Thursday 28 May 2015

Santander, Canadian funds form new RE investment powerhouse, .By Andrew Lee Recharge News in London Thursday, May 28 2015 Updated: Thursday, May 28 2015

Santander is joined by two Canadian pension groups in Cubico

Santander is joined by two Canadian pension groups in Cubico



Cubico Sustainable Investments will start life with a portfolio valued at more than $2bn, after Santander transferred 19 existing wind, solar and water assets into the new venture.
The Spanish group launched Cubico with Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board, after signalling late last year that they planned to link up.
The partners said Cubico “is committed to a long-term growth strategy designed to make it one of the largest and best in class renewable energy and water investors in the world”.
Based in London, the investment firm will have offices in Milan, Sao Paulo and Mexico.
The new venture said its main target regions will be Europe and the Americas, especially Canada, Brazil, Colombia, Mexico, Peru and Uruguay.
It will be based around a core of the existing Santander Asset & Capital Structuring team, with team leader Marcos Sebares becoming Cubico CEO.
Cubico will have a mandate to hold assets for the long-term, said a statement, as it seeks to build on the 1.4GW of operating and under-development capacity it starts life with.
Sebares said: “Renewable and water infrastructure developments require decisive long-term investment and commitment. We are uniquely positioned to provide this through our strong ownership structure, experienced team and global footprint.
"We have already built a strong pipeline of attractive assets to add to the platform."
Santander has made significant investments in renewables across the world, spanning wind power in Mexico, Brazil and the UK and US solar projects.

Monday 25 May 2015

WEG spins first Brazil-developed wind turbine prototype, By Alexandre Spatuzza, Recharge News in Sao Paulo Friday, May 22 2015 Updated: Friday, May 22 2015

The WEG prototype turbine

The WEG prototype turbine



The 2.1MW turbine is located in southern Brazil, between a pilot 3MW solar PV plant and a 875MW coal-fired power complex operated by Tractebel, a unit of GDF Suez, which partnered with WEG for the R$160m ($52m) R&D project.
WEG has been developing the prototype since August 2013 when it signed a licensing agreement with US turbine maker Northern Power System (NPS).
The operating turbine – a gearless machine, with a rotor size of 110-metres, mounted on a 120-metre concrete tower – will be tested over the next 18 months. It will later be upgraded to a higher capacity to supply local demand for bigger turbines.
WEG will test components developed with local suppliers and continue developing the bigger model.
“We have some new projects of nationalised equipment that we want to use in the 2.1MW model to test some concepts. Our turbine has 80% of local content,” WEG's wind power director, João Paulo Gualberto da Silva told Recharge.
Among items that WEG wants to test are the cooling systems – needed to meet higher tropical and subtropical temperatures – inverters and control panels, all of which were developed in WEG's laboratories for 18 months before building the prototype.
WEG will observe the performance of blades and components, with bearings considered critical, said Silva.
WEG also wants to certify the machine, and has worked with foreign engineering consulting firms and research centers such as Germany's Fraunhofer Institute and Windnovation, Holland's Pontis Engineering and England's RBB Engineering.
Pontis – which tested the blades for WEG, supplied by Brazilian blade maker Aeris – said tests were successful and certification should be granted in June.
Overall, 60 engineers from WEG and its partners worked on the project, said Silva.
Although power regulator ANEEL authorised commercial operations on May 21, the prototype has been spinning since February.
Brazil's wind power sector launched in 2009 with the first competitive auctions, but the local turbine industry only started in earnest a couple of years ago as the January 2016, local-content deadline draws closer.
The seven turbine makers active in the country, which includes WEG, are this year concluding the construction of nacelle assembly units, building out local supply chains and in some cases operating their own tower factories.
But the race is on to improve performance, adapting to local conditions as well as increasing machine capacity. Although most turbines sold in Brazil have capacities of 2MW, Spain's Acciona already produces locally its 3MW, AW3000, and market leaders GE and Alstom are preparing to sell bigger capacity models.
WEG, which delivered its first turbines at the end of 2014, is currently producing the 2.1MW turbines in its plant in southern Brazil, that has capacity to assemble 100 units a year.
A traditional supplier of generating and electric equipment to the power, industrial and oil and gas sectors, WEG has been looking to supply to Brazil's wind and solar power since 2012, relying on its strong R&D investment track record. In the future, WEG, which also invests abroad in other areas, plans to export the machines to Latin America and Africa.
WEG posted net revenues of R$7.8bn in 2014 of which it invested 2.9% on R&D, one of the highest levels in Brazil.
Silva believes that WEG can offer a technical differential to its competitors not only because its machine has a high local content levels, but also because local development of the turbine make it better adapted to local conditions.
Meanwhile, the high local-content level and local development reduce the foreign currency risks on price, which in general affect 20% of the turbine's value in Brazil because around 40% of parts of other foreign-developed models are imported.
Of the active foreign turbine makers in Brazil, only GE has a local R&D center, which was inaugurated this year in Rio de Janeiro. Bankrupt Argentine wind turbine maker, Impsa, also has a research center, but the company ceased activities in mid 2014.
All others rely on machines developed in the US or Europe, and adapting them to local conditions requires constantly feeding information to R&D centres abroad.
WEG has so far sold 523MW and is working at full capacity to meet orders through 2017.
“The 2.1MW model will still be a vanguard model,” said Silva.

