THE PLUTONIUM DECISION A Report on the Risks of Plutonium ...
Partnership for a sustainable future - ECN€¦ · radioisotopes for nuclear medicine, effective...
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Partnership for a sustainable future ECN Annual Report 2008
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4 Foreword prof. dr. Ruud Lubbers
38 ECN profile: fact and figures
46 Nuclear Research and consultancy Group
50 Energy Advisory Committee, External Review
Committees and Consultative groups
52 Supervisory Board and Board of Directors
54 Corporate Governance Report
55 Report Supervisory Board
56 Directors’ Report
59 Financial Report
79 Colophon
Wind Energy
Policy Studies
Solar Energy
Biomass, Coal & Environmental Research
Hydrogen & Clean Fossil Fuels
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Efficiency & Infrastructure
Introduction Board of Directors
Engineering & Services35
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ForewordThis is ECN’s annual report for 2008. It was an eventful year in many
respects. Barack Obama’s election as president of the United States was
obviously of great political and symbolic significance. He impressed me
greatly with his victory speech and his timeless credo that encapsulates
the spirit of a nation: ‘Yes, we can’. Now that the new US administration’s
first measures are being put into effect, I hope that the revitalisation of
the American dream will provide a stepping stone to a Green New Deal
that tackles both the climate crisis and the economic crisis. In Europe,
too, we must reverse the economic slowdown and use it to speed up the
transition to a sustainable energy system. Precisely at a time when one
crisis appears to exacerbate another - green policy is being shelved,
sustainable investments are waning worldwide, financing of green pro-
jects is progressing ever more sluggishly - we must seize the new
opportunities. It means innovating under financial pressure, with daring
and vision. ECN will take up that challenge, provided that we now innovate
truly across an international front, preferably at an accelerated pace. If we
succeed, the recession may prove to be a blessing in disguise. A precon-
dition is once again an active government: if the government fails to act,
it will seriously imperil all sustainability plans.
The fourteenth UN Climate Conference was held in Poznan in December
2008, at the height of these developments. It has to be said that Poznan
was not a historic meeting. The meeting was merely a stopover on the
way to the Copenhagen climate summit in December 2009, where a new
international climate treaty (post-2012) must be established to succeed
the Kyoto Protocol. The major task facing the international community in
Copenhagen is to get the US and China on board for a new climate treaty.
I am not disappointed about the Poznan results. Poznan gave the parties
an opportunity to gather information and to adopt a position in a fast-
changing climate context. But make no mistake, the stakes are incredibly
high: how should the world respond to the climate change threat that will
unfold in its full scale about 50 to 100 years from now? The enormous
economic interests involved make joint decisions extremely difficult.
Therefore it was reassuring that Europe lined up as one in Poznan. The
same can be said of Europe’s fairly unanimous acceptance of the European
Commission’s energy and climate package in December: after approval
by the member states, 550 members of the European Parliament sup-
ported the package. While the package does not go as far as the plans
presented earlier, the fact remains that agreement was ultimately reached
on the world’s most ambitious climate proposal. Politically, Europe is
clearly taking climate change seriously.
The emissions trading system (ETS) has been given an important role in
the climate package. The most controversial question was whether com-
panies would receive emissions allowances for free or whether they
would be auctioned. It has been agreed that for industry and electricity
companies an increasingly large proportion of these emissions allowan-
ces will be auctioned step-by-step from 2012 until all emissions
allowances go on auction in 2027. This is less pioneering than the EU’s
original proposal. But we must wait and see whether the perspectives of
the ETS system, before and after Copenhagen, are sufficiently clear to
actually lead to sufficient investments.
Europe, and particularly the Netherlands, will need all possible options to
achieve their climate goals. It means conducting research into the use of
sustainable energy, energy conservation and clean use of fossil fuels, all
fields in which ECN made substantial progress in 2008. I would like to
mention the research into the development of solar modules, wind farm
aerodynamics, second generation production of green gas from biomass,
capture of CO2 combined with hydrogen production or otherwise, impro-
vement of the efficiency of acoustical and chemical heat pumps and the
built environment. The Netherlands is making headway with CCS (CO2
Capture and Storage), although the government is still deferring the
decision on safeguarding transmission and storage through Gasunie and
EBN.
The Strategic Energy Technology (SET) plan came into force in Europe.
