Transcript OSLO – A STRONG CLEANTECH REGION

GREEN TECHNOLOGY IN THE OSLO REGION
Norwegian Cleantech Industry
- national and local perspectives
Radisson Blu Astorija Hotel, Vilnius, Oct 12, 2011
Anders Nordeng, Project Manager, Oslo Teknopol
Photo: SEA
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GREEN TECHNOLOGY IN THE OSLO AREA
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Why cleantech? And why Oslo?
Break-down of the segments in the Oslo-region - The Study
Observations on the different segments (national level)
Key export markets for Norwegian cleantech
Role of Oslo Teknopol
Other support agencies (national and regional)
Financial support mechanisms for cleantech
Lessons learned and recommendations?
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CLEANTECH : AN IMPORTANT MARKET – AND GROWING
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Oslo: value added 6 bn €
(MandagMorgen/Menon 2010)
Norway: value added 8 bn € (Menon
2011)
World: 210 bn $ (UNEP/NEF 2011)
Cleantech = renewable energy
and environmental services
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CLEANTECH IS IMPORTANT IN THE OSLO REGION
• Leading companies in all cleantech segments.
• Already represents 5 % of the region’s value added.
• Norway’s leading energy companies have HQ or international department
located in Oslo.
• Cleantech is to a large extent a knowledge intensive industry, and Oslo is
the Norwegian region with the highest number of engineers.
• Several world class cleantech related universities and laboratories,
especially in photovoltaics (solar) and bioenergy.
• Centre for finance (stock exchange, commercial and investment banks)
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Photo: Giulio Bolognesi / VisitOSLO
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OSLO IS STRONG IN CLEANTECH COMPETENCES
Power
companies
NGOs
Legislation/
Regulation
Education
CLEAN
TECH
R&D
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Equipment
makers
Services/
Consulting
Finance
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STUDY OF CLEANTECH IN THE OSLO REGION
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Quantitative and qualitative analysis by Mandag Morgen Analysis
and Menon Business Economics. Sept 2009 – Jan 2010.
Made for Oslo Teknopol and OREEC.
Based on reported turnover, employment and added value of
cleantech companies registered in and around Oslo.
Wide definition of cleantech, strict selection of companies to
include (must have cleantech as main activity).
Figures adjusted to reflect degree of involvement in cleantech.
Oslo plus eight surrounding counties.
E-mail survey (questionnaire) to 300 most important companies
In-depth interviews with 10 key experts.
Sector
Number of
companies
Employees
Turnover in million €
(1 NOK=0,125€)
Part of
total %
Growth 2000-2008
%
1 Solar
16
343
1106
8,8
15 565*
2 Wind
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92
108
0,9
315
3 Stationary bioenergy (not including biofuels)
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111
56
0,4
485
4 Other renewable (wave, osmotic, etc)
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2
0,1
110
5 Carbon Capture and Storage (CCS)
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580
249
2,0
289
6 Emission reduction from transport
15
156
64
0,5
79
7 Water treatment
91
738
225
1,8
200
8 Energy efficiency
30
777
571
4,5
98
9 Consultancy/Analysis
38
3133
539
4,3
185
10 Hydro Power
213
1583
6975
55,4
145
11 Waste management
222
4186
2363
18,7
105
8
304
341
2,7
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721
12 007
12 599
100
152
Other
Total
* REC accounts for nearly the whole of this sector. This producer of silicon and wafers enjoyed a massive growth in the early 2000s
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KEY FINDINGS
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(2008 figures)
721 companies.
12 000 people.
Turnover of 100 bn NOK (12,5 bn €).
Value added of 46 bn NOK (5% of total in region).
Cleantech turnover has grown by 150 per cent from
2000 to 2008.
Solar segment has grown by more than 15 000 per cent.
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SUMMARY CONCLUSIONS FROM THE STUDY
The different segments originate in very different
industries => Cleantech lacks a common industry identity.
