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1 energy 11 research developm ent DE M ONSTRATION

2 energy Annual report on Danish energy research programmes, published in cooperation between Energinet.dk, the Danish Energy Agency/the EDDP secretariat, the Danish Energy Association, Danish Agency for Science, Technology and Innovation/DCSR secretariat, The European Commission Representation in Danmark and the Danish National Advanced Technology Foundation, June. Editors: Steen Vestervang (Energinet.dk), Bodil Harder (Danish Energy Agency/the EDDP secretariat), Jørn Borup Jensen (Danish Energy Association), Kirsten Klüver (Danish Agency for Science, Technology and Innovation/DCSR-secretariat), Thomas Bjerre (Danish National Advanced Technology Foundation), Jeppe Gents (European Commission) og journalist Steen Hartvig Jacobsen. Editorial deadline on 20 th June. ISBN: Catalogue number: IG ENC ISSN number.: Printed version: ISSN Digital version: ISSN Translations: Global Denmark Design & layout: MONTAGEbureauet ApS Number printed: 1,000 Print: Publication Office of the European Union, Printed in Belgium Cover photos credits: Middelfart Sparekasse (front page) og Torben Nielsen Front page photo shows roof construction of the building,a visionary demonstration project of Thermal Active Building System funded by the Elforsk programme. This publication is available from the Danish Energy Authority s web-based bookstore at It can be downloaded from the Danish Energy Association s research homepage at from and from the Danish Agency for Science, Technology and Innovation s homepage at

3 Foreword The Danish government s Energy Strategy 2050, issued in February, and which was based on the Danish Commission on Climate Change Policy report, has given a clear signal to the players involved in new energy technology research and development. The Danish energy system must be converted into a renewable energy system and must be made more energy-efficient in order to make Denmark independent of fossil fuels such as oil, coal and natural gas by The Danish Society of Engineers, IDA and the Danish Energy Association as well as the political opposition in the Danish Parliament (the Folketing) have presented similar visions, which means there is general consensus about the principal ideas for the future of energy in Denmark. The Danish visions match analyses by the European Commission and the International Energy Agency (IEA) on how to realise the recommendations by the UN Intergovernmental Panel on Climate Change, the IPCC. Global greenhouse gas emissions must be halved by 2050, and developed industrialised countries must reduce their emissions by 80-95%. The major political challenge is to find the most cost-effective methods to transform global energy supply and energy consumption. Places to find inspiration are the European Commission Roadmap for moving to a low-carbon economy in 2050 as well as the IEA Energy Technology Perspectives, It is vital to make prompt long-term investments in developing new climate-friendly energy technologies. This will make transition efficient, and developed and developing countries will be less dependent on expensive imported fuels. This transition can also generate many attractive green jobs in countries which are first to implement the vision in their political decisions, and which can become suppliers of the new solutions. However, this will be a demanding task, as international competition to take maximum advantage of the transition has become more fierce. It may take decades for a new energy technology to evolve from an innovative idea in the laboratory to a competitive product on the commercial market, and almost by definition, all research involves a significant risk that society must help bear. On this basis, it is encouraging that in a poll carried out by Gallup on behalf of the Danish Ministry of Science Technology and Innovation, up to 80% of the Danish population believe that energy research should be given high priority. The programmes behind this publication aim at retaining and developing Denmark s energy-technology strongholds and at creating technological conditions to release the Danish energy system from dependence on fossil fuels. In order to perform this task - from our different starting points in the development chain of energy technologies - we will continue to strengthen our mutual ties. Energy11 is the fifth annual report and it provides an overview of the programme appropriations for new projects in 2010 and of the results achieved within the individual technology focus areas. The report begins with an interview on future challenges with, Torkil Bentzen, the chairman of the EDDP board, and with a presentation of the activities of the individual programmes in energy RESEARCH DEVELOPMENT DEMONSTRATION 1

4 Contents Energy... 3 How to get the most energy technology out of public funding... 4 Appropriations for strategic energy research in Denmark... 8 Public funding for energy research in the period ( mill.) Project support for focus areas 2001-, shown by research programme Energy technology research programmes Strategic research for 300 mill. for a sustainable energy future Electrochemical core competences to enhance the energy systems of the future Energinet.dk: Energinet.dk supports the development towards fossil-fuel independence Elforsk: Efficient and electricity-based energy services - the direct route to a fossil-free society EDDP enables demonstration of new energy-technology Danish National Advanced Technology Foundation: Focus on ambitious ideas with potential for growth Nordic Energy Research builds bridges towards energy systems of the future EU transition to a climate-friendly economy will be more cost-effective with new energy technologies Technological action area projects Biomass-projects Biofuels-projects Hydrogen/fuel cells-projects Wave power-projects Efficient use of energy-projects Energy systems-projects Smart Grid-projects Fossil fuels-projects Solar energy-projects Wind power-projects Other projects Useful Internet addresses with information about Danish and international energy research Photo: Torben Nielsen 2 energy RESEARCH DEVELOPMENT DEMONSTRATION

5 energy 11 research development DEMONSTRATION energy RESEARCH DEVELOPMENT DEMONSTRATION 3

