Essent innovates!

Essent innovates!

ColophonThis catalogue is an Essent New Energy publication

Editors: Michiel Prins, Godfried van der Heijden (Het Fabulaat),

Castel Communicatie (interviews)

Final editing: Erik van Engelen

Design: Wim de Vries & Susanna Kuiper (Castel Communicatie)

Printing: OBT, The Hague

September 2011

Contents

Trendsetter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Essent and Innovation: gathering knowledge, making choices and developing projects 6

BioBased Economy the art of making optimum use of biomass . . . . . . . . . . . . . . 9

Biomass: a CO2-neutral fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Interview: Nina Skorupska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Torrefaction and Pyrolysis: carbonised biomass and oil extracted from plants . . . 16

Energy management from passive customer to equal partner . . . . . . . . . . . . . 19

Energy management: optimum utilisation of energy . . . . . . . . . . . . . . . . . . . 20

Interview: Norbert Vroege . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Sustainable mobility carbon neutral driving is the future . . . . . . . . . . . . . . . . . 29

Electric vehicles: fewer particulates and less CO2 emission . . . . . . . . . . . . . . . 30

Interview: Hans Streng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Green gas: cleaner, quieter and more economical . . . . . . . . . . . . . . . . . . . . . 34

Energy production making the supply of energy more sustainable & effi cient . . . . 39

Gasifi cation: pre-treatment for greater effi ciency . . . . . . . . . . . . . . . . . . . . . . 40

Geothermal energy: clean heat from the earth . . . . . . . . . . . . . . . . . . . . . . . 42

Carbon Capture and Storage: storing CO2 instead of emitting it . . . . . . . . . . . . 46

Cooperation with partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Innovation: 'multiple heads are better than one' . . . . . . . . . . . . . . . . . . . . . . 50

Funds: investing in the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

“Together we have the strength to be trendsetter in a sustainable future.”

Trendsetter

The ongoing questEssent plays a special role in this process. As the largest

energy company in the Netherlands, we are one of the

trendsetters in the area of innovation. We are engaged in

the ongoing quest for innovative solutions to the energy

problems of today and tomorrow. In the process, we work in

close collaboration with knowledge and research institutes.

Everybody knows us from Green Energy, Green Gas, electric

transportation and from the High-effi ciency boiler, which

produces electricity as well as heating the home. These are

proven successes, not lucky breaks. Our innovation projects

are selected with care. The basic principles are always the

same: it must be reliable, aff ordable and clean.

Centralised and decentralisedEssent’s innovations are directed at the various parts of the

energy value chain. This includes both the sustainability of

centrally generated energy, as well as decentralised production

and energy effi ciency on the part on the end-users. We also

put increasing emphasis on the link between ‘centralised’ and

‘decentralised’. For example, the development of intelligent

products and services for homes and other buildings. As a

result, businesses and consumers will be able control their

energy consumption themselves, and thus their energy bill.

This presents opportunities for saving energy and to make

optimum use of sustainable energy sources.

Combined innovation powerEssent is part of RWE, one of the largest energy companies

in Europe. RWE invests in pilot projects in many areas, in

order to develop the new technologies that are needed to

bring about its vision of the future. It goes without saying

that Essent benefi ts from this knowledge and commitment

of resources in the same way that RWE benefi ts from

Essent’s innovative strength. Due to this combination of

innovation power, we will be able to make future energy

supply more sustainable and keep it aff ordable.

You will be able read and see what Essent is doing in the

area of innovation in this Innovation Catalogue.

The global demand for energy will continue to grow. We cannot meet this growing demand by

only continuing to build new power stations that use fossil fuels. The energy sector is expected to

develop new solutions and technologies, which will enable the supply of suffi cient aff ordable and

sustainable energy into the future.

Peter TeriumCEO of Essent

5

DEVELOPMENT

Innovation Management

Proj

ect

Activ

atio

n

Horizon Scan

OpportunitySelection

OpportunityManagement

Essent and Innovation: gathering knowledge, making choices and developing projects The ongoing quest for innovative and sustainable energy applications has yielded many results

during the last few years. It has also taught us that enormous amount of work still needs to be

done. Essent will therefore continue to invest in innovation in the future: from fuel to generation,

processing and energy storage, and from supply to mobility. As far as mobility is concerned,

Essent has caused a massive acceleration last years, by investing in electric modes of transport.

However, a number of research activities have also disappeared during the last few years. This is

connected to, among other things, the divestment of Enexis, the former ‘Essent Netwerk’.

In addition, the priority of pursuing certain innovations has shift ed, since we are focussing on

the technologies with the greatest potential. We regard decentralised production, for example, as

becoming more and more important.

6

Making it happenEssent is not so much required to invent the wheel itself,

but wants to make a contribution to the ‘enabling’ of

innovations in particular. Together with the various R&D

departments of the parent company, RWE, we look for

opportunities in the market. We also have strong ties with

knowledge and research institutes as well as investment

funds, which allows us to keep a close watch on the latest

developments. We make a selection from the many

possible technologies, which we can then develop further

as innovations. With our knowledge and experience, our

infrastructure, customers, capital and collaboration with

other parties, we are putting together the most valuable

portfolio of innovations.

DevelopmentInnovation is a specialisation. Within Essent, there is a

specialised business unit called ‘New Energy’, which is

responsible for carrying out innovation activities. Essent

New Energy, in close cooperation with the rest of the

company, is developing and implementing the innovation

strategy. New Energy is a knowledge centre and a linchpin

for RWE’s various R&D departments. It maintains

relationships with universities and knowledge institutes, and

acts as a sparring partner for government agencies.

New Energy also initiates the development of new products

and services. To do this, New Energy researches new

technologies, sets up pilot projects to test and further

develop them, and uses the results to create new business

concepts. This continuous process of gathering knowledge,

making choices and developing projects, is represented

schematically in the fi gure shown alongside.

Essent and RWE

The merger with RWE enables Essent to cooperate with

the various subsidiaries within the RWE group. This

allows both parties to benefi t from RWE’s strength, the

mutual collaboration, and the exchange of knowledge.

• Because of Essent’s pioneering role in the area of

co-fi ring biomass, an important exchange of

knowledge is occurring within RWE for the purpose

of making energy production more sustainable.

• In the fi eld of electric transportation, Essent works

closely together with RWE Effi zienz, who develop

charging stations, and with RWE Technology, for

the implementation of recharging station

infrastructure in the Netherlands.

• From its very beginnings, Essent has held an

important position in wind power generation in the

Netherlands. Soon aft er the merger with RWE, the

Essent business unit that develops wind power

projects was absorbed into RWE Innogy, the company

where all the knowledge and experience in the fi eld

of wind power in Europe has been aggregated.

