Energy Technologies and Innovation in an future European Energy PolicyGIE Annual Conference, Venice, May 2013

Dr. Gerald Linke, E.ON New Build & Technology

Matching supply and demand:

huge energy storages

Generation with low CO2 emissions: gas fired power plants

Long-range resources:ensuring security of supply(for more than 250 years)

Affordable & flexible:power and heat via CHP for

commerce and industry Domestic appliances:comfortable

heating & cooking

Facts & Figures*Availability:Security of transport:

Affordability:

250 yearsgrid + LNG

6 Cent/kWhLowest emissions: ~ 200 g/kWh

Diversity: D, N, NL, RUS

Acceptance: 40 mill. houses

* (German perspective)

Natural Gas: Proven Paths … to Clean, Reliable & Affordable Energy

2

3

Increasing the share of renewables: condensing boiler combined with

solar; gas heat pump

Facts & Figures*Condensing boilers in place: … many in combination with solar panels

~ 3 mill

* (German perspective)

… many in combination with heat pumpsGas heat pumps in market since 2009Rise in efficiency obtained: ~ 30%

Integration of Renewables … and Increase of Enduse Efficiency

3

4

100% compatible renewable:biomethane

Sustainable mobility:CNG & Bio CNG

Facts & Figures*Biomethane plants in operation:

Biomethane is storable

~ 70

* (German perspective)

Biomethane is fully compatible with NG

Biomethane is ideal for clean transport

Annual production in 2011: 5 TWhProduction target 2020: 60 TWhAchievable CO2 footprint: 50 g/kWh

Natural Gas Renews Itself … and Improves its Carbon Footprint

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5

Future option: natural gas tostore excess wind power

Facts & Figures*More than 20 power-to-gas projects

* (German perspective)

NG grid offers the largest storage capacity

Direct injection of hydrogen up to several %

Methanation enables recycling of CO2

Another Green Gas … by Storing Excess Power from Renewables

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6

Distributed & smart:µCHP, fuel cells,virtual power plants &integrating renewables

Natural Gas – A Pillar of the Future Distributed Energy System

6

Biomethane

Improvements & Trends

Green gas – climate benefit

CHP

Heat

ing

Mob

ilityPo

wer

prod

uctio

n

Green house gas reduction[g CO2 eq/kWh, Hs]

0

-50

-100

-150

-200

-250

-124

-277-260

-225

Challenge/Outlook

Cost competitiveness to natural gas A growth oriented EU energy policy is lacking (e.g. for heating)

Residual biomass: no seeding, very high GHG reduction

Woody biomass: Unused residual wood or straw for SNG production; conversion via thermo-chemical gasification

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Distributed Generation

Improvements & TrendsThe fuel cells being developed

can convert up to 60 percent

of the energy chemically

bound up in natural gas into

electricity.

Fluctuation meets flexibility

HeatPump

µCHPFC

CBBoiler

Efficiency

Heating systems that produce electricity and stabilize the DSO grid

Fuel cells and VPP

Challenge/Outlook

Unlocking of renewal blockage in private household segment Distributed generation must become a pillar of an EU energy policy

since large scale power plants are facing the end of their life time 8

Gas Mobility

Improvements & Trends

Challenge/Outlook

LNG mobility for heavy duty trucks & ships Power-to-gas mobility

9 9,1

67,1

4,7

0102030405060708090

100

0,4 2,9 1,2 0,40

102030405060708090

100Diesel mitPartiklelfilterDiesel

BenzinDirekteinspritzerBenzin

Erdgas

CO2, particles and NOx emissions from natural gas are the lowest CNG at competitive price

Diesel engine withparticulate filterDiesel engine

Gasoline engine

Gasoline engine direct injection

Natural gas or biomethane

"Developing innovative and alternative fuels is an obvious way to make Europe's economy more resource efficient, to reduce our overdependence on oil and develop a transport industry which is ready to respond to the demands of the 21st century."(EC Vice President Siim Kallas responsible for Transport)

Volvo FM Methane-Diesel drives with LNG up to 1000 km (Photo: Volvo Trucks)

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P2G to storeexcess energy

P2G to de-bottleneckthe power grid

P2G to feedbiological methanation

Power-to-GasH2

CH4

CO2

Power-to-GasH2

CH4

CO2

P2G for islandmode of wind parks

Power-to-Gas

P2G to generate emission-free fuel

P2G to green gas

P2G to recycleCO2

EON(Falkenhagen)

Krajete,Viessmann

AUDI, EWE(Werlte)

Wind-projekt(Werder/Kessin)

thüga(Frankfurt)

RWE(Niederaußen)

Challenge/Outlook Need for a EU Policy to unlock P2G10

Access to NG Power

production NG replaces coal

infrastructure extension

Access to new customers

Industrial utilization

Residential heating

CNG Entrepreneurs

step towards clean mobility

Innovative gas appliances

Competitive advantage via technologies (e.g. CB)

Biomethane(greening of gas)

Integration of renewable gas

Global market Access to cheap

gas LNG & un-

conventionals

Next generation ofinnovations

Convergence of power & gas (µCHP)

hybrid systems(heat pump, NG & solar)

Future options CNG trucks;

LNG mobility Fuel cells Gas to store

power (P2G) Hythane, SNG

Step 2 Step 3 Step 4

Step 5 Step 6 Step 7 Step n

Step 1

We are here in Europe

Energy technologies and innovation are providing the options for higher efficiency, less emissions and convergence with power & renewables. The future European Energy Policy has to turn these options into reality.

Natural Gas Industry – Phases of Development

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Energy Technologies and Innovation in an future European Energy PolicyDr. G. Linke, Senior Vice President Mid Size ProjectsE.ON New Build & Technology GmbHGerald.Linke@eon.com

Thanks for your attention

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