6 Torkil Bentzen, Chairman of the board of directors, EDDP (Energy Technology Development and Demonstration Programme): How to get the most energy technology out of public funding Making Denmark independent of fossil energy sources has become a highly prioritised political objective with the government s Energy Strategy According to Torkil Bentzen, Chairman of the board of directors of the EDDP, this objective will have significant consequences for energy-technology programmes: Creating a new energy system in Denmark will be an enormous task. For the EDDP and other programmes within the area, this task is yet another challenge we can help meet. So far, the main focus area of the EDDP has been to develop and demonstrate new, efficient energy technology with the best commercial prospects. The fact that efforts must now also help Denmark in its endeavours towards fossil fuel independence adds a further purpose. The Danish Commission on Climate Change Policy and the government have called for additional focus and coordination of energy-technology appropriations in order to target efforts to support the political objectives. The programmes have already been relatively closely coordinated. However, the coordination requirements will be tightened, and we are ready for this, says Torkil Bentzen. During the past years, the strategic energy research and development programmes (the EDDP, Energinet.dk, the Danish Council for Strategic Research and Elforsk) and the Danish National Advanced Technology Foundation have enhanced coordination: Joint information meetings and conferences are being held, the programmes are collaborating on annual reports of activities and results, the secretariats meet once a year for a workshop to discuss coherence in the supply of project funding and to prepare the annual meeting of chairmen. Within the individual technology areas, the programmes are collaborating with researchers and enterprises to define strategic development goals and milestones. This collaboration has helped to optimise the results achieved from public funding for energytechnology research, development and demonstration, funded through the annual Finance Acts and by the Public Service Obligation (PSO) paid by electricity consumers. Offshore wind turbines pose a challenge In the Energy Strategy 2050, the government points to offshore wind turbines as the most important alternative to the current use of fossil fuels. Denmark has large unexploited wind energy resources in the North Sea which, according to the Climate Commission, can supply more than Denmark s total current energy consumption. Danish manufacturers and research communities are at the leading edge internationally, with significant and increasing exports of wind turbines and resulting increases in Danish jobs. Once an offshore wind farm has been installed and is in operation, it can exploit wind resources at lower marginal costs in comparison with practically any other type of electricity production. Therefore, it is important to design the energy system to accommodate as much production by wind turbines as possible. The disadvantage, and the big challenge, posed by wind turbines is the fluctuation in production flow and the currently high production price. New energy technologies must help to solve these challenges, says Torkil Bentzen. The gas system can store electricity The wind-turbine industry expects 1) the resultant price of electricity production from offshore wind farms to be reduced by half in 2020, if the conditions allow, i.e. long-term strategic planning of new projects, expansion of public funding for research, development and demonstration, and retention of competent research communities. In this way, investments made upfront by society in research, development and demonstration can lead to large savings in the long term, because this will reduce the need for supplementary public funding for electricity production. However, the societal value of public upfront investments would perhaps be more noticeable, if investments were made to develop technologies, communication and infrastructure that enable a larger quantity of the electricity produced by wind turbines to be used instead of fossil fuels in heating, industrial processes and the transportation industry. Torkil Bentzen finds it interesting that, in its analyses of possible methods to develop the Danish energy system, Energinet.dk has pointed out the existing natural gas system as the most cost-effective method of storing excess electricity produced by offshore wind turbines 2). In this case, excess electricity will be converted into hydrogen or other renewable energy gases by means of electrolysis. In addition, the gas system can potentially optimise the exploitation of biogas from domestic animal slurry where the resources are often concentrated in areas that are not densely populated and the need for heating is not that great. Finally, gas from existing storage facilities can be used in gas turbine plants, which can be put into operation relatively quickly to serve as flexible back-up capacity, when electricity production from wind turbines cannot cover the national need for electricity. 1) Denmark - supplier of competitive offshore wind solutions, Megavind s Strategy for Offshore Wind Research, Development and Demonstration, December ) Energinet.dk: Energy Strategy January 4 energy RESEARCH DEVELOPMENT DEMONSTRATION

7 Long-term frameworks, close coordination and good market conditions for technology will make us independent of oil and gas. This will provide the best possible basis for research and development programmes within the area of energy, says Torkil Bentzen, Chairman of the board of directors, EDDP. Photo: DONG Energy A/S Global market price for biomass Finding the correct balance between energy generated by biomass and energy generated by wind turbines offers new perspectives for the development of technology, for example within electrolysis and biogas. The EDDP and the other research programmes have received many qualified applications for these areas, which is an indication that the competences exist, and this could help to realise key energy policy objectives for renewable energy, improved security of supply and green growth. Both the Danish Commission on Climate Change Policy and the Danish government s Energy Strategy 2050 point to offshore wind turbines as the most important alternative to the current use of fossil fuels. In order to make the expected massive expansion as cost-effective as possible, more than 100 million on average have been allocated during the past four years to the technological development of wind turbines; primarily for offshore purposes. Photo from Horns Rev 2. At all events biomass, together with offshore wind turbines, will most likely play an important part in the future transition from coal, oil and natural gas to green energy. Biomass can be produced and stored for later use and we must expect that a global and commercial market for biomass will arise in line with the current coal market. This means that a market price will be determined as a sort of indicator of the competitiveness of the biomass technologies, and possibly also an indicator of the need for temporary support for outphasing fossil fuels. The global market price will help to establish the framework for growing energy crops, establishing biogas plants, thermal gasification of biomass etc. However, political regulation by means of development objectives, CO 2 emissions allowances, taxes, potential funding for electricity production, and standards will also impact the profitability of biogas plants, as seen in the commercial market, says Torkil Bentzen. energy RESEARCH DEVELOPMENT DEMONSTRATION 5