One of the elements of the plan is establishment of European cooperation
between major national energy R&D institutions in the European Energy
Research Alliance (EERA). The main goal of this group of leading energy
research institutions - which together possess an annual R&D budget of
about €1.3 billion - is to speed up development and introduction of new
energy technologies. ECN is playing an important role in this work. This
initiative is designed to accelerate the development and use of this tech-
nology in the market, which is a very good development given the urgency
of establishing a sustainable energy system as soon as possible.
After being shut down in the summer of 2008 due to the discovery of a
small trace of gas bubbles in the cooling water circuit, NRG was given
permission in March 2009 to restart the High Flux Reactor. This occurred
under strict safety precautions and intensive monitoring and fortunately
enabled resumption of the production of isotopes for medical purposes.
NRG also made substantial progress in developing and producing new
radioisotopes for nuclear medicine, effective recycling of plutonium and
research into the final storage of radioactive waste.
I wish to congratulate ECN on getting a subsidy for the ADEM initiative
(Advanced Dutch Energy Materials), which will strengthen fundamental
energy research in cooperation with the technological universities. I am
also delighted with the growing cooperation with the business community
and with the increasing number of energy technologies finding their way
to the market.
Compliments are due for the motivation displayed by management and
employees in 2008 during their work to fulfil ECN’s mission - the develop-
ment and marketing of sustainable energy technology.
Prof. dr. Ruud Lubbers
Chairman
ECN Supervisory Board
ECN provides knowledge for climate negotiations
During the 13th UN climate conference in Bali in late 2007, it was agreed
that negotiations would be started in four different fields: mitigation,
adaptation, financing and technology. In all of these fields, the United
Nations Framework Convention on Climate Change (UNFCCC) is gathe-
ring knowledge to support the negotiations. Towards the end of 2009, the
negotiations in Copenhagen must lead to a new climate treaty that effec-
tively reduces greenhouse gas emissions in industrialised and developing
countries, ensures a fair adaptation policy, and frees up sufficient funding
while finding the most practical policy measures for bringing about tech-
nological changes.
ECN’s contribution to this process in 2008 and 2009 is considerable. In a
project for the UNFCCC, employees of ECN Policy Studies are helping to
identify the financing needed to get technological changes moving. This
gives rise to challenges for the transfer of technology and knowledge, as
well as to questions about how to build up the best possible capacity for
implementing climate-friendly technology in developing countries.
Besides work focused on technology, the international carbon market is
another important matter, and will remain so after the Copenhagen sum-
mit. ECN Policy Studies employees are assisting the Ministry of Housing,
Spatial Planning and the Environment and the UNFCCC in calculating
possible reforms and the future of the Clean Development Mechanism.
In these projects ECN works closely with partners, for example the
Netherlands Environmental Assessment Agency and the Institute for
Environmental Studies of the VU University Amsterdam.
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Introduction Board of DirectorsThe conclusion is inescapable: the mushrooming financial crisis and
rapidly deteriorating economic crisis form an important theme in a review
by the ECN Board of Directors. Even in the last quarter of 2008, there
were signs of decreasing activity at branches of industry involved in
sustainable energy, resulting in declining and/or deferred investments in
innovation. The new activity in the world of sustainable energy has
become more vulnerable and the innovations necessary to achieve the
climate-energy objectives of 2020 and 2050 are under pressure. The
effects of this situation on ECN’s medium and long term research are now
becoming clear, especially because of the slowdown of industrial con-
tracts. This is certainly the time for extra attention and specific financing
aimed at bringing ECN technology to the market. But the economic crisis
also creates new opportunities, according to Ton Hoff (Chairman of the
Board) and directors Kees van der Klein and Gerald Santing. What is
needed? A national Green New Deal.
Hoff, Van der Klein and Santing do not beat about the bush: the ECN
board wants to see new fuel for the misfiring innovation engine, even if it
increases the budget deficit. “Precisely now there must be substantial
investment in future energy management, not only with plans for the short
term like offshore wind farms, but also for the medium and long terms,”
they say. “Together with the business community and knowledge institu-
tions, the government must conduct an incisive and innovating industry
policy. This is exactly the time to invest in a sustainable knowledge eco-
nomy, to allocate extra money for research and to accelerate innovation:
invest in a large research infrastructure and assign supernumerary know-
ledge workers to research and knowledge institutions. Investing wisely
now - if necessary at the expense of a budget deficit - will save a lot of
money later on.”
