1. DONG Energy Welcome to Avedøre Multi Fuel Power Plant
22 February 2010
Knud Pedersen, Vice President, Group R&D

2. The World's energy can be produced much more efficiently
Source: Morgan Stanley Research Feb. 2007
Power plat efficiency level
Others
DONG Energy
Global Average - 31% 1
0,2
0,4
0,6
0,8
Avedøre
Multi Fuel
Power
Plant
Imagine if all power plants in the World were as efficient as DONG Energy's…
Global CO2 emissions from coal: 30%
Global CO2 emissions: 9% 2

3. Avedøre Multi Fuel Power Plant -movie introduction 3

4. DONG Energy – Overview
DONG Energy is one of the leading energy companies in Northern Europe
We are headquartered in Denmark. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe
The average number of employees in 2008 was 5,347
EBITDA result in 2008: DKK 13,622 million
Overview

5. DONG Energy is an integrated energy company
-with activities across the entire energy value chain

6. From black to green energy
15 / 85
85 / 15
VISION
To provide reliable energy without CO2
STRATEGY
320 g CO2/kWh
100 g CO2/kWh
Eliminate 50% of CO2-emission per kWh before 2020
Eliminate 85% of CO2-emission per kWh before 2040
An electron in
2006
An electron in 2020:
50% CO2-reduction
An electron in 2040:
85% CO2-reduction
Reference for target is specific emissions in 2006 with 85% CO2-emitting electricity production [15% green electricity] and the first financial year of DONG Energy
Recommendation is following targets
2020: 320 kg/MWh, 50% reduction in specific emissions
2040: 100 kg/MWh, 85% reduction in specific emissions
Covers DONG Energy Power CO2 emissions based on all whole or partly owned electricity and heat installations
Heat from combined heat and power production is included as electricity equivalents (calculated as potential electricity production based on fuel use for heat production)
1) 2006 total heat and power production 28,5 TWh eleq/ CO2- emissions 18,2 mt = 638 g CO2/kWh

7. 85/15 implies more focus on renewables and gas
Wind (onshore and offshore)
Biomass
CONSIDERABLE CHALLENGES
Technical
Commercial (business model)
Regulatory
Gas
New tech
2008: 19 TWh
2015: ~ 34 TWh
STRATEGY TO 2015
More balanced thermal portfolio
Significant position within offshore wind
6000 MW
Coal and oil
Gas
Biomass and waste
Wind and hydro 7

8. With change comes opportunities…
Business Opportunities
Necessary Reductions
Ved tryk kommer "forretningsmulighed" på skærmen
Source: IPCC, Climate Change 2007 Synthesis report

9. DONG Energy initiatives -selected innovation examples
Inbicon – from biomass to ethanol
REnescience – from waste to energy
Better Place – powering transportation
Offshore wind – experience in integration of wind 9

10. Inbicon – from biomass to ethanol
Ethanol replaces oil in transportation
Biofuel replaces coal in power and heat generation
C5 molasses increases food production
or replaces more oil in transportation
or produces bio-chemicals
Ethanol
C5 molasses
Cellulosic biomass
(Waste)
The Goal of Inbicon is optimal use of biomass. We'll take a agricultural residue or energy crop, and convert it into fuel, feed and lignin biofuel pellets. Inbicon's technology provides a pathway that’s efficient, practical, sustainable, affordable. For six years, at our pilot plant in Denmark, Inbicon engineers have made cellulosic ethanol work. Our technical and financial studies done so far tell us that we can make cellulosic ethanol work on a commercial scale.
Cracking the code of lignocellulosic biomass didn’t happen overnight. It began about 10 years ago in the wheat fields of Denmark. Let's take a closer look at Inbicon’s proven conversion technology.
Lignin biofuel

11. Inbicon's proven technology
Large demonstration plant in operation today:
Annual output:
5,4 mill. liters ethanol
11,100 MT biofuel
11,250 MT C5-melasse
Annual input:
30,000 MT Wheat straw
December COP15 Limousines
powered by Inbicon's bio-ethanol
Kalundborg, Denmark – 7 December 2009

