energy source (solar, wind, marine, biomass…)Hybridized with a green and efficient energy storage solution: hydrogen

Hydrogen storage:Water Electrolyser (transform electricity in pure hydrogen and oxygen)H2 and O2 gas storage (long term energy storage – size depending on MWh to be stored: primary RES profil vs user electricity consumption profile)Electricity and heat supplied with FC (reinject hydrogen energy stored in good quality and reliable electricity and heated 70°C water)

To cope with RES variation with time: Supply solar energy at nightSupply a guaranteed amount of energy with wind turbines Store electricity at night to use it during the day when biomass is used

In some case: Supply clean and reliable back-up power solution without fuel supply chain


HYBRID CONVENTIONAL SOLUTION

WT

LOAD

BATTERY

CONTROL


HYBRID HYDROGEN SOLUTION

GAS STORAGE

FUEL CELL ELECTROLYSER

CONTROL


Solar CSPproduct line


Dish engine

The solar CSP technology uses solar energy to produce electricity through steam generation

Lenses and/or

Reflectors

Sunlight Heat

Receiver /Collector

Heat storage, e.g. :• Pressurized steam• Molten salts • Concrete (R&D)

Steam turbine

Heat transfer fluid(oil, molten salts)

Power

* CCPP : Combined Cycle Power Plant

Solel’s UVAC 2008 receiver

Steam Generator

Steam

Input for CCPP*

Andasol’s molten salts storage tanks

Central tower

Siemens’s steam turbine for Ivanpah

Parabolic trough


Most appropriate areas for Solar CSP

A promising solar CSP market in both developed and developing countries

An emerging market with a > 50% annual growth rate:

400 MW sales for Solar CSP equipment in 2007Over 1000 MW in construction in 20099000 MW sales expected by 2012

Current market in developed and sunny countries encouraged by public aid

California Spain

E.g.: Tariffs of €270/MWh in Spain for 25 years

Middle East E.g.: Masdar project in Abu Dhabi

Further potential in.. .. Mediterranean countries through Mediterranean Solar Plan.. Australia, Africa, India and China thanks to significant cost decrease

Appropriate for solar thermal power plants:

Excellent

Very good

Good

Not appropriate

(>2300 kWh/m²/year )

(between 1900 and 2300 kWh/m²/year )

(between 1500 à 1900 kWh/m²/year )(<1500 kWh/m²/year )

2


In the short-term, Spain and the USA are the 2 largest solar CSP markets

Global CSP project pipeline by country

US

Spain

% of global projected installed capacity in 2012

Growth, 2008-2012 (MW, CAGR)

40%

42% +3800 MW (+200% CAGR)

+3200 MW (+70% CAGR)

2


Strong business case for solar CSP as an opportunity to enhance AREVA RE technology portfolio

1. Solar CSP is close to AREVA’s know-how (thermal transfers, heat storage and steam management, etc.)

2. In the short-term, Solar CSP market is embryonic, but with development potential of over 9GW by 2012 within selected geographies (USA, South of Europe, Africa, India)

3. In the long-term, Solar CSP is a complementary baseload technology to nuclear

4. Existing proven technology with possible kWh cost reduction levers, most of which are accessible to AREVA

5. Developers/utilities are seeking solid EPC and equipment manufacturer partners

6. A market where AREVA can create value: commercial synergies and leverage of the Group expertise (R&D, technical, industrial, EPC, etc)

7. AREVA’s could be positioned as an EPC and manufacturer of key differentiating components

2


CSP India market - KSF

Tariff and regulatory environment

Still being defined – important for regulators to understand specifics of CSP vs. PV

At 13-14 INRs/KWh, challenge to bring down costs

Market opportunities (assuming appropriate tariff and regulatory environment)

30-50 MW “booster” plants (steam enhancement) – using existing coal facilities and infrastructure?

Utility rate power plant: 100- 250 MW in Rajasthan and Gujarat?

Ability to source manufacture locally will be critical to reach target capex and opex

Equipment

EPC

O&M

AREVA Renewable Energies and Indiabiomass fired power plants world wide. 12 Stricly Confidential...

Documents

Transcript of AREVA Renewable Energies and Indiabiomass fired power plants world wide. 12 Stricly Confidential...