The business as usual scenario, the Dutch inclination towards consul-
tation and consensus, no longer works according to the ECN board. “We
must now invest anti-cyclically to keep people at work and speed up
long-term investments to create new technology. The risk of a ‘lock-in
effect’, i.e. that we keep using today’s technology because of the crisis,
is all too real. For the energy system of the future we need future tech-
nology, and that requires considerable boldness on the part of the
government, similar to the rescue operations of the Minister of Finance
for the national banking sector. Otherwise Dutch energy research will be
overtaken left and right.”
“The money is there already. The implementation of the FES funds in
particular can be accelerated. Completion of FES procedures has taken
at least two years in recent years. That is too long. Let the money work
today so that we can reap the benefits tomorrow, as well as the day after.
The preparation and approval of ADEM (see under ‘Deepening know-
ledge’ – ed.) has had a long lead time, so it is now important to let ADEM
mature quickly. The same applies to the ECN proposal for a second-
generation laboratory for photovoltaic solar cells, which all advisory
bodies said was of exceptionally good or excellent scientific quality. An
accelerated awarding of FES funds for the creation of this new national
laboratory would certainly contribute to a national Green New Deal.”
‘ New fuel for misfiring innovation engine’
Gerald Santing
Director
Ton Hoff
Chairman of the Board of Directors
Kees van der Klein
Director
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In 2008, ECN evaluated and adjusted its 2006-2010 strategic plan in the
interim. Four subjects will be very important in the coming years: the
international positioning of ECN, the transfer of technology to the busi-
ness community, relationships with universities and people management.
International cooperationFor some time now it has been ECN’s ambition to develop into a leading
research institute in Europe and possibly the world. A number of respec-
ted research institutes in the United States were visited in 2008 to
establish and renew contacts in the expectation that cooperation should
be possible in numerous areas of research. Hoff: “The expectations were
certainly met. We made an agreement with the Department of Energy
(DoE) to seriously examine whether we can step up cooperation in vari-
ous fields. Similarly, we found that good, concrete stepping-stones
existed for cooperation in energy research at the National Renewable
Energy Laboratory (wind, solar, biomass and policy studies) and Stanford
University (materials research).”
ECN is one of the driving forces behind the European Energy Research
Alliance (EERA) founded in 2008. The main goals of this group of leading
energy research institutions - which together possess an annual R&D
budget of around €1.3 billion – are to speed up the development and the
introduction of new energy technologies. The institutions intend to do so
by streamlining national research programmes and avoiding fragmen-
tation, among other things by jointly developing and using state-of-the-art
research facilities. Hoff, who has been appointed chairman of EERA, says:
“In this first phase the EERA partners have selected several fields that
must lead to joint research programmes. They include wind and solar
energy, biofuels, CO2 capture and storage, intelligent grids and fuel cells.”
Whereas EERA represents the wider European dimension, PETRA (Petten
Energy Technology Research Alliance) is a local initiative. Three research
institutions in Petten (ECN, NRG and JRC-IE, the Joint Research Centre
of the European Commission) are going to cooperate more intensively to
make the Dutch town Europe’s energy research capital. Van der Klein:
“Many informal ties already exist between JRC-IE, NRG and ECN, both in
policy-supporting research and in the development of technology.
Strengthening these ties will allow the three institutions to enhance ful-
filment of their mission in Europe, namely to support European government
policy through research and technology development and to speed up
the transition to sustainable energy systems.”
Technology transferIn 2008, ECN has again worked hard on the development of sustainable
energy technology and its transfer to the market. The twin recurring
themes in the chapters about the units are intensifying contacts and
cooperation with universities on the one hand and expanding and inten-
sifying cooperation with industrial parties on the other. In terms of
technology transfer, the year under review saw another increase in
co operation with national and international market parties, resulting in a
substantial boost of income from licensing agreements, participating
interests, joint ventures and contract research. For the first time ever
ECN’s licensing income topped €1 million in 2008.
