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WIND ENERGY FEIPLAR November 8, 2010. Bill Schramm Director Global Business Development. Overview. Global Energy Consumption and Projections Energy Sources Renewable Energy History of Wind Power Wind Turbines Capacity Economics Major Suppliers Outlook.
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WIND ENERGYFEIPLARNovember 8, 2010 Bill Schramm Director Global Business Development
Overview • Global Energy • Consumption and Projections • Energy Sources • Renewable Energy • History of Wind Power • Wind Turbines • Capacity • Economics • Major Suppliers • Outlook
World Primary Energy Consumption (Btu), 1980-2006 Reference: Energy Information Administration (EIA) International Energy Annual 2006, August 2009
Energy Use by Region, 1990-2030 678 History Projections 596 508 472 398 348 Reference: History: Energy Information Administration (EIA) International Energy Annual 2006, August 2009 Projections EIA, World Energy Projections, Plus (2009)
World Marketed Energy Use by Fuel Type, 1980 - 2030 History Projections Liquids (incl. Biofuels) Coal Renewables (excl. Biofuels) Natural Gas Nuclear Reference: History: Energy Information Administration (EIA) International Energy Annual 2006, August 2009 Projections EIA, World Energy Projections, Plus (2009)
World Renewable Electricity Generation by Source, 2006 - 2030 Reference: History: Energy Information Administration (EIA) International Energy Annual 2006, August 2009 Projections EIA, World Energy Projections, Plus (2009)
History of Wind Power • Wind energy propelled boats along the Nile River as early as 5000 B.C. • By 200 B.C., simple windmills in China were pumping water. • By 200 B.C., vertical-axis windmills with woven reed sails were grinding grain in Persia and the Middle East. • By the 11th century, people in the Middle East were using windmills extensively for food production. Returning merchants and crusaders carried this idea back to Europe. • The Dutch refined the windmill and adapted it for draining lakes and marshes in the Rhine River Delta.
Modern History of Wind Power • The oil shortages of the 1970s changed the energy picture for the world. • In the early 1980s, wind energy really took off in California, partly because of State policies that encouraged renewable energy sources. • In September 1982, European manufacturers of agricultural machinery flew to California to assess the market for wind energy. They returned with enough orders to start series production of wind turbines. • Before the end of 1982, 25-30 turbines had been shipped and installed. • In 1983, 350 wind turbines, with a total capacity of 20 MW, were exported. This was the start of what became known as the “California wind rush”. The modern wind energy industry was born.
Energy Conversion • Input > Wind • Kinetic Energy • Pressure Differential • Blades are an airfoil similar to an airplane wing • Mechanical Energy (rotary motion) • Gear box as a multiplier • Generator • Converts mechanical energy to electrical energy • Output > Electricity Fed to the Power Grid
Wind Energy • Advantages • Wind is free if available • Clean fuel source, no atmospheric emissions • Renewable, cannot be used up • Generation and maintenance costs have decreased significantly. • Wind is proving to be a reasonable cost renewable source. • Well suited to rural areas • Disadvantages • Need ~3x the amount of installed generation to meet demand • High initial investment • Limited to small generator size; need many towers • Intermittent • Transmission lines from rural areas to population centers
Global Cumulative Installed Wind Capacity (1996-2009) Reference: Global Source Wind Energy Council
Global Installed Wind Power Capacity 2008/2009 (MW) Reference: Global Source Wind Energy Council
Top 10 Cumulative Capacity Dec. 2009 Reference: Global Source Wind Energy Council
Top 10 New Installed Capacity Jan. - Dec. 2009 Reference: Global Source Wind Energy Council
Economics • Capital Intensive • Approximately 75% of the total cost of energy for a wind turbine is related to upfront costs • Conventional fossil fuel fired technologies where as much as 40-70% of costs are related to fuel and O&M. Cost structure of a typical 2 MW wind turbine installed in Europe (€ 2006) Reference: EWEA, The Economics of Wind Energy
Cost of Energy and Wind Speed • The energy that can be tapped from the wind is proportional to the cube of the wind speed 18 MPH 21 MPH 16 MPH The three examples above are for costs per kilowatt-hour for a 51 MW wind farm at three different average wind speeds expressed in meters per second. Cost figures include the current wind production tax credit. Reference: AWEA, The Economics of Wind Energy, February 2005