The Dutch projects are therefore developed by

another RWE subsidiary, however, the Green Energy

is, of course, supplied to our own Essent customers.

7

BioBased Economythe art of making optimum use of biomass

Biomass co-fi ring is an important source of fuel for the production of sustainable energy.

In this area, Essent has been the trendsetter for years. However, a lot of optimisation is still

possible within in the value chain from biomass up to and including electricity generation,

as a result of which the value chain can become more effi cient and sustainable. You can

think of the optimisation of transport and co-fi ring characteristics of biomass in this regard.

But there is also much left to achieve in the area of extracting high-value components from

biomass. The fact is that biomass is used primarily for the generation of power at present,

and this is a missed opportunity, both in the sense of economics and sustainability. Biomass

contains a treasure trove of wealth. The art is in extracting it. This can be achieved by

splitting the biomass into its constituent components, which we call biorefi ning. The high-

value components of biomass, such as vitamins, proteins and sugars, can be used as

sustainable raw materials for various products in other industries. The low-value residue will

be used for the generation of sustainable energy. For Essent, this is the BioBased Economy.

Green Gold LabelBiomass is increasingly used as a sustainable fuel in power

stations. Using biomass has given rise to criticism from

time-to-time, since cultivating it might be at the expense

of the food supply and old-growth forests. In order to

prevent this from happening, Essent developed the ‘Green

Gold Label’ as far back as 2002. This label guarantees

that the biomass does not compete with food provision,

does not contribute to deforestation, and does not

harm the environment in any other way. The Worldwide

Wildlife Fund, together with independent certifi cation and

inspection agencies, monitors the use of label.

Wood pelletsEssent is at the forefront of co-fi ring biomass in coal-fi red

power stations and in this way has already been generating

sustainable energy on a large scale since 2001. In the Amer

Power Plant, thirty percent biomass is co-fi red in the form

of wood pellets. This is a waste stream from the timber

industry, e.g. sawdust, which has been dried and compressed

into small compact wood pellets with a high energy content.

In a recent test we successfully co-fi red more than fi ft y

percent (based on mass) wood pellets. In doing so, the Amer

Power Plant took an historical step towards becoming a

hybrid power station; i.e. a power station that co-fi res fi ft y

percent biomass on a continuous basis.

BioBased Economy:Within New Energy, we have been working on projects in the

area of Biomass Chain Innovations for some time. In this

way, we want to energetically further the optimization of the

value chain from (residual) biomass to electricity generation.

The focus in this process will be on transportation and

co-fi ring properties. This adds a new and important

dimension to the BioBased Economy.

BioBased Economy, is an overarching term for

developments in the area of biomass applications, the most

important aim of which is to use the high-value biological

structures of biomass for high-value purposes, and to use

the low-value residues for energy production.

Biomass: a CO2-neutral fuel

'Biomass' is the generic name for organic matter of all kinds, such as wood, grass and manure.

We are able to generate electricity through the incineration, fermentation and gasifi cation of these

materials. This produces fewer CO2 emissions than the burning of fossil fuels. Trees and plants

absorb CO2 while they grow, which is once again released during incineration. This is a relatively

short CO2 cycle, which we can safely call CO2-neutral. This is very diff erent from the burning of

fossil fuels, which have already been in the ground for millions of years. The CO2 that is released in

that case, is not part of the natural, short-term CO2 cycle on the earth, and has major consequences

for the environment and the climate. Therefore, the burning of biomass does not contribute to an

increase of CO2 in the atmosphere. This is the reason why we call biomass CO2-neutral.

10

Biorefi ning is used to release the high-value components.

These components can be used, for example, in the

pharmaceutical, food or feed industries, the (fi ne)

chemistry, and in the production of bio-fuels for motor

vehicles. This also means that collaboration between the

sectors referred to, is crucial for this project.

AlgaeEssent is currently researching the various possibilities

off ered by a new technology, in which the CO2 that is

released during energy production, is pumped into an algae

pond. Algae are microscopically small plants at the bottom

of the food chain. Under the right conditions, they double

in size every two minutes. Whilst they are growing, algae

produce oxygen and absorb CO2.

Algae grow very effi ciently. Their yield per hectare is ten

times greater than conventional plants. Another advantage,

is that algae can be harvested continuously, which means

that a constant supply of biomass will be available.

The abovementioned properties off er many possibilities.

For example, certain algae components can be used in the

food and chemical industries, but they can also be used as a

biofuel.

Essent and Biomass

• Essent plays a leading role in the area of co-fi ring

biomass with a successful test of co-fi ring more

than 50 percent biomass (based on mass) in the

Amer Power Plant.

• For Essent, BioBased Economy is the spearhead in

the area of biomass; the focus is on optimal

utilisation of the high-value biological structures of

biomass, and using the residue for energy

production.

• The AlgiCoat project is a textbook example of the

optimum utilisation of biomass. The building blocks

from algae are used as a sustainable raw materials

supply for paint production, aft er which the residue

is used for sustainable energy production.

11

Sunlight

Energy conversion

Cosmetics

Foods

Food supplement

Algaefarming

Harvest Extractionand refining

(Fine) chemicals

Residues

Transportfuels

Green electricityand heating

BiofuelNutrientsresidual currents

CO2

CO2

AlgiCoatIn the AlgiCoat project, Essent together with AkzoNobel,

Wageningen University and the algae specialist, Ingrepro,

is currently investigating how many high-value chemical

elements can be extracted from algae.

The researchers are also looking at the extent to which bio

building blocks from algae can be processed into sustainable

base materials for paint production. This is carried out in

an experimental setup with two tanks full of algae that are

being fed CO2 from one of Essent’s power plants.

Aft er the base materials have been extracted from the

algae, the residue is used as fuel for the power plants. At the

moment, the cost of production and processing of algae

still exceeds the returns. However, the ultimate objective of

research projects is to reduce the cost of these applications.

The AlgiCoat project will run until 2012.

12

“Algae as fuel for power plants”

13

‘As compared to volatile sustainable energy sources such as wind or solar, cofi ring biomass

provides an economic, reliable and fl exible way to reduce coal usage. Economic because

we can adapt existing power plants, reliable because the technology has already been

tried and tested and fl exible because power plants can produce in accordance with the

market situation.’

Nina Skorupska

Chief Technology Offi cer at Essent

“Cofi ring biomass provides a reliable road to complete sustainability”

Interview: Nina Skorupska

14

Nina Skorupska

Chief Technology Offi cer at Essent

‘When it comes to the technique of cofi ring coal and biomass, Essent’s

Amercentrale in Geertruidenberg is the leading lady. She provides over

3 million households with electricity alongside a heat production, saving some

125 million m3 of natural gas per year. Over 2010 we managed to consistently

replace 35% of coal with clean wood pellets. Over the next two years we will

invest in enhancing our cofi ring techniques to work this percentage up to 50%

and aft er that eventually 80%. Tests have already proven it to be possible. This

will be a big step towards achieving our goals of reducing CO2 emissions by 20%

and increasing sustainable energy production by 20% over the next 10 years.’

