Innovation Projects. Investing in innovation for a sustainable energy future

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1 Innovation Projects Investing in innovation for a sustainable energy future

2 Contents 05 Welcome to InnoEnergy 06 About InnoEnergy 07 Innovation, education and business creation 08 The power of the network 10 About Innovation Projects 12 Europe s energy challenge: security, cost and carbon 14 Thematic fields 16 What is an innovation project? 17 The power of the consortium 18 Investment and more 19 Commercial model 21 How it works 22 InnoEnergy in action Active Substations DeBugger FlowBox Xsensor WindFloat MrCySeMoL 28 InnoEnergy and the EIT 30 Meet our Thematic Team 03

3 Welcome to InnoEnergy The challenge is big, but our goal is simple: to achieve a sustainable energy future for Europe. The solution is innovation: the development of new technologies, products and services that make a real difference, and the support of new businesses and people to deliver them to market. At InnoEnergy we support innovation at every stage of the energy supply chain. With our network of partners we build connections across Europe, bringing together innovators and industry, entrepreneurs and researchers, businesses and markets. Our Innovation Projects business line is focused on finding and developing the innovative new solutions that will make a substantive contribution to achieving our goal of energy sustainability. In the following pages you can find out: How we invest in research and development to reduce the risks at this most critical stage of the product lifecycle. How we work with project teams to shorten the time to market of transformative technologies. And how we provide the business and technical support needed to keep innovation on track. By focusing on these key areas we are able to accelerate the development of market-ready solutions and create a fertile environment in which to sell them. At InnoEnergy, we are creating and connecting the building blocks for the sustainable energy industry. We bring together the best of Europe, pooling resources and knowledge to co-create commercially viable solutions that will deliver a sustainable energy future. If you would like to join our community, please contact us at any time. Diego Pavía CEO, InnoEnergy 04 05

4 About InnoEnergy Europe s engine for innovation in sustainable energy Innovation, education and business creation Empowering every stage of the innovation process At InnoEnergy everything we do is about creating the right conditions for innovation to flourish. We believe that Europe has all the necessary resources to create a fully sustainable energy industry. Our role is to bring them together. We connect people from across the continent to create new, commercially attractive technologies. We open up markets and cross borders to find customers for new businesses and their solutions. We bring together knowledge and experience wherever in Europe it is located. Encouraging change requires new ways of thinking. So we challenge the status quo. Our business model de-risks innovation and investment, so we can encourage more organisations to participate. The result is a broad array of new technologies, products and solutions that can be sold to global customers. We know that big challenges are not solved in isolation. So we bring the power of collaboration to our work. We help develop formal and informal partnerships between innovators and industry. We help plug skills gaps and fill market niches to maximise the potential of every InnoEnergy student, every start up, every technology and every one of our customers. Sustainability runs through every aspect of our business. The success of InnoEnergy depends on the success of the entrepreneurs we invest in and the technologies we enable as well as the products and services we produce in-house. By developing commercially attractive solutions that have a real impact on the market, we add value to our customers, we ensure our own long-term success and we empower a sustainable energy future. Innovation Projects is one of three interrelated business lines at InnoEnergy. Each business line encourages cooperation between industry, academia and research, supporting innovation across Europe and helping to develop the skills needed to bring it to market. Our Education business line has established Master s, PhD, executive and post-master s programmes to create an informed, ambitious and entrepreneurial workforce that understands what sustainability demands and what the future markets and business players will need. With our network of Europe s best universities and business schools, we are opening up unparalleled opportunities for employment and recruitment in the energy sector. Our Business Creation Services support entrepreneurs and start-ups that are creating sustainable businesses that expand and enhance Europe s energy ecosystem. Together with our community of business experts and partners, they are creating a truly international market in which small and medium sized businesses can grow. Finally, Innovation Projects brings together innovators, researchers and industry to create commercially viable technologies that deliver real results. Through co-location centres across Europe, we provide a consistent level of support in all three areas. Together they offer a seamless series of services for every stage of the innovation process. Barcelona Stockholm InnoEnergy Lisbon Karlsruhe Stuttgart Kraków Students Education Tomorrow s leaders Brussels Uppsala Eindhoven Genk Berlin Grenoble Research Entrepreneurs Business Creation Services Innovation Projects Innovative solutions New businesses Warsaw Amsterdam 06 07

5 The power of the network Building connections across Europe Our Shareholders Research Institutes Academic Partners Industry Partners Offices Our strength comes from our Europe-wide network of partners. They are our experts, our service providers, and our direct connection to the energy industry. Twenty-six of those partners are shareholders of InnoEnergy. The community also includes more than 250 associate and project partners who participate in our innovation projects. They support product development with their experience and knowledge, act as commercialising partners and first customers. In return, they gain unrivalled opportunities to invest in new technologies and services, expand their own business lines and create commercial opportunities for new solutions. Together our partners represent the best of Europe s industry, research, and higher education and all are key players within the energy sector. Benelux Sweden Poland Plus Germany Iberia France 08 09