Improvements In TurbineDesign Bring Down Costs • The taller the turbine tower and the larger the area swept by the blades, the more powerful and productive the turbine. • The swept area of a turbine rotor (a circle) is a function of the square of the blade length (the circle’s radius). • Advances in electronic monitoring and controls, blade design, and other features have also contributed to a drop in cost Reference: AWEA, The Economics of Wind Energy, February 2005
Economics of Wind Farm Size • Assuming the same average wind speed of 18 mph and identical wind turbine sizes, a 3–MW wind project delivers electricity at a cost of $0.059 per kWh and a 51-MW project delivers electricity at $0.036 per kWh • A larger project has lower O&M costs per kilowatt-hour Reference: AWEA, The Economics of Wind Energy, February 2005
Top 10 Wind Turbine Manufacturers By Megawatts Installed Worldwide In 2009 • Vestas (Denmark) 35,000 MW • Enercon (Germany) 19,000 MW • Gamesa (Spain) 16,000 MW • GE Energy (Germany / United States) 15,000 MW • Siemens (Denmark / Germany) 8,800 MW • Suzlon (India) 6,000MW • Nordex (Germany) 5,400 MW • Acciona (Spain) 4,300 MW • REpower (Germany) 3,000 MW • Goldwind (China) 2,889 MW Note: 35-40 Global Suppliers excluding China
Company MW Capacity # of Turbines * Blades * Share GE Energy 3657.0 2,438 7,314 47.7% Vestas 1120.0 569 1,707 11.1% Siemens 791.2 344 1,032 6.7% Suzlon 736.1 363 1,089 7.1% Gamesa 616.0 308 924 6.0% Clipper 595.0 238 714 4.7% Mitsubishi 516.4 515 1,545 10.1% Acciona WP 409.4 273 819 5.3% Repower 102.0 51 153 1.0% Fuhlander 5.0 2 6 0.0% DeWind 4.0 2 6 0.0% AWE 1.8 2 6 0.0% Other 3.9 4 12 0.1% Total 8557.8 5,109 15,327 100% * calculated values 2008 NA Installed Capacity
Market Concentration- Blades • Top 5 fabricators capture more than 70% of global market • Major fabricators • LM Glasfiber (Denmark) • Vestas (Denmark) • Gamesa (Spain) • Enercon (Germany) • Siemens (Denmark)
Reichhold – Wind Energy • Approximately 2/3 of turbine blades are produced from epoxy and 1/3 are from unsaturated polyester • Reichhold is the dominate global market leader for supply of unsaturated polyester resins and related products for wind turbine blade production • Reichhold supplies a portfolio of products for turbine blades and accessories on four continents • Reichhold has developed and commercialized new technology based on vinyl ester resins for stronger and lighter blades at lower production costs • Reichhold is committed to ongoing R&D for wind energy and partnerships with industry leaders
World Headquarters Licensees Plants Future Sites Reichhold - Major Presence Around the Globe
Market Situation • Composite materials demand will grow from $1.8 billion in 2008 to $3.8 billion in 2014 • During 2007 and 2008 there was a market shortage of blades • By 2017 wind blade production will account for 4.6% of all composite production • > 60% of blades produced today were developed within last two years • Avg. installed capacity 2003 - 1.21MW; 2014 - 1.90MW • Technology innovation is deemed essential to make wind more competitive vs. alternate forms of energy • China and North America will be the dominant growth markets
Trends – Lower Cost/kWh • Increased power generation per turbine • Longer and lighter blades • More aerodynamic blade designs • Higher efficiencies • Ability to operate at both lower and higher wind velocities • Larger wind farms • Off-Shore
Challenges for Blade Innovation Current Technology: Next Generation Technology:
Political and Social Considerations • Energy Tax Credits • American Reinvestment and Recovery Act • Foreign suppliers • Environmental effects • Sight pollution • Birds and bats • Competition from other energy sources • On-line efficiencies • Penalties for intermittent supply of electricity • Service in rural areas and off-shore
Summary • Wind energy is a proven and reliable source of renewable energy • Ongoing developments and economies of scale continue to make wind energy more cost competitive • Wind energy is generally well-received from an environmental perspective • Wind energy is well suited for growth in both emerging and mature markets
Summary Cont. • Global wind energy markets for composites are estimated to be worth $6 billion USD by 2012 • In 2010 and beyond major growth will occur in offshore sectors • Latin & South America: positive growth by more than doubling installations, lead by Brazil and Mexico