Cleantech pack.ppt (read only)

Copyright MarketClusters Limited 2007 1

StrategyEye

South West Clean Technologies Review

Trend Analysis and Discussion

Copyright MarketClusters Limited 2007

Overview

1.  Introduction

2.  Energy Efficiency in Residential Construction 3.  Tidal and Wave Energy 4.  Offshore Wind Farms 5.  Producing Fuels from Biomass 6.  Plastics and Electronics Recycling 7.  Aerospace Energy Efficiency 8.  Photovoltaics 9.  CO2 Algae Transformation 10. Combined Heat and Power 11.  Hybrid and Flex-Fuel Engines

12. Conclusion


v  We reviewed close to 500 South West region organisations, 401 of which were relevant Sources:

–  SwRDA team, RegenSW database –  MarketClusters primary and secondary research

v  Our assessment of regional strengths and weaknesses combines several factors –  Strengths and weaknesses benchmarked against other regions around the world –  Regional strengths identified based on:

»  Number of relevant companies in industry categories »  Size of relevant companies in industry categories »  Innovation created by relevant companies in industry class / Reputation of relevant companies in industry categories

The results are displayed on the Industry SIM

v  We have created a shortlist of opportunities taking into account further industry factors

Global market size and growth (Low / Medium / High)

South West Ticket to Play (Disadvantaged / Neutral / Advantaged)

Takes into account South West strength in relevant industry classes .. –  .. reputation (of region and individual companies) in relevant industry classes –  .. and “stickiness” (sustainability) of regional strength

Regional strength: strong combination of companies in region

Regional weakness: no significant companies in region

longlist (trend spider) trend presentation

Introduction: Methodology


Key findings from Strategic Industry Map

Small Scale Power Generation v Weak presence in small scale power

generation companies with proprietary technologies

v Well developed portfolio of added value (small scale) project management companies

Resource Consumption v Range of efficiency-related

companies able to provide quick savings and environmental results

v Weak representation of biofuel technology companies

Waste Management v Broad cluster of waste management

and specialist companies

Supporting Infrastructure v Strong presence of regional and

international supporting companies (consulting etc.)

v Developed academic research base

Introduction: Key Findings from the CleanTech SIM


1) Energy Efficiency in Residential Construction


Opportunity Description & Market Sizing v  Energy efficient construction relates to the development of materials whose production is less harmful to the environment and the construction or retrofitting of buildings that use less energy than conventional ones.

v  Over a quarter of total UK energy consumption was related to domestic needs, especially heating & cooling [Source: National Statistics], with about 2m UK households spending over 10% of their income on domestic energy. With the recent sharp increase in energy prices, energy efficient construction is gaining in momentum. The Government’s annual house-building target is around 240,000 new homes – a notable increase from the approximately 140,000 currently being built per year [Sources: Rowntree, National Statistics]. v  Since April 2006, the UK BERR's Low Carbon Buildings Programme has offered grants to public sector and charitable bodies for the installation of micro-generation technologies, funding up to the 50% of total project cost.

Key Player Profiles

1) Energy Efficiency in Residential Construction

Market Size

L M H SW Ticket To Play

D . N . A

Why (Market and regional strengths) v  New building regulations already in place (e.g. Home

Information Packs, Part L&F Building Regulations) v  Improvements for existing houses more likely with

rising energy prices

Why Not v  Current lack of tight legal requirements reduces

incentives to adopt construction energy efficiency v  Private residents are reluctant towards upfront payments

for environmentally friendly construction or upgrades, and financial alternatives are still scarce

Kensa Engineering Heat Pumps

Kensa Engineering is a supplier and manufacturer of ground source heat pumps. Its testing facility in Cornwall was involved in international standard setting for heat pumps. Originally the company developed sea water sourced heat pumps for

marine application.

Powertech Solar Micropower

Powertech supplies micropower generation

systems to be integrated in houses. Micropower solutions include micro wind turbines, multi source thermal stores, solar thermal collectors, PV panels, air to water heat pumps and underflooring heating

Burdens Environmental Environmental Building Systems

Burdens supplies a range of products for the shell

(walls, roofs and floors) of the building. These products combine breathable, well insulated and

healthy living accommodation using environmental friendly and sustainable materials.