European hub‘Multiple industries are looking at the possibilities of a BioBased Economy in an

synergistic way. The Netherlands have the potential of becoming a European

hub, which will boost the economy. Essent understands the full chain around

biomass. We have played a leading role in aligning stakeholders to harmonize

certifi cation of biomass sources. We seek joint ventures with other industries, for

instance in chemical industry and paper industry. An example is our collaboration

with Akzo Nobel, who are using algae in their production process. The algae

residue can be cofi red in our power plants, while our CO2 emissions can be

captured and used to accelerate the growth of the algae.’

BioBased Economy‘Cofi ring biomass is one piece in the complete jigsaw of a reliable, sustainable

energy supply. However, to make the use of biomass economically viable it still

needs an adequate government support scheme. If you look at it from a holistic

perspective, this is justifi able. The Netherlands will clearly benefi t from a BioBased

Economy, from the port of Rotterdam where the biomass is received and distributed

in Europe, to power stations through to road construction companies who use the

fl y ash in their products. The most important future chains of biomass applications

will look as follows: biomass is initially used as a raw material and the (biological) rest

products of such processes will become available for energy conversion.’

15

TorrefactionThe anticipated improvement in effi ciency with torrefaction

is considerable. This technology has a number of advantages

over wood pellets, which are widely used at the moment.

With torrefaction, the weight of the biomass is reduced

by extracting moisture and volatile elements. The volume

is reduced by compressing it into pellets. This produces

a compact biofuel with a high energy content, which is

sometimes referred to as bio-coal. Other advantages are

also important, such as smaller transport volumes and

Torrefaction and Pyrolysis: carbonised biomass and oil extracted from plants Essent is a trend-setter in the production of electricity through co-fi ring or gasifi cation of biomass.

It is easier and more attractive to use biomass that has been pre-processed. Essent wants to

increase the proportion of biomass used for the generation of electricity by employing pyrolysis

and torrefaction as pre-processing techniques. These new techniques process biomass by heating

it with little or no oxygen. In the case of torrefaction, the fi bre structure of the biomass will be

destroyed and a carbonised biomass is created. With pyrolysis, an oil-like product is created,

which can serve as fuel when using special burners.

16

therefore a reduction in environmental impacts. The latter

will certainly be the case when torrefaction facilities are built

near the biomass source.

Bio-coal testsBio-coal looks like hard coal. This means that it can easily

be crushed for burning. It is also water repellent, which

meant that, unlike wood pellets, it can be stored in the

open air. These benefi ts make bio-mass infrastructure less

complex, reduce costs, and enable biomass to be used with

greater fl exibility.

Essent expects a great deal from this technology, and has

therefore entered into contracts with two torrefaction

pellet suppliers. Once the bio-coal is being delivered, we are

going to conduct large-scale tests with this fuel in the Amer

Power station over a number of years. The tests have been

designed to determine whether bio-coal does indeed have

all the virtues referred to above. Over the next fi ve years,

more than 400,000 tonnes of bio-coal is expected that to

be co-fi red as a substitute for coal.

PyrolysisWood is the most used biomass for power generation,

and demand is growing worldwide. Younger biomass

such as straw, bagasse, roadside grass clippings and other

agricultural waste have been less suitable up till now,

because a high content of undesirable components in the

ashes causes problems for the power station.

Pyrolysis solves this problem. During the pyrolysis process,

the ashes are separated from the oil product. As a result,

alternative biomass streams can be utilised for power

generation, and Essent will be able to burn biomass other

than wood. An additional advantage is that the ashes,

which contain valuable minerals, will stay behind at the

place of origin. These minerals can be used again in the

sustainable cultivation of new biomass.

Pyrolysis as a technology has been developed further than

torrefaction, but its application in the energy sector is

relatively new. Pyrolysis oil is primarily suitable for burning in

power stations. When the quality of this product is improved

further in the future, it can be converted to petrol or diesel

through a refi nement process.

Essent, together with a fi rm of consultants and other

scientists, is conducting research for potential raw

materials and locations for the application of pyrolysis,

and the possibility of burning the oil in power stations.

The process includes examinations of technological and

fi nancial feasibility.

Essent and Pyrolysis & Torrefaction

• Based on favourable test results, Essent is planning

to co-fi re more than 150,000 tonnes of torrefi ed

biomass per year in the Amer Power Station as a

substitute for burning pit coal.

• Aft er carrying out a promising study in the area of

pyrolysis, Essent is investigating practical applications

for pyrolysis oil in various areas at a centralised and

decentralised level.

17

Energy management from passive customer to equal partner

One of the greatest challenges within the energy sector is the transition to aff ordable

and reliable infrastructure for sustainable energy production. Wind power, decentralised

production, heat pumps and electric vehicles all require more fl exibility from energy

infrastructure. These developments also create a lot of new opportunities. We can, for

example, make more effi cient use of the infrastructure and the energy being generated,

by recharging electrical cars or through the coordination of micro-CHPs. Off ering diff erent

services, changes the relationship between customer and energy supplier. They turn a

passive customer into an equal partner. For example, the customer may choose to actively

sell his or her decentralised generation of energy to neighbours and family. Or he or she

lets smart soft ware adjust his or her demand for electricity to the amount available

without losing any of the comforts, resulting in a lower energy bill and a reduced impact

on the environment.

A matter of timeConsumers are still accustomed to the uninterrupted

availability of energy, without having to take anything into

consideration. They barely understand their own energy

consumption or the existing opportunities for reducing

their energy bill. Slowly but surely, customers are going

to pay more and more for the fl exibility that the energy

supplier has to provide in order to guarantee uninterrupted

availability of energy.

At the moment, suppliers of energy services are not yet able

to convince customers to make use of energy management

systems. It is oft en unclear to the customer, what the

benefi ts for him or her might be. Moreover, customers want

a personalised service which can be reduced or expanded

as desired, without having to make an investment of their

own. However, the time will come when suppliers of energy

services will be able to convince their customers to start

using the opportunities available for reducing their energy

bill and optimising the energy system as a result. It is a

matter of time and leadership.

Energy management: optimum utilisation of energy

As a result of new technologies, it is getting much easier for consumers to make optimum use of their

own energy at home and the energy available from the grid. Through the further development of solar

panels, solar boilers, micro-CHPs, electric cars, heat pumps and fermentation installation, the option

of making full use of self-generated energy at specifi c times is becoming more and more attractive.