Friday 22 May 2015

Alberta: The Potential of Clean Energy, Economic Diversification and the Reduction of GHGs

In her speech on election night, Rachel Notley,spoke of her ambition to a) diversify the economy of Alberta, including the diversification of the energy sector, b) be partners with the energy industry and c) be a partner with the federal government for a national strategy on the environment.

Is all this possible?  The answer is a resounding yes!

Alberta's Clean Energy Potential and 
the Reduction of Greenhouse Gas Emissions
First, the theoretical wind power production potential of Alberta is equivalent to all the electrical production needs of every province West of Québec.

Second, the potential for wind power to reduce Alberta's emissions is especially significant in that fossil fuels represent the lion's share of energy sources consumed for electricity production in the province.  

Coal represents 6258 megawatts (MW), 42% of the electrical power generation sources in the province, and 40% of total electricity use if one takes into account 1,200 MW of imported electricity, out of a total of 15,798 MW produced to meet Alberta's needs.  

Natural gas accounts for 5812 MW or 40% of the electricity produced in the province and 37% of the total provincial consumption of electricity.

In the larger context of global trends, while global wind energy capacity is growing at 20%/year and solar energy at 50%/year over the past 10 to 15 years, US coal consumption has declined 21% between 2007 and 2014.  In the last 5 years more than one third of the US coal-fired generating plants have either closed down or have been the object of announcements of closures to come.  This trend will accelerate for the purposes of complying with US Environmental Protection Agency requirements to reduce CO2 emissions from the electrical power plant sector by 30% by 2030 over 2005 levels.

And then there is the astounding example of the world's largest energy and coal consumer, China, which consumes more coal than the rest of the world combined. China, which is now by far the world's largest investor in clean energy technologies -- with 1.58M jobs in its solar energy sector and 356,000 working in its wind sector -- saw it's coal consumption decline in 2014!

Surely, if the world's largest consumers of coal are reducing their use of this energy source, it may be time for Alberta to be in-step with the world leaders and acquire a more positive international energy profile.

Partnerships, Energy Sector Diversification and Clean Energy Production
To make the shift to clean electricity happen, the petroleum sector could play an important role.

Specifically, in the event that the new Notley government and energy sector engage in a joint review of fiscal and policy options, a strategy could be developed to facilitate energy diversification among the fossil fuel sectors to become bigger players in the clean energy fields.   Indeed, there are already models for doing so. 

The new CEO of Norway's Statoil, Eldar Sætre, a man with a Statoil renewables background, recently announced that the company will be putting a new emphasis on renewables and low carbon activities. To this end, Statoil has set up a new division to do so, New Energy Solutions.  To quote the new CEO, "We will strengthen our efforts in the transition to a low carbon society" making this new thrust one of the three pillars of the company's strategy."

As worth noting, Dong Energy, 60% owned by the Danish Pension Fund, and the world's largest investor in offshore wind farms, has a target to shift from 85% fossil investments and 15% in renewable energy, to that of reversing this ratio by 2040.

Energy Sector Diversification, Manufacturing and the Supply Chain
Equally important, Notley can go beyond home grown clean energy production to include job creation and economic diversification in the province's energy manufacturing sector.

That is, this could be achieved with the right policy environment for clean energy projects -- such as local manufacturing content stipulations in exchange for wind farm contracts and/or financing, as per the Québec and Brazilian models -- and possibly including additional incentives for some oil technology firms to become part of a local clean tech supply chain. -- In short, there may be opportunities for Alberta to manufacture and export clean technologies, as well as produce clean energy for local use.

This is not that far outside of the box.  A case in point is that of Brazil's WEG, a new entry into the wind turbine manufacturing sector, thanks to Brazil's incrementally increasing local content rules for wind power projects, which will reach 60% by January 2016.

These Brazilian domestic content requirements -- applied under an auction process that is managed and favourably financed to about 60% to 65% of projects' value by the country's business development bank -- have given rise to WEG diversifying into the business of developing its own wind turbines.-- Now what makes this interesting is WEG is a Brazilian home grown domestic technology supplier that has traditionally served the oil, gas, industrial and power sectors.

WEG has already started operating a first turbine prototype and plans to launch it's 3.3 MW model in 2017.  Working with local suppliers and testing their components, WEG expects to achieve 80% local content and include technologies specifically designed for Brazil's tropical and sub-tropical temperatures.  In this instance, WEG relies on its local R & D capacity to turn out designs more in-tune with local environments.  WEG also plans to export its technologies to Latin America and Africa.

Transposing the WEG model to Alberta, suppliers to the energy sector would design Nordic components for an Alberta supply chain and export its products to Nordic regions.

