University of Apatity (Russia)

1. Claudio Pellegatta
Apatity- 09.04.2010
Business development in district
heating and renewable energy in the
Arctic regions

2. Contents
I Introduction and framework
II Overview renewable energy in the Arctic area
III Investment and business development - Deciding Factors
IV Relational question: is it possible to develop Green business
in the Arctic area?
V New scenario: Green energy development and the Arctic
societies
VI Conclusion

3. Introduction
District heating and renewable energy
(Solar Power, Wind Power, Bio Power, Hydro Power,
Waste to Energy)
Green Business
Arctic societies

4. Framework
Consultation and interview with a wide range of stakeholders and experts
about characteristics and needs of Green energy business development in
Arctic countries;
International literature and internet review;
Intensively looking at best practices around the world in Green energy
business;
Analysis of Micro and Macro economic data;
Questionnaire to Green energy companies

5. Example of questionnaire to Green energy companies
1) Information related to your company (main activity, turnover, offshore/overseas plants, key
customers...)
2) When it comes to Green energy Buisiness, what in the list below are You interested in?
a) Solar power b) Wind power c) Bio Power d) Hydro power e) Waste power
3) Are you interested in a business possibility - or are a You already engaged in any forms of
business in Arctic regions?
4) What are Your reasons to do or not to do business or to invest in the Arctic regions?
5) What is important to You when it comes to doing business or to invest in the Arctic region?
a) Market b) Incentives /Tax free c) Labor force d) infrastructure
6) Could you be interested in?
• a) Partnership with a private company in AR b) Partnership with a public company in AR c)
Joint Venture d) Independent activity
7) How much did you invest or you would like to invest in the Arctic regions?

6. Arctic Area

7. II. Overview of Green energy in the Arctic area
Renewable Energy Capacities by Country Top 10, March 2010
US Russia Iceland Norway Sweden Finland Greenland Canada
Wind Power 10) 3,319 MW
Hydro Power 3) 78,054 MW 5) 46,756 MW 7) 29,317 MW 10) 16,266 MW 4) 75,287 MW
Solar Power
Bio Gas 3) 1,047 MW 10) 64 MW 9) 117 MW
Geo thermal 10) 81 MW
Bio Mass 1) 9,391 MW 3) 4,522 MW 8) 2,352 MW 10) 1,852 MW
Source: Global energy's alternative energy eTrack
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8. Overview of some examples of Green energy different
approaches in the Arctic area:
Sundland Residue from 8 Mw bio fuel Wood briquettes
Heating forest industry central made or wood
residue from the
forest industry
Brakeoya Heat pump 115 gwh= 6.000 90% will be
Heating system based houses with renewable
on seawater “normal” energy energy
consumption
Fjell Bio fuel 70's 70% of the 23 Bio fuel
Heating tower blocks Gwh the suburb
Tromso Electical cars Zero emission 2 mil Nok to
burchase
electrical cars in
2008
Alaska Biomass fuels Wood, sawmil AEA's biomass
Heating wastes, fish energy program
byproducts,
municipal waste

9. Overview of some examples of Green energy different
approaches in the Arctic area:
Lulealven Hydro + wind power 50-100 mw + 1.101 turbines in
the future
North of Biomass district No plant of this New idea: connected
Sweden heating system type is in households to
(project) combined with solar operation in SW generate their own
heat hot tap water using
solar collectors in
each house
Finland CHP – combined heat Combined In CHP 1/3 of the fuel
and power generation generation quantity is saved and
produced 14.2 emissions are 1/3
TWH of reduced
electricity
Qaanaaq Light oil from waste 70% of the total High energy efficency
Heating heat from the diesel heat production landmark for any
motor driven other isolated
generations (fish oil) community
Fort Waste heat from diesel 5 community Project
McPherson generation plant buildings and a
Heating school

10. Light oil from waste heat from diesel motor in
Qaanaaq Greenland
The arctic settlement close to the North Pole
Oil consumption and CO2 for District heating
power produtcion and infrastructure is the key to
heating -30% (20 years ago) this high efficienc
Nukissiorfiit Greenland national powercompany
+ Ramboll (consultancy service)
In case oil
Network is
boilers instead
efficient for all
of district
kinds of
heating total
renewable energy,
efficiency = only
(electricity
55%
production/
heating) Surplus energy, which
else would be waste,
covers 70% total heat
production

11. Drammen District heating in Sundland (Norway)
Residue from the Forest Industry
Central uses mainly wood briquettes made of wood residue from
the forest industry
BIOMASS ADVANTAGES:
-Burning biomass results fewer harmful emissions
(compared to coal, oil and natural gas)
-relatively inexpensive fuel source;
-self-sufficiency
Central heating systems: use a series of ducts to
distribute heat throughout a house

12. Heating - Boiler - Multiple buildings
Fort McPherson Canada
A community in northern Canada
approximately 110 km by air from
Inuvik
Waste heat from diesel generators to heat
buildings in their community
Company: Gwich'in Development Corporation and the Northwest Territories (NWT)
Power Corporation
It has reduced the community's overall fuel requirements by 12%, and reduced
electrical rates as a result of the additional revenue stream.
The system was expanded in 1998 to provide heat to more customers

13. III. Investment and business development – Green energy sector
Wind power Waste to Solar power Bio Power Hydro Power
energy

14. III. Investment and business development – environment
Market * Infrastructure Labour force + Incentives
Know how
? DK/G Local
Arctic
? ? New Tech ?
? NP
? Alaska/US
? NP

15. Investment and business development in the renewable energy
industry
Global Business development in Renewable energy +120%
80%
+45%
+30%
+20%
+10%
+4%
1996 1998 2000 2002 2004 2006 2008
※Source:REN21- 2009

16. Global trends in green energy
Global investment in Renewable energy
120
100
80
Billion dollars
60
40
20
0
04 05 06 07 08
Year
※Source: REN21- 2009

17. IV Relational question
How to improve investments and
business development in the
Renewable energy industry in the
Arctic region?

18. - Improving public investment?
- Attracting private investment?
- Incentive and supporting local entrepreneurs?
- How public support could help international and national Green
energy companies in Artic regions?
- Improving infrastructure?
- Establish a highly specialized district and research center in
Renewable energy in the Arctic region?
- Promote Arctic region like a new green revolution?
- More or less legislation in Green energy and in private market?

19. Scenario - Green energy development in Arctic societies
Heating & Energy
Wealth
Labour
Well Being

20. Best Practice
Scandicci (Population 45.000) Toscany
2007: The main factory (Refrigeretor) was closed
25% of the population of the town was directly effected of job's lost
2009: Energia Futura was established in the same factory (Investment 1mm
euro)
2010: 35% of the population are directly effected from the new green business
Energia futura produces energy for 1.473.000 families = 2.170.000 oil drums
2010: 12 mil euro will be invested from the municipality to build a new school,
a new library and to develop the citys natural park
2011: Energia Futura has purchase orders for 80 mm euro, 100 more workers will
be hired next year

21. Conclusion
District heating and renewable energy in
the Arctic region?
DEVELOPMENT =
+ Employment / + Wealth / + Sustainable and green
environment

22. Comments, suggestion, remarks,
new idea, information, advices,
are
More than welcome to
CLAUDIOP@RUC.DK

23. Thank You!
Grazie!
Contact: claudio.pellegatta@libero.it
www.linkedin.com