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 5 min • What is Siemens? 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 AG 2013 All rights reserved. Siemens has answers – Four business sectors close to the customer Energy Divisions Fossil Power Generation Wind Power Oil & Gas Energy Service Power Transmission Healthcare Divisions Imaging & Therapy Systems Clinical Products Diagnostics Customer Solutions Industry Divisions Industry Automation Drive Technologies Customer Services Infrastructure & Cities 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 AG 2013 All rights reserved. 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 New performance dimensions Deep-sea capable Additional World record 60.75% 6 MW 36 kV 200 MW 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 © Siemens AG 2013 All rights reserved. Energy quiz #1 How big is the Energy business? Average investments per year (2010–2030) worldwide 500–700 in billion € 300 200 Primary energy Power generation Power grids Others Others Renewable energies 40% 60% 6% 30% Gas 44% 50% Oil Power transmission 70% Power distribution Source: IEA 2010; Siemens Page 5 © Siemens AG 2013 All rights reserved. Global electricity market – Demand for electricity is steadily growing Power generation mix worldwide, in TWh 37,100 +2.8% p.a. Enough additional capacity to power 1.3 Billion US homes 13%20XX-XX-XX Renewable energies 15%20XX-XX-XX Water 22,100 11% Nuclear 20XX-XX-XX4% 16% 24% Gas 3% Oil 13%20XX-XX-XX 22% 61% 4% 68% 34%20XX-XX-XX Coal 41% 2011 Source: Siemens Page 6 67% more ⇒ 2030 In 2010, the average annual electricity consumption for a U.S. residential utility customer was 11,496 kWh © Siemens AG 2013 All rights reserved. Global power plant market – Capacities will double by 2030 7,015 Development of power plant capacities worldwide, in gigawatts (GW) 10,527 716 861 16720XX-XX-XX30 20XX-XX-XX26 642 1,084 27 217 36 653 1,206 Motors Geothermal Biomass, wastes Solar thermal Photovoltaics Wind 705 372 5,816 39620XX-XX-XX 15 20XX-XX-XX40 74 22220XX-XX-XX 2 1,08920XX-XX-XX 390 2,30420XX-XX-XX 9 20XX-XX-XX541 20XX-XX-XX165 14 999 1,780 Hydro (incl. ocean power) 1,407 24 20XX-XX-XX 29 100 20XX-XX-XX598 Nuclear power plants 313 1,409 20XX-XX-XX224 20XX-XX-XX199 2,318 2,726 Coal power plants 511 Gas power plants 20XX-XX-XX2,058 422 Combined cycle power plants 848 Installed capacities 2011 Dismantling (2012–2030) New capacities 2012–2030 Installed capacities 2030 Source: Siemens Page 7 © Siemens AG 2013 All rights reserved. Energy quiz #1 How big is the Energy market? 1,683 278% 620 43% 84720XX-XX-XX 28% Russia 110% Europe1) 20XX-XX-XX9% 121% 763 437 190 USA -0.7% 178 Germany China Middle East 110% -5% India Japan 93% 218 Growth in power generation, 2011–2030 [% of TWh] 195 Brazil 13820XX-XX-XX Africa 33% 75 Australia New installations 2011–2030 [GW] Source: Siemens Page 8 1) SWE, NWE, GER, CEE © Siemens AG 2013 All rights reserved. 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 © Siemens AG 2013 All rights reserved. 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 India: “Power-for-all” program aims at achieving economic growth through electricity (+350 GW capacity by 2020, of which +215 GW is with coal) Economic efficiency Climate protection 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 Resource efficiency Page 10 Reliable power supplies Germany: Planned energy transition: at least 80% CO2 abatement by 2050 © Siemens AG 2013 All rights reserved. to produce electricity? And, what is the price to consumers? Denmark Germany UK Dropping fast Russia Page 11 © Siemens AG 2013 All rights reserved. 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 Page 12 Geothermal © Siemens AG 2013 All rights reserved. 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 © Siemens AG 2013 All rights reserved. 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 © Siemens AG 2013 All rights reserved. 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 © Siemens AG 2013 All rights reserved. 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 © Siemens AG 2013 All rights reserved. Energy quiz #4 Why move wind power offshore? • Why offshore? • ? • ? • ? • Advantages • ? • ? • ? • Disadvantages • ? • ? • ? Page 17 © Siemens AG 2013 All rights reserved. Energy quiz #4 Why move wind power offshore? 200 m ≈ 130-150 m 160 m 135 m ≈ 100 m ≈ 80-100 m ≈ 35 m ≈ 22 m ≈ 42-62 m ≈ 30-40 m ≈ 60 m 1987 - 1990 1993 / 1994 1996 / 1997 1st generation 2nd generation 3rd generation 30 - 165 KW 225 - 500 KW 1,000 – 1,500 KW Page 18 2002 / 2003 4th generation 2,500 – 3,500 KW Washington Monument Today 5th generation 6,000 KW © Siemens AG 2013 All rights reserved. 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 © Siemens AG 2013 All rights reserved. Back up slides about Siemens Page 20 © Siemens AG 2013 All rights reserved. Siemens Energy – Strong global presence Engineering & Manufacturing Locations Aalborg Brande Helsingør Oslo Finspong Trois Rivières Lincoln York Aberdeen Hebburn St. Petersburg Berlin Duisburg Erlangen Frankenthal Frankfurt Goerlitz Kirchheim Dresden Leipzig Muelheim Offenbach Nuremberg Erfurt Karlsruhe Vienna Hengelo Brno Linz Huludao Grenoble Budapest Weiz Middleton Jinan Shenyang Trenton Sabugo Nanjing Istanbul New Delhi Wuxi Gurgaon Charlotte Amora Zagreb Hangzhou Shanghai Vadodara Orlando Trient Karachi Guangzhou Kalwa Cairo Montenotte Fort Payne Aurangabad Milan Alpharetta Minneapolis Fort Madison Jackson Hutchinson Guanajuato Querétaro Bogota Singapore Jakarta Cilegon Jundiaí Wadeville Johannesburg Page 21 © Siemens AG 2013 All rights reserved. Siemens Energy Sector – Strong global presence Service locations Berlin Bremen Duisburg Essen Muelheim Nuremberg Erlangen Helsingør Brande Aberdeen Anchorage Springfield Finspong Trondheim Lincoln Talinn St. Petersburg Newtown Hamilton Milton Raleigh Houston Newcastle Hebburn Pittsburgh Hengelo Penn Hall Grenoble Trenton Orlando Brno Vienna Budapest Dammam Guanajuato Querétaro Dubai Bogota Fossil / Oil & Gas Power Transmission / Power Distribution Renewables Port Harcourt Huludao Krasnodar Qeshm Shanghai Kalwa Bangalore Batangas City Jakarta Jundiaí Bahía Blanca Wadeville Johannesburg Adelaide Auckland Page 22 © Siemens AG 2013 All rights reserved.