CLEANTECH – ENERGY AND ENVIRONMENTAL TECHNOLOGY

2. CLEANTECH – ENERGY AND ENVIRONMENTAL TECHNOLOGY Like a glowing focal point, the question of how we should use our energy resources has gained an unquestioned place on the political agenda. CleanTech covers energy and environment-related development aimed at reducing consumption of natural resources. CleanTech is found in the sectors of energy, transport, agriculture, air and water quality. CleanTech companies work with energy, water treatment, waste management and materials recycling. Energy is the main component of CleanTech and the focus of this presentation.

3. SWEDISH KNOW-HOW Preeminent Swedish technological development of renewable energy has garnered international attention. Investors in CleanTech are looking at Sweden, where long-term environmental research and technology development are the foundations of innovative energy technologies – and where the know-how required to efficiently integrate the technologies into society can be found. Decades of experience with goal-oriented, long-term initiatives have created expertise, experience and extraordinary networks. Unlike many other countries, the Swedish energy research programme has been distinctly oriented towards renewable energy and improved energy efficiency for a very long time. National political mechanisms, financial support for entrepreneurship, R&D and commitment to sustainable environmental policy are a few of the explanations. But the open and accepted climate of cooperation among industry organisations, politicians and scientists is another key contributor to Sweden’s considerable expertise in CleanTech

4. RESEARCH AND DEVELOPMENT IN SWEDEN Sweden is one of the countries in the world that invests the most per capita in research and development. CleanTech research is no exception. Sweden has been making long-term investments in renewable energy research and technological development since the oil crisis of the 1970s. Sweden has also made tremendous progress in energy efficiency, especially in the industrial sector. The unmistakable focus has helped make Sweden a world-leader in many energy and environment-related fields. Renewable sources of energy account for 37% of Sweden’s energy supply.

5. HEAT PUMPS Geothermal heat is actually pure solar energy, and the principle is basically very simple. The technology is based on utilising the solar energy stored in the ground during the year. Even climates without a lot of sun suffice to store enough heat energy underground. A fluid-filled house is heated underground and collects the stored heat of the sun. After that, the heat pump’s job is to concentrate the stored heat energy so that it can heat water in the house – in the tap and the shower as well as radiators. Heat pumps run on electricity, but the pump returns several times more heat energy than it uses.

6. WHY ARE HEAT PUMPS A GOOD IDEA? • It takes only one part electricity to produce three parts heat • New technology yields hotter water and faster heat for less money • Geothermal heat reduces annual electricity consumption by 50 to 75% compared to other types of heating • Remote monitoring and control can be managed over the Internet • The heat pump can serve as a climate control system and be used for both heating and air conditioning

7. DISTRICT HEATING District heating is usually highly resource-efficient and eco-friendly. A central district heating plant heats water, which is transported in a pipeline under high pressure to a district heating system in each building. Heat exchangers in the building use the hot water to heat radiators and hot water tanks. District heating provides 12% of all heating in Sweden. District heating plants can be run on a wide variety of fuel types and take advantage of energy that would otherwise go to waste, such as waste heat from industrial processes, forestry waste and energy recovered from rubbish and waste. Large-scale combustion yields high environmental performance and district heating is very reliable. District heating can generate both heat and power.

8. WHY IS DISTRICT HEATING A GOOD IDEA? • District heating is usually a resource-efficient alternative that utilises a wide variety of fuel types and takes advantage of energy that would otherwise go to waste. Running heating plants with renewable fuels (instead of fossil fuels) is a major and important environmental transition. • Efficient use of surplus industrial heat • Flexibility and options in fuel choice • Enables energy recovery from rubbish and residual waste • Cost-effective heating in towns and cities • Flue gas purification at a single site reduces environmental impact • Reduced carbon dioxide emissions improves air quality in towns and cities • Efficient use of resources through co-generation of heat and power • Extremely reliable

9. DISTRICT COOLING District cooling is based on the same principles as district heating. Water is chilled and then distributed in a pipeline to homes, offices, industrial buildings and other spaces that need air conditioning. The cold water is pumped around in a closed system and used to cool the air circulating in the building’s ventilation system. The same water is then piped back to the production facility to be rechilled. The temperature of the water pumped to buildings is about 6° C and the return water about 16°. The return water is heated as much as possible as rooms and processes are cooled. Sweden is benefiting from system expertise in district heating as well as the expansive technology infrastructure.

