6 Renewable Energy Bernd Stephan Director Business unit Renewable Energy Longer term trends in new energy installations Annual new installations in gigawatt globally Source: Michael Liebreich, keynote presentation at Bloomberg BNEF Summit, New York, April 2014 © SKF Group CMD 2014 Trends in ocean energy With 70% of the planet covered in water, ocean energy is an untapped sustainable energy resource that will benefit future generations, but the levellized cost of energy (LCOE) is still at 4–5 times the cost of traditional energy. • SKF is actively involved in the emerging wave and tidal energy sectors with our 5 product platforms • Major OEMs are now taking equity stakes in most advanced technology developers Source: Carbon Trust analysis, 2011 © SKF Group CMD 2014 Trends in wind energy Commercial trends Technology trends • • New technology in development • Improved requirements for controlled processes and establishment of wind industry standards Onshore wind energy is increasingly cost-competitive in comparison with conventional energy • Offshore wind energy is coming back on track • Expansion from traditional markets to new emerging markets • Longer life cycles with turbine upgrades • Increasing and more competitive aftermarket • Floating offshore turbine technology in development © SKF Group CMD 2014 Biggest wind energy market – China Steady growth, and operations and maintenance expansion • • • • • The Chinese global wind market, representing over 40% of the global wind market, is starting to mature with a more moderate and steady growth development A maturing market will lead to fewer but stronger turbine manufacturers Large potential for the aftermarket due to increasing numbers of wind turbines coming out of warranty over the coming years Increasing environmental concerns support investments in wind energy and other renewables in the coming years SKF is well-positioned at leading wind turbine and gearbox customers in China with local engineering team and local manufacturing Source: MAKE Consulting, June 2014 © SKF Group CMD 2014 SKF Renewable Energy factory footprint SKF Group Technical Centres SKF footprint fits well to the global wind energy market Schweinfurt Germany Gothenburg Sweden Avallon France GTCA ERC GTCC Hanover USA GTCI Dalian China Kaydon Monterrey Mexico Ahmedabad India Renewable Energy factories SKF Group Technical Centres © SKF Group CMD 2014 Kaydon Cajamar Brazil Examples of SKF market launches for wind energy SKF Condition based lubrication SKF Remote Diagnostic Services SKF high-capacity cylindrical roller bearings and SKF highcapacity separable cylindrical roller bearings SKF High Endurance Slewing Bearings SKF WindCon SKF Nautilus bearings SKF XL Hybrid bearings © SKF Group CMD 2014 Black oxide-coated bearings Automatic centralized lubrication kits SKF Wind Gearbox Bearing Kits Reinforced all-rubber HSS radial shaft seals Axial excluder seal HRC1 LGBB 2 SKF Wind Industry Quality Standard launched 2014 SKF built-in quality for lifetime bearing performance • Optimum wind farm performance by controlling component quality throughout the entire value chain • Definition of specific manufacturing and engineering process controls to ensure common standards and traceability for bearings and other critical components © SKF Group CMD 2014 SKF asset life cycle management for lower levellized cost of energy (LCOE) Design and develop Engineering Consultancy Service • • • • • Advanced calculations Dynamic simulations Lubrication engineering/tribology Material analysis Design for Six Sigma Manufacture and testing Provide solutions in all main applications Specification • • • • Working with designers to find the right solution right from the start Maintain and repair • Remanufacturing • Spare parts, including kits • Inspection, diagnostic services • Upgrade of bearings • Hydrocam • Induction heaters • Shaft alignment tools © SKF Group CMD 2014 Operate and monitor • • • • SKF WindCon SKF thermal imagers SKF Microlog data collectors Baker AWA-IV static motor/ generator analyzer • Baker DX static motor/ generator analyzer • SKF training Main shaft Gearbox Pitch and yaw Generator Install and commission Providing experts on-site services, training and auditable procedures SKF spare part management program for wind operations and maintenance Strategy 2012 Business 2014 • • • • • • • • • Started end 2012 and rolled out globally • Spare part program includes bearings, seals, housings, lock nuts lubrication systems, grease, gearbox kits and condition monitoring systems • Doubled net sales Short lead times High availability Single spare parts Complete repair kits State of the art products Upgrade kits World class logistics Spare part partnership © SKF Group CMD 2014 SKF engagement in wind operations and maintenance SKF Wind Farm Management Conference • • • A platform for the wind industry 9th year SKF is hosting the Wind Farm Management Conference Between 150 to 200 participants from more than 23 countries “Compared to other events, this is my main event. It gives me the latest trends in the market, where is the industry going and also new visions.” Source: SKF, RECHARGE © SKF Group CMD 2014 Renewable Energy – key business message • Renewable energy is a fast growing industry world wide – wind, ocean and solar • Grow with the wind industry • Supporting the development in ocean and solar energy market • Technology trendsetter in the wind business with the development of WindCon, Nautilus main shaft bearings, black oxidized coated bearings and wind quality standard • Integrated cost reduction programs for all product lines to secure profitable growth • Keep focus on global renewable energy development and participate in R&D and new product development © SKF Group CMD 2014