mike coombs

CSP in North Africa

Low carbon, sustainable and cost competitive electricity

Mike Coombs, CFO Nur Energie Ltd

TBLI Conference, London - Thursday 11th November 2011

Introduction

Mike Coombs, CFO Nur Energie Ltd

• Independent solar power plant developer

• over 3GW of concentrated solar (CSP)

2 Mike Coombs, Nur Energie - TBLI Conference, 11th November 2011

1. The challenge of sustainable low carbon power

2. The opportunity through solar in North Africa

3. Turning the opportunity into reality

4. The relative sustainability of low carbon technologies

5. Conclusion

Mike Coombs, Nur Energie - TBLI Conference, 11th November 20113

Sustainable low carbon electricity – the challenge

The energy market is evolving as we move from our dependency on fossilfuels…

• Intermittent Energy

• Grid integration and balancing

• 50GW of European baseload capacity will be retired by 2015

• Nuclear energy in Germany to be phased out by 2022

• Italy, Belgium and Switzerland voted against future nuclear power.


But there is an opportunity

Investing in renewables is most effective at protecting the climate if it is done wherethose energy sources are most abundant…

• Sahara = abundant land and solar resource

• Existing technologies can provide the solution


Advantages of CSP in North Africa

1. Scale

2. Storage and baseload power

3. Integration with European grid

4. Cost

5. Local value add


Advantage of CSP in North Africa

1. Scale



4. Cost

5. Local value add


Solar energy is available in abundance…

Energy from deserts compared to fossil and nuclear resources.

All known reserves:

Gas 2 weeks sunOil 2 weeks sunUranium 2 weeks sunCoal 22 weeks sun

All known and projected reserves:

= 40 weeks sun


… potential for clean energy from North Africa is huge…


Solar energy in the red square=

World electricity consumption

… creating a true North and South solution.


Significant land availability

CSP tower projects in North Africa can be very large scale…

• Modular formation, up to 250MW per tower (BSE Rio Mesa);

• Can be built on undulating land;

• Water requirements are very low due to air cooling.



1. Scale



4. Cost

5. Local value add


Baseload powerCSP with molten salt storage means the ability to create baseload power…

• Proven technology

• Removes intermittency

• Allows production to be matched to demand


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Time of Day

2GW CSP Plant Production with storage

CSP Production

With Strorage


1. Scale



4. Cost

5. Local value add


Efficient transport of powerHigh Voltage Direct Current (HVDC) cables will transport the electricity to Europe…

HVDC Cables

• Proven technology

• Minimal loses (3% per 1000km)

HVAC and HVDC Cable Technology Comparison Holland to Norway Cable (operational)



1. Scale



4. Cost

5. Local value add


LCOE of CSPLCOE of CSP Towers is very competitive …

• CSP Towers are efficient;

• Saharan solar resource + large-scale use of solar tower technology = lower LCOE

• 60% of the capex can be done locally (simple mirrors etc) = further cost reductions.


LCOE comparison with other energy sources

Data from Mott McDonald LCOE Analysis, DECC (UK) Electricity Market Reform Consultation except for CSP figures

CSP Tower costs do not include storage or transmission – figures used from Lazard Analysis

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Offshore Wind Future


CSP Tower Current

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£)

LCOE Comparison

High

Central

Low


LCOE comparison with other energy sources

Data from Mott McDonald LCOE Analysis, DECC (UK) Electricity Market Reform Consultation except for CSP figures

CSP Tower costs do not include storage or transmission – figures used from Lazard Analysis

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Gas CCGT Nuclear Current Nuclear Future Onshore wind Current



CSP Tower Current

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h (

£)

LCOE Comparison

High

Central

Low



1. Scale



4. Cost

5. Local value add


Local value add

For a 2GW project up to 60% of the total value-add could be generated locally….

1. Specialist Work - Using local partners, development and engineering firms

2. New Manufacturing Industries - 825,000 heliostats for 2GW project manufactured locally;

3. Job Creation during Construction - 1500 direct jobs, 20,000 jobs created indirectly across the whole supply chain;

4. Job Creation during Operation - 500 long terms jobs created during the 25 years (plus) of the plants operational life;

5. Future tax revenues


TuNur Project - solar export from North Africa a reality

Achievements to date:

Solar site identified 2GW plant;

One-year of solar radiation ground data

High-level dialogue with Tunisian government overa land agreement established.

Route survey for sub-marine HVDC cablecompleted (Statnett, Cesi , Metoc);

2GW Interconnection offer from Terna)obtained.

Letter from major European utility company withinterest in project and electricity off-take;

Construction 2014/5

Operation 2015/6


CSP v the alternatives – how sustainable are theyNuclear Offshore Wind CSP Trough in NA CSP Tower in NA

Fuel availability

Finite (uranium) Infinite Infinite Infinite

Production Base load Intermittent Storage reducesintermittency = baseload production

Storage reducesintermittency = baseload production

Scale Large scale but low expansion (limited land availability)

Large scale and large land availability

Large scale and large land availabilityBUT needs to have very flat land and access to water

Large scale and large land availabilityDoes NOT need flat land or much water

Cost (LCOE) LCOE competitive BUT decommissioning costs uncertain

High LCOE High LCOE LCOE competitive and at the top of learning curve

Environmental impact

High (Mining, decommissioning issues, Fukushima)

Low MediumCSP trough has high water usage

LowCSP tower has low water usage

Energy security

High High Medium (but similar to imported oil/gas)

Medium (but similar to imported oil/gas)


Conclusion


CSP export opportunities from North Africa are…

• sustainable

• scalable

• economically viable

• can provide significant local employment and

• make a major contribution to decarbonising the world

Mike Coombs

CFO, Nur Energie Ltd

T: +44 (0) 203 102 5357

F: +44 (0) 203 102 5351

E: [email protected]

W: www.nurenergie.com

Nur Energie LtdCentre Point103 New Oxford StreetLondonWC1A 1DDUK


mailto:[email protected]

http://www.nurenergie.com/

mike coombs

Economy & Finance