8 Dong Energy s production process for 2G bioethanol is the largest energy-technology investment made in recent years. In the past year, the Inbicon demonstration facility in Kalundborg (Denmark) has been in continuous production and the environmentally friendly fuel is being sold at a number of Statoil filling stations. At the same time, Dong Energy has signed the first commercial license agreement. Public funding for energy research and development can only support development in private companies that define their own development strategies on the basis of their market potential. The strategic energy programmes are very much managed as bottom-up programmes, i.e. we receive applications from research, development and demonstration players and prioritise on the basis of quality, relevance for the future energy system and potential for creating growth and employment. It is not for the energy programmes to tell politicians how much public funding should be appropriated to research, development and demonstration. However, it is our experience that the utility value of public funding will be optimised if the programmes are allowed to plan their efforts over several years. Developing energy technology is a long-term strategic venture for research and development communities, enterprises and society. Photo: Torben Nielsen He adds that an efficient global market for biomass products and good connections for electricity transmission abroad will have a beneficial impact on the Danish security of supply during the transition to a fossil-free society. Global market potential Besides contributing to a Danish fossil-free energy system, the key objective of the programmes is to strengthen the global competitiveness of Danish companies. The Danish domestic market for new energy technology is not very big and there is no basis of substantial public funding for technology development, if the potential of an application exists in Denmark alone. On the other hand, an innovative domestic market with proactive buyers may be of material significance to the growth potential of new technologies and their future commercial potential on export markets. Torkil Bentzen does not believe that the strategic energy research and development programmes should aim at identifying future winner technologies. Funding should still be awarded to the best projects across technologies. This will make technologies compete, and time will tell which technology will win. Public funding enables even the smallest innovative companies to test the impact of their ideas. We reduce the technological risk, which according to the EU s regulations on State aid is a precondition for public funding, but further to this, we at the EDDP are determined to help mitigate the other risks involved in being a first mover with innovative technology. Our funding may help to promote the development of technology, so the manufacturer can optimise its commercial potential, says Torkil Bentzen. Social responsibility for enterprises Even though the Danish wind-turbine industry has largely become self-sufficient, with a turnover of billions, tens of thousands of workplaces, and profits in the many millions, the state may well be interested in proactively collaborating with the industry. The EU s regulations on State aid prevent public funding from distorting competition. However, there are more possibilities for optimising conditions for growth. There is currently much focus on corporate social responsibility. However, there is also a social responsibility towards enterprises, and this could be manifested in framework conditions that promote innovation. Innovative enterprises need highly qualified labour such as researchers, technicians and production employees. Society must invest in the research that is a precondition for educating a sufficient number of researchers, engineers and technicians. Moreover, the state can create a fertile basis for growth by establishing test facilities for new products, supporting development and demonstration projects, and offering favourable tax allowance regulations for research, development and demonstration costs etc. 6 energy RESEARCH DEVELOPMENT DEMONSTRATION

9 Photo: Poul Rasmussen Even if a demonstration project is successful, new energy technologies cannot always compete with conventional energy technologies during the first phase on the commercial market. For instance, the production of power from wind turbines is still being subsidised by 2 to 3 bn. a year. This is due to the fact that market forces are currently too weak as the negative impacts on society from conventional production technologies, such as pollution, climate change and insecure supply, have only been priced to a limited extent via the European CO 2 allowances regulations. If prices for fossil energy sources or CO 2 emissions allowance were higher and more long-term, enterprises would be motivated to carry out research and development, and consumers to purchase new solutions. However, this is not yet the case. Therefore, public funding must be provided for research and development of new energy technology, and good framework conditions must be established for the technologies that will make us independent of fossil energy sources. Topsoe Fuel Cell A/S is continuing its cooperation with the National Laboratory for Sustainable Energy at the Technical University of Denmark (Risø DTU) on the development of 3G metal-based SOFC fuel cells while the production of ceramic-based fuel cells is undergoing rapid development in order to strengthen the competitiveness of these fuel cells on commercial markets. Research and development programmes have already been of great importance for the development of Danish strongholds in energy technology. The new energy strategy and the new objective of fossil-fuel independence clarify the major, but exciting, challenges facing us today. I fully expect that good and close collaboration between the programmes will provide a significant contribution for this agenda in the coming years, concludes Torkil Bentzen. energy RESEARCH DEVELOPMENT DEMONSTRATION 7

10 Energy research funding Appropriations for strategic energy research in Denmark Danish players within research, development and demonstration of energy technology will again have more than 1 bn. at their disposal in. However, it is still uncertain how strategic energy research and development are to be financed in the following years. In the Danish National Advanced Technology Foundation has 600 mill. at its disposal, while FP7 Energy will benefit from gradually increased funding under the current long-term budget , see figure 17 on page 40. More supplementary sources of funding Programmes within other areas can also support energy projects in certain circumstances. This applies to the Ministry of Food, Agriculture and Fisheries Green Development and Demonstration Programme (GUDP), which in 2010 supported a biogas project, whereas the Danish Council for Technology and Innovation has provided support for an innovation consortium for green energy and has co-funded Danish participation in a number of European collaborative projects on energy technology under the Eurostars Programme. The Danish Council for Independent Research has also granted support to energy projects in the technology and production area and to research managers within the research career programme Sapere Aude. The Danish government s Energy Strategy 2050 has set the stage for prolonging by an additional four years, the four-year programme for preparing new and immature energy technologies for market (thermal biogasification, wave power and photovoltaic solar modules), administered by Energinet.dk as the ForskVE programme. A benchmark carried out by the Danish Agency for Science, Technology and Innovation, and based on figures from Eurostat and the International Energy Agency, shows that Denmark is the fourth largest investor in energy-technology research, development and demonstration (RD&D). Finland tops the list, with per capita investment of roughly 50% more than Denmark, whereas Japan and Norway, which also invest more than Denmark, spend a relatively higher proportion of their RD&D funding on nuclear power as well as oil and gas extraction. Increased Danish funding, which has exceeded 1 bn. annually since 2010, is contributing to realising targets from the EU Lisbon Strategy and to following up on recommendations by the Major Economies Forum and the IEA. Major Economies Forum and the IEA These international forums, which play a vital role in the global climate-policy debate, have encouraged governments to double research investments on climate-friendly energy technologies up to With this aim, the IEA is seeking to promote political decisions to enable the global RD&D investments which, according to the IEA, will be necessary to realise the target from the Continues on page 10 Energy research programmes (2010) in the development chain of energy technologies Figure 1 shows where, in the development chain of energy technologies, the individual energy research programmes operate. The more vivid the colour, the stronger focus the programme has on this phase of the development chain. The thickness of the programme arrows reflects the size of the individual programme funding for project support in The Danish Council for Strategic Research s Program Committee for Sustainable Energy and Environment granted its 2010 funds in December 2010 after a two-phase application procedure, whereas both the EDDP and the Danish National Advanced Technology Foundation divided their funds into two application rounds, with appropriations in June and December, respectively. Energinet.dk and the Danish Energy Association allocated their funds in December Energy Labs DK funds for both 2010 and (a total of 130 mill.) were allocated in May In 2010 these programmes totalled almost 1.1 bn. The arrows below the dotted line show the supplementary sources of financing. In 2010 Danish participants in FP7 Energy had an average share of 7.8%, corresponding to about 170 mill. The Innovation Foundation granted a total of 89 mill. in support for innovation and preparation for market within energy technologies. Energy research programmes () in the development chain of energy technologies Similarly, figure 2 shows how much funding is available for energy programmes in the calendar year. There is slightly reduced funding for the Danish Council for Strategic Research and the EDDP, and there are expectations of larger project support from the Danish National Advanced Technology Foundation and slightly larger Green Labs DK funding. Altogether appropriations are about 50 mill. less than in Below the dotted line, it is assumed that Danish participants are still able to obtain a share of up to 8% in FP7 Energy, and that the Innovation Foundation will grant energy projects a relatively equal share of its funds as in In addition, in spring the Danish Council for Technology and Innovation has more than 25 mill. at its disposal for the Strategic Platform for Innovation and Research (SPIR), ipower, and is planning to support an infrastructure pool II project at Risø DTU with 40 mill. Since both the Green Development and Demonstration Programme (GUDP) and the Danish District Heating Association do not earmark funds for energy projects in advance, it was not possible to predict the scope of funding for energy projects from these sources at the end of May. 8 energy RESEARCH DEVELOPMENT DEMONSTRATION