At certain times, the production of electricity or gas will cost less and will be more sustainable than

using energy from the grid. The consumer will also be able to purchase energy at a time when it is

cheap. Saving energy yourself, is perhaps the best way of making optimum use of energy.

20

Self generationThe HRe boiler (high-effi ciency with electricity generation),

or micro-CHP, is a small power plant in the home. Like a

conventional HRe boiler, this kind of boiler produces heat

and hot water, and generates electricity at the same time.

This is more effi cient because a larger amount of usable

energy is produced from the same amount of gas. This also

reduces CO2 emissions and, what’s more, it is good for

the bank balance. In 2009 and 2010, 200 households

received a HRe-boiler from Essent. As soon as the results of

this large-scale test are available, the further scaling-up of

HRe-boiler distribution can begin.

Heat pumpIn our environment, a great deal of energy is present in

the form of ‘low-temperature heat’. This form of energy

is still diffi cult to utilise at present. Using a heat pump,

the temperature of this heat source can be increased

during the winter, so that it can be used for space heating.

During the summer months, the heat pump can use this

low temperature source of heat for cooling.

A heat pump works in almost the same way as a refrigerator.

By passing low-temperature heat from the ground, air or

Essent and Energy Management

• Essent provides smart solutions for Energy

Management such as the 'smart thermostat', so

that customers will be able to keep their bills

under control.

• In a future with electricity from sustainable sources,

self-management of energy will become

more valuable.

• Essent, together with its partners, builds Energy

Management solutions. These solutions are already

being tested by innovative consumers today.

21

Electricity25%

Central heating pump

Usableheat100%

Compressor

Outside airas heat source

75%

Evaporator

Condenser

Heat pump

water across a liquid that boils at a low temperature, the

heat is extracted. By compressing this liquid, its temperature

rises. Next, the heat is conveyed alongside water pipes of a

heating system, for example, and is transferred to it.

By applying this existing technology to existing heating

installations, it will be possible to reduce the use of

expensive fossil fuels.

Solar panelsAll energy on earth is in one way or another derived from

the sun. The sun’s energy can be converted directly into

heat or electricity by capturing the sunlight with a solar

water heater or photovoltaic cells. This is becoming more

and more attractive, because the amount of power that is

generated per square metre of solar panel increases every

year, whereas the cost of the panels is coming down every

year. When the price of energy from the grid increases, it

will become more and more attractive for consumers and

businesses to install solar panels on their roofs.

Smart buyingNowadays, Essent is continuously supplying electricity and

gas that is, in part, produced sustainably. Depending on the

availability of the sources of energy concerned, production

and network capacity, the costs incurred by the energy

supplier will vary from one moment to the next. Energy

suppliers could pass on these diff erences to the customers,

and then assist them in optimising their consumption.

For example, customers can store electricity when it is

cheap, and use it when the mains supply is more expensive.

Customer might also choose to use more energy at times

when it is cheaper or more sustainable, and less when it is

more expensive or less sustainable.

22

Energy Output Solar Panels

Electricity Consumption

Flexible Power Generation

Shifting Use

0 4 8 12 16 20 24

Power

Smart soft wareUsing information technology, customers can continuously

adjust their energy consumption to the energy availability

in their home and from the grid. In addition, information

technology is able to assist with the optimum use of their

own energy storage and electricity generation equipment.

The required information will come from various meters

and sensors, and is used by smart soft ware to switch

equipment on and off automatically. Alternatively, the

soft ware will signal the customer, so that he or she can

take action personally. Given the rising cost of energy

and the increasing fl uctuations in energy prices, the time

required to recoup the cost of the information technology

needed, continues to shrink. For this reason, information

technology is going to be used more and more oft en

to utilise equipment as effi ciently as possible. The fi rst

23

applications already on the market, are digital energy

meters and feedback systems. For larger installations such

as CHPs used by market gardeners, information technology

is already used a lot to ensure optimum use of such

decentralised equipment.

PowerMatching City HoogkerkPowerMatching City Hoogkerk is another test of the

soft ware. It is part of a project by Essent and its partners,

ECN, KEMA and Humiq, sponsored by the European Union.

PowerMatching City Hoogkerk takes a giant step

towards the introduction of the PowerMatching system.

The PowerMatcher is a smart soft ware program, which

ensures that equipment will automatically use energy in

an optimum way. This is achieved on the basis of current

energy prices for grid supply and feed-back of electricity.

In the village of Hoogkerk near Groningen, twenty-three

households have been equipped with a mix of heat pumps,

HRe-tanks, solar panels, washing machines, dishwashers

and freezers as well as a few electric cars and a windmill

are all connected to the soft ware. The system is linked

to the Dutch energy exchange, APX, and the TenneT

Imbalance Market, as a result of which the soft ware is able

to determine the optimum price for energy.

The project uses the electricity prices as a coordination

tool, so that electric cars will actually start charging when

there is a lot of wind. In the follow-up project, which starts

in January 2012, the prices will actually be used to reward

customers for the ‘fl exibility’ in energy consumption or local

generation that they provide.

Energy savingsApart from self-generation and smart purchasing, energy

saving is perhaps the easiest way of reducing energy bills

and reducing our impact of the environment. Who doesn’t

accidentally leave a light on, or (worse), the heating?

Insulating the house is oft en a time consuming and major

job that many people dread. However, once insulation has

been installed, it will quickly make a diff erence of thirty

percent in gas/heat consumption without the need for any

lifestyle adjustments. The cost of replacing an old chest

freezer with a new one, is oft en recouped within a few years,

whereas it will easily last for ten years or more. Essent wants

to assist customers in identifying the best savings options.

Essent can also play a role in the purchase of such an

energy-saving option.

Large-scale energy storage: Supply and demand in equilibriumIn addition to creating fl exibility in the energy system at the

consumer’s end, large-scale storage may also serve as an

alternative for this purpose.

Sustainable sources of energy, such as wind and sunlight,

are becoming increasingly important for our energy supply.

However, the production of wind and solar energy is fi tful

and unpredictable. This makes it more and more diffi cult

to balance demand and supply of energy. However, this

will be possible with large-scale energy storage. When the

supply of wind energy is high and demand is low, e.g. during

the night, the energy can be stored for use at times when

demand is high, such as during working days.

24

Solar cells

Wind turbine

Break-even point

HRe

Washing/drying

Charging an electric vehicle

Forms of energy storageEssent has conducted a number of investigations in the

area of energy storage. For example, the possibility of

constructing Underground Pumped Storage Power Stations,

and the creation of an energy island. This will involve

pumping water up when demand for electricity is low. A

third method of energy storage is the compression of air

and storing it, for example, in empty salt mines. So-called

CAES (Compressed Air Energy Storage), is currently

being investigated by RWE Power. Essent Innovation is

involved in an initiative to implement CAES in the north of

the Netherlands.