10. WHY IS DISTRICT COOLING A GOOD IDEA? • District cooling provides a consistent and comfortable indoor climate year-round, while reducing energy use and carbon dioxide emissions. • Costs less than local cooling systems • Highly reliable • Consistently high comfort in commercial spaces and buildings • No noise from alternative cooling systems • Limited maintenance • No need to store or handle environmentally hazardous refrigerants and chemicals • Flexible adaptation for both comfort cooling and process cooling • Natural cold can be utilised in many cases, resulting in minimal energy consumption • District cooling and district heating production can be combined for more resource-efficient operation

11. SOLAR ENERGY Sunlight can be used to produce heat or electricity. Solar cells (photovoltaics) are used to generate electricity. Silicon-based solar cells are currently the most widely used technology. There are metal contacts on both sides of the solar cell. When sunlight strikes the solar cell, a charge arises between the front and back sides. A solar cell produces a charge of about one half volt. The cell continues generating electricity as long as the light strikes it, but stops instantly in darkness. Solar cells are often assembled in solar modules that can be linked to produce higher voltage.

12. WHY IS SOLAR ENERGY A GOOD IDEA? The sun’s energy is so abundant that once we have learned how to use it economically, energy supply will no longer be a problem. Sweden has been involved in developing various solar energy technologies for many years that can be successfully combined with other technologies. The results have been superb, since conditions vary from one environment to the next. For instance, there are now hybrid technologies that solve the problem of lighting in places where conventional infrastructure is unavailable, like forests, rural areas or mountainous areas. Integration of solar electricity and solar heating modules – a hybrid technoogy that supplies waste heat and enhances efficiency. Solar electricity and heat pump technology – a hybrid technology powerful enough to make single-family homes energy self-sufficient Solar cells, new battery technology and LED lighting – a hybrid technology for environments where there is no power line infrastructure. On-grid solar cells and solar heating systems connected to the district heating network – large hybrid systems that are a superb choice for heating in sunny countries.

13. WIND POWER Wind power turbines utilise the energy in wind to generate power. Wind arises when the sun warms the atmosphere and creates temperature differences. This produces pressure differences that set air masses in motion. Modern wind turbines capture about one third of the power in the wind that passes through the rotor’s swept area. The blades on a wind turbine look something like a propeller and are linked to a generator that converts movement to energy. Wind is an almost infinite resource and creates no pollution.

14. WHY IS WIND POWER A GOOD IDEA? • Wind power has many advantages from the environmental standpoint – the raw material is renewable and requires no permanent alterations to the environment. • Very limited environmental impact • Production causes no environmentally harmful emissions • There are no hazardous residual products and final storage is not required • There are no fuel costs involved in production • Production requires no transport of raw materials • A standard wind turbine produces more energy in less than six months than it took to manufacture it

15. LED LIGHTING LED – Lighting Emitting Diode – is a young lighting technology that emerged in the 2000s, but is developing at warp speed. In another ten years or so, it is highly likely that most of our indoor and outdoor lighting will be powered by LED technology. LEDs can withstand major temperature variations, providing an enormous range of applications, since installations are not affected by the climate or the season LEDs are semiconductors that directly convert electric current to light. The diodes emit colored light – red, orange, yellow, green or blue. White light is created using a special LED technology and is becoming more common all the time.

16. WHY IS LED LIGHTING A GOOD IDEA? • LED is an entirely new generation of lighting technology that is set to revolutionise the world in the next ten years. The technology has superior competitive advantages compared to low-energy light bulbs and incandescent bulbs. • LEDs have a lifetime of about 100,000 hours, which is a hundred times longer than a conventional light bulb. • The diodes are extremely energy efficient. About 50% of the energy in an LED is expended as light. In an ordinary light bulb, about 95% of the energy is expended as heat and only 5% as light. • LED lamps do not get as hot as halogen lamps. That makes LED lighting ideal for bookshelves and other cramped spaces that should not be allowed to overheat. • LEDs contain no environmentally hazardous substances like lead or mercury.

17. CLEANTECH – AN INDUSTRY FOR THE FUTURE Interest in environmental innovations is rising steadily as global climate problems become more urgent. CleanTech is considered one of the most important industries of the future. The OECD estimates that the world environmental technology market will be worth about €644 billion in 2010. The European Commission has proposed targets to reduce emissions of greenhouse gases by at least 20% and increase the share of energy consumption from renewable sources to 20% by 2020, in accordance with the agreement made by EU Heads of State in March 2007. The relatively large percentage of renewable energy in the Swedish energy system is an outstanding achievement. About one fourth of Swedish consumption comes from renewable sources of energy. One example is the transport sector in Stockholm, where 25% of bus traffic in runs on ethanol or biogas.