6 250 Project partners across Europe 77 Patents filed 78 Products and services supported 3 Manufacturing facilities constructed 147 Million euros of InnoEnergy investment 1.2 Billion euros in project costs 3 Billion euros in forecasted sales About Innovation Projects Connecting innovation to industry and business partners A sustainable energy sector needs new products, new solutions and new services. But transforming a prototype or pilot into a successful and marketable product can be a complex journey. It requires technical expertise, commercial awareness and access to a variety of skills and resources in order to: Develop a business case. Decide which market to enter. Assess which needs to address. Understand the competition. Select the appropriate technology and approach. Find the essential first customer. Develop a compelling unique selling proposition (USP). Innovation Projects from InnoEnergy help to address these challenges and shorten the journey from lab to launch. We invest in, and provide support to develop innovative products, services and solutions that have high commercial potential, and finance multi skilled partnerships that significantly reduce the risks of product development. We provide innovators, researchers and companies with access to a deep pool of complementary skills and resources, and connect them to markets and commercial opportunities across Europe. Our collaborative model encourages businesses of all sizes from start-ups to multi-nationals to participate in innovative partnerships, consider new technologies, support new research from across Europe and bring new products to their customers. When you work with InnoEnergy you join a community, says Pérez-Loya. Everyone involved has their own contact network. When you meet these people and talk about your ideas everyone is open. They help you to connect with others who may be able to help you further. José Pérez-Loya, CEO, Forsnetics AB Through our Europe-wide network of industry experts, businesses and researchers we are able to: Find complementary partners to support the development of new products. Provide experience in managing complex projects and intellectual property (IP). Offer expertise in market analysis, business models and industrialisation. Identify market needs, initial customers and early adopters of innovative products. Provide marketing and sales knowledge to challenge and enhance the return from new solutions. Shorten the time to market for new products and services. Turn prototypes into commercial products within five years. Reduce the financial risks associated with finalising prototypes and introducing them to market. By investing in viable products and solutions we are expanding the circle of innovation in Europe s energy sector

7 Europe s energy challenge: security, cost and carbon Developing solutions across the energy supply chain Decrease energy cost Supply and security CO 2 emission reduction Objectives Resources Generation Transmission Distribution Consumption Energy Value Chain Clean coal and gas technologies Energy storage Energy efficiency Energy from chemical fuels Nuclear instrumentation Renewable energies Smart and efficient buildings and cities Smart electric grid Developing a sustainable energy future is one of the biggest challenges facing Europe today. We must ensure the energy supply to all our citizens without compromising safety and security of the infrastructure. We need alternatives to depleting fossil fuels that can ensure security of supply in the face of a growing population. We need to reduce carbon emissions while remaining competitive with the rest of the world. And we must decrease the cost of energy to boost enterprise and ensure that no one is left in fuel poverty. There is no single solution that can address all these issues. The energy sector must become more diverse, with a broad range of new products, solutions and services addressing the many different aspects of the energy challenge. This is why we develop innovation projects in eight critical thematic fields covering the entire energy supply chain from the management of resources to minimising consumption. Each thematic field has a team of industry specialists who help to define our priorities, help project leaders put together proposals for funding, identify market opportunities, coach and advise individual projects on technical and business matters and identify synergies and opportunities for collaboration between different partners. Product Market People Finance 12 13