Key:

Company with SW HQ Multinational company with significant presence in SWE Leading Company in Category


2) Tidal and Wave Energy


Opportunity Description & Market Sizing v  Tidal power is the extraction of energy from the of the rising and falling motion of sea levels. It is not easy to capture tidal power efficiently, but Britain has very strong potential as it is surrounded by sea with strong tidal and current flows. In the SW, there are several suitable locations for tidal power off the top South West tip and off the coast from Weymouth.

v  According to MCT, 20% of the UK’s electricity needs could be met by harnessing tidal power through marine turbines. The total amount of available tidal electric energy is estimated to be a vast 22TWh [Source: National Statistics].

v  Wave power is the use of waves to produce energy. One of the most famous devices which produces energy from waves is the Pelamis, used in demonstration wave farms in Scotland and Portugal. These projects in Scotland and in Portugal are pilot projects of interest to ascertain opportunities around the South West Coast. Scottish Wavegen is currently building a small, commercial wave energy plant in Spain. Another project is to be installed 10 miles off Hayle. It will provide the world's biggest testing ground for wave power devices (Wave-Hub). Companies taking part are Oceanlinx (AUS), Ocean Power Technologies (US/UK), Fred Olsen (NOR) and WestWave (E.On and Ocean Prospect).

Key Player Profiles

2) Tidal and Wave Energy

Market Size


D . N . A

Why (Market and regional strengths)

v  Numerous South-West sites suitable for tidal power v  Already supported by SWRDA v  UK has expertise in these types of power plants v  Support through the “Wave and Tidal Energy

Demonstration” funding scheme

Why Not

v  Expensive projects, costs too high to be profitable within the next 5 years (especially for wave systems)

v  Environmental impact concerns, such as e.g. possible conflicts with fisheries

v  Weak power grid around the coast

Tidal Generation Tidal Turbines

Tidal Generation develops tidal turbines to

generate electricity from tidal flows. Each machine can produce sufficient electricity to power 650

homes. The company will install the turbines at the

European Energy Centre in Orkney and anticipates that it will start to contribute to the UK

energy needs by 2010.

ORECon Wave energy Systems

ORECon develops wave energy devices. The

company’s development program includes: small-scale tank testing at the University of Plymouth

and large-scale testing at two of Europe's largest facilities Brest & Nantes.

Marine Current Turbines (MCT) Renewable Energy

The company develops technology for exploiting

flowing water and tidal streams. MCT partners and corporate shareholders include

Bendalls Engineering, EDF Energy, Guernsey Electricity, Seacore, Tridios Bank and BankInvest.

Key:



3) Offshore Wind Farms


Opportunity Description & Market Sizing v  Offshore wind farms are wind turbine farms built in the sea and away from shallow waters close to the land. The electricity produced by these farms is routed through underwater cables back to the grid on the mainland. The wind turbines are based on the same technology as onshore ones, but due to wind conditions at sea, offshore wind turbines can be built bigger and are able to generate more power. v  According to a 2005 assessment by Ernst & Young, the UK is one of the most viable countries for the generation of offshore wind energy.

v The world’s largest offshore wind farm is planned to be built near the coast of North Devon. The £3bn Atlantic Array scheme once completed around 2016, will generate 1,5MW, energy to power more than 1,000,000 homes. Five operating offshore farms currently operate in the UK: Blyth, North Hoyle, Scroby Sands, Kentish Flats and Barrow. Even though turbines are mostly imported (Vestas, REpower etc.), local companies profit from construction, maintenance or even operation.