Van der Klein: “The most direct way of bringing knowledge to the market
is by cooperating closely with industry and going forward to conduct
contract research. All units devoted a lot of attention to this matter in
2008. The BCE unit is cooperating closely with a leading Dutch utility
company so as to create a demonstration project to produce Green Gas
(SNG) from biomass on a large scale. The objective is to build a demon-
stration plant of approximately 50 MW as a first step towards the
commercial use of the Green Gas technology of ECN. Additionally we
signed a number of licensing agreements for advanced solar cells and
module technology. The Stirling technology research group of ECN was
taken over by Enatec, thus increasing Enatec’s responsiveness and taking
a new step towards the market introduction of the micro-CHP technology
developed by ECN.
The Wind unit concluded new cooperation contracts with the wind indu-
stry in 2008 partly due to the ECN Wind Turbine Test Farm at Wieringermeer
(EWTW). The unit also made preparations for an Industrial Support Group
that will concentrate on transferring knowledge and technology from the
Wind research groups to the industry.”
Deepening knowledgeECN’s commercial activities continue to stem from its research, in which
we pursue constant high quality. While ECN needs to operate close to the
market, it must also remain close to fundamental research. Hoff: “The
long-term programmes - which map out the broad lines of ECN’s research
for four years up to 2010 - guarantee the continuity and quality of our
research and ECN is on schedule with formulating a new long-term pro-
gramme. Where possible we seek intensive cooperation with universities
and endeavour to recruit young, talented researchers.”
In late 2008, the ADEM initiative of ECN and the three technological
universities in the Netherlands resulted in the awarding of € 30 million
for materials research in energy technology, followed by the definitive
green light early 2009. That is good news given ECN’s ambition to struc-
turally reinforce our ties with the universities, says Van der Klein. “With
half of that money we can appoint and train thirty young researchers
(doctoral candidates – ed.) for four years. Five will work in Petten on their
theses, the other twenty-five will work at the technological universities on
ECN-related research. This means new people plus new knowledge and
structural cooperation with research groups at the universities. The other
half of the money is intended for the purchase of new research equipment.
This will enable ADEM to develop into a powerful accelerator and driver
of the development and use of energy technology in the Netherlands.”
Ties were reinforced in 2008 with the universities of Groningen (gas
transition), Wageningen (environmental pollution and environmental geo-
chemistry) and Amsterdam (VU University, environmental research). ECN
further signed a cooperation agreement with the Holst Centre in
Eindhoven, an open innovation centre established by TNO and the Flemish
organisation IMEC. The objective is to enable a switch to large-scale
production methods for solar cells, with the prospect of having the tech-
nology ready within about five years for use in small consumer products,
for example.
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Another milestone was the opening in Wieringermeer of a scale farm that
has strengthened ECN’s position among the world’s top in wind energy
research. Hoff: “The questions our research at the scale farm must ans-
wer how wind turbines in large wind farms react to each other. Similarly,
the start-up of the MILENA biomass gasifier, opened by Minister Cramer
in September 2008, represents a significant step forwards towards
sustainability. The same applies to the PowerMatcher developed by ECN
- an application of advanced ICT in the electricity grid - that more effi-
ciently matches electricity demand and supply.”
PositioningECN obviously operates in a challenging and dynamic environment. In this
European playing field ECN wants to develop further into an authoritative
European energy research institution. Hoff: “To support that positioning
we must naturally come up with high-quality research results, but we also
need to devote a lot more attention to communicating the results. With
this in mind ECN has developed an active media policy, with scope for a
proactive approach designed to put matters on the agenda when there
is a need to do so. This includes the press lunches that ECN started in
December 2008 to explain to journalists the background to energy news.
ECN explains developments at national and international level, which fits
in well in the leading role that I believe ECN must fulfil in the international
debate on energy and climate. The first press lunch dealt with Barack
Obama’s influence on international climate policy and the climate negoti-
ations in Poznan. The second press lunch took place in March 2009 and
addressed questions concerning CO2 storage and capture. Both press
lunches clearly met a need that exists among the media.”
Personnel and safetyPeople management is part of ECN’s strategic plan. Three human resour-
ces projects designed to bring talent within ECN to full maturity got
underway in 2008 - Job Descriptions, Competence Management and the
Job Appraisal & Performance System. All positions were subsequently
evaluated in the second half of 2008. Santing: “A closely-related subject
is the development of a modern remuneration policy in step with market
norms. The benchmark of our primary and secondary conditions of
employment compared with those of other market parties provided a
good basis. There will be greater scope for rewarding employees’ special
capabilities and performance, both prominent matters in negotiations
with the works council and unions on a new collective labour agreement.”