Large scale energy storage has shown that it cannot

resolve the demand for more fl exibility completely. Essent

continues to monitor developments in energy storage

and we see storage as increasingly being integrated in our

energy system.

25

More insight‘We have recently joined the pilot project, Energy Management, with which

Essent wants to give thirty households a better understanding of their energy

consumption. Cisco and Accenture are also taking part. Together, we provide

both the peripheral equipment and the ability to monitor consumption. Our aim

is to create the biggest possible energy savings with the least possible resources.

Moreover, in Essent we have found an energy supplier that really chooses

new forms of energy. The company takes it seriously and provides options.

The collaboration is enjoyable and the lines of communication are short.

Moreover, it is nice to see that Essent chooses to work with local partners. In this

way, we keep our knowledge and excellence close to home.’

‘The world of energy is changing; especially lately, things are changing rapidly. At Plugwise,

we noticed that until recently, parties were reluctant to collaborate. That time has passed.

The focus on innovative products is increasing, because the topic is becoming more and

more visible. Take a look at the products and services supplied by Essent, for example.

Consciously managing energy is more important than ever

Norbert Vroege

CEO of Plugwise, which provides an insight into energy consumption with

smart power plugs

“Consciously managing energy is more importantthan ever”

Interview: Norbert Vroege

26

Norbert Vroege

CEO of Plugwise, which provides an

insight into energy consumption with

smart power plugs

Smart power‘When it comes to saving energy, I like to distinguish between smart and dumb

electric power. The cheapest supplier? It is not the only thing that people focus

on. Show what you have to off er. Show how much energy they save with

innovative products. If you supply the added value in the right way, people are

more than happy to pay extra for it.

Although we increasingly look to innovation, we are lagging behind countries like

the United States of America. In the USA, the use of diff erentiated energy tariff s is

much further advanced. I nevertheless believe that we will catch up to them fast.

It will be impossible to imagine of life here without using terms such as Energy

Management in fi ve years from now. The rapid development in our distribution

networks will play an important role in this regard. Compare it to the Internet.

With the arrival of ADSL, it made an enormous leap forward. We are presently at

a similar junction’

27

Sustainable mobility carbon neutral driving is the future

In many cases, cars are still running on fossil fuels, as a result of which they emit CO2.

The total number of kilometres driven is also rising each year. Essent is working on

systems for both Green Gas and electricity that enable cars to operate in a far more

environmentally friendly way. In this regard, new infrastructure for the recharging of

electric cars is also gaining in importance. As a result, our daily routine of driving our cars

for some distance and then stopping at a pump to fi ll up with petrol, diesel or LPG, will

gradually become a thing of the past.

Electric vehicles: fewer particulates and less CO2 emission

investment deductions will oft en apply as well. There are

also a large number of municipal subsidies and benefi ts

for electric cars, including free power and free parking in a

number of inner cities.

ProductionFrom 2011, a number of well-known car manufacturers will

start mass-producing electric cars, which will make it more

attractive for the general public. Within fi ft een years, a large

proportion of all new cars will have electric engines, and will

cost approximately the same as a conventional car. Electric

scooters and bicycles are already for sale everywhere.

Essent is pleased to contribute to these sustainable

developments, and promotes the technology and the

market for electric vehicles. We provide a good example by

having tens of electric lease cars and commercial vehicles in

our fl eet. Partnerships with prominent organisations ensure

that our vision is widely disseminated and that concrete

projects are being developed. The focus will be to recharge

the electric cars of our customers in the best possible way.

Our philosophyEssent off ers an overall charging solutions plan for electric

vehicles: public and private charging points and wall panels

with BackOffi ce, smart management and a measuring

Commitment!Big cities are increasingly faced with the problem of

particulates from local emissions. European standards in

this regard, and their enforcement, are becoming stricter

all the time. Electric vehicles reduce local emission to zero,

and will be able to make a signifi cant contribution to the air

quality programs of cities.

Furthermore, driving electric vehicles already leads to an

immediate reduction in total CO2 emissions by around

60 g/km. The European Union is demonstrating a strong

commitment to a more sustainable society, and it has ruled

that, from 2012, new cars will not be permitted to emit

more than an average of just 130 g/km of CO2. Electric

vehicles, therefore, can make an immediate and large

contribution to the implementation of this ruling.

Essent is strongly committed to ensuring that electric vehicles

use one hundred percent Green Energy. This will make a big

contribution to the ‘greening’ of the transport sector.

The NetherlandsThe Dutch national government is also encouraging the

use of electric vehicles by not charging BPM (Vehicle Sales

Tax) or Road Tax, providing subsidies for pilot projects, not

charging a leasing surcharge, and discouraging the use

of cars that are harmful to the environment. MIA/VAMIL

Mass-produced electric cars are expected to be using Dutch roads from 2011. These cars do

not emit any particulates and emit much less CO2. Moreover, electric cars are an ideal transition

technology: by using more and more sustainable sources of energy, they will even be driving

without causing any CO2 emission.

30

system. Entirely in accordance with European standards in the

area of safety and interoperability. A standard plug for electric

cars and proper arrangements with regard to charging station

access, are the most important elements in this regard.

In 2009 and 2010, a number of pilot projects were

implemented in collaboration with municipal councils,

provincial authorities and businesses who, like Essent, have

major ambitions when it comes to sustainable electric

transportation. In this way, the benefi ts of electric vehicles

are demonstrated to future users, and new infrastructure,

products and services will continue to be developed.

RechargingOne important success factor for electric vehicles is the

ability recharge them anywhere. Not just at home, but

also at the offi ce, in car parks, and at service stations.

Together with other parties in this market, including the

Formula E-team, Essent is working on interoperable

charging systems, enabling everybody to recharge their car

everywhere, and whereby it doesn’t matter which energy

company a person is the customer of.

We are also working with the other subsidiaries in the RWE

group, on an international network of charging stations. This

further optimises the convenience and recharge options for

the consumer.

• Essent works with local and provincial

governments on the large-scale rollout of public

charging infrastructure for electric cars. From mid

2011, Essent will be installing between 125 and

1250 public charging stations in the area of

Amsterdam.

• In collaboration with leasing companies and the car

industry, Essent will in the future provide drivers

with charging infrastructure at home and at work.

• Essent will invest in fast charging facilities in public

spaces. Essent has installed the fi rst fast charging

stations in Leeuwarden and Amsterdam.

• Essent regards 'smart charging' in the context of

Energy Management as a sustainable and attractive

application. It is being tested in the PowerMatching

City project in Hoogkerk.

Essent and Electric Transportation

31

Interview: Hans Streng

‘I have an electric scooter myself. When I drive it to work in

the morning, I sometimes look around me in amazement while

waiting at a traffi c light. Other scooters and cars; we blow so

much exhaust gas into the atmosphere! At the moment, we still

think of this as normal, even though we all know that there is

another way.’

