Purdue Energy Academy / June 12, 2012 Innovation in the Energy Business What s the big deal? Siemens AG 20XX All rights reserved. siemens.com/answers
Innovation in Energy Business What s the big deal? OUTLINE Introduction & outline What is Siemens? 5 min 5 min Energy quick quiz 50 min How big is energy business? (10) Power generation options? (15) What about GHG? (15) Why moving wind off-shore? (10) Energy Experiment Kit 2 hours Feedback and takeaways? 30 min Page 2
Siemens has answers Four business sectors close to the customer Energy Healthcare Industry Infrastructure & Cities Divisions Fossil Power Generation Wind Power Oil & Gas Energy Service Power Transmission Divisions Imaging & Therapy Systems Clinical Products Diagnostics Customer Solutions Divisions Industry Automation Drive Technologies Customer Services Divisions Rail Systems Mobility and Logistics Low and Medium Voltage Smart Grid Building Technologies OSRAM 1) 1) In fiscal 2011, Siemens announced its intention to publicly list OSRAM and retain a minority stake as anchor shareholder in OSRAM AG for the long term. Page 3
Siemens Energy Clean electricity for the world What are our products? Fossil Power Generation Wind Power Oil & Gas Energy Service Power Transmission (E F) (E W) (E O) (E S) (E T) World record 60.75% New performance dimensions 6 MW Deep-sea capable 36 kv Additional 200 MW World record 800 kv efficiency for combined cycle power plants for wind turbines Seabed power distribution at depths of up to 3,000 m through modernization in 2011 for direct current transmission Page 4
Energy quiz #1 How big is the Energy business? Average investments per year (2010 2030) worldwide in billion 500 700 300 200 Primary energy Power generation Power grids Gas 44% Others 6% 50% Oil Others 40% 60% Renewable energies Power distribution 70% 30% Power transmission Source: IEA 2010; Siemens Page 5
Global electricity market Demand for electricity is steadily growing Power generation mix worldwide, in TWh +2.8% p.a. 37,100 13%20XX-XX-XX 15%20XX-XX-XX Enough additional capacity to power 1.3 Billion US homes Renewable energies Water 22,100 11% Nuclear 20XX-XX-XX4% 16% 13%20XX-XX-XX 24% Gas 22% 4% 41% 68% 61% 3% 34%20XX-XX-XX Oil Coal 2011 67% more 2030 Source: Siemens Page 6 In 2010, the average annual electricity consumption for a U.S. residential utility customer was 11,496 kwh
Global power plant market Capacities will double by 2030 Development of power plant 7,015 capacities worldwide, in 861 gigawatts (GW) 27 30 20XX-XX-XX26 16720XX-XX-XX 217 642 653 1,084 10,527 716 1,206 36 Motors Geothermal Biomass, wastes Solar thermal Photovoltaics Wind 5,816 39620XX-XX-XX 15 22220XX-XX-XX 20XX-XX-XX4074 2 1,08920XX-XX-XX 390 2,30420XX-XX-XX 20XX-XX-XX541 20XX-XX-XX165 14 999 20XX-XX-XX224 20XX-XX-XX199 9 24 20XX-XX-XX 29 100 705 372 1,407 313 1,409 1,780 20XX-XX-XX598 2,726 Hydro (incl. ocean power) Nuclear power plants Coal power plants 2,318 511 Gas power plants 422 848 20XX-XX-XX2,058 Combined cycle power plants Installed capacities 2011 Dismantling (2012 2030) New capacities 2012 2030 Installed capacities 2030 Source: Siemens Page 7
Energy quiz #1 How big is the Energy market? 278% 1,683 84720XX-XX-XX 28% 620 Europe 1) 121% 763 110% 43% 195 Russia 20XX-XX-XX9% USA 110% 190 437-0.7% Germany 93% Middle East India China -5% 178 Japan 218 13820XX-XX-XX 33% 75 Growth in power generation, 2011 2030 [% of TWh] Brazil Africa Australia New installations 2011 2030 [GW] Source: Siemens 1) SWE, NWE, GER, CEE Page 8
Energy quiz #2 Power generation options I have a chart that shows the cost of all the power generation options and a map of the cost of electricity state-by-state in the US, and a comparison to costs in other parts of the world. We can use this to explore with students/teachers what the different mixes of electric power production used in different areas, and why. We can also use this as a basis for exploring: - why not 100% renewables - what are the effects from fracking and the shale gas boom - what is different between the US and EU markets, and why Page 9