A "win-wind model" for Alberta?
All of the aforementioned considerations could be among the starting points for Alberta participation in a national strategy on the environment, and a provincial policy on economic and energy diversification, as per Notley's goals.

In the words of the late Jack Layton, "Don't let them tell you it can't be done!"

Tuesday 19 May 2015

Global renewables jobs grow 18% to 7.7 million in 2014– IRENA, .By Andrew Lee, Recharge News in London Updated: Tuesday, May 19 2015

China dominates the global renewables jobs league

China dominates the global renewables jobs league




The 2014 figures from the International Renewable Energy Agency (IRENA) put solar PV at the top of the technology employment league, with 2.5m jobs around the world.
The wind industry underpins just over one million posts, with biofuels splitting the two technologies and providing employment to about 1.8 million, says IRENA’s reportRenewable Energy and Jobs – Annual Review 2015.
The study – which covers direct and indirect jobs excluding large hydropower – shows the spreading employment patterns of renewables, with five of the top ten countries for clean-energy jobs now in Asia.
China dominated global renewables employment with about 3.4 million posts, followed by Brazil (934,000, mostly in biofuels), the US (724,000), India (437,000) and Germany (371,000).
Although their share of renewables jobs is slowing, the US and EU are still showing growth.
The US wind sector saw a 43% surge in jobs to 73,000 last year as the sector recovered, while the American solar sector reached 174,000 posts in 2014.
IRENA will today present the study’s findings to the UN Sustainable Energy for All Forum.
The report said: "In the coming years, renewable energy employment growth will depend on the return to a strong investment trajectory, as well as on continued technological development and cost reductions.
"Stable and predictable policies will be essential to support job creation. Finally, in a year when negotiators in Paris aim to carve out a global climate agreement, the broader policy framework for energy investments will also move to the forefront."

Saturday 16 May 2015

Norway's Statoil: New CEO + New Emphasis on Renewables and Low Carbon Activities By Andrew Lee in London, Recharge News, Feb+May 2015

New Statoil boss signals renewable energy ambitions

Statoil is already a player in renewables with the Hywind initiative
Statoil is already a player in renewables with the Hywind initiative



Eldar Sætre – who has been acting CEO since October – said the oil and gas group will make low-carbon initiatives one of the three main pillars of its future strategy, and will “increase the speed” of its transition.
The new boss – who led Statoil’s renewable energy division before taking the acting CEO reins – said: “We will strengthen our efforts in the transition to a low carbon society.
“Competitiveness and sustainability is of critical importance, either in oil and gas production or future projects in renewable energy."
Statoil is a partner with Norwegian compatriot Statkraft in several major UK offshore wind projects and is a leading developer of floating wind systems via the Hywind initiative.
Power utility Statkraft has already announced its own global renewables ambitions, signalling it may invest up to $8bn globally in clean-energy sources.
Like other fossil energy-based groups, Sætre admitted that “we have our work cut out for us” amid current market conditions, but claimed Statoil is well prepared for the challenge.
Accepting the CEO role permanently represents a change of mind for Sætre, who initially said he would not be a candidate.
Sætre will earn a basic salary of NKr7.7m ($1.02m), NKr5.5m of which goes towards his pension. He replaces Helge Lund, who left to head the UK’s BG Group.
________________________________________________________________

Norwegian fossil giant Statoil sets up renewable energy division

Irene Rummelhoff, EVP of Statoil's New Energy Solutions business
Irene Rummelhoff, EVP of Statoil's New Energy Solutions business



Statoil’s New Energy Solutions (NES) division will “gradually complement the oil and gas portfolio with profitable renewable energy and other low-carbon energy solutions”, said CEO Eldar Sætre.
NES will be led by Irene Rummelhoff, formerly senior vice president for exploration, Norway, who will report directly to Sætre.
NES will initially comprise Statoil’s existing offshore wind activities, including UK offshore wind development in conjunction with Norwegian compatriot Statkraft andfloating wind systems via the Hywind initiative.
Statoil said the unit will “grow and potentially expand into other sources of renewable energy, while also considering appropriate financial structures. The business area will seek new opportunities to deliver attractive returns through technology and business innovation, as well as venture activities”.
A detailed plan for the NES division's strategy will now be drawn up by Rummelhoff and her colleagues.
Sætre – himself a former head of renewables activities at Statoil before taking the top job earlier this year – had earlier pledged to make low-carbon activities one of its key priorities.
Statoil becomes the latest of Europe’s energy majors to commit to renewables.
Notable examples include German utility E.ON, which is hiving off its conventional energy activities altogether, andENGIE – formerly GDF Suez – which changed its name in a bid to show its dedication to a clean-energy future.
There have also been reports that Denmark’s Dong Energy – the world’s biggest offshore wind operator – could decide to spin-off its oil and gas activities later this year.
The creation of the Statoil NES unit came amid a major shake-up of the energy group’s senior management by Sætre, who earlier this year admitted the company “has its work cut out” in current market conditions.