“Twenty years from now, we will all be driving electric vehicles”

Hans Streng

CEO of Epyon, which manufactures advanced fast chargers for electric cars

32

In half an hour‘At the start of last year, we opened the fi rst European fast charging station in

Leeuwarden, together with a number of other parties, including Essent. This will

be followed shortly by another ten such stations, where you can recharge your

car in half an hour. The limited range will become less of a bottleneckthis way. In

the future, we will no longer stop for fuel. Instead, we will mainly be charging our

vehicles between journeys.

In ten years from now, one in every ten cars will be electrically driven. In twenty

years from, we won’t know any better. We will then look back at today and won’t

be able to understand how we were able to keep going like this. This realisation is

still in its infancy, even though the business sector has already changed course.

It is now the consumer’s turn to take the step forward. The train has gotten up to

steam and is not going to stop again. I am absolutely convinced about that’

Scepticism is declining‘I know, we are still at the starting line. But with it, we are also at the start of new

way of thinking about refuelling. Scepticism is declining already because batteries

are also improving. Now it is essential to translate theory into practice; having the

courage to commit oneself. This will, of course, be accompanied by uncertainty.

For that reason, I am so happy that Essent is tackling this with us.

It is not easy to depart from existing processes, especially for a large company.

Fortunately, Essent realises that when you are big, you also have a lot of

opportunities in the area of innovation. Pioneers create the market. With a

partner like that, collaboration for us at Epyon, is a pleasure.’

Hans Streng

CEO of Epyon, which manufactures advanced

fast chargers for electric cars

33

Organic material: e.g. on waste disposal sites, in manure or kitchen and garden waste.

Biogas can be produced through fermentation of organic material.

Reprocessing of landfill gas and biogas into green gas.

Fuel

Gas andgas network

Residual products

ApplicationsGreen Gas is a sustainable, home-grown product. Essent

has successfully marketed this gas since 2008. Green

Gas busses are running in Zeeland and in The Hague, for

example, but other vehicles such as passenger cars and

commercial vehicles can also use Green Gas. The network

of independent Green Gas service stations has doubled in

the past year. In late 2011, around 100 Green Gas service

stations will have been established, which has created a

national network of coverage. As the market leader, we are

convinced that in addition to electric vehicles, Green Gas will

occupy a prominent position in the fuel mix for transport.

Green gas: cleaner, quieter and more economicalDriving on Green Gas is a clean and sustainable form of transport that can already be applied quite

easily, and is at the point of a breakthrough. Essent wants all vehicles that use natural gas, to start

using Green Gas. Driving a car using gas, is cleaner, quieter and more economical than any other

type of fuel. Moreover, Green Gas is practically CO2 neutral. It starts with the production of biogas

by fermenting organic materials. In oxygen-free conditions, bacteria convert the material into

biological gas. Aft er processing, Green Gas is created, which can be pumped into the gas mains, so

that it can be used as fuel for cars, either directly or indirectly.

34

Certifi cateIt has emerged, that Green Gas is also a good way for large

business customers to achieve a CO2 footprint reduction, as

well their promotional and commercial objectives. The basis

for this includes a certifi cate system created by Essent, which

makes it possible de-link demand and supply. This means

that, by purchasing a certifi cate, the user is buying virtual

Green Gas, whilst the gas is being produced and supplied

somewhere else. This approach is important, because

it off ers the customers in a new market the opportunity

to choose Green Gas in favour of the already very clean,

natural gas. Companies such as Gulpener and Van Houtem

are using Green Gas in this way, similar to the introduction

of sustainable beer and the production of the world’s fi rst

‘cradle to cradle’ toilet roll.

Large-scale Green Gas Essent, together with a consulting agency, the provincial

government of Friesland, network companies and local

agencies, has taken important steps towards the realisation

of an innovative, thirty-two kilometre long biogas

infrastructure system, which a number of farmers will be able

Essent and Green Gas

• Essent is the market leader in Green Gas and stood

at the cradle of the Green Gas certifi cate system,

which de-links the supply and demand of Green

gas, and stimulates this new market.

• Due to the collaboration between Essent, various

government agencies and several biogas producers,

the fi rst Green Gas hub in the Netherlands will start

operating in early 2013. This is a 32 kilometre

biogas pipeline with a refi nery to produce the

Green Gas.

• Green Gas can also be liquefi ed: Liquefi ed Biogas

(LBG). This is the way that Essent works on direct

applications for Green Gas in traffi c.

35

to start using at the start of 2013. It will be the fi rst Green

Gas Hub in the Netherlands. Essent is discussing a large-

scale rollout of this concept with government agencies.

We are also investigating small-scale, clean manure

fermentation for farms. This is another promising path for

biogas. Because of this and other ambitions in the area of

sustainable energy, Essent has at the close of 2010 signed a

collaboration agreement with FrieslandCampina. As a result,

it will be possible for the dairy farmers who are members of

this cooperative and are connected, to speed up the process

of making energy management on their farms more

sustainable, with an exclusive ‘EnergyContactPoint’.

Liquefi ed Green GasIn Haarlem’s Schoteroog, Essent will be starting the fi rst

liquefi ed Green Gas project in the Netherlands. ‘Liquefi ed

biogas’ (LBG) is created by cooling biogas to 163 ⁰C below

zero, so that it liquefi es. This technology is not the only

Defi nitions

• Biogas: methane containing gas produced from

renewable biomass through fermentation.

• Green Gas: a gaseous energy carrier extracted

from renewable biomass of a quality and

calorifi c value (35.17 MJ) that equals natural gas

quality from the public grid.

• Green gas can be obtained through the

purifi cation of biogas

• LBG ( Liquefi ed BioGas): liquefi ed methane

produced from renewable biomass. LBG is the

biological counterpart of LNG (Liquefi ed

Natural Gas)

innovative aspect of the project. It so happens that the

biogas comes from both a water purifi cation plant and from

a waste dump, and is purifi ed at the same time.

The gas will be able to become a sustainable, liquefi ed

replacement for the fossil diesel fuel that is used in trucking

and shipping. Moreover, the liquid CO2 that is thus captured,

can be used in greenhouse cultivation. Because of these

favourable prospects, Essent has chosen not to apply for a

SDE subsidy, but to start construction immediately, so that

the production plant can be commissioned in April of 2011.

The futureGreen Gas has the potential to replace ten percent of gas

consumption in the Netherlands Essent’s aim is to expand

the market for Green Gas with the production and use of

home-grown biofuel. To achieve this, Essent will develop

innovative customer off ers for 2011, whereby companies

will be able to switch to Green Gas transport fuel.

