1. ©2012 Energy Technologies Institute LLP The information in this document is the property of Energy Technologies Institute LLP and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Energy Technologies Institute LLP. This information is given in good faith based upon the latest information available to Energy Technologies Institute LLP, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Energy Technologies Institute LLP or any of its subsidiary or associated companies. WiTT: Cleantech www.eti.co.uk Nicola Ham Edmonds, ETI

2. 2 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 What is Cleantech? “Clean technology includes recycling, renewable energy (wind power, solar power, biomass, hydropower, biofuels), information technology, green transportation, electric motors, green chemistry, lighting, Greywater, and many other appliances that are now more energy efficient.”recyclingrenewable energywind powersolar power biomasshydropowerbiofuelsinformation technologygreen transportationelectric motorsgreen chemistrylightingGreywaterenergy efficient “Cleantech is a term used to describe products or services that improve operational performance, productivity, or efficiency while reducing costs, inputs, energy consumption, waste, or environmental pollution. Its origin is the increased consumer, regulatory, and industry interest in clean forms of energy generation—specifically, perhaps, the rise in awareness of global warming, climate change, and the impact on the natural environment from the burning of fossil fuels. The term cleantech is often associated with venture capital funds and land use organizations.”productivityenergy consumptionwastepollutionglobal warmingclimate change natural environmentfossil fuelsventure capital Wikipedia, 10 January 2011

3. 3 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 What is Cleantech? “Clean technology includes recycling, renewable energy (wind power, solar power, biomass, hydropower, biofuels), information technology, green transportation, electric motors, green chemistry, lighting, Greywater, and many other appliances that are now more energy efficient.”recyclingrenewable energywind powersolar power biomasshydropowerbiofuelsinformation technologygreen transportationelectric motorsgreen chemistrylightingGreywaterenergy efficient “Cleantech is a term used to describe products or services that improve operational performance, productivity, or efficiency while reducing costs, inputs, energy consumption, waste, or environmental pollution. Its origin is the increased consumer, regulatory, and industry interest in clean forms of energy generation—specifically, perhaps, the rise in awareness of global warming, climate change, and the impact on the natural environment from the burning of fossil fuels. The term cleantech is often associated with venture capital funds and land use organizations.”productivityenergy consumptionwastepollutionglobal warmingclimate change natural environmentfossil fuelsventure capital Wikipedia, 10 January 2011 Does it include nuclear, carbon capture and storage (CCS)? Why is it important? And what goes the Energy Technologies Institute (the ETI) do?

4. 4 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Addressing the challenges of climate change and low carbon energy Improving energy usage, efficiency, supply and generation Demonstrating systems and technologies Developing knowledge, skills and supply-chains Informing development of policy, regulation and standards Enabling deployment of affordable, secure, low carbon energy systems Energy Technologies Institute ETI Programme Associates ETI Project Partners Public Sector

5. 5 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Affordability Security (£40/tonne) -80% Sustainability fossil fuel baseline DUKES data Addressing the UK’s energy challenges

6. 6 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Energy Consumption in Buildings 26M buildings in the UK, 21M remaining in 2050. UK housing consumes ~27% of the UK energy This accounts for ~26% of the UK CO2 emissions Energy use in domestic properties is the biggest single load on the UK energy system 60% Heating 22% Hot Water 18% Other

7. ©2012 Energy Technologies Institute LLP – Subject to Notes on Page 1 Transport - Impacting 24% of UK CO 2 Addressing Key Energy Challenges in Heavy and Light Duty Vehicle Sectors Transport Aviation DomesticInternational Heavy Duty MarineHGVOff-RoadRailBus/Coach Light Duty Commercial Vehicles Passenger Cars 2%19%6%15%7%1%9%39%2% UK Transport CO 2 Emissions* Increasingly Efficient Use of Liquid Fuels Alternative Energy Options Modal Shift (<10%) Transport CO 2 Emissions ≈ 24% of total UK emissions (excluding international components) *source: NAI 2006

8. 8 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Addressing the UK’s 2020 and 2050 energy challenges requires... Setting a strategic direction Creating commercial confidence Viable commercial operation Which energy technologies do we need and when? Innovative technologies and sub-systems Full system demonstration  Reducing risk  Increasing investor confidence  Bringing together new supply- chains

9. 9 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 The ETI’s UK Energy System Model PC based mathematical model identifying and evaluating options for design of the future UK Energy system Generation and Demand Power, Heat, Transport and Infrastructure Enables decision making on investment and prioritisation Unique design and operation Engineering system focus “What technologies might we need?” “How might they integrate to meet UK demand?” ‘Back-cast’ from 2050 to today “What might we need when?” Probabilistic approach “what is the likelihood that....?” Spatial representation Includes UK geography – “Where might things need to be ?”