2. “Old” industry of hydro power still very dominant in terms
of revenue.
3. Waste treatment second largest segment.
4. Hydro power utilities have deep pockets, and can finance
other forms of renewable energy generation (e.g.
stationary biofuels) and R &D (e.g. osmotic).
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Hydro power
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Competitive without subsidies.
99 % of Norway’s electricity production.
Concessions in early 1900s (French
investors). Little development since 1980.
End-user market liberalised in the 1990s...
...except for heavy industry which still
benefits from cheap subsidised power.
Common Nordic Electricity Exchange (Nordpool).
Power production remains in the hands of public service companies
(State or municipal).
Export advantage: flexible storage capacity, can supplement less
reliable sources.
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Solar
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Companies positioned along the value
chain, from silicon processing to
photovoltaic power plants.
REC is one of the world’s biggest
producers of silicon wafers. Production
in Singapore and USA. Closing down
plants in Norway.
Other notable companies: Elkem,
Innotech Solar, Norsun, Scatec Solar.
Made for export, little use domestically.
World class research at University of
Oslo (UiO) and Institute for Energy
Technology (IFE).
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Wind
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Norway has a long and windy coastline
but local resistance and poor profitability
hamper local development and forces the
companies to invest abroad.
No major equipment maker, but promising
companies in the offshore segment:
– Operating offshore wind parks: Statkraft/Statoil
(major contracts in UK).
– Foundations: Aker Verdal, Seatower,
– Installation): Master-Marine, Odfjell,
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Stationary bio energy
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Two main markets for stationary bio energy:
– district heating to households (local power utilities, such as
Hafslund, Akershus Energi and Eidsiva.
– Transformation of surplus wood into heat/power in pulp/paper
industry.
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CAMBI is the biggest equipment maker/installer
(transformation of sewage water and waste into
biogas).
In general, much
of the equipment is
imported.
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Emission reductions from transport
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Transport accounts for 1/3 of Norwegian emissions.
Biofuels subsidies abolished 2009.
Strong fiscal incentives for choosing electric vehicle.
Around 3000 pure electric vehicles circulating in 2010,
high number of hybrids.
Three small scale producers of
electric vehicles – of which the
biggest – Think – has outsourced
production to Finland.
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Carbon capture and storage (CCS)
Statoil has 20 years experience in separating CO2 from
natural gas, and in storing under seabed in North Sea.
• Focus is now on testing capture from flue gas from gas
fired power plants (much lower concentration than in
natural gas – thus more complicated).
• Aker Clean Carbon and Alstom (France) are testing two
different amin-solutions at Mongstad.
• Government has (had?) high hopes in carbon capture as
a future export.
• If capture becomes economically viable, Storage could
become a more important revenue source for Norway
(deposit European CO2 under the North Sea).
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Energy efficiency
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Heavy industry: much in-house development to
optimise processes and reduce the need for input
electricity. Hydro, Elkem, Alcoa, ...
Dematerialisation /smarter offices: reduce the need
for travel, i.e. videoconferences (Tandberg).
Buildings: various suppliers of isolation and solutions
for low emission buildings.
Possibly interesting for Lithuanian manufacturers of
ready-made houses.
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Waste management
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Second biggest sector in terms of revenues, after hydro power.
Four main sub-sectors:
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Technology and equipment for optical separation and recycling. Tomra , Titech.
Treatment of toxic waste. Lindum,...
Recycling of metal: Franzefoss,...
Processing of organic waste into biomass. Veolia, municipal waste management companies.
Tomra and Titech very export oriented, as are some of the smaller
companies.
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Water treatment
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Purification of drinking water and cleaning of used water.
Small market in Norway, but in rapid growth internationally.
Some Norwegian companies are internationally oriented.
Cluster of companies in Vestfold (south-west of Oslo).
Solutions for municipal
administrations, industry,
consumers.
Leading companies:
MI EPCON, Malte Vinje,...
