Making Green Happengreenstat.no/files/2017/03/Greenstat-AS-Making-Green-Happen_.pdf · Making Green...

Making Green Happen

Greenstat is connecting industry, knowledge and politics, opening new, green market segments in Norway and abroad

Surplus and trapped renewable energy is stored, distributed and made accessible to growing zero emission markets

Oil production peaked in 2001

1970 1976 1982 1988 1994 2000 2006 2012 2018 2024 2030

Million barrels per day3,4

3,0

2,6

2,2

1,8

1,4

1,0

0,6

0,2

Source: Fractionflow.com

Norway in a unique position

⁃ 97 % renewable electricity production

⁃ >60 % overall renewable energy usage with a growing commitment to become 100 % fossil free

⁃ Surplus of renewable energy, annually ~20 TWh

⁃ Skilled resources laid off in the oil and gas industry

⁃ Limited grid capacity for export

⁃ Political will to support energy intensive industries

Final energy consumption (2014) - 227 TWh (Terawatt Hours)

Oil

CoalNatural Gas

Biofuel

Electricity

Heat

GREENSTAT AS(2015)

Greensight AS(2016)

Green Hydrogen AS

(2017)

«Local Energy AS»

(planned 2017)

Investments: - Glomfjord Hydrogen AS

(2016)

Company structure

Green Insight / Greensight AS

- Knowledge based

- Zero emission framing

- Based on publicly available data sources

- IEA

- NVE

- SSB

- Dynamic scenario modelling

- Frequent updates based on technology development and political changes

Understanding the historic and present energy situation

Ref: http://www.iea.org/sankey

Oil & Gas

Export

Hydropower

Industry

Private householdsPower Grid

Transport

Preparing for the future energy mix

Oil & Gas Export

Hydropower

Transport

Private households

Wind

Solar

ExportHydrogen

Power Grid

Industry

Local Energy

More complex local energy systems

Socket parity vs. Grid Parity- Today

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Power Grid Storage

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Grid parity

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Socket parity vs. Grid Parity- Future

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Solar – Prices going down

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PV cells in $ per installed Wp (Watt peak)

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Historical investments Future investments

MNOK

Hydrogen

National budget highlights related to hydrogen (october 2016)

⁃Incentives for H2 cars confirmed until 50 000 cars or until 2025

⁃H2 ferry to be built by 2021

⁃Electrical tax avoided on hydrogen production for transport

⁃ENOVA (funding scheme) to support hydrogen infrastructure roll out

Hydrogen production

Industry

Transport Land

Transport Sea

Export

SolarOcean Power

Hydro (small)Wind

Hydropower

Offshore Wind

Green Hydrogen value chain- From renewable energy to end consumer

Hydrogen for industrial use - TiZir

- TiZir titanium to replace coal with hydrogen at their facility in Tyssedal

⁃ 90 % reduction in CO2 emissions in the production

⁃ Further CO2 emission reduction by using Green Hydrogen compared to fossil H2 production

⁃ 121 000 tons CO2 saved yearly

⁃ First step: demonstration plant for hydrogen (2017-2019)

⁃ with Enova support (NOK 122 million)

⁃ Second step: full-scale pilot (2020)⁃ Up to 30 tons of hydrogen per day needed

High political focus due to major CO2 reduction

Hydrogen for industrial use - TiZir

⁃Break-even price⁃ 22 NOK/kg H2

⁃Life span⁃ 30 years

⁃Yearly revenues⁃ 250 MNOK

⁃Investment costs⁃ 550 MNOK-600 MNOK

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Accumulated revenue Investment

Maintenance needed every 8-10 years

MNOK

Hydrogen for industrial use - TiZir

Production machinery

77 %

Start up commissioning

7 %

Building12 %

Power cables2 %

Projecting2 %

Investment costs

Maintanence production machinery

2 %

Labour costs2 %

Buffer OPEX1 %

Maintanence building

1 %

Grid rent3 %

Power91 %

Other OPEX6 %

Operational costs

Hydrogen for industrial use - Mongstad

⁃ Hydrogen to be used for oil refining

⁃ Equivalent in size to the TiZir project ~30 Ton H2 per day.

⁃ Hydrogen to be supplied “over the fence”.

⁃ H2 factory built according to industry standard to reduce cost.

Political drive to initiate the project

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Maintenance needed every 8-10 years

MNOK

Demand 1,3 Tons H2 per hour 24/7

~20-25 NOK per kg H2 (competitive to steam reformed hydrogen)

0,20-0,30 NOK/KWh + net tariff

Max capacity 83 MW Normal load 80%, 66 MW

Hydrogen production facilityGrid power97% renewable

Mongstad Project summary

Hydrogen production plant - Glomfjord

- Former industrial buildings (REC) to be reused for hydrogen production

- Historical hydrogen production in the same area, 135 MW electrolysers (NEL)

- Local and national funding for job creation

- Potential for up to 8 ton daily production

- Starting with one electrolyser august 2017

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Surplus region, ~7 TWh

Maintenance needed every 8-10 years

Hydrogen ships under development

⁃Strong political drive to decarbonize the maritime sector⁃ Ferries⁃ Fast going vessels⁃ Cruise⁃ Offshore vessels⁃ Yatch