11 Figure 1 Energy research programmes (2010) in the development chain of energy technologies Applied research Basic research Development Demonstration Market intro DCSR ForskEL ForskVE Elforsk EDDP Green Labs DK Danish National Advanced Technology Foundation EU: FP7-Energy GUDP Fornyelsesfonden The Danish Council for Independent Research T&P The Danish Council for Technology and Innovation Figure 2 Energy research programmes () in the development chain of energy technologies Applied research Basic research Development Demonstration Market intro DCSR ForskEL ForskVE Elforsk EDDP Green Labs DK Danish National Advanced Technology Foundation EU: FP7-Energy Fornyelsesfonden The Danish Council for Technology and Innovation energy RESEARCH DEVELOPMENT DEMONSTRATION 9

12 Energy research funding The demonstration project, Danish Micro Combined Heat and Power, is one of the most significant energy-technology ventures in recent years and is now in its third and final phase. In the course of the project, IRD Fuel Cells has optimised its hydrogen-based polymer electrolyte membrane (PEM) fuel cells plant, and in the coming years, the plant will be tested at several general consumers in the municipality of Lolland, Denmark. Photo: IRD Fuel Cells A/S IPCC to halve global greenhouse gas emissions up to In its World Energy Outlook 2010, the IEA has presented a BLUE Map scenario, which identifies those energy technologies which can contribute to realising the IPCC recommendations in the most efficient manner. In order to cut down annual global emissions from the 57 gigatonnes (Gt) in the reference scenario to the 14 Gt assumed in the IPCC goal, it is necessary to focus on developing more energy-efficient technologies, to use other fuels in machinery and transport, to increase energy efficiency in the electricity sector, to expand renewable energy and commercialise CO 2 management (CCS), as well as to expand nuclear power. The IEA expects energy-efficiency improvements, renewable energy and CCS to make the largest contributions in reducing greenhouse gas emissions, and therefore the global market is also expected to develop most within these technologies. In its Energy Technology Perspectives 2010, the IEA highlights a number of conclusions from the scenario analyses that form the basis for the BLUE Map. Public funding for RD&D in climatefriendly energy technologies must be raised to a level which is two to five times higher than the current level. Globally, focus must be on a wide range of climate-friendly technologies, and it will also be necessary to use technologies which are expected to have a CO 2 -reduction price of up to 175 USD/tonne when they have become fully commercial. These are energy-efficiency improvements which up to 2050 can deliver the largest CO 2 reductions, and the IEA therefore recommends that technology developments within this area be given priority in the short term. It is particularly necessary to develop new climate-friendly technologies for the transport sector and for industrial energy consumption as well as within building and construction as a prerequisite for achieving considerable reductions in greenhouse gas emissions in the years Figure 3 EU 15 export shares - energy technology as a percentage of total exports of goods Percent Although the percentage of total Danish exports represented by energy technology fell in 2010, Denmark still has the relatively highest exports of energy technology of all the old EU 15 countries. Source: Danish Energy Agency, the Confederation of Danish Industries and the Danish Wind Industry Association. 2 0 Denmark Italy Finland Germany Austria Sweden EU15 France and Monaco Spain United Kingdom Luxembourg Portugal Greece Belgium Netherlands Ireland 10 energy RESEARCH DEVELOPMENT DEMONSTRATION