8 Thematic fields Targeted support to create impact InnoEnergy works with innovative projects that will have the greatest impact on energy costs and CO 2 emissions, and which have the potential to achieve significant market volumes and network integration. Energy from chemical fuels Clean coal and gas technologies To ensure the most efficient use of primary energy sources, future energy production will rely on the optimal combination of power generation and chemical production. Coal, gas, and their chemical derivatives therefore still have a major role to play in creating a stable, long-term energy supply for Europe. InnoEnergy is encouraging innovation in waste conversion technologies, flexible power systems, carbon capture and storage, and unconventional gas and oil extraction that will: Help reduce emissions of CO 2, NO x, SO x and particulate matter. Optimise the use of biomass, waste and unconventional gases as well as fossil fuels. Support an economically viable strategy for CO 2 capture and storage. Extend the use of natural resources such as unconventional gas. Increase the operational efficiency in both power production and industrial processes. Energy storage Thanks to the increasing penetration of renewable and distributed generation, growing trade in electricity, and new demand patterns, energy storage has an important role in future energy systems. It is a vital component in the development of smart grids, smart cities and smart buildings, helping to balance supply and demand, ensure continuity of supply, increase energy autonomy, and mitigate intermittent power production. InnoEnergy is encouraging solutions that: Provide large-scale storage to support integration of renewable energy sources into the transmission network. Provide small-scale energy storage to enable voltage control and power quality improvement at the distribution level. Provide building-level storage technologies that can increase self consumption from local generation, reduce peak power, save on energy arbitrage and enable balancing services. Energy efficiency Energy efficiency is the most cost-effective way to reduce emissions, improve energy security, make energy consumption more affordable, and enhance competitiveness. The drive for greater energy efficiency applies to all sectors of the economy from manufacturing, power generation and transport to agriculture and data centres. InnoEnergy focuses on innovative ways to promote energy efficiency in a wide variety of industrial settings by supporting projects that: Develop energy management sensors and solutions with wide potential application. Enhance heat recovery and enable value to be derived from excess heat production. Enable efficient electric motors, pumps, and compressed air. Chemical fuels have a critical role in the future energy mix. Sectors such as transport, heating, and energy-intensive industry rely on supply from chemical energy carriers. What s more, biogenic and synthetic fuels, derived from biomass, waste or even excess electricity, can provide both stability and storage capability alongside more conventional fuels. This helps counter the volatility created by greater integration of more intermittent renewables. InnoEnergy supports the development of solutions that aid the production, transportation, storage and use of energy carriers and chemicals, particularly those that: Support efficient conversion of feedstocks into energydense carriers like synthetic fuels. Upgrade and standardise fuels from diverse feedstocks, including wet biomass and waste. Enable construction of and optimise processes for combustion, co-combustion or co-firing systems and power plants. Control fuel conversion processes to minimise emissions and maximise energy efficiency. Enable energy carriers to be used for temporary storage or in energy-intensive industry. Renewable energies Renewable energies play an essential role in reducing dependence on fossil fuels, increasing energy security for Europe, and decreasing greenhouse gas emissions. Onshore and offshore wind power and solar photovoltaic continue to gain ground, while solar thermal electricity (STE) and ocean energy that is derived from wave and tidal streams show great potential. InnoEnergy supports projects that develop systems, materials, tools and components that: Reduce the Levelised Cost of Energy (LCoE) and increase competitiveness of renewables. Enhance dispatch, transmission and grid integration, including storage and low-voltage applications. Improve performance through more accurate design, siting, layout, and production forecasting. Demonstrate long-term reliability and scalability in harsh or remote environments. Promote cost-effective maintenance, transport, installation and other logistical functions. Smart and efficient buildings and cities The built environment accounts for 40 per cent of the world s energy consumption. Creating smart and efficient buildings and cities is therefore key to sustainable development. The goal is to achieve comfortable, affordable, near zero-energy buildings, upgrade ageing energy infrastructure, enable prosumers, integrate distributed energy resources, and encourage integration across different energy carriers and IT infrastructures at the city level all in a series of highly fragmented, local markets. InnoEnergy is fostering innovation that: Supports deep renovation of existing commercial and residential buildings. Creates more energy-efficient and sustainable heat pumps, heating, and air conditioning systems. Enables more effective use of local energy supplies, and storage capabilities. Supports interaction between local energy networks within the city. Improves comfort levels and general user acceptance of energy-efficiency solutions. Creates cost efficiencies for urban energy networks. Smart electric grid The electricity grid is showing its age. Increased use and volume, intermittent and distributed energy resources, and new market and regulatory structures have created significant challenges in the operation and control of the power system. A variety of technological developments are needed to upgrade the current transmission and distribution system and create a truly smart, stable and responsive electricity grid. InnoEnergy is encouraging innovation that: Uses power electronics and smart sensors, analytics, cyber-security, or other IT to enhance new and existing transmission and distribution assets. Enables condition-based, just-in-time maintenance at distribution and transmission level. Supports smart transmission technologies such as Flexible AC Transmission System (FACTS) and HVDC networks. Improves insulation, contact or magnetic materials to increase grid reliability and efficiency. Nuclear instrumentation More than 60 nuclear reactors are currently under construction in 15 countries around the world, and nuclear power remains an important part of a sustainable energy mix. Following the Fukushima accident, even greater emphasis is being placed on research and development around nuclear safety and radiation management. Demand is growing for innovative, advanced instrumentation and measurement methods, in order to increase reliability, performance and competitiveness of reactors. InnoEnergy therefore supports projects that develop: Instrumentation and measurement systems that monitor materials and structures under severe conditions. New systems for radiation monitoring at elevated temperatures. Technologies for non destructive testing. New simulation tools to help decision-making and prolong the life of reactors. Wireless and fibre optic sensors

9 What is an innovation project? Supporting innovation from prototype to commercial product The power of the consortium Collaborative partnerships from across Europe For InnoEnergy an innovation project is a research and development project with a goal of developing a product or service to be sold on the market. TRL9 TRL8 Market introduction System ready for full scale deployment System incorporated in commercial design Transforming a great technology into a marketable product or service requires a range of skills and resources. Innovation Projects from InnoEnergy focuses on bringing together partners in a consortium to create individual projects that can deliver results. The projects we support cover a diverse range of solutions and approaches to energy sustainability, and cover the entire energy value chain from resources and fuels to generation, transmission, and distribution to consumption. Each represents the transformation of available knowledge into a new technology, product or service with a positive impact on Europe s energy industry. Individual projects start life in many places. They can be an important development for an existing small or medium sized company, or the driving force behind the establishment of a new start-up. They can have their roots in a major research institute, the R&D department of a major European enterprise, or as a subject of doctoral research within a university. However, all our projects have certain characteristics in common: They are based on tested prototypes that demonstrate strong commercial viability. They already have a prototype or proof of concept at technology readiness level (TRL) five or more. The proposed product, service or solution has an expected time to market of five years or less. The subject of the project falls under the remit of one of our eight thematic fields. They bring together skills, experience, knowledge and connections in a consortium of three to seven European partners. They want to minimise the risks of product development and maximise the chance of successful market entry. They last a maximum of three years. TRL7 TRL6 TRL5 TRL4 TRL3 TRL2 TRL1 Integrated pilot system demonstrated Prototype system verified Laboratory testing of integrated system Laboratory testing of prototype component or process Critical function, proof of concept established Technology concept and/or application formulated Basic principles are observed and reported InnoEnergy supports projects at TRL5 and above InnoEnergy is more than just an anonymous funding body. They have a financial stake in the success of the projects, and a real interest in getting new solutions to market. They really focus on the final product. Thanks to the involvement of InnoEnergy, we have been able to create an innovative product which is now part of our offer. Marzena Wojtas, Project Coordinator, EC Systems We encourage companies of various sizes and types to participate in consortia. Each consortium consists of between three and seven partners, which includes: The innovator: the research group or company that first came up with the idea and developed it to a prototype or pilot at TRL 5. A commercialising partner: usually a company looking for opportunities to enter or extend its presence in the European energy sector and able to bring the proposed product to market. The first customer or early adopter: the first customer plays a key role in creating a commercially viable solution and, as the product is developed, ensures it continues to fulfil the needs of the market. A consortium may also include complementary knowledge providers, whether it is from other research institutes, universities, business schools or companies in a related field. Being a commercialising partner of the Active Substations project has enabled us to grow our business, explore new possibilities, and even hire new people. We remain very focused on servicing individual customers needs but now we can be more proactive about developing more generally applicable solutions that we can sell to DSOs worldwide. Rik Verheyen, Business Development Manager, Bausch Datacom Each consortium represents the best of European collaboration, bringing together business, research or university partners from at least two countries. They are central to the success of individual innovation projects and to InnoEnergy as a whole. The origins of each project are different, and each project has different needs. Some come to InnoEnergy complete with consortium partners, while others may require additional help in finding partners to be eligible for InnoEnergy investment and support. In these cases, our experts and industry connections work with project founders to suggest additional partners

