James McGregor Energy Systems Manager CSIRO Division of Energy Technology 15 th June 2011

1. Riding the Innovation Wave - The Hunter’s opportunity to provide sustainable energy solutions to the global economy James McGregor Energy Systems Manager CSIRO Division of Energy Technology 15th June 2011

2. Overview • The Next Innovation Wave • Megatrends • Enabling Technology Snapshot • Solar thermal power • Carbon capture and storage • Smart grids • The Opportunity for the Hunter Region

3. Kondratieff Cycles

4. Megatrends • More from less – a world of limited resources • A personal touch – personalisation of products and services • Divergent demographics – older, hungry and more demanding • On the move – Urbanising and increased mobility • iWorld – digital and natural convergence

5. International electricity generation – CP-Low Source: CSIRO projection

6. Enabling Technologies – solving the energy puzzle

7. Carbon Capture and Storage (CCS) CSIRO Research Activities STORAGE CAPTURE TRANSPORT Post-combustion capture (new/retrofit) Oxyfuel combustion capture (new/retrofit) Pre-combustion capture (new)

8. Carbon Capture - Post Combustion Capture Generator Boiler Pure CO2 Electricity Low CO2 flue gas CO2 C.W. Coal Absorber Stripper C.W. Flue gaspretreatment Fly-ash C.W. C.W. Flue Gas Reboiler • Research Challenges • High capture cost. • Loss of generation efficiency. • Conventional processes sensitive to O2, SOx and other flue gas constituents. • Large increase in cooling water requirement. • Benefits • End of pipe technology readily integrated with existing power stations. • Modular design. • Allows for variable CO2 removal.

9. PCC Pilot Plant Locations Gaobeidian Power Station, Beijing (Operational) Tarong Power Station, QLD (Construction phase) Munmorah Power Station, NSW (Operational) Loy Yang Power Station, VIC (Operational)

10. Solar Thermal Power

11. ASI Foundation Project

12. Solar Brayton Systems 4 2 1 4 3 Slide 12 Solar Tower Project • Scalable from micro-turbines up to large gas turbines • Distributed generation option for CSP • Spinning mass reduces the impact of transient output • Can be co-fired with supplementary energy source such as natural gas providing high availability • Only inputs required are air and sun • Large capacities can be met by clustering individual units

13. Smart Grids

16. Opportunity for the Hunter Region EU US China Japan 14% 11% 11% 16% 23% 3% 17% India 8% 5% 5% ASEAN 6% % share GHG 2005 % share Primary Energy demand 2030 (source IEA)

17. EXTERNAL FACTORS DRIVING CHANGE Economic, social, political, regulatory, and environmental forces Technological Innovation Growing demand for sustainable energy solutions Merger of Opportunity and Capability Newcastle a World Leader in provision of Sustainable Energy Solutions Market Opportunities for Sustainable Energy Solutions Skilled workforce and Industry Capability Strong international energy market linkages NEWCASTLE CAPABILITY The right mix of ingredients R&D + Education Capabilities – CSIRO, Newcastle University, TAFE

18. Conclusion • The coming together of a critical mass of social, economic, and environmental drivers are setting the conditions for a new wave of innovation that has the potential to transform the way we do business. • The Hunter Region has all of the key ingredients of R&D and education capability, business networks, and a skilled workforce to become a global leader in the supply of sustainable energy solutions to the global economy

19. CSIRO Energy Technology James McGregor Energy Systems Manager Phone: +61 2 4960 6000 Email: james.mcgregor@csiro.au Web: www.csiro.au/energy Thank you Contact UsPhone: 1300 363 400 or +61 3 9545 2176Email: Enquiries@csiro.au Web: www.csiro.au