Key Player Profiles

3) Offshore Wind Farms

SW Ticket To Play

D . N . A

Why (Market and Regional Strengths) v  More energy than onshore wind farms (higher wind

speed, less turbulence), and fewer visual impact issues v  Enough grid capacity in the South West v  Numerous SW sites suitable for offshore wind power

(40% of Europe’s wind passes through UK) v  BWEA says offshore wind farms can meet 6% of

demand by 2015

Why Not

v  Deep seabeds around the southwest complicate turbine installation

v  Expensive projects (foundations, corrosion and connection to the grid)

v  Potential conflicts with fisheries v  Weak grid around the coast

Npower renewables Renewable energy company

Npower has signed a contract with Siemens plc to

supply and install 25 wind turbines for the new Rhyl Flats Offshore Wind Farms, located west of North Hoyle. The Rhyl Flats, with a £10 million

capital grant, is expected to generate electricity for 61,000 homes.

Farm Energy2 Atlantic Array Project

Farm Energy2 is a Devon based company that will develop the £3bn Atlantic Array project, the world’s

biggest wind farm. The energy company was involved with proposals

for a huge offshore wind project in the Thames estuary which was approved by the Government

last year.

Seawind Offshore wind projects

International provider of project management,

engineering, construction and operations services to the offshore wind energy industry.

Ongoing development projects include: 50MW in Ireland, 20MW in the UK, 380MW in Germany,

90MW in Czechoslovakia, 40MW in Spain, 100MW in South America and 300MW in North America.

Market Size

L M H

Key:



4) Producing Fuels from Biomass


Opportunity Description & Market Sizing v  Today’s biofuel production focuses on the use of energy crops, such as sugar cane, corn and oil palm. As these plants demand large land space and energy to be grown, and their use as fuel sources can compete with their use as food, which has ethical and economical implications. BTL (biomass-to-liquid) processes use the waste part of edible plants. Newer processes are also capable of converting biological residue such as corn stover, straw and human/animal sewage into biogas and biofuels, for on-site and off-site use. According to the Office of National Statistics, approximately 62% of Municipal Solid Waste (“MSW”) is from biodegradable sources, which shows the potential synergies between Biomass fuel production and waste reduction.

v  In 2006, UK biodiesel production capacity was approximately 290m liters; demand reached about 95m litres for bioethanol and 200m liters for biodiesel. [Sources: HMRC, National Statistics]. Current legislation (Renewable Transport Fuel Obligation) requires that by 2010, 5% of all transport fuel will be derived from renewable sources.

v  Near-term projects focus on the direct combustion of energy crops and wood processing waste for power generation. An example is the 7MW combined heat and power plant at the Charlton sawmill in Buckland (Somerset).

Key Player Profiles

4) Producing Fuels from Biomass

SW Ticket To Play

D . N . A

Why (Market and Regional Strengths) v  New opportunities for crop growers v  Biodiesel production can serve as early entry,

bioalcohols as later entry v  Reduction of total waste volume v  Production of heat, power, fuels and gas from biomass

opens wide range of application

Why Not

v  Technology still under development with uncertain outcome for different types of biomass

v  Petrol distribution infrastructure not yet ready for bioalcohols

v  Need to monitor gas emissions for health and environmental risks

v  Plants for mechanical separation of biological waste from MSW needed

BICAL Energy crop specialist

Bical develops methods for crop production and onward processing focusing on miscanthus. The

company formed Bical Energy and the BiCep producer group to promote the spread of

Miscanthus.

Green Fuels Biomass processing equipment

Green Fuels produces Biodiesel processors and

hydrogen generators. The company is also currently developing bioethanol equipment and

consults in all aspects of plant construction.

Compact Power Process Technology

Compact Power has developed pyrolysis and

gasification technology, using waste and biomass, to create a method for waste processing and

renewable energy.