10. 10 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 ETI 2011 portfolio - addressing key energy challenges  Wind Offshore specific system design and engineering  Marine Tidal Stream and Wave  Distributed Energy (DE) Combined Heat and Power (CHP), demand management, efficiency  Buildings Retrofit of new technologies and systems  Energy Storage and Distribution Infrastructure, heat and energy storage, fault management, smart networks  Carbon Capture, handling and Storage (CCS) Storage modelling, capture technologies, network design  Transport Electric vehicle infrastructure, heavy duty vehicle efficiency  Bio Energy Soil chemistry and agronomy, value chains, energy conversion  Energy Systems Modelling (ESM) ETI technology strategy 2011

11. 11 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 £133m of projects announced Organisations working on ETI projects – October 2011 SMEs Large Corporate Organisations ETI Members Universities and Research Institutes £133m of major projects underway > £139m of further projects in development CCS, DE, offshore wind, energy storage, smart systems, transport

12. 12 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Major challenges for the UK energy system 2010-2050 Requires ‘industrial scale’ deployment – for volume and rate

13. 13 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Challenges – Personal Observations Innovation, Innovation, Innovation Innovation is in Tech companies SMEs - Skills, Capability and Resources Collaboration: collaboration between SMEs, academics, corporates are essential. Cost : insufficient emphasis is on affordability: will consumer pay increasing cost Investment Cost of the leap from lab scale to commercial scale Uncertainty of commercial route to market (e.g. CCS, transport) Importance of consumer requirements (transport, smart systems) Climate change pendulum

14. 14 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 What is Cleantech? “Cleantech is a term used to describe products or services that improve operational performance, productivity, or efficiency while reducing costs, inputs, energy consumption, waste, or environmental pollution. Its origin is the increased consumer, regulatory, and industry interest in clean forms of energy generation—specifically, perhaps, the rise in awareness of global warming, climate change, and the impact on the natural environment from the burning of fossil fuels. The term cleantech is often associated with venture capital funds and land use organizations.”productivityenergy consumption wastepollutionglobal warmingclimate changenatural environmentfossil fuelsventure capital Clean tech is every technology of the future

15. 15 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Enabling…. Large-scale deployment through major industries Innovation pulled through from smaller enterprises and academia Sustained support for long-term incentives, skills development and regulatory frameworks ©2011 Energy Technologies Institute LLP Subject to notes on page 1

16. 16 ©2011 Energy Technologies Institute LLP Subject to notes on page 1 www.eti.co.uk Building Partnerships Delivering Innovation Sharing risk Informing Policy Demonstrating Affordable systems for Secure, Low Carbon Energy ©2011 Energy Technologies Institute LLP Subject to notes on page 1 16

17. 17 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 Offshore Wind Marine Buildings Energy Storage & Distribution Carbon Capture & Storage Transport Distributed Energy Bio Energy Energy System Modelling Environment Current Project Partners

18. 18 ©2012 Energy Technologies Institute LLP Subject to notes on page 1 The ETI Board Sir Rob MargettsChairman David ClarkeChief Executive Industry Members David EytonGroup Vice President TechnologyBP Richard CaseVP Marine and Petroleum PowerCaterpillar Jörg KruhlHead of New Technologies E.ON New Build and Technology Peter HofmanDirector of Company Shared Services & Integration EDF Energy Chris FloydBusiness Development DirectorRolls-Royce plc John MacArthurVP CO 2 PolicyShell International Public Sector representatives John DoddsDirector of InnovationBIS David DelpyChief Executive OfficerEPSRC Iain GrayChief Executive OfficerTechnology Strategy Board Observers Sir John BeddingtonChief Scientific Adviser to UK Government Paul HollinsheadDirector, Science and InnovationDECC Peter BanceChief Executive P+M Intellectual Capital Sue ArmfieldETI SecretariatBIS