12. Renescience – from waste to energy
Facts
REnescience means Renewables, Science and Renaissance of the energy system
Biotechnological separation of urban waste into:
1. Liquefied organic part for biofuel production e.g. biogas, ethanol or gasoline
2. Inorganic e.g. plastics may be converted to electricity and heat
3. Metals, glass and fertilizers for recycling
All waste components are utilized as a resource

13. Better Place - powering transport
Electric cars can utilise excess wind power and recharge at night using cheap electricity. Timing-control is essential
One 2 MW wind turbine can provide 3,000 electric cars with energy.
700 turbines can fuel the total stock of Danish cars
Recharge primarily takes place at night when excess wind-capacity is high
Batteries are four times more effective as an energy provider compared to hydrogen
Even if all electricity were provided solely by coal-fired power plants, the CO2 emission from an electrical car would be only 50% of that of a conventional car
The electric engine can be a major contribution in the liberation of oil dependency of the transportation sector
The electric engine is remarkably more efficient than combustion engines
The change can reduce resources needs for transportation significantly

14. Electricity markets and pricing
Day Ahead
Intraday (24h to 60min before)
Intrahour (60-15 min before)
Example of prices on the day ahead market

15. Market forces put a price on flexibility
In December 2009, negative electricity prices were introduced
December alone had 9 hours with negative prices
Price duration curve for 2009
Price peak at 200 EUR/MWh
56 hours with zero or negative prices

16. Trade across borders and optimal utilisation of high-performing thermal plants is the backbone of wind integration
Danish wind power is optimised with Nordic hydro power and continental thermal power
Gross trade in 2007 was 22 TWh, corresponding to 60% of consumption
Net trade in 2007 was 1 TWh, corresponding to 3% of consumption
High efficiency thermal plants balances wind power and utilise heat for district heating
Average efficiency of Danish coal plants in 2006 was 55%
Coal plant efficiency

17. Increasing wind power is also an economic challenge
Already today Denmark exports a large share of the produced energy – at low prices
Low prices for wind energy make wind investments less profitable if they are highly market driven. Even if regulated, the need for public financing to pursue RE will pose a threat
Low prices are a threat to the vision of a low carbon society

18. Interaction and integration is key to realizing the full potential of new energy technologies
The handles
Operational optimization within and across sectors
Trade within and across country borders
Customer participation
Strong infrastructure for transport of electricity, gas and heat is the backbone of dynamic interaction.
The liberalized market is a prerequisite.
New business opportunities is the driving force.
FROM Coal, natural gas, wind, straw, manure, industrial waste, sun…
TO Electricity, heat, fertilizer, ethanol…
Trade between market players, sectors and countries, using transport infrastructure, markets and exchanges
Development of new concepts for clever but busy customers, which gives them an opportnity to use energy intelligently.

19. From system challenge… …to business opportunity
Parts of consumption is moved from peak demand to low peaks in demand
Wind power Thermal – heat bound
Thermal – not heat bound Consumption
Hour
Production and consumption in DK West, Jan
Tools for balancing the system
Thermal production
Import / export
Flexible consumption / energy storage
Electricity production
System responsibility
Wholesale market
Sales
Distribution
Market driven mobilisation through decentralised storage and exploitation of synergies
Market driven development should be ensured by assessing the regulatory and infrastructural challenge of flexible consumption

20. The Power Hub -a crucial element in the "intelligent power consumption"
Power markets
Ancillary services and grid optimisation
Power plant master controller
DONG Energy Power
control room
Wind farm controller
Power Hub of consumption aggregators
Power Hub of medium-size
power production units
Aggregation of electric cars
Power Hub of large and medium size consumption units
Aggregation of micro units
Emergency generators
heat pumps, freezers etc.
Hydropower

21. Thank you for your attention
Knud Pedersen, Vice President
Group R&D, DONG Energy