19. HEAT PUMPS

20. HEAT PUMPS USE THE FREE ENERGY NATURE PROVIDES Geothermal heat is actually pure solar energy, and the principle is very simple. The technology is based on utilising the solar energy stored in the ground during the year. Even climates without a lot of sun suffice to store enough heat energy underground. A fluid-filled house is heated underground and collects the stored heat of the sun. After that, the heat pump’s job is to concentrate the stored heat energy so that it can heat water in the house – in the tap and the shower as well as radiators. Heat pumps run on electricity, but the pump returns two to four times more heat energy than it uses.

21. SWEDISH GEOTHERMAL HEAT IS A FORCE TO BE RECKONED WITH • We have tremendous experience with geothermal heat in Sweden and more heat pumps are installed here than anywhere else in the world. Thanks to all the residential and industrial installations, tried-and-true Swedish geothermal heat technology is ready for export. • Long-term research and development since the 1970s • Highly trained consultancies and certified installers • The large number of installations (500,000) has created a platform for independent researchers and developers • The Swedish Energy Agency in partnership with the SP Technical Research Institute of Sweden have carried out several independent tests of different heat pumps • Sweden has the highest number of installed geothermal heat pumps in the world

22. GEOTHERMAL HEAT – A BRILLIANT, EFFICIENT IDEA • Even climates without a lot of sun suffice to store enough heat energy underground. The heat pump can be used for both heating and air conditioning. • It takes only one part electricity to produce three parts heat • RPM control reduces energy consumption • New technology yields hotter water and faster heat for less money • Geothermal heat reduces annual electricity consumption by 50 to 75% • Remote monitoring and control can be managed over the Internet

23. THE TREND IS STILL MOVING UP The fact that geothermal heat is financially advantageous has driven the installation rate for geothermal heat pumps in Sweden to new heights in the 2000s. A similar trend worldwide is highly likely. Today’s market, characterised by high prices for oil and electricity and carbon dioxide taxes, is favourable and is hastening the technical development of heat pumps. Mechanisms such as conversion grants and public/private partnerships have had a powerful impact on the positive development. Technology procurements have stimulated the development of new technology to get new products, systems and processes to market. The outcome of the 1994 technology procurement for heat pumps was an estimated potential savings of 5 to 6 TWh/year for the Nordic countries over 15 years.

24. GEOTHERMAL HEAT IS REPLACING OIL The Johansson family of two adults and their teenage son live in a single-storey house with a basement in Torshälla, a small town in central Sweden. They heated their home with an electric oil and wood-fired boiler for 15 years. The house is 95 sq m, built of concrete with a wood facade. It took about 30 kWh/year to heat the house with the electric boiler. In spring 2005, the Johanssons installed a geothermal heat pump – and cut their electricity consumption in half. Now it takes only 14 kWh of electricity a year for heating and the Johanssons think their home has felt especially warm and cosy ever since. As an added bonus, the heat pump is much easier to maintain than the boiler.

25. A SELECTION OF SWEDISH GEOTHERMAL HEAT COMPANIES • THERMIA • NIBE • IVT • CTC • EVIHeat • ClimateWell

26. THERMIA Thermia Värme AB is one of the larger manufacturers of heat pumps in Europe. Thermia is part of Danfoss Heat Pumps. With especially powerful expansion in Germany and France, Thermia is also experiencing robust international growth in England, Ireland and Denmark. The company’s goal is to be the European market leader by 2009. Business direction Geothermal heat pumps with integrated high-temperature water heaters. RPM control of circulation pumps minimises energy consumption and maximises heat production. The heat pumps can be easily managed and monitored remotely via the Internet and text messaging. At a glance Annual sales: SEK 473 million (2005) Contact details: www.thermia.se

27. NIBE INDUSTRIER NIBE Industrier is divided into three business units. NIBE Heating manufactures domestic heating products, including heat pumps. The company’s mission is to supply the market with high-quality and innovative heating products. NIBE Heating has 19 subsidiaries in Europe. NIBE Industrier is listed on the Stockholm Stock Exchange (O list). Business direction Geothermal heat pumps with integrated water heaters that do not require auxiliary electric heater cartridges. This is accomplished through intelligent control of an RPM-controlled compressor and circulation pumps. The heat pumps can be easily managed and monitored remotely via the Internet and text messaging. At a glance Annual sales: SEK 2.5 billion (2006) Contact details: www.nibe.se