Significant progress was made in 2008 on strengthening the internal
research infrastructure. The new laboratories in Building 31 were delive-
red after a long period of preparation and can soon be used, which will
undoubtedly have a positive effect on the responsiveness of ECN’s
research and the development of high-quality technology. The legal
structuring of ECN and its subsidiary NRG - which was going to be
changed to a holding company with two foundations operating indepen-
dently yet in tandem - has been shelved pending developments related
to the High Flux Reactor of NRG.
The year under review was a very stirring one for NRG (Nuclear Research
and Consultancy Group). It was a year that saw the firming up of strategy
for the future, but also the temporary shutdown of the High Flux Reactor
on account of an irregularity in the primary cooling water system. The
decision not to start up obviously had a considerable impact. The impact
was financial as well as social - the High Flux Reactor produces medical
isotopes that meet 30% of global demand and 60% of European demand.
The shutdown of the HFR, which restarted March 2009, pushed down
ECN’s financial results. On the other hand, the evolving public debate on
nuclear energy means that NRG has very good prospects in various fields.
A good example is the research into the recycling and final storage of
radioactive waste. The consultancy arm of NRG developed excellently.
ECN’s pursuit of even better control of safety, health and environmental
risks received an extra stimulus in 2008 through the awarding of the
OHSAS 18001 certificate: the international management system for safety
& health. Audits made clear that ECN unquestionably deserves this cer-
tificate. In 2008 there were no accidents that caused sick leave. This
brings the five-year average close to the (provisional) target of 0.8%.
While this figure is reason for satisfaction, the further reduction of the sick
leave rate will remain the core of ECN’s safety policy in the coming years.
SummaryAlthough the 2008 financial result was mediocre, the board is very satis-
fied with the progress made in the long-term programmes, the greater
involvement of commercial parties, the growth in the number of patents
and licensing agreements and the greater number of energy technologies
brought to the market. This is thanks in part to the commitment and
motivation of ECN employees. The board thanks them for their efforts and
looks forward confidently to the future.
Ton Hoff, Chairman of the Board of Directors
Kees van der Klein, Director
Gerald Santing, Director
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‘ It is promising that making energy systems more sustainable is receiving greater attention’ Policy Studies Remko Ybema, unit manager
“One of the highlights of 2008 for me was the Energy and Climate Package of the European Commission that the European heads of state and
European Parliament approved in December with only a few changes. Environmental organisations that said that by adopting the agreed package
European leaders had ‘turned their back’ on global climate efforts have underestimated its historical significance.
The increasing attention for making energy systems more sustainable is promising. You see that more and more companies are focusing on this subject
and putting forward initiatives. Members of the public also attach increasing importance to it. Something that will greatly influence this process will be the
policy of Barack Obama, who will vigorously pursue cleaner energy usage. For him the economic crisis is an opportunity to give a substantial boost
to wind energy, solar energy, clean coal and clean transport. I hope and expect that the US administration will succeed in developing a resolute policy
and can speed up the move towards sustainability. In 2008, the Dutch government pressed ahead with national energy and climate ambitions.”
“In 2008, the Policy Studies unit contributed substantially to energy and
climate policies by independently conducting research and advising both
companies and authorities. The unit received numerous contracts from the
European Commission (EC). In recent years Policy Studies has developed
roadmaps for the European Commission for the use of hydrogen and bio-
fuels in the European transport sector, with a substantial role for biofuels
in 2030 through the HYWAYS and REFUEL projects. REFUEL (Renewable
Fuels for Europe) has produced a roadmap for the first and second gene-
rations of biofuels, including a vision on the European potential for biomass,
based on acreage in eastern Europe and scenarios for increased agricultu-
ral production. REFUEL presented a balanced vision amidst the robust
biofuels debate in 2008. The vision boils down to our having to continue
using and developing the first-generation biofuels, and in particular that we
must make sure that the second-generation materialises.
The global dimension can be found in the substantive contribution made
by Policy Studies to the Poznan Climate Summit in December 2008. This
fourteenth ‘Conference of the Parties’ was a stopover towards the climate
conference in Copenhagen in December 2009. ECN attended the confe-
rence as a ‘Research and Independent Non-Governmental Organisation’.
