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1 energy 07 RESEARCH DEVELOPMENT DEMONSTRATION

2 energy 2007 Annual report on Danish energy research programmes published in cooperation between Energinet.dk, the Danish Energy Authority, the Danish Energy Association, the Programme Committee for Energy and Environment under the Danish Council for Strategic Research and the Danish National Advanced Technology Foundation, June Digital version: ISSN Cover photo credits: Front page: Colourbox. Back page: Jørgen Schytte/Energinet.dk and Louis Poulsen Lighting. Design & layout: MONTAGEbureauet Aps Editors: Inger Pihl Byriel and Helle Justesen (Energinet.dk), Aksel Beck (Danish Energy Authority), Jørn Borup Jensen (Danish Energy Association), Klaus Rosenfeldt Jakobsen (Danish Agency for Science, Technology and Innovation) and journalist Steen Hartvig Jacobsen. The publication is downloadable from downloadable from downloadable from the Danish Energy Association s research homepage at

3 Preface Danish energy research has moved into an exciting and challenging phase. Hikes in oil prices, insecure energy supplies, climate policy obligations and the globalisation have directed our focus towards the development of new, cleaner and more efficient energy technologies. Promising international markets for newly developed energy technologies are appearing on the horizon. Moreover, new strong players in the global market present a challenge to established Danish strengths. With the Danish Act establishing the Energy Technology Development and Demonstration Programme, EDDP, coupled with the allocation of the globalisation pool, the Danish government has taken steps to realise its vision of a substantial increase in public funding for energy research. The correlation between basic research and practical application must remain intact. In this annual report, the Danish energy research programmes from Energinet.dk, the Danish Energy Authority, the Danish Energy Association, the Programme Commission on Energy and Environment under the Danish Council for Strategic Research and the Danish National Advanced Technology Foundation coordinate their annual reports for the first time ever. This cooperation project provides a natural extension to the coordination of the annual calls for proposals, the implementation of joint information meetings and other initiatives that give the users of the energy research programmes a clear overview of the possibilities of diversity. The objective of energy 2007 has been to give the reader an impression of how the energy research programmes interact in addressing key energy technology challenges also in an international context. The five energy research programmes are presented in separate sections, and the editors hope that the detailed project descriptions, containing contact data and resumes, may offer a valuable overview of the current state of Danish energy research and facilitate the formation of networks and partnerships in the energy sector. energy RESEARCH DEVELOPMENT DEMONSTRATION

4 Table of contents Energy Energy Technology Development and Demonstration Programme, EDDP... 4 Megavind innovation partnership... 8 Danish research into solid-oxide fuel cells, SOFC Technological development of liquid biofuels EU energy technology research, development and demonstration Overview of public funding for energy research Energinet.dk ForskEL Editorial news articles Overview of ForskEL projects funded, in progress and completed Danish Energy Authority ERP Editorial news articles Overview of ERP projects funded, in progress and completed Overview of projects under the Nordic Energy Research Programme Danish Energy Association ELFORSK Editorial news articles Overview of ELFORSK projects funded, in progress and completed Danish Agency for Science, Technology and Innovation DCSR-PCEE Editorial news articles Overview of DCSR-PCEE projects funded, in progress and completed Energy projects of the Danish National Advanced Technology Foundation Useful websites Photo: istockphoto 2 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

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6 Energy Technology Development and Demonstration Programme, EDDP The EDDP energy technology programme will help introduce new technologies to the market There is broad political backing from Danish MPs for the government s proposal to replace the Energy Research Programme (ERP) with the Energy Technology Development and Demonstration Programme (EDDP). Underpinned by more funds and a stronger emphasis on the demonstration of newly developed energy technologies, the new programme will promote the key energy policy objectives of an environmentally sustainable energy system, greater security of supply and increased economic growth through more high-tech workplaces. The EDDP will be managed by an independent supervisory board of seven members appointed by the Danish Minister for Transport and Energy on the basis of their personal insight into energy technologies, environmental matters, research conditions and international issues. The chairman is required to have experience from the business community, and two of the members will be appointed on the recommendation of the Minister for the Environment and the Minister for Science, Technology and Innovation, respectively. Photo: Colourbox Photos: Jørgen Schytte/Energinet.dk Public energy research funding (DKK million) Sponsor Ministry of Transport and Energy ERP funding EUDP funding DCSR-PCEE Programme PSO schemes Energinet.dk (ForskEL) Danish Energy Association (ELFORSK) Danish National Advanced Technology Foundation (about 20% of funding) Total public funding The table shows a breakdown of public energy research funding for Besides funding for Danish energy research programmes, the Danish State contributes about DKK 49 million a year to EU energy research funds. In A visionary Danish energy policy 2025, the government sets the stage for raising total public funding for energy research to one billion Danish kroner by Source: Danish Energy Authority, Danish National Advanced Technology Foundation, Political agreement of 2 November 2006 on allocation of the Globalisation Pool Condition: The Danish National Advanced Technology Foundation continues to allocate about 20% of its funding budget to energy projects as in 2006 and energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