36

“Green Gas gets up to steam"

37

Energy production making the supply of energy more sustainable & effi cient

Fossil fuels are still indispensable for the production of energy at this time. However,

during the production of electricity and heat from fossil fuels, greenhouse gases are

released. Essent is aware of this and is therefore doing all it can to not only ensure that

electricity production remains aff ordable and reliable, but also that it is as sustainable

as possible. As a result, we are always searching for cleaner and more effi cient ways of

producing energy. To this end, we investigate new techniques and try to improve existing

techniques. Essent has, for example, been a trendsetter for years in the area of biomass

co-fi ring, and is working continuously to further develop this technology. Essent is also

the biggest supplier in the Netherlands of residual heat, generated in very effi cient

Combined Heat and Power plants (CHPs).

Sea

Syngas H2

Confining layer

Oil and gasfield

Gasification plant

Gas-conditioning

Gas & steam turbine

CO2 storage in exhausted field at a depth of

1,500 - 3,000 metres

Industry

Electricity

Power plant

Coal from solidBiomass

YieldThe yield obtained from the generation of electricity

through gasifi cation is greater than that obtained by direct

burning of a fuel. One additional advantage is that the CO2

can be separated more easily and will therefore no longer

have to be fi ltered out of the fl ue gases later. We expect that

the gasifi cation of biomass, waste and waste material fl ows

will eventually - e.g. when CO2 capture becomes mandatory

- produce cheaper electricity than burning it. This ensures

that interest in this technology continues to expand.

Gasifi cation: pre-treatment for greater effi ciencyGasifi cation is a pre-treatment of solid and liquid fuels before they are burned. During the

process, a limited amount of oxygen is added to the fuel – too little for complete incineration –

creating a synthetic gas mixture consisting of carbon monoxide and hydrogen. It has a number

of applications. Burning it enables the extraction of chemicals, and the generation of electricity

and heat at high levels of effi ciency. The gas mixture can also be used as the raw material for the

production of synthetic engine fuels and hydrogen.

40

Coal

OxygenO2

Waste gases

Steam

Steam turbine + generator

Gas turbine

Electricity

Syngas

Slag

Gasifi cation projectEssent is developing a number of initiatives involving

gasifi cation. The aim is to build a gasifi cation plant in a few

years time, for the (primary) purpose of gas-fi red, high-

performance ‘combined heating and power stations’. Some

of the synthetic gas produced, will also be used for the

production of chemical products for the industrial facility

that also buys the heat from the combined heating and

power station.

Waste woodAt the Amer Power Plant, Essent has an installation that

gasifi es waste wood with air. The gas produced is co-fi red

in the power plant. It is a very effi cient and environmentally

friendly way of using this ‘diffi cult’ fuel for the production

of electricity.

Essent and Gasifi cation

• Essent is working on the development of multi-

input-multi-output gasifi cation for generating

electricity at a high level of effi ciency. It will also be

possible to produce raw materials for the chemical

industry. This method is based on the processing

of agricultural residues, bio-waste and

wood pellets.

41

12 ºC

70 to 80 ºC 30 to 40 ºC

± 70 ºC

± 100 ºC

Geothermal energy: clean heat from the earth

Terrestrial heat is energy from the deeper layers of the earth's crust. It is also referred to as

geothermal energy. The amount of available geothermal energy is enormous. The six upper

kilometres of the earth's crust contain heat that equals 50,000 times the energy that can be

produced by all oil and gas reserves worldwide. Terrestrial heat can be extracted from the ground

with water, and can be used, for example, to heat homes. The higher the temperature of the water,

the easier it is to heat buildings this way. The higher the temperature, the more electricity can be

generated. At temperatures of around one hundred degrees centigrade or above, the heat is suitable

for generating electricity. When geothermal energy is used, no CO2 or other harmful substances are

released. It is therefore a clean form of energy.

42

DrillingLike natural gas and oil, it is possible drill for warm water.

The deeper the layers of the earth, the hotter the water

will be. In the Netherlands, the water that is hot enough

to heat homes and/or buildings is at a depth of about two

kilometres. From a depth of three to four kilometres, it is

hot enough for the generation of electricity.

Drilling for geothermal energy is expensive. The risk is

relatively high that the source tapped into is not a viable

energy source. New technologies, better knowledge of

geological structures and a risk capital fund will have to

reduce the risks and the costs.

Essent and Geothermal energy

• In collaboration with various parties, Essent has

researched Geothermal energy applications in

housing construction projects and in horticulture.

At the present, these Geothermal energy projects are

not yet economically viable. However, Essent regards

the utilisation of Geothermal energy - particularly

'deep' Geothermal energy - as a technology that

holds a lot of promise for the long-term.

43

Hot-cold storageWe diff erentiate between ‘deep’ geothermal sources and

‘shallow’ geothermal sources. We use shallow geothermal

sources - up to fi ve hundred metres deep – for hot-cold

storage. In this process, we extract groundwater with a

temperature of approximately ten degrees centigrade from

the water bearing layer during the summer months. We use

this water to cool buildings. When the temperature of the

water has increased, we return it to the water bearing layer.

In this way, we create a heat reservoir at this location.

During the winter period, we extract the warm water from

the ground again and use it to heat the buildings. When the

water cools as a result, it goes back into the ground and can

be used again for cooling in the summer.

Hot-cold storage is a good method if supplying buildings

with either cooling or heating. Essent is already using

this technique a lot. Examples in ’s-Hertogenbosch

include the ‘Paleiskwartier’ and the Essent offi ces at the

‘Willemsplein’ square.

Electricity generationIn volcanically active Iceland, the groundwater that is

hot enough for the generation of electricity, is already

present at surface level in the form of springs and geysers.

In the Netherlands, however, we have to drill to a depth

of several kilometres for such hot water. This requires big

investment and is a high-risk undertaking. For this reason,

deep geothermal energy is not yet used for the generation

of electricity in the Netherlands. However, Essent and its

partners are investigating the possibilities in this regard in

the province of North Brabant.

“Using geothermal energy for heating will reduce gas consumption”

44

45

Capture and storage of CO2Before CO2 can be stored, it must fi rst be separated

from the fl ue gases. This can be achieved in various

ways. For example, CO2 can be fi ltered out of fl ue gases

aft er burning, it can be captured from gases prior to

burning, or it can be fi ltered out by burning it in a CO2 rich

Power plant withcarbon capture

SeaPipelines

Empty coal fields

Deep aquifer strata

Almost exhausted oil and gas fields

Carbon Capture and Storage: storing CO2 instead of emitting it

Carbon Capture and Storage (CCS) describes the capture and storage of CO2 that is released when

burning fossil fuels. Many studies and scenarios have shown that, for the moment, we cannot do

without these fossil fuels. Until the time that a completely sustainable energy supply becomes

available, CCS seems a good solution for reducing the consequences of CO2 emissions. Aft er all, the

gas will not get into the air in this way.