13 Energy research funding Figure 4 Public funding for energy research in the period ( mill.) ,000 1,050 1,100 1,150 DCSR energy ForskEL + ForskVE Elforsk The Danish Energy Agency/ERP/EDDP Energy projects of the ATF 20 lleeksport Figure 4 shows the development in public funding for energy research, technological development and demonstration. The funding stems from appropriations established in the annual finance acts, including allocation of globalisation funds, and from electricity-consumer-financed (PSO) programmes. The Danish Council for Strategic Research funding includes appropriations to the Energy Systems of the Future programme from the Danish Council for Strategic Research. The Danish Council for Strategic Research s Program Committee for Sustainable Energy and Environment also allocates project grants for competitive environment technology and for the climate and climate change adaptation, however these funds have not been included here. Energinet.dk funding comprises the framework for the ForskEL programme for environmentally friendly electricity production ( 130 mill.), the ForskVE programme for the spread of small renewable technologies for electricity production (thermal biogasification, wave power and photovoltaic solar modules) ( 25 mill.), as well as for the ForskNG programme for developing the gas transmission system which, so far, has had a varying appropriation framework. Elforsk funding comprises funds from the Danish Energy Association s programme for research and development within efficient use of energy, which has an annual framework of 25 mill. The programme can only support projects aiming for more efficient and flexible use of electricity. Mia. kr Danish Energy Agency/ERP/EDDP/Green Labs DK funding Andre teknologier comprises a number of special programmes for 2001, which were cancelled in In addition to ERP funding, 2007 also comprises a special grant of 50 mill. from the Danish Parliament s Finance Committee to demonstrate fuel cells in micro-chp plants. The 2008 column comprises 100 mill. advanced funding for biofuels. Funding from Green Labs DK for 2010 and is also included in this column. Danish National Advanced Technology Foundation funding comprises projects and platforms which primarily have an energy focus, including more efficient energy production and use. This column also comprises appropriations within the Foundation s focus areas for energy/the environment, IT and Telecommunications, production and building. The Foundation prioritises its funds solely according to quality and relevance of the applications and has not earmarked in advance relative proportions for the different focus areas. Actual appropriations have been established for , whereas for it is assumed that the Foundation will continue to grant about 25% of its funds for projects with a significant energy focus. Figure 5 Export of energy technology bn Export of wind turbines Others An analysis by the Danish Energy Agency and DI Energibranchen (the confederation of Danish energy industries) shows that exports of Danish energy-technology seem to have decreased considerably in recent years; with exception of the successful export of wind turbines that is on the rise again after having suffered in 2009 as a result of the economic slowdown. Source: Danish Energy Agency, the Confederation of Danish Industries and the Danish Wind Industry Association. energy RESEARCH DEVELOPMENT DEMONSTRATION 11

14 Energy research funding Project support for focus areas 2001-, shown by research programme The figures on pages show the developments in project grants from the Danish programmes supporting research, development, demonstration and preparation for market of energy technologies. These include the Danish Council for Strategic Research s Program Committee for Sustainable Energy and Environment (Energy Systems of the Future), Energinet.dk s programmes ForskEL, ForskVE and ForskNG, the Danish Energy Association s Elforsk programme, the Danish Energy Agency s Energy Research Programme (ERP) ( ), the EDDP programme (starting 2008) and energy-related projects under the Danish National Advanced Technology Foundation. Appropriations have been divided between the 10 technology focus areas, in which the project overviews on pages have been classified. In contrast to Energy 2010, projects regarding intelligent (smart) electricity grids and flexible electricity consumption have been separated from the focus area Energy systems in Smart Grid, in order to highlight the significant focus on transition to a society independent of fossil fuels. There is not full agreement between figure 4 on page 11 and the 10 figures on pages for the individual years. This is because the numbers behind figure 4 are based on the programmes appropriation frameworks (budgets), whereas the figures on pages visualise the actual allocations of project support in the relevant calendar year. Figure 4 also comprises some larger energy appropriations from the Ministry of Science Technology and Innovation in The general picture expressed in the graphs on pages is that, after a number of years with somewhat stable annual appropriations of about 50 mill., biomass was much more favoured in 2010 with significantly larger appropriations. This is primarily because the Danish Council for Strategic Research granted funding for a strategic research centre within biomass, and because several programmes prioritised projects for optimising biogas processes. Biofuels were particularly favoured in , in which the earmarked 200 mill. were allocated as project grants. In the past five years, hydrogen and fuel cells have received about 650 mill. in project grants, which makes this the highest-priority focus area. With total project grants of about 500 mill., efficient use of energy and wind power have also been given priority in strategic energy research and development in recent years. Smart Grid projects have received significant project grants from and including 2010, due to the more widespread understanding of the importance of an intelligent electricity grid. All four focus areas are extremely important for the transition to a fossil-fuel-free society. Solar energy has also received relatively more funding in recent years, for instance because of the special preparation for market funding from the ForskVE programme. The figures in the graphs on pages are generally significantly lower than the 2010 figures. This is because only includes the 180 mill. from the electricity-consumer-financed PSO (Public Service Obligation) programmes administered by Energinet.dk and the Danish Energy Association. These programmes had allocated their funds as project grants before the end of 2010, whereas the other programmes received funding established in the Danish Finance Act Biomass Total DCSR Biofuels ForskEL + ForskVE Hydrogen/fuel cells ERP/EDDP DCSR ForskEL ERP/EDDP ATF Total Total DCSR ForskEL ERP/EDDP ATF 12 energy RESEARCH DEVELOPMENT DEMONSTRATION

15 Wave power DCSR Fossil fuels DCSR ForskEL ERP/EDDP ATF Wind power ForskEL + ForskVE Energy systems ERP/EDDP DCSR ForskEL ERP/EDDP Total Total Total Efficient energy use Total DCSR ForskEL/ForskVE Elforsk 0 ERP/EDDP ATF DCSR ForskEL + ForskVE ERP/E Smart Grid Total DCSR ForskEL EDDP DCSR ForskEL ERP/EDDP Solar energy Total DCSR ForskEL + ForskVE ERP/EDDP 0 20 ATF DCSR ForskEL ERP/EDDP Other projects* Total DCSR ForskEL ERP/EDDP ATF Total DCSR ForskEL ERP/EDDP ATF * among other things analyses, geothermal energy projects, data and dissemination DCSR ForskEL ERP/EDDP energy RESEARCH DEVELOPMENT DEMONSTRATION 13