7 EDDP is a new programme designed to play a pivotal role in the development and market introduction of new, efficient and environmentallyfriendly energy technologies in Denmark and to promote growth and employment on the basis of business and knowledge strengths (General explanatory notes on the EDDP Bill) The board will be supported by an independent secretariat to be located in the Danish Energy Authority to ensure the necessary interaction with Denmark s energy policy. The head of the secretariat will be appointed by the Minister for Transport and Energy on the recommendation of the chairman of the supervisory board. Prioritised focus areas For the period 2004 to 2007, an annual amount of DKK 76 million was available for project funding under the ERP programme. In the Danish Finance Act 2007, an additional amount of DKK 110 million of the Globalisation Pool has been set aside, DKK 50 million of which is earmarked for demonstration projects involving secondgeneration biofuels. The increased allocation will make it easier for the supervisory board of the EDDP to meet the need for public funding for the cost-intensive demonstration of newly developed technology. As a general rule, the EDDP will provide funding for the development and demonstration of energy technologies. However, the programme may also support actual research activities, for instance activities undertaken as part of the process optimisation from the laboratory to a full-scale plant. The EDDP aims at a considerable extent of private co-financing of funded development and demonstration projects. The EDDP is targeted broadly at the development of energy technologies, including the following focus technologies: Second-generation biofuels for transport and other uses of biomass Wind power and other renewable energy technologies Hydrogen and fuel cell technologies Low-energy buildings Energy-efficient solutions and demand response Integrated energy systems (integration of technologies), including transport of energy and in connection with energy cities More efficient methods for recovery of oil and gas More efficient and environmentally-friendly production (electricity and heat), including carbon capture and storage Photos: Jørgen Schytte/Energinet.dk National coordination By undertaking special duties in the field of development and demonstration, the EDDP marks a division of work in relation to the Programme Commission on Energy and Environment Programme under the Danish Strategic Research Council, which places the emphasis on actual research activities of strategic significance in its allocation of funding. The EDDP aims to support the development of technologies for pilot plants and full-scale demonstration in the areas where strategic research results in promising technological development with substantial market potential. The consumer-financed energy research programmes administered by Energinet.dk (ForskEL) and the Danish Energy Association (ELFORSK) provide funding for environmentally-friendly electricity production technologies and efficient energy use in electricity consumption, respectively. Since 2005, an increased funding limit has been available under the ForskEL programme, one of the purposes of which is to meet the need for the demonstration of newly developed electricity production technologies. energy RESEARCH DEVELOPMENT DEMONSTRATION

8 Energy Technology Development and Demonstration Programme, EDDP The EDDP will contribute to organising and supporting project consortiums the objects of which are to demonstrate such technologies in practice and bring them yet another step closer to commercialisation. In efficient energy use, this can for instance be in the form of integrated projects, such as the demonstration of concepts for low-energy buildings. In its first allocations, the Danish National Advanced Technology Foundation has also provided considerable funding for energy Strategic partnerships The duties of the EDDP s supervisory board and secretariat are, in addition to specific project funding, to promote public-private cooperation between companies, knowledge institutions, investors and authorities. The EDDP will contribute actively and in an open process to organising such integrated cooperation forums that can undertake to carry out needs analyses, formulate strategies in selected technology areas and prepare relevant project applications. In the public-private partnerships, the participants can also take part in each other s competency areas and processes and, on that basis, build a development environment across the boundaries of traditional competencies. In the initial phase of such a partnership, the participants join forces to analyse needs and identify focus areas and projects of technological and commercial relevance. This cooperation may develop into common strategies for research, development, demonstration and innovation where technological and commercial potentials are taken into account. Photo: Jørgen Schytte/Energinet.dk projects. This has been motivated by a desire to promote, more generally, the technological development to the benefit of economic growth, whereas the EDDP is a targeted and integral part of energy policy and business development in the energy field. It calls for close cooperation and knowledge sharing between the two schemes, not least in the development of public-private partnerships and effect measurements of completed projects in relation to subsequent commercialisation. Similarly, there are expectations of closer cooperation with Vaekstfonden, which works on the basis of a commercial investment strategy. Vaekstfonden has to date been reluctant to invest in the energy sector although the sector holds substantial potential for venture investments. This can be ascribed to the fact that access to public co-financing of demonstration projects has been insufficient until now. Project funding from the EDDP can thus be instrumental in reducing the risk associated with the capital investments that are usually necessary for bringing new technologies into the commercial market. The starting point for the practical work of the EDDP s supervisory board and secretariat may be the partnerships that already have been or are being established in the fields of wind energy, hydrogen/fuel cells, biofuels and energy efficiency improvements to buildings. Some of these partnerships have been established in cooperation with the Ministry of the Environment in keeping with the Danish government s action plan to promote environmentallyfriendly technology. The EDDP may also draw on the technology-specific research strategies formulated under the Energy Research Programme and innovation-strategic analyses conducted by the Danish Energy Authority in liaison with the Danish Board of Technology. More over, new knowledge is accumulated through ongoing ERP-funded research into the innovation processes of the energy sector. Technology strategies New and future partnerships may assume a central role in the work to update the existing strategies for research, development, de monstration, innovation and market introduction. The EDDP Act gives the EDDP a special role for this purpose. In the period from 2003 to 2005, the Danish Energy Authority, in cooperation with Energinet.dk (formerly Eltra and Elkraft System), formulated various strategies for the use of fuel cells, biomass for CHP, wind energy, photovoltaic cells, energy-efficient consumption technologies, hydrogen technologies, liquid biofuels and wave power. In addition, Energinet.dk has arranged for the drawing up of a strategic analysis of the incorporation of solar power into CHP systems, as well as an 6 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