46

gas mix. When the CO2 has been separated out, it can be

transported and stored in empty oil and gas fi elds and in

deep water layers. CO2 can also be usefully applied, for

example, in greenhouse horticulture and the cultivation of

algae. However, there are still a few problems with CCS: the

technology for large-scale capture at power stations has

not been fully developed; there are no relevant laws and

regulations for underground storage as yet; community

support is not yet universal. The average cost of energy

supply will also rise because of the cost of CO2 storage

installations and a loss of energy production effi ciency of

around 8%.

CCS developments and projectsEssent is examining the potential of CCS in various projects.

Together with Shell, research has been conducted into

the capture and storage of CO2 in gas fi elds under the

ocean. In addition, various opportunities for the storage

of CO2 in aquifers has been investigated in collaboration

with companies such as Nuon, Gasunie and Wintershall.

Aquifers are water layers located deep underground.

Because of technological and economical factors, achieving

success in these projects is diffi cult at present. Political and

community support also plays a major role.

The BORG FoundationIn 2010, the Borg Foundation was established. It is a joint

venture between seven parties: RWE, Nuon, Gasunie,

NAM, Groningen Seaports, NOM and Energy Valley.

The provinces of Groningen and Drenthe are also involved.

The Borg Foundation has to coordinate preparations for the

capture, transport and storage of CO2 in the north of the

Netherlands. The foundation focuses, among other things,

on the provision of information about CO2 storage in the

north, and on dialogue with all interested parties. Essent,

together with the University of Groningen, is carrying

out a number of research projects in the area of CCS.

Among other things, we are looking at the legal aspects

and international CCS activities with CCS. In addition to

the foregoing, we are also investigating the economic and

technological viability.

Essent and CCS

CCS is part of the Essent program for reducing the CO2

emissions at Essent power stations. To develop CCS

and to achieve large-scale implementation, Essent is

actively involved in:

• various test installations in Niederaussem,

Aberthaw and Mountaineer.

• research programs such as CATO2 and its 'own'

research at the University of Groningen.

• the development of a large-scale capture facility with

transport and storage. Essent is looking for storage

options on land and at sea for this purpose.

47

Cooperation with partners Innovation is not something we can just do on our own. Essent brings together its own

and outside expertise for this purpose, in order to achieve the best results based on

the strengths of the various parties. In the context of this objective, Essent has entered

into collaboration agreements with several universities and other educational/research

institutions, and it contributes to sustainability and innovation funds.

Innovation: 'multiple heads are better than one'

Essent collaborates with several universities and other educational/research institutions. This form of

collaboration ensures that we are closely involved in (energy-related) technological innovations, that

we are able to expand our knowledge in economic, legal, public and commercial spheres, and that we

will be able to evaluate the potential of new technologies.

By continuously investigating the latest developments, we keep ourselves sharp, which is an important

prerequisite for innovation. In turn, Essent also provides the academic institutions with the benefi t of

its own knowledge, gained from experience. In this way, Essent is making a contribution to education,

research, and the stimulation of a strong knowledge economy. The collaboration also ensures that

students and scientists have a sound understanding of the professional practices within Essent.

50

Accumulating and transferringknowledgeAccumulating and transferring knowledge for innovation

are important objectives for our collaboration with various

knowledge institutes. These are some examples of current

research projects.

• The University of Groningen is conducting research

into the potential of CCS. They are looking at the legal

aspects, international CCS activities and the integration

of technical possibilities and legal restrictions.

In addition, the viability of various CCS business models is

being evaluated. Another, current research project is

looking at the development of a measuring system

inside the chimneys of power stations, capable of

determining whether the CO2 in fl ue gas originates from

fossil fuels or from biomass.

• Together with the University of Twente (UT), Essent is

investigating the eff ects on energy supply from the

large-scale implementation of micro-CHPs. Another

study is looking at the optimisation of our energy

portfolio. Finally, the UT is assisting us with the analysis

of the potential of pyrolysis and torrefaction.

• With the Technical University of Delft , we are

collaborating on the FLOW programme (Far and Large

Off shore Wind energy). ’The TU of Delft is also assisting

us with the validation of biomass business concepts.

• For matters related to the BioBased Economy, Essent

works closely with Wageningen University, which is a

knowledge centre for this fi eld. For various projects, such

as AlgiCoat, joint research is conducted and knowledge is

exchanged about the applications and potential

of biomass.

51

InvestmentsEssent currently invests in three funds, i.e. CELP II, CELP,

and SET, and closely collaborates with RWE Innogy.

• The Clean Energy Limited Partners II Fund (CELP II),

established by Chrysalix in 2005, acts as the fund-

manager. Other investors include BASF Venture Capital,

Citigroup, Delta Lloyd, Robeco, Shell Hydrogen and the

Mitsubishi Corporation. The fund is based in Vancouver

and operates worldwide. Total value of the fund is

$71 million, $4 million of which has been invested by

Essent. At present, the full value of the CELP II fund is

invested in businesses. One example is Cyrium

Technologies, which is working towards a breakthrough

in PV solar cell technology based on semi-conductor

nanotechnology.

Funds: investing in the future

Essent has a role to play in making sustainable innovations possible. We are also involved in

Corporate Venture Capital activities. Essent invests in funds which, in turn, invest in companies

that focus on innovative sustainable technologies. Essent receives a return from these funds as well

as gaining an insight into innovation opportunities, because of the knowledge that we receive about

many diff erent developments and companies. It also creates an opportunity to connect with the

companies we fi nd the most interesting, in the form of joint ventures for example.

52

• The Sustainable Energy Technology Fund (SET) was set

up in August 2007 by Essent and Delta NV. The fund

manages and invests a total of €50 million in new, clean

energy technology. In the last few years, the SET fund

has made various investments in companies such as

Epyon, Solar Total, CrystalQ and AlertMe. As an investor

and upon request, Essent receives an insight into market

developments in the area of sustainable and

clean technology.

• RWE itself is the manager of a Venture Capital Fund at

RWE Innogy. The fund was recently strengthened, so

that the € 75 million in investments that the fund had

made already, could be continued and expanded. The

collaboration between RWE Innogy and Essent enables

Essent to benefi t from the knowledge and developments

that stem from investments by this fund.

53

54

Contact detailsIf you would like more information about Essent’s innovation activities or the

developments described in this catalogue, please contact:

Essent New EnergyMira Huussen, director

Telephone: +31 (0)73 85 31312

E-mail: innovations@essent.nl

Postal address: P.O. Box 689, 5201 AR ’s-Hertogenbosch

Location: Willemsplein 4, 5211 AK ’s-Hertogenbosch

www.essent.nl

55

Essent © 2011