Market Size

L M H

Key:



5) Plastics and Electronics Recycling


Opportunity Description & Market Sizing v  Electronics: The European directive on Waste Electrical and Electronic Equipment (“WEEE”) aims to increase reuse and recycling by making producers and distributors responsible for collection and treatment of used equipment. Many electronics contain toxic substances (mercury, cadmium) as well as valuable raw material for recycling (steel, glass, silicon, lead, gold). According to the Office of National Statistics, at present less than 15% of WEEE is properly disposed of. v  Major manufacturers, such as Sony, Dell and Staples, have started recycling programmes in the last few years.

v  Plastics: Plastics consumption grows about 4% every year in Western Europe. In the UK, it is estimated that only 7% of the total plastic waste of 4.7m tonnes are currently recycled [Source: Defra]. For recycling, plastics are sorted and broken down into their constituent monomers, which can then be reused. v  One of the main problems in plastic recycling is an underdeveloped infrastructure and low market demand. Recycled plastics are mainly used in the manufacture of low-specification products. v The Government’s WRAP initiative aims to develop the recyclate markets and plastics recycling in general.

v  Key Player Profiles

5) Plastics and Electronics Recycling

SW Ticket To Play

D . N . A

Why (Market and Regional Strengths) Electronics v  Reduces toxic substances in landfills v  Increasing volume of complex electronics waste v  Recovery of valuable materials

Plastics v  Conservation of energy v  Use of plastics is growing v  Price of oil to produce plastics is volatile and high

Why Not

Electronics v  Toxicity of certain substances v  Strong competition from overseas recycling operations v  Danger of sensitive information retrieval

Plastics v  Recycling complex due to 50+ different plastic types v  Degradable plastics gaining momentum v  Recycled mainly overseas

Viridor Waste Management Waste management company for various types

of waste

Viridor is a waste service company. It currently operates 25 regional landfill sites, regional

recycling facilities and 189 waste processing sites.

CRT Heaven Machinery for the recycling industry

CRT Heaven produces recycling equipment to handle used CRT Computer and TV monitors. The

end product of the recycling process is saleable raw material.

MDJ Light Brothers Waste recycling and waste management

services

MDJ provides recycling for metal, WEEE (and WEEE plastics), plastic and other materials. The company also provides collections services for a wider range of wastes and trades the recyclates.

Market Size

L M H

Key:



6) Aerospace Energy Efficiency


Key Player Profiles

Opportunity Description & Market Sizing v  Major airliner manufacturers are investing in research to develop efficient eco-friendly airframes and engines that will both save airline companies fuel costs and decrease the impact on the environment as well reduce noise pollution, as required by EU legislation and by the Kyoto protocol. CO2 and noise emission can be reduced by modifying aircraft aerodynamics and weight ratios, as well as optimising engine performance.

v  The Strategic Research Agenda (commissioned by ACARE, Advisory Council for Aeronautics Research in EU ) has allocated €1.075 billion to the Aeronautics & Space Industry to support the objective of halving carbon dioxide emissions and reducing nitrogen oxide emissions by 80% by 2020 (Source: “Vision 2020” report)

v  In October 2006, nine European Aircraft companies announced the €1.7 billion Clean Sky initiative to develop greener aeronautics systems such as more efficient engines. A consortium of university engineers and aircraft manufacturers (Rolls Royce, Boeing and Marshall Aerospace) is also collaborating on the Silent Aircraft Initiative (SAI)

6) Aerospace Energy Efficiency

Market Size


D . N . A


v  Airliners are being pressured to develop cleaner technology as could reduce climate change.

v  Energy efficiency results in a decrease of fuel costs v  Substantial funding from institutions v  Filton is key R&D centre for next generation airframes

and engines

Why Not

v  Impact of aircraft pollution is difficult to assess v  Noise reduction can potentially reduce engine aircraft

performance v  Issue dominated by large manufacturers v  High cost of R&D

University of the West of England Academic education and research

The Aerospace Manufacturing Research Centre is a leading research group of national significance

for the aerospace industry. Thee Centre is involved in aerospace environmental issues as well as

emissions and environmental impacts.

Rolls-Royce Engine manufacturer

Since the introduction of jet-powered airliners, the fuel efficiency of aircraft has improved by around 70 per cent. Rolls-Royce wants to halve engine noise relative to 1998 levels by 2010, to achieve

10% reduction in fuel consumption in all new engines and to cut NOx emissions by 50 %.

Airbus UK Aircraft manufacturer

Airbus forecasts that the A380 will be at least four

decibels quieter than the Boeing 747-400. This equates to a perceived 50 percent reduction in noise levels. Operating costs per seat will be

reduced by about 15 percent. The A380 wings were designed and are part-built

in the Filton facility.