9 Needs analyses and identified potentials will provide the foundation for ongoing development of general strategies for technology areas and the combination of areas comprising the full development chain from research to use (General explanatory notes on the EDDP Bill) funding for needs analyses and strategy development will also be available. International initiatives The EDDP Act sets the stage for the continuation of ERP initiatives under the new programme in connection with international cooperation on energy research. The new EU framework programmes for the period 2007 to 2013 will be a central task in that context. The Seventh Framework Programme recommends an about 60% higher budget allocation to the energy programme until 2013, and Danish strengths such as renewable energy and energy efficiency will gradually gain more emphasis in the programme. Photos: Jørgen Schytte/Energinet.dk updated strategy for integrated research, development and education initiatives to support the future of the Danish oil industry. The work involved in updating and operationalising these strategies may be developed even in the early phases of the public-private partnerships, and this task can contribute to developing more integrated forms of cooperation and actual project consortiums. Hence, as one of its first activities the Megavind partnership has prepared a proposal for a strategy for Denmark s future as a competency centre of wind power, which is described in more detail on pages 8-9. Another central role for the strategic partnerships may be to follow up existing strategies with roadmaps identifying, more specifically, the players who are able to bring promising energy technologies closer to the market through further research and product development. It appears from the EDDP Act that the EDDP will not only play a proactive and dynamic role in this process, but that the programme can also fund specific initiatives. This could be activities that may result in new alliances between companies and between companies and knowledge institutions, and the possibility of EDDP The Competitiveness and Innovation Framework Programme (CIP) also aims to encourage non-technological energy research in the operational programme called Intelligent Energy Europe, whose funding will double by In cooperation with the Danish Ministry of Science, Technology and Innovation, the Danish Energy Authority and Energinet.dk coordinate the Danish initiatives in the energy-relevant technology platforms that conduct strategy analyses on future research needs on behalf of the European Commission. The Danish public-private partnerships are expected to play an important role in the endeavours to strengthen the Danish players position in this process. For more information about EU energy research, see pages The EDDP will also be able to finance Denmark s participation in the IEA s research cooperation. The IEA Committee on Energy Research and Technology (CERT) has created more than 40 Implementing Agreements to provide a forum where interested member countries exchange knowledge on the latest national research findings. At the moment, Denmark participates in about half of these agreements. Finally, the EDDP may choose to make contributions to Nordic Energy Research, which adopts four-year programmes within a range of cooperation projects between Nordic players, especially projects addressing the energy market, renewable energy, hydrogen/ fuel cells, energy efficiency and the impacts of climate change. energy RESEARCH DEVELOPMENT DEMONSTRATION

10 Megavind innovation partnership Strategic wind energy research to maintain Danish competency centre The long-standing research cooperation between Risø National Laboratory-DTU and the wind turbine manufacturers has secured the Danish wind power industry a very strong position in the rapidly growing global market. The Danish competency centre is facing sweeping challenges these years, however, both from big international producers and from structural weaknesses in the wind power industry and among relevant research institutions. Integrated strategy Against this background, the newly established Megavind partnership provides a platform for stronger coordination of research, education, testing and demonstration. An effort to target strategic research will be combined with an integrated strategy for valida - tion, testing and demonstration of components, wind turbines and wind farms as well as the incorporation of wind power plants into the energy system. With its update of the original wind power technology strategy of 2003, Megavind continues the extended coordination activities seen in the field of Danish wind energy research. The Danish Energy Authority s ERP programme contributed for years to the establishment of a globally leading research environment around Risø National Laboratory. In 1999, when the TSO assumed responsibility for managing the R&D programme for environmentally-friendly electricity production, the ForskEL programme became an essential prerequisite for the building of special Danish competency in offshore wind energy. In recent years, the Danish Council for Strategic Research has ensured through its Programme Commission on Energy and Environment that funds and activities are available in research education programmes for addressing the wind energy sector s longer-term strategic research needs. Photo: Nysted offshore wind farm Average size of new wind turbines installed in IEA member countries (kw) Source: IEA Wind Energy, Annual Report 2005 Megavind: environmental technologies partnership The environmental technologies partnership known as Megavind builds on the activities of the Danish Research Consortium for Wind Energy from 2002 with representatives of the wind power industry. Megavind has the following partners: Vestas Wind Systems A/S, Siemens Wind Power A/S, DONG Energy A/S, the Technical University of Denmark (DTU), Risø National Laboratory-DTU, the University of Aalborg, Energinet.dk and the Danish Energy Authority. The Danish Wind Industry Association serves as secretariat to Megavind. Higher efficiency in Danish design Since the mid-1990s, a substantial part of Danish wind power research has been undertaken under the auspices of a long-term programme for aeroelastic design. It was the disciplines of aerodynamics and structure dynamics that were combined into one strong inter-disciplinary research environment made up of Risø and the DTU, which have now merged into one university in organisational terms. The aeroelastic research environment, in close cooperation with the Danish wind turbine manufacturers, has developed various sophisticated simulation models, which have made it possible to include CFD calculations in the blade design process and to change design concepts for controls, components or the whole turbine without carrying out costly full-scale testing. The merger between Risø National Laboratory and DTU will strengthen research education in this key area in the years ahead. DTU s international wind master s degree will achieve an even broader and technologically stronger platform. The sophisticated aeroelastic calculation models enable the wind power industry to handle increasingly more comprehensive and 8 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