10 Investment and more Supporting innovation projects at every stage from lab to launch Commercial model Creating financial stability with public-private partnerships InnoEnergy provides comprehensive support and services to help innovators, researchers, and their partners at every stage of the product value chain, to enable the transformation of innovative models into marketable products. Our services go beyond traditional funding mechanisms. Because our goal is to ensure all projects deliver a commercially viable product, we don t fund and run. Instead we offer a shared risk model based on: Commercial relationship. Our success is aligned with the success of each project. We invest in individual innovation projects for up to three years and see a return only once the new product is on the market and delivering value. All our returns are re-invested in our next innovation projects. Flexible financing. As research progresses, projects can change: new priorities can emerge, timescales can shift, or new partners may become interested. Our financing agreements are based on real-world experience of research and development and give projects the room to make changes where necessary. Secure IP environment. The commercial value of an innovation lies not just in the first sale but also in its intellectual property (IP) and on-going licencing agreements. We make sure that the originators and developers of an idea retain control of their IP and their stake in the future value of their product. On-going support. Our flexible management programme, business support mechanisms, monitoring and reviews aid project management and administration, while our partners among the top-rank players in Europe s energy sector help with technology improvements and access to customers and suppliers Million Project budget range Million Typical value of participation 2.6 Million Average project budget 61% Average ratio of funding 1x ROI Expected within 5 years of project completion InnoEnergy offers a funding and investment model that takes the best of traditional private and public funding models and creates a unique revenue-sharing proposition. By funding up to 100 per cent of the costs involved in commercialising a product or service, we share the risks of development at a critical stage in the product lifecycle. Once the product is launched and is delivering value to its developers and commercialising partners, we take a percentage of the returns to re-invest in future innovation. Our success is therefore aligned with that of our projects. InnoEnergy requests a return on its investment if the project is successful. But, consortia retain ownership of all intellectual property rights. We act as a strategic partner to all our projects, working closely with management teams, assisting with the project process, monitoring progress, offering technical advice and business support, aiding IP management, and doing all we can to increase the chances of their success and ours. We also ensure that our funding model remains flexible to suit the changing needs of projects as they change over time. We adjust our support to meet the needs of individual projects so that they can continue to develop innovative solutions needed for a sustainable energy industry. What makes InnoEnergy different from other funding and investment sources? For us, it has really been about the team here in Sweden. They re good. They know what they are doing. And they understand what we are doing and what we want to achieve. Joakim Nydrén, CEO, Foreseeti AB 18 Europe-wide engagement. Through our networks, we open up access to a deep pool of essential skills and resources, as well as complementary research and expertise, and market opportunities across Europe. Financing from InnoEnergy can also act as a catalyst for further funding from a variety of public and private bodies. The core services of InnoEnergy s Innovation Projects are also enhanced by our other business lines Where project owners choose to start their own business to commercialise their innovation, help and support is available from InnoEnergy s Business Creation Services. Participants in InnoEnergy s Master s and PhD schools can also participate in individual innovation projects to boost both its research and its entrepreneurial capabilities. 5x ROI Expected overall We also encourage all our projects to seek additional funding from private sources or other national or international schemes. We looked at numerous sources, and we felt the programme from InnoEnergy was the best for us. We get financial support, certainly. And we get access to a network outside France. But most of all we get flexibility. InnoEnergy offered us a funding framework that could adapt to the life of the project, so we have been able to bring on new partners and change the project structure. Other agencies don t make these kind of adjustments possible. Guillaume Chazalet, Business Development Manager, AREVA 19