Key:



7) Photovoltaics


Opportunity Description & Market Sizing v  Photovoltaics describes a technology that uses solar cells to convert solar radiation into electricity. The PV cell consists of one or two layers of a semiconducting material, usually silicon.

v  The British Photovoltaic Association currently counts 138 industrial PV parks installed in the UK, with a total (peak) generating capacity of approximately 2.28 megawatt. The governmental PV Demonstration Programme has supported 80% of small to large scale programmes, counting a total installed capacity of 10MW [Source: Office of National Statistics].

v  The main area of application in a temperate country such as the UK is PV systems connected to the local electricity network. In the evening, when the solar system is unable to provide the electricity required, power can be bought back from the network. In effect, the grid is acting as an energy storage system, which means the PV system does not need to include battery storage.

Key Player Profiles

7) Photovoltaics

Market Size


D . N . A


v  PV systems generate no greenhouse gases, saving approximately 325kg of carbon dioxide emissions per year for each kilowatt peak

v  The DTI introduced a monthly allocation of £500,000 for householders wishing to apply for capital grants to install micro-generation in December 2006

Why Not

v  High capital cost of photovoltaic installations means significant government subsidies are still needed for large scale commercial implementation

v  The UK’s climate conditions are not favourable for direct solar power

Imagination Solar Roof Integrated PV

Imagination Solar has developed a Hybrid Solar system, which consists of a combination of solar

hot water and PV systems in a single roof integrated system. Other areas of expertise

include low energy building design, home energy ratings, and renewable energy systems.

Solar Ray Renewable Energy consultancy

Solar Ray focuses on residential and small

business alternative energy solutions, ranging from single panel systems for canal boat owners, to grid

connected solar roofs systems on commercial buildings.

Barum Solarheat small-scale solar power

The company, based in Devon, has over 25 years of experience in design and installation of small-

scale solar power projects. Clients include The National Trust, local

authorities, housing associations and various British Government departments.

Key:



8) CO2 Algae Transformation


Opportunity Description & Market Sizing v  Algae can be used to reduce the CO2 in exhausts from production processes. Additionally algae can absorb different types of pollutants such as nitrous oxide. A number of small international companies are looking into this new form of pollution reduction. The algae can be reused in the production of biofuels.

v  The market for algae production and processing is very small at the moment. A possible future driver may be that captured carbon emissions can be sold under the EU Emissions Trading Scheme (EUETS). According to Point Carbon, the EUETS doubled last year to EUR22.5bn.

Key Player Profiles

8) CO2 Algae Transformation

Market Size


D . N . A


v  Secondary use for production of biofuels v  Mitigating carbon emissions v  Additionally, production of algae as a Biofuel resource

reduces dependence on hydrocarbons and on converting food crops to Biofuel

Why Not

v  Early stages of development v  To develop from scratch in South West v  Engines running on bioalcohols are not yet common v  Particularly relevant for plants emitting industrial

quantities of carbon dioxide (few are present in SW)

Diversified Energy Corp Algae production systems

The company is developing an algae bioreactor that uses carbon dioxide from industrial exhaust gas to facilitate algae growth. DEC partners with

XLRenewables to commercialise the system.

GreenFuel Technologies Renewable Energy consultancy

GreenFuel's algae farms recycle carbon dioxide

from flue gases to produce biofuels and feed. The company just recently secured USD5.5m in bridge

funding.

OriginOil Developing Algae-to-Biofuel processes

OriginOil is developing a that will transform algae

into bio-oil. This new oil can be used for many products such as diesel, gasoline, jet fuel and

plastics.