11 Megavind s overall strategy: A well-functioning learning and innovation environment calls for the interplay of validation, testing and demonstration, research and education. Components and turbine parts Wind turbines and wind farms Wind power plants System integration and interaction with other energy sources Validation, testing and demonstration Optimum wind utilisation Efficient and reliable turbines Optimum location Research Management of wind power plants Management of an energy system based on wind power and other energy sources Education complicated calculation tasks. One of the benefits achieved is more accurate calculations of the design loads to which the key components of the wind turbine are exposed. In these circumstances, the industry can dimension its turbines with less uncertainty and, in that manner, reduce its production costs. Special offshore needs The endeavours to move a considerable part of the new wind turbine capacity offshore have also had an impact on the research market. Denmark has developed into a global centre for offshore competency, and Danish wind turbine manufacturers hold an absolutely dominant position in this market segment. In accordance with the Danish government s instructions to the power stations to build large-scale demonstration offshore wind farms, a number of offshore-related research projects were launched under the ForskEL programme. Measuring programmes, wave forecast models, calculation of the wake effect in offshore wind farms, experience collection, etc. These projects, together with the environmental follow-up programme mentioned on pages 32-33, have provided essential new knowledge about the special considerations to be taken into account in the planning of offshore wind farms. Subsequent offshore wind energy projects have been put out to tender in a way that has increased interest in the special operating and maintenance costs of offshore wind farms. These costs are typically in the order of 25-30% of total costs per kwh produced, and in the short term a substantial part of the potential for the optimisation of offshore projects lies in this area. For energy companies operating in a liberalised electricity market, it is more important that the wind turbines can deliver stable production at a low cost rather than being able to produce as much as possible. With this in mind, the Programme Commission on Energy and Environment under the Danish Strategic Research Council has initiated a major project aimed at optimising the economics of offshore wind farms by pooling multiple scientific disciplines. Some of the Programme Commission s other projects in progress are designed to accumulate new knowledge about wind loads for 12 MW wind turbines and develop new load calculation methods. Key value chain components In its proposal for an update of the wind energy technology strategy, the Megavind partnership emphasises that the strategic research should encompass the whole value chain from the development of components and turbine parts to the integration of wind power in the overall electricity system. In this way the Danish research environments can develop the basic technological solutions that are capable of maintaining Denmark s leadership position. The special Danish strengths are mainly centred on the fields of aerodynamics, electrical systems, electrical technology, meteorology, materials and the special conditions for offshore projects, and stronger focus should be placed on these core competencies, which will represent the crucial cornerstones of the wind power industry s future competitiveness. Moreover, it is important for the Danish research environment to have a broad spectrum of research resources, allowing the Danish wind energy sector to maintain its competencies and knowledge about the whole value chain. Megavind therefore invites the Danish research environments to strengthen their cooperation with foreign environments, both in the areas where they are strongest themselves and in the areas where Danish researchers may acquire new knowledge through international alliances. energy RESEARCH DEVELOPMENT DEMONSTRATION

12 Danish research into solid-oxide fuel cells, SOFC Danish strategy has paved the way for competitive SOFC design Internationally, there are huge expectations that fuel cells, within the next few decades, may become a flexible and environmentally-friendly alternative to conventional CHP generation. Thanks to a long-term research effort and an integrated strategy, Danishdeveloped SOFC technology has taken a favourable position in the international race. Focus on costs Since 1989, the Danish Energy Authority s ERP programme has supported basic materials technology research at Risø and the work undertaken by Haldor Topsøe A/S to optimise stack design. According to research professor Mogens Mogensen from Risø, who has been involved from the initial stage, the SOFC programme reached a decisive milestone in 1995 when the Danes managed to design a 0.5 kw cell stack, which was in operation for 500 hours. At that point, it was decided that the focus would now also be directed to cost-cutting measures by optimising the correlation between materials lifetime, fuel cell efficiency and expected production costs. It has been vital to the development of the SOFC programme that a company like Haldor Topsøe A/S has participated from the outset with a commercial aim. - Some of our international competitors, for instance in the United States, who have been able to draw on massive public programme funding, have concentrated too narrowly on the ability to launch an impressive technological flagship without prioritising commercial production. It has been a tremendous advantage for the Danish SOFC environment that a both visionary and commercially oriented company like Haldor Topsøe A/S has been one of the central players from the outset. - To develop more efficient SOFC stacks, we have to identify more suitable materials on a continuous basis, and it is a well-known fact that it is cheaper to screen potential materials in advance than to test them in a fuel-cell design. Our focus on materials screening has enabled us to establish a solid materials technology platform for our continued work on cost-effective design, says Mogens Mogensen. Common strategy In 2002, steps were taken to initiate strategy work for the key potential players from research institutions, industry and energy companies. In this forum it was decided that the continued fuel cell research in Denmark should focus on two main tracks: SOFC and PEM. In conjunction with the common strategy of 2004, the participating companies drew up confidential roadmaps convincing the decision-makers of the research programmes that it would be realistic to expect the arrival of Danish fuel-cell products in a commercial niche market within 8 to 10 years. Given these circumstances, the continued project funding was coordinated between the ERP and Photo: Jørgen Schytte/Energinet.dk ForskEL programmes, which ensured that both Risø and Haldor Topsøe A/S could continue their strategic research at a high level. Niels Christiansen, Technical Director of Topsoe Fuel Cell, underscores that a good mutual understanding of actual technological development has existed between the funding bodies and the research environments throughout the process from 1989 onwards. An industrial partner is also bound to gear itself to the thought that it may be necessary to pursue a long-term research and development strategy to achieve industrially relevant results. Micro CHP concept Danish SOFC development is progressing rapidly these years. Because of the possibility for the ForskEL programme to provide funding for demonstration projects, a broad consortium headed by Danfoss as project manager has started testing a concept for micro CHP, which is designed to test both the SOFC and PEM fuel cell technologies. The composition of the consortium means that the strategy objective to involve more Danish suppliers in the plant 10 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