11 How it works Turning a technology into a commercial product 2 After the submission: assessment and time-lines 1 3 Business development Preliminary product definition Feasibility of proposed solution Innovativeness of proposed solution Business opportunity assessment Soundness of IP analysis Before the submission: preparing your proposal The following criteria should be included in your proposal and will be used in the assessment process, each weighted accordingly, with 1. being the highest. Compliance to InnoEnergy requirements Compliance with InnoEnergy Roadmaps Integration of students, academics, education organisations Participation of SMEs Quality criteria 5 Financial viability Project budget vs. market potential and scope of the project Justification of requested InnoEnergy investment Assessment of plan for InnoEnergy investment return Operational viability Soundness of project plan Soundness of consortium vs. value chain Quality of project management 4 Risk analysis Availability of required knowledge in the consortium Technical barriers identified and mitigation plan InnoEnergy s procedures ensure a transparent review and rapid decision making on innovation projects. Gate review. Go / No-go Decision Contract signed Submission of innovation project proposal Additional support for market growth and scale-up Project launch Feasibility study Project Kick-Off InnoEnergy - level assessment Final selection of proposals Thematic field level assessment Selection of proposals per thematic field Time to grant 6-7 months 3-4 months 2 months 1 month Day 0 Initial contact If you have a prototype or proof of concept at TRL 5 or more that falls into one of InnoEnergy s thematic fields, and that you want to develop into a commercial product then we encourage you to contact your nearest InnoEnergy office. Assessment Following an initial assessment, we can help you determine the best next steps for your project and which thematic field is best suited to your innovation. If you are looking for European partners, we can help you find and put together an expert project consortium. If you need a commercialising partner to take your prototype to market, we can help you find the right company. If you want to start a commercialising company, we will put you in touch with our Business Creation Services. Proposal We can help you put together all the elements you need to create a successful proposal for submission to your nearest InnoEnergy office, or to the leader of the relevant thematic field. The scope, budget and work plan for each proposal are considered by leaders of our thematic fields, representatives of our industry partners, and the executive board of InnoEnergy. Feasibility Once the executive board has selected the proposals it wishes to support, the projects go through an extensive feasibility study to ensure that they have a realistic commercial future. The feasibility study covers product definition, business case, market analysis, competitive analysis, and freedom-to-operate analysis. Finance Once a project is considered feasible, we will establish a funding agreement with the project consortium to finance the project. We can change the nature of the funding agreement if your project changes over time. Support During the development of your product, we manage the relationship with our project partners, assess your progress, assist you to overcome any challenges or unexpected events, and help you keep your project on track. We ll continue to introduce you to interested parties, possible customers, and relevant research, as well as technical and business experts. Success Once your new product is launched, InnoEnergy receives the agreed percentage on sales to reinvest in further projects. More information about the application process, requirements and timelines is available at our dedicated website: investmentround.innoenergy.com 20 21

12 InnoEnergy in action with Active Substations Giving distribution substations an active role in energy management and fault recover Not only is working on the project helping us develop new solutions in our existing market segments, it is creating new commercial possibilities for us. When we add InnoEnergy s commercial contacts to our existing customers we have a very strong foundation from which to expand our business. Rik Verheyen, Business Development Manager, Bausch Datacom Smart and efficient buildings and cities The market. One of the big challenges of the smart power grid is how best to integrate new distributed energy resources into the low- to medium-voltage distribution domain. Active substations can support grid management and fault recovery over the last mile of distribution, but require affordable, cost-effective and low-power measurement and monitoring technologies to do so. The product. The Active Substations project is working on the development of a number of solutions, including a mediumvoltage (MV) sensor, a remote terminal unit (RTU), an acoustic power detection device, and directional fault passage indication solutions. These solutions deliver improved monitoring capabilities for proactive and precise asset management. The project. The Active Substations project has its roots in research being conducted at EnergyVille an association of KU Leuven and the VITO research institute. The founding partners formed an innovation project, funded by InnoEnergy, and were joined by researchers at AGH and KTH, and industrial partners Eandis, Vattenfall and Gas Natural Fenosa, among others. When the project needed a new commercialising partner, InnoEnergy turned to its extensive network to find the right organisation. It asked Bausch Datacom, a specialist in data communication for energy, automation and machine-tomachine markets, to join the consortium. Bausch started work on a patented sensor technology, capable of measuring and monitoring MV voltage parameters without opening the cross-linked polyethylene (XLPE) cable to the core. The goal is to create compact and low-cost sensor solutions that can easily be retrofitted into existing substations. Bausch already had extensive contacts among Europe s DSOs. However, by developing monitoring and measuring solutions it has extended its product portfolio, expanded the business, and seen new markets and opportunities open up aided by access to InnoEnergy s network. The project is currently working towards the development of industrialised prototypes to be tested by DSOs by the end of Consortium partners. AGH: University of Science and Technology, Bausch Datacom, Eandis, EnergyVille, Gas Natural Fenosa, IREC: Fundacio Institut de Recerca de l Energia de Catalunya, IST: Instituto Superior Técnico Lisboa, KTH: Royal Institute of Technology, STRI AB, TU/e: Technische Universiteit Eindhoven, UPC: Universitat Politècnica de Catalunya, Vattenfall. InnoEnergy in action with DeBugger Demonstrating efficient biomass use for the generation of green energy and recovery of nutrients The advantages of being a member of the InnoEnergy community were immediately clear to us. We benefit from a highly specialised network, in which our partners are working on similar topics as us. It really helps accelerate our project. Ludwig Hermann, Commercial Product Manager for metals, energy and water, Outotec Energy from chemical fuels The market. The potential of sewage sludge and farmyard slurry for energy conversion has long been recognised. But its high moisture content, and the presence of pathogens and inorganic pollutants, hamper the safe and effective exploitation of both nutrient and energy value of biowaste. Addressing these problems could add thousands of GWhs of biomass-derived energy to European grids. The product. DeBugger has developed a closed-loop steam dryer for evaporating water from sludge and slurry, accompanied by a dual-circulating fluidised bed gasifier for the thermal treatment of the dried substrate to produce synthetic fuel gas. The solution is a cost- and carbon-efficient means of producing synthetic gas that also reduces valuable nutrient loss in agriculture. The project. Researchers at Outotec, the Finnish engineering and material sciences company, had been working on the potential of wet biowaste for energy extraction for some years while colleagues were working on a dryer concept for wood-based feedstocks. When the two teams compared projects, it became clear that there was benefit to joining efforts and finding a common solution. Outotec s two research teams developed a proposition that would produce dried biomass for combustion in mixed or specialist energy conversion plants, as well as applying gasification techniques to produce more universally applicable synthetic fuel gas a percentage of which would then be used to power the dryer. Although synthetic gas fuel is the primary output, the closed-loop system also enabled plant nutrients to be recycled for controlled fertilisation in agriculture, giving it a much wider application. Having evolved its initial concepts and early-stage research, the project is now supported financially by InnoEnergy. The investment has enabled Outotec to commission the first prototype of the dryer and conduct a series of comprehensive tests into its functionality, the feeding system, the steam parameters, and the reliability of the system in a commercial setting. InnoEnergy also introduced the project team to researchers at the University of Stuttgart one of the leading research institutions in the field of double-fluid gasification processes. The joint research team continues to investigate the impact of different feedstocks and the quality of the gas they produce. The DeBugger project has now established a clear path to commercialisation. The first pilot, with a capacity of several hundred kilograms per hour, has been unveiled at a waste-water treatment plant in Skellefteå, Sweden. Consortium partners. Outotec AB (Sweden), Outotec GmbH (Germany), University of Stuttgart