16 DCSR Programmme Commission on Sustainable Energy and Environment Strategic research for 300 mill. for a sustainable energy future Strategic energy research at high international level, carried out in a binding cooperation between Danish and foreign universities, private producers and end-users, is a crucial prerequisite for intelligent and flexible energy systems of the future. Strategic energy research is not only an important link in the total development chain of energy technologies. It also contributes by training researchers, who are to convert results from the strategic research into competitive products and solutions. In this way research results will tackle societal challenges such as converting the energy system into a sustainable and secure system, independent from fossil fuels, and they will help industry to develop competitive products, which can help finance the future welfare state through export revenues. All significant technology areas In 2010, the Program Committee for Sustainable Energy and Environment of the Danish Council for Strategic Research was able to offer its highest amount so far of 300 mill. to research into energy systems of the future. This amount was granted to three strategic research centres, one research alliance, eight projects, four Danish-Chinese collaboration projects and one Strategic Platform for Innovation and Research (SPIR), which received its grant with the Danish Council for Technology and Innovation. In addition to this were two smaller projects, which enabled small and mediumsized enterprises to take part in existing energy appropriations. Generally speaking, these appropriations comprise all the technology areas expected to contribute to the future conversion of Members of the Program Committee In, the Danish Council for Strategic Research s Program Committee for Sustainable Energy and Environment has the following members: Professor Poul Erik Morthorst, Systems Analysis Division at Risø DTU (Chairman) Karen Edelvang, State Geologist at the Geological Survey of Denmark and Greenland (GEUS) Ole Jørgen Hanssen, Senior Researcher at Østfold Research Professor Karsten Høgh Jensen, Department of Geography and Geology at University of Copenhagen Preben Jørgensen, Manager Electrical Systems, Vattenfall A/S Professor John K. Pedersen, Head of Department of Energy Technology at Aalborg University Professor Hans L. Pécseli, Department of Physics at University of Oslo (recently appointed) Professor Svend G. Sommer, Institute of Chemical Engineering, Biotechnology and Environmental Technology at University of Southern Denmark Berit Time, Doctor of Engineering, Senior Researcher at SINTEF (recently appointed) the energy system. Power electronics is the theme for this year s largest centre, the Centre of Reliable Power Electronics (CORPE), headed by Professor Frede Blaabjerg from Aalborg University. Results from the Centre are to contribute to integrating wind turbines more efficiently into the electricity system and to make electrical appliances easier to control according to the needs of the electricity system. The future conversion of the coal-fired combined heat and power plants in the largest Danish cities is addressed through research at the Center for Power Generation from Renewable Energy (GREEN) into new burner design, corrosion-resistant materials, improved biomass characteristics and more efficient exploitation of residual products. GREEN is headed by Professor Peter Glarborg from DTU Chemical Engineering. Professor Jesper Henri Hattel from DTU Mechanical Engineering heads the third centre, REWIND, which researches into production processes and methods of the wind-turbine industry by focusing on durability and operational life of key components. This research has particular perspectives for the offshore wind farms of the future, where service and maintenance are a relatively large part of the total operating costs. The research alliance, EIS, which is headed by senior researcher Mads Borup from DTU Management, is analysing innovation systems of particular importance for the energy sector. The eight project appropriations comprise strategic research into livestock manure, waste management, electrolysis, thin-film photovoltaic solar modules, thermoelectric exploitation of surplus heat, emissions from diesel engines, storage of geothermal heating and the electricity market. Finally the new SPIR platform, which is the first ambitious collaboration project between the Danish Council for Strategic Research-Energy, and the Danish Council for Strategic Research, will research, develop and commercialise equipment for intelligent appliances. Energy - lifeline of society The Danish Council for Strategic Research is using a two-phase model to make the application process as efficient as possible for users. In the first phase during the spring, declarations of interest are called for, with a brief project description. From here the Program Committee for Sustainable Energy and Environment selects those applicants who will be invited to submit a more detailed and documented application in September. After international peer-review and hearing of parties, the Program Committee complete the final applications in December. In 2010 the Program Committee received 91 phase-1 applications, with a total budget of about 2.1 bn., and a support amount applied for of almost 1.7 bn. Twenty-seven of these applicants were invited to submit final applications, and 17 of these were granted energy appropriations. With a total success rate of almost 20%, the energy area this year is slightly higher than the Danish Council for Strategic Research average. 14 energy RESEARCH DEVELOPMENT DEMONSTRATION

17 At the Strategic Electrochemistry Research Center (SERC) of the Danish Council for Strategic Research, research is being conducted on how to create synergies between different uses of electrochemical competences obtained through Danish research on fuel cells. The photo shows a section of SERC s autoclave. Photo: Torben Nielsen Chairman of the Program Committee, Professor Erik Morthorst from the Systems Analysis Division at Risø DTU, is extremely satisfied with the large number of qualified applications and not least with the strong international participation: Energy is the lifeline of society, and sustainable energy systems with environmental and climate considerations are important challenges now and in the future, both in Denmark and globally. It is very important for the competitiveness of the Danish energy sector that there is strong strategic research cooperation between public institutions, private producers and end-users in our projects, because this helps activate the research capacity of private enterprises at an early stage in the development chain from research and development over demonstration and testing to market introduction. Strategic research is a crucial contribution to a Danish energy system independent of fossil fuels, with high security of supply, which is financially sustainable and which shows consideration for the environment and climate, he said. Another important perspective in strategic energy research is training of researchers. Researcher training is included in all 17 Figure 6 DCSR-appropriations ( mill.) Biomass Biofuels Hydrogen and fuel cells Wave power 95.3 Efficient use of energy 52.3 Energy systems Smart Grid 35.0 Fossil fuels Solar energy Wind power Other Since the start of 2004, appropriations by the Danish Council for Strategic Research for research in energy technology have reached a total of approximately 1 billion. In recent years, Wind power has been appropriated the largest grants. However, the Danish Council for Strategic Research has also appropriated considerable funds for areas such as Energy systems, Efficient use of energy and Hydrogen and fuel cells. Source: Danish Agency for Science, Technology and Innovation energy RESEARCH DEVELOPMENT DEMONSTRATION 15