13 concept has been met. Moreover, Energinet.dk has formulated some demands that will make it easier to use micro CHP plants for the future regulation of the electricity supply system. According to Per Balslev, project manager from Danfoss, the Danish Gas Technology Centre was the venue for unbiased testing of the various plant types during the first project phase and, with additional funding from the ForskEL programme, testing on about ten professional users is now being prepared. Risø National Laboratory-DTU has acquired highly sensitive scales and microscopes to be able to scan a large number of materials for their properties. This demonstration phase is considered to be vital for a subsequent commercial breakthrough. We cannot gain a realistic picture of the actual lifetime of the micro CHP plant until it is exposed to cyclical operational loads under realistic conditions. Practical testing is also necessary to be able to identify where operation and service can be optimised. The two industrial partners find, for instance, that it will be a tremendous advantage for the development of the forthcoming commercial mass market that we involve heating, ventilation and sanitation engineers and other professional workmen in the early stages of practical testing. They also see vast opportunities in the Energy Technology Development and Demonstration Programme, which will serve as an important sounding board financially as well as analytically in the endeavours to ensure that the Danish SOFC technology catches on in the global market. Electrochemistry Research Center This demonstration phase coincides with the continued development of the two next generations of SOFC, to be designed with cheaper materials. Attempts are also being made to use the electrochemistry competency, evolved during the SOFC research, for other applications. The grant funding in excess of DKK 25 million provided by the Programme Commission on Energy and Environment under the Danish Strategic Research Council has made it possible to establish the Strategic Electrochemistry Research Center (SERC), which is currently made up of six research institutions and eight commercial enterprises. Mogens Mogensen, who heads the new SERC centre, expects to achieve huge synergy gains as the centre has managed to bring together non-competing enterprises in a mutually committing research programme. The centre focuses on using electrochemical cells for the production of fuels, cleaning of exhaust gases and gas sensors, among other uses, and will also contribute to the improvement of third generation SOFC. Photos: Risø National Laboratory-DTU Strategic Electrochemistry Research Center (SERC) SERC has been established with grant funding from the Danish Strategic Research Council, which runs until 31 December The head of the centre is research professor Mogens Mogensen of the Fuel Cells and Solid State Chemistry Department at Risø National Laboratory-DTU. Other participants are the Department of Chemistry, the Department of Physics and the Department of Mathematical Modelling (all DTU), the University of Southern Denmark, Lund University and eight innovative companies. SERC s activities can be followed at Hydrogen and Fuel Cell Academy (HyFC) HyFC has been established as a research school in fuel cell techno logy at the Department of Energy Technology Aalborg University, in cooperation with Risø National Laboratory-DTU and the Department of Chemistry-DTU. HyFC operates on the basis of grant funding from the Danish Research Training Committee. The chairman of the academy is Søren Linderoth, who is Head of Programme at Risø s Fuel Cells and Solid State Chemistry Department and adjunct professor at the Department of Energy Technology. Nearly 20 students are currently enrolled in HyFC s PhD programmes, a number that is expected to reach about 30. HyFC s activities can be followed at energy RESEARCH DEVELOPMENT DEMONSTRATION

14 Technological development of liquid biofuels Great expectations for Danish production of second-generation biofuels The conclusions of the EU summit of March 2007 and the Danish government s proposal of 19 January 2007 to make biofuels account for at least 10% of the transport sector s energy consumption by 2020 have intensified the focus on research into second-generation biofuels. To reach the target, it is essential for this type of fuel to be available in the market. Danish head start Danish research environments have for years been using Danish competencies in the field of biomass waste management for developing new and more efficient technologies for biomass treatment to make it suitable for fermentation. For some years, the Danish Energy Authority s ERP programme was the primary supporter of basic strategic research into second-generation biofuels. However, a major Danish project group under the banner of Elsam (now DONG Energy) also managed to obtain funding from the EU Energy Research Programme, and in public energy research funds have been provided for more than 20 projects covering a combined research budget in the order of DKK 233 million. A Danish technological breakthrough in one of the US energy research programmes seriously stimulated Danish research into biofuels from biomass waste. Celluloseand lignocellulose-containing biomass requires enzymatic pre-treatment to be capable of fermentation, and only when Novozymes had cut the cost of enzyme treatment by a factor of 12 did this raise realistic hopes that secondgeneration transport fuel would become competitive. Danish Minister for Transport and Energy, Flemming Hansen, was all smiles when he tapped off the first bioethanol from the MaxiFuels pilot plant at the DTU in the autumn of Project manager, professor Birgitte K. Ahring (centre), and Anne Grete Holmsgaard, Deputy Chairperson of the Energy Policy Committee of the Danish Parliament, are watching. Photo: Bo Jarner Public research funding for biofuels in DKK million (funded projects and projects in progress) ECSR-PCEE ForskEL ERP ATF NER 15,6 35,7 27,8 10, ,5 18,1 28,1 28 Grants Own funding Photo: Jørgen Schytte/Energinet.dk Overview of current and expected (2030) production prices of biofuels Bioethanol from cane sugar Bioethanol from maize Bioethanol from sugar beet Bioethanol from wheat Bioethanol from lignocellulose Biodiesel from animal fat Biodiesel from vegetable oil Synthetic diesel (Fischer Tropsch) USD/litre The prices are estimated as production prices from the generating facility. For comparison, the IEA uses a diesel price of USD /litre and a gasoline price of USD /litre at an oil price of about USD 60 USD/barrel. Source: IEA 1G biofuels from food crops 2G biofuels from waste The IEA s calculations show that bioethanol from sugar cane cultivated in the tropics and second-generation bioethanol from lignocellulose, in the long term, are likely to become the most competitive biofuels. 12 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