13 InnoEnergy in action with FlowBox Energy storage InnoEnergy in action with Xsensor Clean coal and gas technologies Cost-effective storage for renewable integration and infrastructure deferral The market. Energy storage is critical for the integration of intermittent renewable energy sources into the energy mix. There is a wide portfolio of potential energy storage technologies and, among these, rechargeable flow batteries offer a number of advantages, including near unlimited longevity. But current implementations do not yet have the right balance between power and cost to meet industry needs. The product. FlowBox is a new energy storage solution that can produce and store electricity by combining hydrobromic acid with hydrogen. Based on the existing 50 kw flow battery prototype designed by EnStorage, the FlowBox team aims to optimise EnStorage s technology to create a 150 kw demonstration module and prove that this could be a competitive and highly efficient solution for the integration of renewable energies. The project. Research teams at AREVA, a leading industry player in nuclear and renewable energy, had been working around energy storage and hydrogen systems for many years. Although the technology was suitable for different types of application, it was not seen as a marketable solution. However, at the beginning of 2012, the research team saw considerable potential in the innovative work being carried out by Israeli start-up, EnStorage, whose technology for flow batteries appeared to offer better performance at a lower level of capital expenditure than existing solutions. Wireless sensor technology to improve power plants economic and environmental performance The market. Condition and structural-health monitoring in power plants depends on sophisticated sensor technology. But traditional designs and lengthy cabling are often too costly for use in auxiliary equipment such as pump stations, transport systems, or cooling towers. Robust, wireless sensors that can be deployed more widely create a far more accurate picture of the plant s status, leading to significant improvements in maintenance and operational efficiency. The product. The Xsensor project is developing wireless sensors with contactless battery, open communication protocols, robust high-range wireless radio transmission and embedded data-analysis algorithms to help improve the environmental and economic efficiency of power-generation equipment. The project team is working on vibration and magnetic sensors, as well as a universal unit to connect any standard probe and turn it into a wireless node all suited for the harsh industrial conditions of mining and power generation. The project. The sensing solution developed by the Xsensor project is based on technology patented by researchers at AGH University of Science and Technology in Krakow. The project brings together the market experience and commercial experience of EC Systems AMC a long-term partner of InnoEnergy in addition to the in-depth knowledge of wireless data transmissions from AGH. We already had partners through our own network for this project. But through InnoEnergy we were able to find contacts for the next step, which is to address the need of potential customers. InnoEnergy really understands the challenges of building a project, not just how to finance a project. They are very business focused and very focused on delivering real-world solutions. Guillaume Chazalet, Business Development Manager, AREVA AREVA launched a detailed assessment of EnStorage s concept and then signed a collaboration agreement to develop a competitive storage product, based on EnStorage s core stack. Following this, Schneider Electric joined the consortium and the project FlowBox was born financed by InnoEnergy. Its goal was to evaluate new flow battery technology and to prove its ability to serve its target market, with validation studies focused on both its technical and economic feasibility. AREVA is now leading the project, and has taken on responsibility for manufacturing, integrating and installing the storage solution. Schneider Electric is designing, manufacturing and installing the complementary power conversion system and will act as the commercialising partner alongside EnStorage. Other research and industry partners have subsequently joined the FlowBox innovation project and, after 18 months, FlowBox has now been installed at its first demonstration site. Consortium partners. AREVA, CEA: Alternative Energies and Atomic Energy Commission, EdF, EnStorage, KEM ONE, Schneider Electric, TÜV SÜD. InnoEnergy has helped speed the path to market entry and commercialisation. We have extensive contacts with Europe s energy industry, but InnoEnergy helped us find exactly the right people in the right departments to put our proposition to. That contact with real users and real customers is a really important part of thus project s success. Tomasz Barszcz, CEO, EC Systems AMC Gicon GmbH, the independent engineering and consulting specialist from Dresden in Germany, also joined as the third partner of the consortium. Gicon provides extensive experience of working with utilities throughout Western Europe. Having recognised a clear gap in market for its cost-effective, robust, wireless sensors and long range, sub-gigahertz radio modems, the consortium approached InnoEnergy and was granted funding and support. In particular, InnoEnergy was able to introduce the Xsensor project to the appropriate individuals at Tauron, one of the largest utilities in Poland, which has signed on as the first customer. The sensors are now very close to full commercialisation. Prototypes have been tested in the lab and in industrial environments that show the sensor and data transmission system can cover an entire power plant from a single antenna. In addition to Tauron, the project has also received significant interest from utilities in Germany and Switzerland. Consortium partners. EC Systems AMC, Gicon GmbH, AGH University of Science and Technology 24 25