28. IVT The IVT Group does business in the energy and environmental goods and services sector. Their business concept is to supply heat and cooling in a way that saves energy and conserves the environment more effectively than other energy solutions. IVT possesses system expertise in energy solutions where the solar energy stored in rock, soil water and outdoor air is used and the energy in exhaust air is recovered. IVT is a subsidiary of Division Thermotechnik, Bosch Group. Business direction IVT PremiumLine X15. Geothermal heat pump with RPM control. Provides unlimited heat, 4.5 – 17 kW. Auxiliary electricity not required. The patented scroll compressor yields high output, quiet operation and long service life. Savings up to 14% higher than equivalent heat pumps that do not have RPM control. At a glance Annual sales: SEK 1.3 million (2006) Contact details: www.ivt.se

29. CTC CTC’s business philosophy is to develop, manufacture and market burners, boilers and heat pumps along with devices, equipment and components for heating systems and industrial applications. CTC is a division of Enertech AB Sweden, a subsidiary of Enertech Limited. The Enertech AB Sweden Group also includes Bentone and Osby Parca. Business direction Energy from the sun can be used to supplement the heat pump via an outdoor heat exchanger connected to the CTC EcoHeat pump or the EcoAir air/water pump together with the CTC EcoEl for a free addition of the most eco-friendly energy imaginable. At a glance Annual sales (Enertech AB): SEK 805 million (2006) Contact details: www.ctcvarme.se

30. EVI HEAT Heat pumps from EVI Heat are developed and manufactured by SIPS AB, Sweden. The company has annual sales of SEK 50 million. SIPS AB was founded in 1991 and is part of the EVI Group, located in southern Sweden. Business direction EviHeat manufactures solar heat pumps that are run in parallel with geothermal or other heat pumps. Augmenting the system with a solar heat pump usually covers the building’s entire heating and hot water requirement. At a glance Annual sales: SEK 50 million Contact details: www.eviheat.se

31. CLIMATEWELL ClimateWell develops solar-powered heat-pump climate systems that provide both heating and cooling. The company operates in Sweden, Finland, Madrid and Italy and exports to several countries including Spain, Italy and Germany. ClimateWell has a patent on TCA technology in about 30 countries, which applies to the entire solution. The company believes there will be several different markets for TCA, including large-scale applications, but first and foremost, the single-family home market. Business direction ClimateWell uses solar heating for air conditioning. The technology is called Thermo Chemical Accumulator, or TCA, which involves storing energy from solar panels in a “battery” of salt, which can be saved and extracted as either cold or heat. At a glance Annual sales: SEK 1 million (2006) Contact details: www.climatewell.se

32. HEAT PUMPS – A POWERFUL ALTERNATIVE Heat pumps are an eco-friendly alternative that reduce the use of electric heat, oil and gas. The heat pump is especially eco-friendly when the electricity is produced using green methods like hydropower, wind power or biomass-fired co-generation. The fact that the heating principle is financially advantageous has driven the installation rate for geothermal heat pumps to new heights in the 2000s. Heat pumps collect both heat and cold from the soil, which is extremely useful in many countries with a warmer climate. This is also evident in the strong growth in the heat pump market in France, Germany and England. China has also begun using heat pumps.

34. DISTRICT HEATING

35. DISTRICT HEATING – A CLOSED SYSTEM THAT RECOVERS ENERGY District heating is a highly resource-efficient and eco-friendly source of heat. A central district heating plant heats water, which is transported in a pipeline under high pressure to a district heating system in each building. Heat exchangers in the building use the hot water to heat radiators and hot water tanks.

36. DISTRICT HEATING – PRINCIPLE District heating plants utilise a wide variety of fuel types and take advantage of energy that would otherwise go to waste, such as waste heat from industrial processes, forestry waste and energy recovered from rubbish and waste. The technology is uncomplicated and very reliable.

37. SWEDEN IS THE WORLD LEADER IN DISTRICT HEATING • Sweden is the world leader in district heating. Consistent and relatively high environmental taxes on fossil fuels and openness to new solutions in the energy sector have driven technological progress and sharply reduced the use of fossil fuels. • The transition from individual systems to large district heating plants has reduced emissions of nitric oxides, sulphur dioxide and particulates. Swedish carbon dioxide emissions have dropped by 20%. • A long history of building knowledge about how common systems should be built and maintained • Energy companies with tremendous financial endurance • Four-fifths of the heat used in Swedish district heating networks is based on energy that would otherwise have gone to waste

38. SWEDISH DISTRICT HEATING FROM A GLOBAL PERSPECTIVE Swedish consultants have unique system expertise in relation to feasibility studies and planning district heating systems and are frequently called upon for projects run by organisations like European Bank and the World Bank. Several SWEHeat companies have been involved in recent years in the modernisation and expansion of district heating plants and networks in Eastern and Central Europe. Swedish experts have been used in North America for planning and operation of several district heating plants. China has used Swedish technology to manufacture insulated pipes and for a range of other district heating products. Swedish district heating technology is solidly established in Europe.