15 Danish energy companies management of straw and wood chips, the development of biogas processes and a strong scientific biotech environment made up of both research institutions and innovative companies have, between them, provided a solid platform for securing Danish research an international frontrunner position. Two pre-commercial main tracks Over the past five years, two pre-commercial main tracks have emerged: The IBUS Process, the development of which started with EU funding, seeks to optimise bioethanol production combined with CHP and the production of animal feed, whereas the MaxiFuels concept optimises production in relation to biogas production etc. The Programme Commission on Energy and Environment under the Danish Strategic Research Council has been able to launch a range of visionary projects that try to embark on entirely new paths in an environmentally-friendly and socio-economically be neficial production of bioethanol. A biocatalytic refinery will thus try to generate synergies between catalytic processes, fermentation and enzymatic hydrolysis in the production of biofuels. The Danish government has decided to set aside DKK 200 million under the new EDDP programme for the demonstration of secondgeneration biofuels in the period 2007 to DONG Energy has been allocated funding under the ForskEL programme for optimising the process from its EU-funded pilot plant now in Skærbæk and BioCentrum-DTU has obtained ERP programme funding for establishing a pilot plant at the DTU for the MaxiFuels concept as well as for optimising critical part processes. Both of these processes originate from the treatment of wheat straw, which is a widely used biomass resource in Denmark that is also used for heat and CHP production. That has sparked debate among experts as to whether it is more beneficial for society to utilise straw for CHP production or for bioethanol if there are limitations to the extent of the biomass resources that necessitate a choice. In 2005, the ERP programme supported the initiation of an analysis of the socio-economic conditions relating to secondgeneration production technologies. A diversity of paths The idea of converting other forms of biomass into liquid biofuels, however, has spread into internationally leading Danish research environments, and in the last few years, focus has been on an effort to use, for instance, wastewater sludge and household waste for liquid biofuel production. The Danish National Advanced Technology Foundation has provided funding for two ambitious projects aimed at the production of bioethanol and biodiesel, respectively, whereas the first consortium grant under the ForskEL programme was allocated to a broadly composed project group who intend to develop a flexible energy production plant capable of producing electricity, heat and biofuels in an arbitrary ratio depending on current market demand, based on waste in combination with more conventional biofuels. For more information about this project, read pages Photo: Jørgen Schytte/Energinet.dk Another project aims to develop a biorefinery that is capable of using oil-containing crops and waste products from agriculture for the integrated production of biodiesel, bioethanol, biohydrogen, biogas and other fuels. More basic research is also being conducted into the physical and chemical mechanisms in the enzymatic hydrolysis of lignocellulose, and a comprehensive analysis of the broad impact on society of a more targeted commitment to biofuels has been initiated. Given the more than 20 research projects in progress, repre senting a combined budget in excess of DKK 233 million, Denmark has therefore made great strides in building the critical mass of technological competency and social insight, which can be instrumental in maintaining and expanding the Danish head start. Key players participate in several of these projects and contribute in this manner to networking and knowledge-sharing, which can be of vital importance to Danish producers international competitiveness. energy RESEARCH DEVELOPMENT DEMONSTRATION

16 EU energy technology research, development and demonstration Energy technology plays vital role in EU energy and climate policy At the EU Spring Summit in March 2007, the heads of state and government formulated an ambitious energy and climate policy to ensure environmentally sustainable development and improved security of supply. The development of more efficient energy technologies with little or no CO 2 emissions plays a decisive role in this policy as technological development enables the EU to meet the great challenges in a way that also generates economic growth. The EU summit translated the energy and climate policy into specific targets of 20% renewable energy, 10% biofuels for transport, 20% energy efficiency improvement and at least 20% CO 2 reduction by The summit also endorsed the Commission s proposal for a European Strategic Energy Technology Plan (SET-Plan), which is designed to ensure that the environmentally-friendly energy technologies become competitive with conventional energy production. Photos: Jørgen Schytte/Energinet.dk Forecasts from technology platforms The European Technology Platform for Zero Emission Fossil Fuel Power Plants (ZEP) states in its Strategic Research Agenda (SRA) that CO 2 emissions from electricity production can be lowered by 60% by 2050 through the development of carbon capture and storage technologies and that these CCS technologies will be commercially available in The European Biofuels Technology Platform (BFTP) states in its vision that up to one fourth of the EU s road transport fuel needs can be met by carbon-neutral biofuels by The European Photovoltaic Technology Platform (PVTP) states that 3 GW PV systems can be installed by 2010 and 200 GW systems by At that time, the platform expects PV systems to be able to compete with most other electricity production technologies. The European Wind Energy Technology Platform (TPWind) states that 23% of European electricity consumption can come from wind farms with a total installed capacity of 300 GW by Annual production will grow from 83 TWh to 965 TWh during the 25 years. The European Hydrogen and Fuel Cell Technology Platform (HFP) states that there will be stationary CHP plants based on fuel cells with a total capacity of up to 16 GW in By that year, fuel cells will be well established in the market for mobile equipment. In 2020, annual hydrogen car sales are forecast to reach 1.8 million vehicles. The European Solar Thermal Technology Platform (ESTTP) states that energy production based on solar power can cover half of all heating installations with an operating temperature of under 250 C, with a combined installed capacity of 200 GW. Source: The vision and SRA documents of the European technology platforms are compiled in the Commission s Communication COM(2006) 847, Annex 2 14 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

