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The Policy Context The Technology Programme within the innovation system The current R&D portfolio

The Policy Context The Technology Programme within the innovation system The current R&D portfolio Looking to the future. Contents. Policy Goals. To put ourselves on a path to cut the UK ’ s carbon dioxide emissions by some 60% by about 2050, with real progress by 2020;

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The Policy Context The Technology Programme within the innovation system The current R&D portfolio

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  1. The Policy Context • The Technology Programme within the innovation system • The current R&D portfolio • Looking to the future Contents

  2. Policy Goals To put ourselves on a path to cut the UK’s carbon dioxide emissions by some 60% by about 2050, with real progress by 2020; To maintain the reliability of energysupplies (making sure the lights stay on); To promote competitive markets in theUK and beyond, helping to raise the rateof sustainable economic growth and toimprove our productivity; and To ensure that every home is adequatelyand affordably heated.

  3. Multiple Drivers The business opportunity Emission reduction Renewables targets – 10% by 2010, 20% by 2020 Security of supply Playing our part in the global challenge: G8/Kyoto post 2012

  4. Key Questions for the Review Energy Review: terms of reference 1. The Government’s role in ensuring that the UK’s long term goal of reducing carbon emissions is met • Developing our market framework for delivering reliable energy supplies • Considerations applying to nuclear • Considerations applying to carbon abatement and other low carbon technologies • Steps towards ensuring that every home is adequately and affordably heated The Government will review the UK’s progress against the medium and long-term Energy White Paper goals and the options for further steps to achieve them. The aim will be to bring forward proposals on energy policy [this] year.

  5. Energy Review: consultation process • Consultation document published 23 January • Consultation period till 14 April

  6. The Policy Context • The Technology Programme within the innovation system • The current R&D portfolio • Looking to the future Contents

  7. The Government provides support to low carbon energy technologies at each stage of their development • Research councils programmes (e.g. Supergen) Demonstration • Early deployment of emerging technologies Pre-commercial • Moving towards large scale production Development • Applied research R&D • Basic research • Technology Programme • OGD programmes • Carbon Trust R&D Programme • International R&D – IEA, EU, etc • Offshore wind capital grants scheme • Marine Renewables Fund • Bioenergy capital grants scheme • Low Carbon Buildings Programme • Hydrogen and Carbon Abatement Technology Demonstration Fund • Renewables Obligation • Non Fossil Fuel Obligation • Exemption from the Climate Change Levy Tech Prog R&D is also critical to support demonstration activity The Government also support low carbon technologies through non-financial support: • Reform of planning regulations for renewables (PPS 22) • Committee on Radioactive Waste Management • Leading international effort to establish regulations for CCS

  8. The Government provides support to low carbon energy technologies at each stage of their development £70 million p.a. by 2007/8 inc fusion Gen IV advanced nuclear fission reactors - £5m p.a. Demonstration • Early deployment of emerging technologies Pre-commercial • Moving towards large scale production Development • Applied research R&D • Basic research • Technology Programme c £20m p.a. • OGD programmes (eg. DEFRA CHP = £2m 04/05) • Carbon Trust R&D Programme c. £ 2 million p.a. £32O million 2002-2008 Renewables Obligation will be worth up to around £500m 05/06 rising to £1bn by 2010. The Government also support low carbon technologies through non-financial support: • Reform of planning regulations for renewables (PPS 22) • Committee on Radioactive Waste Management • Leading international effort to establish regulations for CCS

  9. Industry-Led R&D • The Technology Programme is the new(ish) mechanism which the Government uses to deliver support for collaborative research and development • SR2004 commits HMG to deliver £320 million through the Technology Programme over SR2004 • The new and renewable energy R&D budget is now delivered though the Technology Programme • An independent Technology Strategy Board dominated by industry experts sets the priorities for each 6 monthly call • £35m so far committed to low carbon energy technologies, including £11m in the November 2005 competition – now closed • EPSRC co-funding • Business to business and science to business collaborations

  10. The Policy Context • The Technology Programme within the innovation system • The current R&D portfolio • Looking to the future Contents

  11. The portfolio of technologies and their current state of development: DEMONSTRATION RESEARCH DEVELOPMENT DEPLOYMENT Intelligent Grid Management Offshore Wind Onshore wind Carbon Abatement Technologies Next generation PV Microgeneration Technologies Wave and Tidal Bioenergy Hydrogen and Fuel Cells Generation IV nuclear reactors Technology Programme Fusion

  12. Technology route maps including milestones and timescales Progress against critical development issues for technologies Programme Performance Measures Progress against technology cost & performance measures Demonstrable progress down research & development chain Successful exploitation outcomes

  13. Wave Projects Pelamis Full Scale Demonstration (Ocean Power Delivery Limited) Pelamis sea trials (courtesy of OPD Ltd)

  14. Fuel Cell Projects Pressurisation of IP-SOFC Technology for Second Generation Hybrid Application (Rolls Royce plc) Development of Innovative Metal Supported IT-SOFC Technology (Ceres Power Ltd) 10-layer Ceres Power short stack prior to testing. This stack delivered 160We at 600°C The IP-SOFC Pressurised Rig

  15. Tackling niche barriers Wind Projects Stealth Technology for Wind Turbines (BAE Systems Ltd) Stealthy Wind Turbines – addressing the radar issue (Qinetiq and SSE Ltd)

  16. Building integrated renewables – PV+ • Next generation PV – organics/polymers • Microgeneration systems • Spillover benefits – architects, engineers

  17. Biomass Advanced conversion technologies Supply chain issues Biorefineries Biofuels

  18. Cleaner Fossil Fuels and C02 Capture and Storage The Technologies • Improved combustion efficiency (15-20% CO2) • Fuel switching (5-10% CO2) • Carbon Dioxide pre and post combustion capture and storage (90% CO2)

  19. Why CATs? – Fossil fuels continue to dominate world energy suppliesWorld electricity generation (IEA WEO 2004)

  20. Intelligent Networks Handling dispersed intermittent sources of electricity Enabling distributed generation Storage Demand-side management

  21. The Policy Context • The Technology Programme within the innovation system • The current R&D portfolio • Looking to the future Contents

  22. Looking to the Future • Hoping to continue to develop the portfolio with a Technology Programme competition in April – subject to the Technology Strategy Board • UK Energy Research Centre’s Energy Research Atlas

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