⁃First electric ferry “Ampere” already in operation

⁃Two more electric ferries under construction

⁃First hydrogen ferry planned in 2020

Ferry projects

⁃ Average need of 1000 kg H2 per day, per ferry

⁃ Typically 2-3 ferries

⁃ Total of 54 ferries connected to the national road system + regional connections

⁃ Contracts, 8-14 years

⁃ Zero Emission solutions preferred

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MNOK

Large number of tenders in the pipeline

Maintenance needed every 8-10 years

Hydrogen Viking

Sunseeker predator 95

Goals:

⁃45 knots June 2018

⁃Hybrid fuel cell/ battery

⁃Zero emission

Renewable hydrogen export (Norway/ Iceland)Norway - Hydropower

Iceland – Geothermal energy

LH2 carrier Export markets – Japan, US, Europe

Export projects

⁃ Transported by ship

⁃ Liquefied Hydrogen LH2

⁃ ~11 000 tons of hydrogen per ship

⁃ Could go through the North/East route when ice free

⁃ Research projects initiated

⁃ Ministry of Trade, Industry and Fisheries involved

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MNOK

Japan’s H2 strategy assumes 40 % hydrogen by 2050 in total energy mix

Hydrogen stations being built

Making Green ROI Happen

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Knowledge Energy Technology End market End to end services

Financial Model

Knowledge

⁃Long term, diversified portfolio

⁃Steady growth

⁃5-15% annual ROI

Investment model – co invest with the people of Norway

Greenstat AS

(later ASA)

GreensigthAS

Greenstat Hydrogen AS

GreenstatProjectCo 3

GreenstatProjectCo 4

GreenstatProjctCo nn

• National investors• The Norwegian people• Foreign investors• Government

• Local investors • City councils• Local community

Preferred ownership structure – Top company

⁃Diversified ownership

⁃No controlling owners

⁃Maximum ownership 20 %

⁃Desired investor groups⁃ Private investors (small)⁃ Private investors (big)⁃ Investments funds⁃ Greenfund AS (Norwegian governmental fund to be

established with a capital base of 20 Billion NOK)⁃ International investors⁃ Employees

Private (small)

Private (big)

Funds

Greenfund AS

International

Employees

Ownership structure - Project company

Example, Glomfjord Hydrogen AS

⁃Founded June 2016

⁃Ownership⁃ Meløy Næringsutvikling (local funding)

⁃ Meløy Energi (local utility)

⁃ NEL Hydrogen (technology partner)

⁃ Greenstat (hydrogen production)

⁃Expected investments 90 MNOK

⁃Expected yearly income ~20 MNOK

Meløy Næring

14 %

Meløy Energi28 %

NEL Hydrog

en29 %

Greenstat

29 %

Agreements made with key customers and industrial partners

⁃ Letter of intent, Hydrogen production, TiZir and regional utility

⁃ Partnership Agreement, Electrolyser technology, NEL Hydrogen

⁃ LOI to be signed for H2 ship, Vision of the fjords (Ship of the year 2016), Fjord1 and Brødrene AA

⁃ Ongoing studies with regional partners: ⁃ Lindås⁃ Høyanger⁃ Glomfjord⁃ Hardanger⁃ ++

⁃ Close dialogue with utility companies: ⁃ BKK⁃ SKL⁃ Lyse⁃ Varanger kraft⁃ Statkraft⁃ ++

⁃ More co-investments, partnership agreements and commercial agreements are in progress

Key peopleVegard Frihammer

Green Executive Officer

Vegard@Greenstat.no

@frihammer

Founder, engineer, green entrepreneur

- MEB, UWA, Perth, Australia

- MEE, Curtin, Perth, Australia

- Bachelor Automation, HIB, Bergen

- Background from oil & gas and maritime sector

- More than ten years experience from the renewable sector

- Six years at Christian Michelsen Research. Last position, Head of Renewable Energy

- Strong political and industrial network

Bernt Skeie

Chairman of the board

Bernt@Greenstat.no

@bernt_skeie

Co founder, economist, substantial network

- Executive MBA, NHH, Bergen

- BSc. Business, NHH, Bergen

- Background from oil & gas sector

- Proven track record when it comes to technology and business development

- CEO at CMR Prototech

- Multiple board positions

- Active involvement in Greenstat

Resources Key Partners

Tomas Fiksdal

Project Manager Hydrogen

Tomas@Greenstat.no

Kristian R. Fauske

Financial analyst

Kristian@Greenstat.no

Hilde Holdhus

Manager/ Energy Forecaster

Hilde@Greenstat.no

Tore Solheimslid

Energy analyst/ hydrogen

Tore@Greenstat.no

Knowledge

⁃ University of Bergen

⁃ NHH

⁃ Christian Michelsen Research

⁃ HIB

Network

⁃ NCE Maritime Cleantech (Cluster)

⁃ Bergen Chamber of Commerce

⁃ Climate partners Hordaland (network)

⁃ ByNature

Industry

⁃ Hellenes

⁃ Sunnhordland Kraftlag

⁃ Bergen Technology Transfer

⁃ Trond Mohn

Making Green Happen