14 InnoEnergy in action with WindFloat Globalising wind power with floating support structures for offshore turbines InnoEnergy really is the perfect match for us. We had already demonstrated that the technology works and were at the stage of turning it into a commercial concept. In InnoEnergy, we gained a partner who would collaborate with us and support both the company and the technology as we transitioned into a truly market-focused business. João Metelo, President and CEO, Principle Power 26 Renewable energy The market. Current commercial offshore wind-farm installations are based on foundations that are fixed to the seabed, which limits potential installation locations and the amount of wind power they can harness. Floating offshore wind-turbine structures allow wind projects to be installed in deeper waters for superior wind power, reduced visual impact, and greater choice of location. It also allows much of the work onshore, minimising the use of heavy lift vessels and risky offshore operations. The product. The WindFloat project has developed a floating foundation for offshore wind turbines with a simple, economic and patented design. The WindFloat dampens wave- and turbine-induced motion, enabling wind turbines to be sited in previously inaccessible locations. It also lowers the levelised cost of energy (LCOE) by reducing structural weight as well as installation, operational and, eventually, decommissioning costs. The project. In October 2011, Principle Power deployed a full-scale, 2MW WindFloat prototype 5km off the coast of Portugal. Adapted from the principles behind floating oil and gas platforms, the structure was completely assembled and commissioned onshore before being towed 400km along the coast. The system produced more than 17 GWh of energy to the local grid and provided high levels of availability, despite the extreme weather conditions in the Atlantic Ocean. Having successfully demonstrated the potential of its patented technology, Principle Power transitioned its operations to focus on ways to successfully commercialise the prototype and bring it to a global market. It applied to InnoEnergy through an Investment Round and, having completed the initial feasibility study, joined the Innovation Projects programme. In addition to investing 4 million in the project, InnoEnergy worked with Principle Power on every aspect of the advanced technology development and commercialisation processes, including engineering, third-party analysis and certification, business development and dissemination. A key area of focus was to further reduce the levelised cost of energy to ensure that the WindFloat technology is in line with global price targets for commercial offshore wind projects. Principle Power has now completed the first set of detailed design packages for the construction of a pre-commercial wind farm, to be constructed by consortium partner WindPlus. The goal is to optimise the WindFloat designs for current 5 8MW turbines as well as the 8MW-plus turbines of the future. Consortium partners. Principle Power Inc, EDP Renewables, WindPlus InnoEnergy in action with MrCySeMoL Market-ready cyber security tool for protecting smart grids IT infrastructure We now have a product that we have sold to major customers and we have leading security consulting companies as strategic partners but there s always more to do to develop the product and the services around it, and to achieve commercial scale. The fact that we can sell it now is due to the support we have had from InnoEnergy. Joakim Nydrén, CEO, Foreseeti AB Smart electric grid The market. Cyber security is critical to the successful adoption of smart power grids. The number of cyber attacks against critical infrastructure is rising fast and cyber criminals are using increasingly sophisticated techniques. Protecting the vast and complex information and control system infrastructure that forms the backbone of the smart grid requires extensive analysis, combined with expertise in several cyber security disciplines. The product. Harnessing the power of a computer assisted design (CAD), the MrCySeMoL project has developed the means of analysing cyber security that is based on an approach used extensively in engineering disciplines to virtually design and test systems. The result is securicad, a solution that provides holistic, predictive assessments of IT architecture to help companies understand, communicate and proactively manage their cyber risks. The project. A group of researchers, at Sweden s KTH Royal Institute of Technology, began exploring ways of modelling software, system and enterprise architectures for complex IT environments. As they refined the methodology, a subgroup began to develop a research prototype that would turn the answer to a complex problem into a practical solution for the market. Industrial organisations, including ABB one of KTH s strategic partners saw the commercial value of the work and encouraged the research group to contact InnoEnergy. The group submitted a proposal, successfully completed a feasibility study, and demonstrated the market potential of their proposed solution. InnoEnergy agreed to support their research and the innovation project, MrCySeMoL, was established. The project then hired a business strategy consultant, Joakim Nydrén, and formed a company, Foreseeti AB (foreseeti), to be the commercialising partner in the consortium. In addition to InnoEnergy s investment into the research and development of securicad, foreseeti also received support from InnoEnergy s Business Creation Services to support other areas of business growth and development. Just over a year into the development stage of the product, foreseeti launched the first release of the securicad tool, a market prototype that is available in conjunction with consultancy services from foreseeti s and its partners experts. The company is now working towards a new major release of the tool which will see step-change improvement in the user interface. The end goal is to have a product that is available off the shelf. Consortium partners. Foreseeti AB, KTH: Royal Institute of Technology, Paluno: The Ruhr Institute for Software Technology. 27