18 DCSR Programmme Commission on Sustainable Energy and Environment energy appropriations, and on average about half of the amount granted is used for PhD and post doctoral projects, which amount to a total of 228 man-years. All Danish Council for Strategic Research energy appropriations for 2010 are headed by universities. The Technical University of Denmark is most strongly represented by 10 centre and project managers, Aalborg University heads three appropriations, whereas Aarhus University has two. Cooperation is across universities. The Technical University of Denmark is taking part in 12 of the 17 appropriations, Aalborg University in nine, Aarhus University in eight, the University of Copenhagen in three and the University of Southern Denmark in two. Strong research centres In 2010, the Danish Council for Strategic Research completed its first coordinated call for tender together with the Danish Council for Strategic Research, which included a Strategic Platform for Innovation and Research (SPIR) in the energy area. Five applications were received, two of which were selected to submit final applications. After a tight race, the ipower consortium, headed by Anders Troi from the Intelligent Energy Systems Programme at Risø DTU, was selected. The platform s gross budget is 120 mill., of which the joint Danish Council for Strategic Research and Danish Council for Technology and Innovation appropriation constitutes half. Numerous Danish players are part of the platform in addition to a number of foreign research institutions and the Technical University of Denmark: the Danish Technological Institute, Danish Energy Association, DONG Energy, Danfoss, Grundfos, Zense Technology IBM Denmark, Vestas, COWI, Balslev and Nordjysk Elhandel. The main challenge for the platform is that wind turbines and other varying electricity production will constitute an increasing, and ultimately dominant, proportion of a future energy system. It is hoped to meet this challenge through flexible electricity consumption, where intelligent appliances can control their own electricity consumption according to the varying electricity production of wind turbines and the different needs of users. So far, the SPIR platform is the most ambitious initiative by the Danish Council for Strategic Research in the energy area. However, since 2006 the Program Committee has granted appropriations for 10 strategic research centres, which comprise most technology areas of importance for energy systems of the future. Most centres have been established within wind power, where in the past two years centres have been established at the Technical University of Denmark within composite materials for wind turbine blades, aerodynamics and production processes. Hydrogen and fuel cells through the Strategic Electrochemistry Research Center (Risø DTU) and Strategic Research Centre on Zero Energy Buildings energy materials (Aarhus University), biofuels and biomass through Bio4Bio (University of Copenhagen) and GREEN (DTU), efficient use of energy through the Centre for CO 2 Neutral Buildings (Aalborg University), whereas energy systems are covered through the Centre for Energy, Environment and Health (University of Copenhagen). Because of their large appropriations and multi-annual duration, these centres are intended to be research centres of excellence Strategic research centres under the Danish Council for Strategic Research SERC CEEH: CEM: Bio4Bio: ZEB: energy RESEARCH DEVELOPMENT DEMONSTRATION DCSR funding: 25.7 mill. Strategic Electrochemistry Research Centre (Fuel Cells and Solid State Chemistry Division at Risø DTU). Web: DCSR funding: 25.2 mill. Centre of Energy, Environment and Health (the Niels Bohr Institute at University of Copenhagen). Web: DCSR funding: 30.0 mill. Centre for Energy material (inano at Aarhus University). Web: inano.au.dk/research/research-areas/nano-energy-materials/center-for-energy-materials/ DCSR funding: 22.5 mill. Strategic Centre for Development and Implementation of Biotechnology for Bioenergy (KU-LIFE). Web: DCSR funding: 25.0 mill. Strategic Research Centre on Zero Emission Buildings (Department of Civil Engineering at Aalborg University). Web: COMWIND: DCSR funding: 32.0 mill. Center for Computational Wind Turbine Aerodynamics and Atmospheric Turbulence (DTU Mechanical Engineering). Web: DCCSM: CORPE: GREEN: REWIND: DCSR funding: 38.0 mill. Danish Centre for Composite Structures and Materials for Wind Turbines (Materials Research Division at Risø DTU). Web: DCSR funding: 40.0 mill. Center of Reliable Power Electronics (Department of Energy Technology at Aalborg University) DCSR funding: 34.2 mill. Center for Power Generation from Renewable Energy (DTU Chemical Engineering) DCSR funding: 30.1 mill. Knowledge based engineering for improved reliability of critical wind turbine components (DTU Mechanical Engineering)