17 Offshore wind farms are one of the new energy technologies to which the EU is strongly committed. The EU both provides funding for the continued energy technology development of offshore wind farms and works to create the appropriate framework conditions for coordinated expansion in balance with the single electricity market. Photos from Middelgrunden Offshore Wind Farm. The SET-Plan, presenting the EU s strategy for energy technologies, will be drawn up by the Commission in the course of 2007 after it has been released for widespread public consultation among the European energy technology platforms and other stakeholders. A final proposal entitled Towards a European Strategic Energy Technology Plan will be submitted by the end of 2007 to be ready for adoption at the EU summit in spring Before the meeting in March 2007, the heads of state and government had decided in connection with the adoption of the EU s total budget for to increase the budget for the Seventh EU Research Framework Programme by 60% and the non-technological energy programme, Intelligent Energy Europe, by 100% up to Combined with the SET-Plan, both the summit and the Commission have thus set the stage for giving energy technology development a vital role in the endeavours to implement the ambitious energy and climate policy. Danish strengths With a budget of EUR 2,350 million, equivalent to about DKK 17.5 billion, over the next seven years, the technological energy programme within the Seventh Framework Programme has assumed greater importance than before. The total programme budget is about 60% up on the Sixth Framework Programme, which reflects substantial real growth even when taking into account the enlargement from 15 to 27 Member States. Most of the technological focus areas, which are at the centre of the energy programme, are Danish strengths. That applies, for instance, to wind energy, biomass CHP, hydrogen and fuel cells, second-generation biofuels, integration of solar energy in buildings, energy efficiency and intelligent energy networks. The priorities for security of supply, environmental improvements and economic efficiency that have more or less characterised Danish energy policy since 1990 are generally the same priorities that have now, after the EU summit, also fully come through in Europe and, therefore, affect the research-related priorities. As public funding for energy research in Denmark has been controlled by these objectives for years, it therefore offers the Danish energy sector some special opportunities under the auspices of the EU Energy Photo: Jørgen Schytte/Energinet.dk Research Programme. In the first energy programme call, with a deadline for submission of applications in the first half of 2007, research, development and demonstration projects accounted for an aggregate amount in the order of DKK 1.8 billion. Technology platforms One of the most decisive innovations from the Sixth to the Seventh Framework Programme is the Commission s decision to support the establishment of European technology platforms within a broad spectrum of technologies. In the field of energy, technology platforms have been or are being established within the following technologies: Fuel cells and hydrogen Photovoltaics Wind energy Biofuels Solar thermal Zero-emission power plants Steel (high-temperature materials for power stations) Intelligent networks Buildings (low-energy building) energy RESEARCH DEVELOPMENT DEMONSTRATION

18 EU energy technology research, development and demonstration Visionary projects Some of the technology platforms have already achieved a significant impact on the EU s priorities. This applies to the Zero Emission Power Plant (ZEP), which even won the summit s backing for its desire to concentrate on 10 to 12 demonstration plants for CO 2 capture up to A few of the technology platforms, including fuel cells and hydrogen, may develop into Joint Technology Initiatives (JTIs), which will secure them an even more central position in the energy programme. Energinet.dk is an active player in both the Photovoltaic and Smart Grid technology platforms. In collaboration with European research institutions, electricity generators, grid operators and suppliers, Energinet.dk has submitted a project proposal for the 2007 call under the energy programme, which aims to develop and demonstrate a concept for the future secure and cost-effective transmission grid structure and a comprehensive, sustainable energy system. The EcoGrid concept is applied to develop a transmission system that is able to handle local and fluctuating electricity generation and which, through extensive use of sophisticated communications technology, offers the individual end-consumer and RE producer a chance to operate actively in the electricity market. The intention is to demonstrate the EcoGrid concept in practical operat ion in Denmark. Østkraft has volunteered as host, and the island of Bornholm with its mix of thermal electricity generation, local CHP and wind energy is a suitable venue for testing the concept. The demonstration on Bornholm is coordinated with a similar Austrian system. The Danish Energy Authority together with the Danish Energy Association and the Danish Technological Institute has started the preparations for a Danish initiative to establish a technology platform in the field of energy efficiency. The initiative will contribute to ensuring that the development of energy-efficient consumption technologies is given stronger priority in forthcoming work programmes. To strengthen the Danish involvement in these technology platforms, the Danish Energy Authority has established a web portal at www. energi-tp.dk where interested parties can keep track of developments in the individual technology platforms and the two energy programmes. Photo: Jørgen Schytte/Energinet.dk The European technology platforms serve as a place where innovative industrial companies meet with researchers and scientists at European level to identify future research tasks within the relevant field of technology. The main duty of the technology platforms is to prepare a Strategic Research Agenda (SRA), which the Commission can use as inspiration for formulating the annual work programmes for the energy programme. In addition, the technology platforms assess what social framework conditions are capable of promoting the market penetration of new technologies. This assessment is made in a Strategic Deployment Document (SDD). Through a Mirror Group, representatives of the national authorities participate in the technology platforms discussions. Improved coherence With its initiative for a European Strategic Energy Technology Plan, the Commission aims to provide improved coherence between the development of the individual energy technologies and market demand. The SET-Plan must reflect a shared European vision involving all relevant players. It must embrace an appropriate portfolio of energy technologies to enable Member States to pick and choose the right combination of their preferred energy mix, seen in relation to national resources, exploitation potential and future climate policy obligations. The SET-Plan will define the instruments the EU is allowed to use at national and European level to accelerate the development of technologies and facilitate their market introduction process. The essence of the SET-Plan will be to match the most appropriate sets of policy instruments to the needs of different technologies at different stages of the development and deployment cycle. The strategic element of the SET- Plan will be to identify the technologies which will benefit from the EU as a whole mobilising resources to accelerate their development and deployment. As possible examples of such initiatives, the Commission points to biorefineries, sustainable coal and gas technologies with carbon capture and storage as well as fuel cells and hydrogen. When the European Parliament considers the Commission s proposal, the Danish Vice-Chair of the Committee of Industry, Research and Energy, Britta Thomsen, compiles the final report, and the Danish experience and views are therefore likely to carry substantial weight in the further process. 16 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007