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Analysis and Consultancy
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Three main sub-sectors:
– Risk analysis, verification, classification. Leading
company: DNV.
– Information/analysis on energy markets and derivates
(i.e. emission quotas). Point Carbon, Navita, Viz.
– Technical-environmental consultancy. Sweco, Asplan
Viak, Multiconsult, Norconsult.
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Promising segment for Norwegian engineers:
– Brain intensive, not labour intensive.
– Quick international expansion possible in niche services.
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KEY NORWEGIAN EXPORT MARKETS
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Offshore wind: UK
(Sheringham Shoal,
Doggerbank)
Solar (silicon PV): Germany,
Asian countries. small scale
PV in developing countries.
Hydro: Turkey, Balkans,
France, developing countries.
CCS: Aker Clean Carbon
testing large scale capture at
Longannet coal power plant
in Scotland.
Emission trading/analysis:
several companies with world
wide presence.
Competition is fierce in some markets:
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SOME NOTABLE NORWEGIAN CLEANTECH COMPANIES
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Product/Sector
Localisation
Ownership
Silicon, wafers and PV
panels
HQ Oslo, production
Norway, USA and
Singapore
Listed on Oslo Stock
Exchange (OSE)
Power generation from
hydro and wind
HQ Oslo, production and
sales in Norway and
Europe
100 % government
owned
Offshore wind, bio fuels,
CCS
HQ Stavanger (west
coast), production North
Sea,
Listed on OSE, Gov holds
around 66 %
Production of small
electric vehicles
HQ Oslo, assembly plant
in Finland
Mainly American equity
investors
Amin-based carbon
capture and storage from
gas power plants
HQ Oslo, test centres
Mongstad (Norway) and
Longannet (Scotland)
Subsidiary of Aker
Solutions (listed on OSE)
CDM assessment ¾ of
world market, R&D
renewables
HQ Oslo, Worldwide
presence, 22 offices in in
China.
Foundation
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OSLO TEKNOPOL (OT) – A CLUSTER FACILITATOR
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Non-profit regional development agency established by the City of Oslo
and Akershus County Council.
Mandate: stimulate knowledge based growth (long term) through
cooperation between companies, universities and administration (socalled triple helix).
Theoretical basis: Prof Michael Porter’s theories of cluster development,
which implies that politicians should actively promote certain selected
industries, based on the region’s available competences and resources.
Method: OT does not provide funding for partners/other stakeholders, but
will act as go-between, facilitator, and, when the cluster identity is
sufficiently strong, OT will act as secretariat for concerted actions
(conferences, lobbying, recruitment operations, etc)
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OSLO TEKNOPOL: FOCUS ON FIVE KEY CLUSTERS
Oslo Teknopol
Governance bodies set up for:
Government
• Management and
coordination
• Marketing and
communication
Maritime
The choice of these five
sectors has been
approved by the political
authorities of Oslo and
Akershus.
Clean Tech
(Energy and
Environment)
• Innovation project
development
ICT
Life science
Higher Education
and research
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Culture
Private
industry
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THE GREATER OSLO REGION
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OSLO TEKNOPOL’S CLEANTECH ACTIVITIES
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Mapping of the sector (commissioned the Mandag Morgen Study
in 2009).
Series of interviews with leading companies in energy and
finance 2009.
Analysis and lobbying:
– How to unleash more private investment in cleantech?
– What should be the role(s) and place(s) in the value chain of Norway’s
cleantech businesses?
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Message conveyed to national and local politicians through
conferences (panel debates), policy papers, oped-eds,…)
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Challenge: in the absence of a clear cluster identity, it is hard to
”speak for the whole bunch”. OT has decided to focus on
renewable energy (especially offshore wind), infrastructure and
finance.
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CLEANTECH RELEVANT ORGANISATIONS/NETWORKS
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Sector oriented business federations (for solar, wind,
bioenergy, etc).