19 Research in magnetic refrigeration carried out by the National Laboratory for Sustainable Energy at the Technical University of Denmark (Risø DTU) was initiated in 2007 on the basis of an appropriation of about 14 million by the Danish Council for Strategic Research and is expected to finish in. The research results could open up for technology development that would enable the introduction of new and more energy-efficient cooling techniques in commercial products for both households and businesses. within their respective technology areas and to bring Danish research to the lead internationally. Read more detailed information about experience from the first centre, SERC, on page 18. Since 2004 the Danish Council for Strategic Research Programme Committee has granted a total of 85 energy appropriations totalling almost 1 bn. Thirty-five of these projects have now been completed, 12 of them within the past year. For more information about the results of the individual projects go to the project database and, for the most recent 12 projects, see this annual report. Emphasis on international collaboration The Danish Council for Strategic Research places great emphasis on international research collaboration. In recent years, international participation in project groups has received increasing emphasis in the Program Committee s priority of applications, and bilateral collaboration has been established with China, India, Brazil and others. Together with energy experts in the programme committee for the European Union s COOPERATION Energy, the Danish Agency for Science, Technology and Innovation is participating in and contributing actively to the collaboration in the European ERA-NET. Therefore, in, 5 mill. of the Danish Council for Strategic Research funding has been earmarked to supplement EU funding in the ERA-Net+ call for proposals, Electromobility, on electrically powered transport, so Danish participants can receive appropriations of about 7.5 mill. The Danish Council for Strategic Research has co-organised energy workshops in California and China in collaboration with local Danish innovation centres, and a Danish-Chinese programme collaboration has resulted in three joint projects in 2009 and four in 2010, and a third call for proposals is being prepared in. Furthermore, the Danish Council for Strategic Research is also part of the northern European N-INNER programme on research in innovative energy technologies, where in 2007 and 2009 appropriations have been granted for six projects with Danish participation. The first of these projects is expected to be completed in. The participating countries, which apart from Denmark include Norway, Sweden, Finland, Germany, Estonia and Iceland, are currently discussing the possibilities for a third call in. Finally, the Danish Agency for Science, Technology and Innovation is contributing financially to the Nordic Top-level Research Initiative, which comprises six sub-programmes about climate change adaptation, climate change interaction with the cryosphere, integration of large-scale wind power, sustainable biofuels, nanotechnology and energy efficiency as well as CCS technologies. The Top-level Research Initiative is a collaboration between Nord- Forsk, Nordic Innovation and Nordic Energy Research. Photo: Torben Nielsen Figure 7 Appropriations to centres by technology area ( mill.) Biomass (GREEN) Biofuels (Bio4Bio) Hydrogen and fuel cells (SERC + CEM) Efficient use of energy (ZEB + CORPE) Energy systems (CEEH) Wind power (COMWIND + DCCSM + REWIND) Appropriations by the Danish Council for Strategic Research for large long-term strategic research centres are allocated to a broad range of technology areas. The majority of the centres have been established within Wind power while two centres have been established within Hydrogen and fuel cells (electrochemistry and energy-related materials) and Efficient use of energy (construction and power electronics). Source: Danish Agency for Science, Technology and Innovation energy RESEARCH DEVELOPMENT DEMONSTRATION 17

20 DCSR Electrochemistry Research Centre Electrochemical core competences to enhance the energy systems of the future For many years, the Danish strategic energy technology programmes have provided significant and constant support to build Danish core competences in the development of solid oxide fuel cells (SOFC). Research started at the Fuel Cells and Solid State Chemistry Division at Risø DTU and has since developed in close collaboration with Topsoe Fuel Cell. This technology collaboration has given Danish players a leading position in the international race to be the first to exploit commercially the SOFC technology. Parallel to these efforts to commercialise the first generation of SOFC technologies is extensive strategic research into using Danish electrochemical competencies to develop new, more energyefficient and cheaper generations of SOFC. The most important component in this research is at the Danish Council for Strategic Research s first strategic research centre, the Strategic Electrochemistry Research Centre (SERC), headed by research professor Mogens Mogensen from Risø DTU. The majority of SERC research activities take place at the research division for Fuel Cells and Solid State Chemistry Division at the National Laboratory for Sustainable Energy at the Technical University of Denmark (Risø DTU), where this photo was taken. Electrochemical cells are more energy-efficient and environmentally friendly than traditional energy technology and potentially they could play a crucial role in the flexible energy system of the future. They can be used in SOFC installations for small-scale production of electricity and heat; in efficient SOEC electrolysis, whereby surplus electricity from wind turbines is converted into synthesis gas from CO 2 and steam; in cleaning exhaust gases, and in gas sensors. The task for the SERC is to establish synergy between the research institutions under the Center, and enterprises. A breakthrough in one application has proved to have a knock-on effect in other applications. Rune Bech Abrahamsen, development engineer at PBI-Dansensor said that taking part in SERC has made it possible to use new knowledge about electrode materials to optimise the company s oxygen sensor. One of the PhD projects at the Center is developing an entirely new oxygen sensor, and this requires a research environment which would be difficult to build and maintain alone for a company the size of PBI-Dansensors. According to John Bøgild Hansen, senior researcher at Haldor Topsøe A/S, research into new and more refined methods of characterisation such as 3D picture analysis of electrode structures, has become a good tool in the development of new generations of fuel cells and electrolysers. The SERC grant will expire in, but according to the head of the Center, Mogens Mogensen, the 12 PhD projects, and projects in five post-doctoral and five masters degrees, as well as the large synergy effects, are a good basis for the innovative technology collaboration between research communities and private companies to continue. Photo: Torben Nielsen SERC includes The Strategic Electrochemistry Research Center includes the following private companies: Haldor Topsøe A/S, Topsoe Fuel Cell A/S, IRD Fuel Cells A/S, Dinex Emission A/S, Danfoss A/S, APC by Schneider Electric, DONG Energy A/S, Dansk Micro Engineering A/S (DME), PBI-Dansensor A/S and Videometer A/S. The following research institutions are included: he Fuel Cells and Solid State Chemistry Division (Center management) at the National Laboratory for Sustainable Energy at the Technical University of Denmark (Risø DTU), DTU Physics, DTU Chemistry, DTU Mathematics, the University of Southern Denmark and Lund University. SERC s activities are closely coordinated with the Hydrogen and Fuel Cell Academy (HyFC) research school, which is a collaboration between Risø DTU, the Department of Energy Technology at Aalborg University and DTU Chemistry. 18 energy RESEARCH DEVELOPMENT DEMONSTRATION

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