39. DISTRICT HEATING – A RESOURCE-EFFICIENT ALTERNATIVE • District heating utilises a wide variety of fuel types and takes advantage of energy that would otherwise go to waste. Running heating plants with renewable fuels is a major and important environmental transition. • Efficient use of surplus industrial heat • Flexibility and options in fuel choice • Enables energy recovery from rubbish and residual waste • Cost-effective heating in towns and cities • Flue gas purification at a single site reduces environmental impact • Reduced carbon dioxide emissions and cleaner air in towns and cities • Efficient use of resources through co-generation of heat and power • The technology is uncomplicated and extremely reliable

40. STOCKHOLM – A GREEN LEADER AMONG WORLD CAPITALS District heating produces about 75% of the heat required to keep Stockholm warm. The high percentage has made Stockholm a green leader among world capitals. Stockholm is growing and district heating is growing right along with it. Högdalenverket is one of the biggest district heating plants in Europe. The household waste produced by the people of Stockholm is burned here and converted to electricity and district heating. Over the years, this has contributed to sharp reductions in emissions of carbon dioxide and other harmful substances. Every year, Högdalenverket takes in 500,000 tonnes of household waste and 200,000 tonnes of sorted industrial waste, which is converted to 450 GWh of electricity and 1,700 GWh of district heating for a quarter million Swedes.

41. REFERENCE SITES District heating has been used in Sweden for more than fifty years, and today there are more than 200 district heating systems. They range in size, from the smallest, which sell about 5 GWh a year up to the biggest, which sell more than 7 TWh (7,000 GWh) a year. Waste to CHP Completed in 2006, Jönköping Power: 100 GWh a year Heat: 350 GWh a year Straw-fired hot water plant Sotenäs, Skaraborg Heat: 20 GWh a year

42. A SELECTION OF SWEDISH DISTRICT HEATING COMPANIES

43. A SELECTION OF SWEDISH DISTRICT HEATING COMPANIES

44. FVB DISTRICT ENERGY Founded in 1970, the company has been expanding in the energy sector ever since. FVB District Energy is investing in research and has been providing training in district heating to the international market for many years. Business direction Consultancy and turnkey projects related to heating, cogeneration and industrial processes. Also provides advanced services of a strategic nature - often at the management level. At a glance Annual sales: SEK 82,7 million (2006) Contact details: www.fvb.com

45. SWECO INTERNATIONAL SWECO International is the foremost consultancy firm in Scandinavia and possesses solid expertise in the fields of engineering, the environment and architecture. Business direction SWECO’s consultants work in all areas of the energy supply chain from production to distribution and consumption. The objective is to help develop a cost-effective and sustainable energy supply system with long-term concern for the environment. At a glance Annual sales: SEK 163 million Contact details: www.sweco.se

46. ÅF-ENERGI & MILJÖ ÅF is a leading engineering consultancy whose knowledge is based on a century of experience, with specialised and general expertise in process and civil engineering and technical estimates. Business direction Combined with qualified project management, ÅF can take on any kind of civil engineering project - from planning buildings and entire industrial facilities, to specialised planning within the various disciplines. The company manages the full spectrum of supplying heat to people and industrial processes. At a glance Annual sales: SEK 3.1 billion (2006) Contact details: www.afconsult.com

47. RISING TO FUTURE CHALLENGES District heating is a highly versatile system that can be produced using the technique and fuels that are optimal for the time and place. International interest in district heating is rising fast and the potential benefit to the global climate may be enormous. Simply by doubling the use of district heating in Europe, the EU could meet its commitments under the Kyoto Protocol by a wide margin. Opportunities to expand CHP in Europe are particularly favourable.

49. DISTRICT COOLING

50. DISTRICT COOLING – A TECHNOLOGY WITH MINIMAL ENVIRONMENTAL IMPACT District cooling is based on the same principles as district heating. Water is chilled and then distributed in a pipeline to homes, offices, industrial buildings and other spaces that need air conditioning. The cold water is pumped around in a closed system and used to cool the air circulating in the building’s ventilation system. The same water is then piped back to the production facility to be rechilled. The cooling may even consist of natural cold taken from cold water layers deep in lakes, rivers or the ocean. Snow stockpiles saved from the winter can also be used in district cooling systems. See principle 