Green Business Norway: cross-sector organisation, especially
strong in the county of Vestfold (south-west of Oslo)
OREEC: cross-sector organisation, especially strong in the
Romerike area north-east of Oslo.
IntPow: Government-sponsored organisation with the aim to
promote cleantech export (nationwide focus).
Oslo Teknopol: focus on energy companies and finance
corporations (banks and insurance), seeks to influence and
amend regulation.
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FINANCIAL SUPPORT MECHANISMS FOR CLEANTECH
State funding through various agencies/programmes:
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Innovation Norway: Programme for environmental technology
Research Council: supports cleantech-relevant R&D
11 Centres for Environment-friendly Energy Research (FME).
Two are based in the Oslo-region (photovoltaic and bioenergy)
Enova: supports energy efficiency programmes (e.g. process
industry and heating)
Transnova: supports emission reduction programmes in
transport
Gassnova: supports R&D in carbon capture and storage
Eksportfinans/GIEK: guarantees and subsidised loans to
foreign buyers of Norwegian cleantech products.
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GREEN INDUSTRY INITIATIVES ON A LOCAL LEVEL:
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Networking: organize platforms, relay information, etc. Participation should be
non-committing and free of charge. Be cooperative (not competitive) towards
other organisations. Once the private companies are convinced of the
“platform’s” usefulness, it can transform into a membership –based organisation,
with less need of support from the public agency. Oslo Teknopol has successfully
developed this model for the shipping/maritime cluster. Still a long way to go in
cleantech, because of the much less developed common industry identity.
Funding: In Norway most support for R&D, demonstration sites, energy
efficiency, and infrastructure is State money funnelled through various
government agencies. Some of it is handed out locally (through municipally
appointed boards), and the municipalities are free to launch their own initiatives.
Programmes: Oslo participates in the Cities of the Future programme, alongside
12 other Norwegian cities. The aim is to reduce CO2 emissions by better land use,
transport, heating/insulation and waste treatment.
Purchasing: The municipalities are important buyers of energy, housing,
transport, and other cleantech-related services. Unlike private companies who
tend to buy the least expensive solutions, municipalities can chose to favour low
carbon footprint. OFTEN THE MOST IMPORTANT!
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CONSIDERATIONS FOR A BUSINESS SUPPORT STRATEGY
A cleantech support strategy should be clear on the ultimate goal:
Emission reduction ? The best solution could be to import .
Technology development ? Important segments such as hydro power
generation, insulation, forestry and waste treatment are not necessarily
very hi-tech.
New jobs in manufacture? Only if labour costs are competitive.
Otherwise head office and R&D can suffice. But, there is off course the
danger that eventually these functions might follow suit.
Do not underestimate the role of service providers. Some of the most
successful Norwegian cleantech companies are in the field of
certification, information/analysis and software for trading energy.
Will you support demonstration projects in another country? (whose
emission reductions will benefit the host country). Relevant for
Norwegian CCS and offshore wind power, for whom UK is more
interesting than Norway.
Are you willing to impose more expensive solutions on the consumers
(voters)?
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OSLO TEKNOPOL – WE KNOW THE OSLO REGION
Thank you for your attention.
I’ll be happy to answer any questions during the
next coffee break.
Oslo Teknopol
P.O. Box 527 Sentrum
N-0105 Oslo, Norway
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Visit: www.oslo.teknopol.no
Project Manager: Anders Nordeng
Tel:+47 90 51 20 71
[email protected]
Photo: Ida Næss Wangen
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GLOBAL INVESTMENTS: RESILIENCE DESPITE DOWNTURN
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162 bn $ in 2009,
down from 173 bn in
2008. Still above
2007-level.
Jump to 210 bn in
2010 (32% increase)
Renewable electricity
catching up on fossil
competitiveness.
Strong sectors 2009:
– Wind farms China
– Offshore wind
North Sea
– Power storage
– Electric vehicles
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