The Power of Concentrating Solar

Project Development and Implementation in the MENA Region

Sonnenkolloquium „Strom aus der Wüste“, 29.6.2010

Ferrostaal AG Solar Energy

 Ferrostaal AG - Solar Energy

Agenda
Agenda

1. Ferrostaal AG
2. MENA
3. References

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 2
 Shareholder and business structure
Continuous expansion of Solar Energy portfolio

International Petroleum Investment Company MAN SE

70% 30%

Ferrostaal AG

Projects Services

Petrochemicals Service Platform

Power Industrial Solutions

Solar Energy
Solar Thermal Power Desalination
Industrial Plants
Process Heat Solar Cooling

Heating, Ventilation & Air Conditioning

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 3
 Participations of Business Unit Solar Energy
Access to technology secured, while limited on free market

Business Unit Solar Energy

Exclusive
25.1% 42.8% 20.1% Partnership

Parabolic Trough
Parabolic Trough Fresnel Solar Tower
(Equipment)

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 4
 Ferrostaal AG - Solar Energy

Agenda
Agenda

1. Ferrostaal AG
2. MENA
3. References

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 5
 Various CSP applications exist in the MENA region
Growing population results in a surging energy demand
Collectors

Solar thermal steam generation

Power generation Absorption cooling Seawater desalination Enhanced Oil Recovery

Applications

Electricity consumption Air conditioning needs Freshwater shortage Petrochemical industry

 150 GW of installed capacity for
electricity generation in MENA
 Forecasted annual growth of
more than 7% (~10 GW)
 In major population centers in
the Middle East, up to 80% of
electrical power is employed for
air conditioning and refrigeration
 Annual demand of 155 billion m³
 Over-exploitation of groundwater
resources beyond the point of
natural replenishment
 Conventional methods leave two
thirds of the oil underground
 Revival of mature or abandoned
fields through steam injection

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 6
 MENA’s physical attributes are almost unparalleled
Regulatory changes to kick-start CSP after Spain’s success story

Spain Middle East and North Africa

Transfer of
know-how

50 MW Andasol 3 with 7.5 h storage Typical project Kuraymat 140 MW ISCC (20 MW solar)

2,000 – 2,200 kWh / m²a DNI 2,000 – 2,700 kWh / m²a

Limited availability of land Land resource Plenty of uninhabited land and flat topography
but challenging soil conditions
Availability of water allows for wet cooling Water resource Higher cost for dry cooling due to lack of water

Feed-in tariff (FiT) Support scheme Tenders

Several projects completed, Market First projects under construction,

60 projects pre-registered for FiT maturity ambitious CSP expansion plans (e.g. DII)

Participation in / EPC execution of Market development aiming to

pre-registered projects exploit first mover advantage

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 7
 The investment landscape for CSP is still evolving
MENA characterized by privatization and administrative barriers

 Strong state involvement in the energy industry but ongoing privatization of government-owned utilities
(e.g. Abu Dhabi, Oman)
 Interconnection of the GCC electricity grid system planned to allow for electricity trading and capacity
balancing
MENA
energy  Rising (peak) electricity demand mainly due to air conditioning systems and growing population
market  Especially energy importers such as Jordan and Morocco seek to obtain energy security

 Administrative barriers and no clear ownership at government level of issues related to renewable energy
 Trend to divert vast oil and natural gas resources as feedstock into high-margin downstream
petrochemicals; thus solar energy becomes attractive to replace fossil fuels for electricity generation

GCC = Gulf Cooperation Council

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 8
 MENA countries are building a sound project pipeline
Governmental plans are key in ME, IFC and MSP are drivers in NA

Algeria

Morocco Tunisia Jordan Qatar

Egypt
UAE

Oman

North Africa Middle East

Morocco Ouarzazate (500MW) and MSP Jordan Ma’an (100MW), FiT expected
Ain Beni Mahar ISCC (20 MW solar)
Algeria Feed-in law since 2004 and MSP Qatar Solar plan for up to 3500MW by 2020
Hassi R’Mel ISCC (25 MW solar)
UAE Shams I signed, Shams II expected
Tunisia 40 solar power projects planned for
2010 with MSP and IFC Oman Feasibility Study in progress
Egypt Kuraymat ISCC (20 MW solar)

Maturity of CSP market IFC: International Finance Corporation, member of World Bank Group MSP: Mediterranean Solar Plan

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 9
 Integrated Solar Combined Cycle power plants
Hybridization as transition technology to stand-alone CSP

Fossil fuel
consumption

100% CC plant
Solar add-on

85% ISCC plant

Possibility of
retrofitting

Gain of technology experience

Decrease of CSP cost of energy

Adaptation of regulatory framework

Optional co-fueling
15% CSP stand-alone

Presence Future

CC: Combined Cycle ISCC: Integrated Solar Combined Cycle

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 10
 Ferrostaal AG - Solar Energy

Agenda
Agenda

1. Ferrostaal AG
2. MENA
3. References

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 11
 References
Andasol 3 - Kuraymat - Libya