Different challenges in differing markets Worldwide examples Country-specific challenges Middle East: By increasing efficiency and using renewable energies, over one quarter more of the region s annual oil and gas production can be marketed Economic efficiency Resource efficiency Climate protection Reliable power supplies India: Power-for-all program aims at achieving economic growth through electricity (+350 GW capacity by 2020, of which +215 GW is with coal) USA: Priority is affordable energy, and strict environmental controls (average price of electricity: <10 USct/kWh) China: Further expansion of nuclear power (from 12 GW today to 83 GW installed capacity by 2020), however with new safety standards Germany: Planned energy transition: at least 80% CO 2 abatement by 2050 Page 10
to produce electricity? And, what is the price to consumers? Germany Denmark UK Dropping fast Russia Page 11
Renewable Energy Resource Maps of the US US Department of Energy National Renewable Energy Laboratory Solar - Photovoltaic Biomass Wind - Onshore Wind - Offshore Solar - Concentrated Thermal Geothermal Page 12
Energy quiz #3 What about greenhouse gases (GHG)? Data graph called the EPRI wedge what is CO2 concentration in the atmosphere, how fast is it growing, what actions will reduce it, and how much? Page 13
Energy quiz #3 What about greenhouse gases (GHG)? Q: What are the drivers a business looks at for greenhouse gas control? A. Market drivers, Technology drivers, Customer drivers, Competitive drivers Q: What are market drivers? Show world maps and how the drivers are different around the world. Q: What are technology drivers? Show some engineering solutions, and the challenges (scale and costs) Q: What are customer drivers Who will pay? Show US example vs. EU example (Germany) Q: What are Competitive Drivers? Show what various technology companies are developing, and why? Page 14
Energy quiz #3 What about greenhouse gases (GHG)? Data showing how much is being spent on CO2 capture and storage, and who is paying for it. Page 15
Energy quiz #3 What about greenhouse gases (GHG)? Why not just capture all of the CO2 from power plants and be done with it? Answers include: a) engineering challenges, b) costs, c) policy Page 16
Energy quiz #4 Why move wind power offshore? Why offshore???? Advantages??? Disadvantages??? Page 17
Energy quiz #4 Why move wind power offshore? 130-150 m 160 m 135 m 200 m 100 m 80-100 m 22 m 35 m 30-40 m 42-62 m 60 m 1987-1990 1st generation 30-165 KW 1993 / 1994 2nd generation 225-500 KW 1996 / 1997 3rd generation 1,000 1,500 KW 2002 / 2003 4th generation 2,500 3,500 KW Washington Monument Today 5th generation 6,000 KW Page 18
Siemens Energy - Clean electricity for the world Final thoughts? Questions? Bob Shannon Innovation Manager Energy Technology & Innovation 4400 Alafaya Trail Orlando, FL Phone: +1 (407) 736-2376 E-mail: robert.shannon@siemens.com siemens.com/answers Page 19
Back up slides about Siemens Page 20
Siemens Energy Strong global presence Engineering & Manufacturing Locations Minneapolis Fort Madison Jackson Hutchinson Guanajuato Querétaro Trois Rivières Bogota Lincoln York Aberdeen Hebburn Hengelo Grenoble Middleton Trenton Sabugo Charlotte Amora Orlando Fort Payne Alpharetta Aalborg Brande Helsingør Oslo Trient Cairo Montenotte Milan Finspong St. Petersburg Berlin Duisburg Erlangen Frankenthal Frankfurt Goerlitz Kirchheim Brno Vienna Linz Budapest Weiz Istanbul New Delhi Zagreb Gurgaon Vadodara Karachi Kalwa Aurangabad Dresden Leipzig Muelheim Offenbach Nuremberg Erfurt Karlsruhe Huludao Jinan Shenyang Nanjing Wuxi Shanghai Hangzhou Guangzhou Singapore Jakarta Cilegon Jundiaí Wadeville Johannesburg Page 21
Siemens Energy Sector Strong global presence Service locations Anchorage Hamilton Milton Springfield Raleigh Houston Guanajuato Querétaro Bogota Aberdeen Helsingør Brande Trondheim Lincoln Newtown Newcastle Hebburn Pittsburgh Penn Hall Hengelo Grenoble Trenton Orlando Port Harcourt Dammam Dubai Finspong Talinn St. Petersburg Brno Vienna Krasnodar Budapest Qeshm Kalwa Bangalore Jakarta Berlin Bremen Duisburg Essen Muelheim Nuremberg Erlangen Huludao Shanghai Batangas City Fossil / Oil & Gas Power Transmission / Power Distribution Renewables Jundiaí Bahía Blanca Wadeville Johannesburg Adelaide Auckland Page 22