15 InnoEnergy and the EIT Bringing the knowledge triangle to life InnoEnergy was established in 2010 and is supported by the European Institute of Innovation and Technology (EIT). Like all Knowledge and Innovation Communities (KICs) established by the EIT, InnoEnergy brings together the three elements of what we call the Knowledge Triangle higher education, research and industry to tackle some of the biggest challenges facing Europe today. By integrating the elements of the knowledge triangle with Europe s entrepreneurs and innovators, InnoEnergy reinforces the innovation capacity of the EU member states, creates the entrepreneurs of tomorrow and prepares them for innovative breakthroughs in the future. Together the KICs play a critical role in increasing sustainable growth and competitiveness in Europe. Higher Education InnoEnergy EIT and Horizon 2020 The EIT strongly contributes to the objectives set out in Horizon 2020, the EU s biggest ever research and innovation programme. Horizon 2020 is a key pillar of the Innovation Union, a Europe 2020 flagship initiative aimed at enhancing Europe s global competitiveness. The goal is to ensure Europe produces world-class science, removes barriers to innovation and makes it easier for the public and private sectors to work together in delivering innovation. Industry Research 28 EnBW 29

16 Meet our Thematic Team InnoEnergy s thematic team source and foster innovative products and solutions from within each of our thematic fields. Roland Doll. Roland s priority is sourcing and fostering innovation projects across Germany, Austria and Switzerland. He is our lead expert for energy from chemical fuels and has previously held a number of senior positions in the clean tech sector across Germany. He also holds a doctorate in physics. Lucienne Krosse. Lucienne looks after both the smart and efficient buildings and cities and energy efficiency thematic fields. She has a background in chemical engineering, holds several patents and has initiated numerous projects and product development in close cooperation with industry. Marcin Lewenstein. Before joining InnoEnergy, Marcin held a number of managerial positions in the energy and utilities industry in Poland. Now, with responsibilities centered around InnoEnergy s clean coal and clean gas thematic field, he assists new projects aimed at the development of advanced energy technologies enabling optimised and eco-conscious use of available fossil fuel resources, biomass, wastes, and unconventional gases. Antoni Martínez. Antoni leads the company strategy in renewable energies. Before InnoEnergy he was Director of the Catalonia Institute for Energy Research (IREC), and for 16 years he was the CEO of Ecotecnia, a wind turbine manufacturer that was acquired by ALSTOM in Bo Normark. Bo has 35 years industrial experience in the electro technical industry and is our Thematic Leader for smart electric grids and energy storage. Among many other posts, he is a Member of the Royal Academy of Engineering Sciences and Chairman of the project Electricity Crossroads, Member of the R&D Board of the Swedish Energy Agency and Chairman of International Smart Grid Action Networks (ISGAN) Power T&D Systems. Laurent Thibaudeau. Laurent s main accountabilities include the management of the innovation projects portfolio and the definition of strategic area roadmaps related to energy storage, energy efficiency in the industry, and instrumentation for nuclear. Before InnoEnergy, Laurent held several positions in the industry and also holds an Engineering Degree and a PhD in Physics. Céline Jullien. Celine works on a number of strategic initiatives including competence and road mapping, portfolio management and is involved with Energy Union positioning. She also manages the KIC InnoEnergy Level Assessment Committee (KLAC) which finalises assessments of innovation project proposals and investment recommendations before proceeding to Executive Board ratification

17 KIC InnoEnergy SE Kennispoort 6th floor John F. Kennedylaan AB Eindhoven The Netherlands info@innoenergy.com InnoEnergy Benelux Kennispoort 6th floor John F. Kennedylaan AB Eindhoven The Netherlands benelux@innoenergy.com InnoEnergy France Immeuble L Alizée 32, rue des Berges Grenoble, France france@innonenergy.com InnoEnergy Poland Plus ul. Czerwone Maki 84, Bldg C Kraków, Poland polandplus@innoenergy.com InnoEnergy Scandinavia Valhallavägen 79 SE Stockholm, Sweden sweden@innoenergy.com InnoEnergy is the trading brand of KIC InnoEnergy SE InnoEnergy Germany Albert-Nestler-Straße Karlsruhe, Germany germany@innoenergy.com InnoEnergy Iberia Edifici Nexus II Oficina 0A Jordi Girona, Barcelona, Spain iberia@innoenergy.com