19 Overview of public funding for research, development and demonstration in the field of energy technologies (DKK million) The data covers two calendar years. Aggregate funding corresponds to the 2006 level. Area ERP (Danish Energy Authority) 6) ERP transport (Danish Energy Authority) PSO electricity production (Energinet.dk) PSO electricity use (Danish Energy Association) DCSR Programme Committee for Energy and Environment (FI) Danish National Advanced Technology Foundation FTP (formerly STVF) (FI) Total (Grant year) Biomass Liquid biofuels 5) Hydrogen, Fuel cells Efficient energy use 1,7) Energy systems, control, supply/consumption Social analyses etc. 0.0 Solar energy Wind power Wave power Other 2,3,4) Total ) Including a project under the society and 2006 transport pool 2) ATF (Danish National Advanced Technology Foundation): On oil production and CO 2 capture 3) DCSR: Health and energy 4) Energinet.dk: Reserves 5) Energinet.dk: Integrated project concerning technologies such as gasification and biofuels 6) Excluding new EDDP funding for 2007 of DKK 110 million 7) In the annual report, the Danish Energy Association s programme is broken down into seven focus areas List of abbreviations used in project tables Universities AU Aarhus University AAU Aalborg University DTU Technical University of Denmark KU University of Copenhagen RUC Roskilde University SDU University of Southern Denmark Departments of DTU CET Centre of Electrical Engineering (Ørsted-DTU) DFU Danish Institute for Fisheries Research (DTU) DTF Danish Transport Research Institute (DTU) IMM Informatics and Mathematical Modelling (DTU) IVC-SEP Center for Phase Equilibria and Separation Processes (Department of Chemical Engineering - DTU) MEK Department of Mechanical Engineering (DTU) Other research institutions DHI DHI Water & Environment LIFE Faculty of Life Sciences (formerly KVL) (KU) SBi-AAU Danish Building Research Institute (AAU) CBS Copenhagen Business School Name changes By og Byg Royal Veterinary and Agricultural University (KVL) Danish Institute of Agricultural Sciences Danish Hydraulic Institute SBi-AAU Faculty of Life Sciences-KU (LIFE) Faculty of Agricultural Sciences-AU DHI Water & Environment energy RESEARCH DEVELOPMENT DEMONSTRATION

20 Focus technologies in the annual report project tables This annual report provides overviews of projects funded, in progress and completed under the following research programmes: Energinet.dk s ForskEL programme Danish Energy Authority s ERP programme, including Nordic Energy Research (NER) Danish Energy Association s ELFORSK programme Danish Council for Strategic Research s Programme Commission on Energy and Environment Danish National Advanced Technology Foundation The projects are classified into the individual programmes. Funded projects comprise: ForskEL: Projects from call Projects from the 2006 call (file numbers containing 33032) and the 2007 call (file numbers containing 33033) NER: Projects from the programme and the programme ELFORSK: Projects from the 2007 call DCSR-PCEE: Projects funded in the period 2004 to 2006 Danish National Advanced Technology Foundation: Energy projects funded in the period 2005 to 2006 The overviews of completed projects comprise projects scheduled for completion on or before 31 March The Danish Energy Association s overview contains projects for completion in the period 2005 to 2007, whereas the Danish Energy Authority s overview contains projects for completion after 1 January Focus areas of energy technology The six energy research programmes have made their projects available under different focus areas of energy technology. To ensure that the overviews contain clear and comparable data, the group of editors has classified these focus areas under the following common names: Biomass: Projects for combustion and gasification of biomass and management of biomass resources Biofuels: Biomass projects primarily targeted at developing liquid biofuels for transport purposes Hydrogen/fuel cells: Projects on fuel cell technologies and hydrogen as an energy carrier Wave power: Projects for wave power technology research and development Efficient energy use: Projects on improved efficiency in end consumption, including a special ERP transport call in 2006 Energy systems: Projects on the optimisation of the total energy system as well as environmental and health-related aspects Fossil fuels: Projects for more efficient utilisation of oil, coal and natural gas, including carbon capture and storage Social analyses: Analyses of and reports on the socio-economic and environmental aspects of energy technology Solar energy: Projects on solar thermal and photovoltaics, including integration in buildings Wind energy: Projects for wind power technology research and development Other: Primarily registration and provision of energy research The Danish Energy Association s ELFORSK programme has divided its projects on efficient energy use into the following focus areas: Buildings: Low-energy buildings, including optimisation of the interaction between electricity and heat consumption Ventilation: Ventilation technology systems and components for industry, services and households Lighting: Light management and lighting technology with the emphasis on LED applications Cooling: Cooling systems and components, including tools for energy-economic analyses Power and control electronics: Control equipment, including measuring equipment Industrial processes: Efficiency improvements in industry s process energy consumption Behaviour, barriers, means: Behavioural impact, energy labelling and visualisation of energy consumption 18 energy RESEARCH DEVELOPMENT DEMONSTRATION 2007