Key:



9) Combined Heat and Power


Opportunity Description & Market Sizing v  Combined heat and power (CHP, also known as cogeneration) is the principle of reusing the waste heat produced in a production process or power station. The heat created as a by-product can be reused to produce electricity or usable heat. The principle of micro CHP is the use of the same principle in a house or small business. CHP plants are usually connected to the lower voltage distribution grid, which can provide additional efficiency gains.

v  The UK target for CHP plants are the contribution of 10,000MWe by the end of 2010 (5,500MWe as of 2006). In order to achieve this, the VAT on micro CHP equipment has been lowered to 5.5% and certain CHP plants are recognised under the EU Emission Trading Scheme. [Source: Office of National Statistics] v  Cogeneration offers energy savings between 15-40% when compared against conventional power stations and boilers. The initial investment in cogeneration projects can be relatively high but payback periods between 3-5 years might be expected. [Source: Delta Research, Energy Savings Trust]

Key Player Profiles

9) Combined Heat and Power

Market Size


D . N . A


v  Mature technology v  Significant energy and costs savings during operation v  Technology applicable to non-fossil fuel plants and as

wasted energy recovery systems v  Reliability of electricity production v  Reduces dependency on burning fuels and therefore

meets Kyoto’s requirements v  Technology also supports distributed power generation

Why Not

v  CHP plants primarily operate on fossil fuels v  Complications in recognising carbon emission savings v  High initial investment

Centrax Gas Turbine Division Turnkey CHP plants

Centrax manufacture gas turbine powered generator sets. Services provided range from

supply and commissioning of generator sets to turnkey contracts for CHP plants.

Dalkia Integrated company with solutions for the

water, gas and electricity sectors

Dalkia is part of Veolia Environment. The company provides energy management solutions that make

use of CHP (amongst others). Projects include CHP plants for Eli Lilly, a hospital in Birmingham

and AstraZeneca.

ENER-G CHP plants

ENER-G develops CHP (“Cogeneration”) units for on-site generation. Clients include hospitals,

universities and landfill sites. The company also offers pyrolysis and gasification plants through its

subsidiary ENERGOS.

Key:



10) Hybrid and Flexi-Fuel Engines


Opportunity Description & Market Sizing v  Hybrid engines combine benefits of internal combustion engines with electric motors. The electric motor is used to start and accelerate the car as well as for low speed driving. The vehicle’s batteries can be partly recharged when braking. The combustion engine provides propulsion for high speed driving. Apart from the electric motor, the energy storage technology is the key to widespread hybrid and pure-electric engines. v  Flex-Fuel engines work with different types and/or blends of fuel. They are especially optimised for a high concentration of alcohols (“bioethanol”) (spark ignition) or biodiesel (compression ignition). In 2006 there was no biofuel production plant in operation in the UK but bioethanol consumption reached about 95m litres. Most of the produced biodiesel (290m litres) was blended with fossil derived diesel (e.g. B20/E10). The EU’s Research Directorate-General has called for biofuels to provide 25% of European road transport needs by 2030.

v  Toyota’s launch of the Prius stimulated the car manufacturing industry to invest heavily in hybrid engines. Demand for maintenance and engineering services for hybrid vehicle owners and speciality transport companies will increase.

Key Player Profiles

Market Size


D . N . A


v  Big potential market; individual and commercial transportation

v  Profits through retro-fitting v  New fuels call for new engines and specialist

engineering services v  Biofuels offers good potential for net CO2 emission

reduction, particularly for transportation

Why Not v  Advanced engineering knowledge is required, which may

constitute a barrier to entry in some instances v  Potential concerns over land use restrictions regarding

Biofuel production

Baldor UK Electric Motors

Baldor UK is a division of Baldor Electric and

produces industrial electric motors, drives, multi-axis motion controllers, intelligent servo drives,

servo motors and linear motors.

PML Flightlink Electric Motors

Hampshire-based PML has over 30 years of

experience in design and manufacturing of electric motors, joysticks and drive systems

for defence, aerospace and mobility applications.

FEV Engine Developer

FEV is engaged in the design and development of

internal combustion engines and provides engineering services around hybrid drives. Its

clients are large drivetrain OEMs.

10) Hybrid and Flex-Fuel Engines

Key:


Cleantech pack.ppt (read only)

Technology

domestic energy

aerospace energy efficiency

number of relevant companies

individual companies

significant companies

related generation companies

hrising energy prices

wave energy copyr