Project Description Project Description Project Description

• Solar thermal power plant in Guadix,
Spain (50 MWe)
• With thermal storage system (salt)
Volume
• Approx. Euro 380 Mio. total
Scope of Work:
• Planning, EPC and commissioning of
turn key solar thermal power plant
• 140 MWe ISCCS in Kuraymat, Egypt • Solar thermal power plant with
• 20 MWe from solar field desalination unit in Libya (15 MWe)
Volume Scope of Work:
• Approx. Euro 40 Mio. total • Engineering, design and construction of
a solar thermal power plant of a capacity
of 15 MWe combined with a desalination
Scope of Work: plant for 20,000 m³ water / day
• Planning, EPC and commissioning and
finance of an Integrated Solar Combined
Cycle System (ISCCS)
• Basic & detail engineering, supply of
complete solar field equipment

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 12
 Spotlight: Ferrostaal’s Andasol 3
Turn-key partner makes innovation a commercial success

Collector design and engineering Collector Field Assembly Receiver Element Installation
Installation

Pylon Erection Storage

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 13
 Conclusion

Concentrating Solar Power

 Utilizes the largest and undepleteable source of power

 Only non-CO2-emitting resource for reliable mid-load supply

 Produces electricity according to demand and offers grid stability

 Competitive prices and high local content

CSP is the renewable energy with the brightest future!

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 14
 Ferrostaal AG – Solar Energy
Thank you for your attention

For further Information please contact

Dr. Rainer Kistner

Head of Solar Energy
Senior Vice President

Phone: +49 201 818 - 1583

Fax: +49 201 818 - 5174
rainer.kistner@ferrostaal.com

Ferrostaal AG
Hohenzollernstr. 24
45128 Essen, Germany

www.ferrostaal.de

Ferrostaal AG Solar Energy

 Parabolic Trough
Today’s only large-scale commercial technology with storage

Receiver Solar Collector

• A steel support structure holds 4 mm curved glass
Glass mirrors mirrors in a parabolic shape
Steel Structure • In the focal line of the parabola, receiver tubes absorb
One-Axial Tracking the concentrated energy and turn it into heat
• The tubes are streamed by a thermal oil that conveys
the energy to a heat exchanger or steam generator

Solar Field
Andasol 3 Setup:
Power Block

• 4 collectors per loop

1,300 m

• Length of a collector: 150 m

• Distance between rows: 17 m
• Collector surface area: ~500,000 m²
• Number of loops: 160
• 7.5 full load hours of storage
1,500m
Power Plant Setup

1 solar field with the heat transfer fluid

2 storage system, 2 tanks, 27,000 tons molten salt

1 2 3 3 steam turbine, generator, and cooling circuit

Alternatively, the solar field can be integrated into a

gas combined cycle or combined with an existing
coal power plant
Funktion eines Parabolrinnen-Kraftwerks.exe

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 16
 Solar Tower
Highly efficient and scalable technology of the future

Solar Tower with Receiver

• The receiver is mounted on top of a standard wind
turbine shaft
• The receiver has one north and one south facing
absorber, each gathering 170° of insolation
• Water is directly evaporated and superheated to
approx. 440°C without heat exchangers

Mirror Field
• Instead of individual foundations, a steel structure is
employed
• The structure holds thousands of only 1.2-2m2 mirrors
• Each mirror can individually be controlled to focus
onto the absorber
• Mirror control software is eSolar’s core competency

Power Plant Setup

• The solar field is largely pre-assembled and can be
installed quickly with little labor and machines
• A modular plant design combines high
standardization with adaptability
• The steam of the modules is merged into power
blocks of up to 50MW

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 17
Linear Fresnel
Robust mid-size technology with great cost potential

Solar Collector Module

• A steel structure holds rows of nearly flat mirror
segments, 9m above them is the receiver unit
• Each segment is 6m long and 60cm wide. One module
is 96mx21m and made up of 24x16 mirror segments
• One row is controlled by one motor that pivots the 16
mirrors every few seconds by fractions of a degree

Solar Field
• The modules are run on direct steam
• The field is split-up into three divisions: heat water,
evaporate water to saturated steam, superheat steam
• Steam temperatures of 450°C can be achieved
• Multiple modules are interconnected according to the
irradiation and output

Plant Setup and Operations

• As the collector produces steam, this is directly fed Solar Thermal Steam Injection Conventional Production

into a turbine or used as process heat

• The process steam can be used for desalination,
enhanced oil recovery, a.o.
Production
Steam
Well
• Intermittent coverage can be compensated through Heated Reservoir Oil

de-/focusing mirrors or integration of co-firing

Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 18
 Classification of Storage
The HTF medium determines the storage technology


Thermal oil storage
A in tank


Steam accumulation
Direct Storage B in pressure vessel


Indirect Storage Sensible Storage C1 Molten salt tanks (liquid)
C (temperature change)
Sand, rocks for solar
C2 tower with air receiver

Room temperature ionic

C3 liquids (RTIL)

Concrete
C4 (solid) Combi-
nation
Latent Storage Phase Change of C4
D (phase change) D1 Materials (PCM)
and D1

E Chemical Storage

 : Commercially available
Ferrostaal AG Solar Energy Project Development and Implementation in the MENA Region June 2010 | 19