ECN employees made contributions to subjects including the discussion
about post-2012 issues, technology transfer and financing, the Clean
Development Mechanism and CO2 capture and storage.
Nationally, Policy Studies is an important adviser to the authorities in The
Hague. For the Ministry of Economic Affairs, we determined the costs of
sustainable energy system options in cooperation with KEMA. This was
used as input for the Sustainable Energy Production Stimulation (SDE)
scheme that came into effect on 1 April 2008. The Fraunhofer Institute
examined our working method and decided it was sound. For evaluation
of the Clean and Efficient programme, the government intends to evaluate
the policy before August 2010 and plan new prospects. To this end the
unit is working together with the Netherlands Environmental Assessment
Agency (PBL) on revising the reference projections. They will be publis-
hed early 2009. In autumn 2008 ECN and PBL published some provisional
figures about the effects of Clean and Efficient at the request of the
Ministry of Housing, Spatial Planning and the Environment.
EvaluationInterest in monitoring and evaluation studies increased in 2008, among
other things because of the European energy efficiency directives and the
outcomes of the G8 summit at Gleneagles in 2005. In cooperation with
SenterNovem, the unit made major strides for the Ministry of Economic
Affairs in the development of a monitoring and evaluation system for
energy efficiency and conservation. Scenario analysis models were used
to examine to what extent past energy trends can be simulated and
explained.
The Policy Studies unit is evaluating a tightening up of the building regu-
lations for new dwellings (EPC) for the Ministry of Housing, Spatial
Planning and the Environment. The experiences of market parties were
inventoried by means of interviews. Additionally, a survey was conducted
among residents of new dwellings about their heating and showering
patterns, their health perceptions and their experiences with the home
ventilation system. Meter readings are taken periodically. The purpose of
this evaluation study is to find out whether the new dwellings are as
energy-efficient as may be expected and to provide insight into the poten-
tial effects on the health of the occupants.
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The unit developed a policy-supporting tool for the international
HYLIGHTS project. The tool compares different vehicle technologies with
respect to price per kilometre and analyses how the various fiscal incen-
tives influence costs. For the Ministry of Housing, Spatial Planning and
the Environment and the Ministry of Transport, Public Works and Water
Management, Policy Studies developed scenarios for the introduction of
electric and plug-in hybrid vehicles. The scenario showed that the reduc-
tion of CO2 emissions depends greatly on how electricity is generated,
which is related to the time of charging. The same conclusion applies to
the introduction of hydrogen as an energy carrier, leaving aside the need
to build all production capacity from scratch. The unit also examined an
operational concept for electric driving on behalf of the Ministry of
Housing, Spatial Planning and the Environment.”
Top five of 20081. Requests for advice increased by 10% compared with 2007;
2. Substantial contribution made to Poznan climate conference;
3. Roadmaps developed for the use of biofuels in the European trans-
port sector;
4. Input provided for SDE scheme commissioned by the Ministry of
Economic Affairs;
5. Robust innovation routes mapped out for the transport sector
(Ministry of Housing, Spatial Planning and the Environment/
Ministry of Transport, Public Works and Water Management).
‘ ECN is our premier supplier of data on sustainable energy’
“Policy Studies carries out numerous projects for the Ministry of Economic
Affairs, but the most high profile one at present is SDE, the Sustainable
Energy Production Stimulation scheme. It is one of the Dutch government’s
most important tools in the ‘Clean and Economical’ programme. SDE is a
subsidy scheme for companies and private individuals who want to invest
in sustainable energy. The scheme provides for reimbursement to the
enterprise of the ‘financial gap’ of such an investment, i.e. the price diffe-
rence between producing green and grey energy. Each year Policy Studies
calculates this factor for the different types of sustainable energy covered
by the scheme. Solid calculations are hugely important to the success of
the scheme. A financial gap calculated too high would mean that the
government would contribute too much to sustainable projects. A calcula-
tion that is too low would mean that enterprises would be unable to make
the investment. Both situations are undesirable. Therefore, it is very impor-
tant for the calculations to be made by an organisation like ECN that
possesses sufficient know-how and skills.
Policy Studies generally supports the Ministry of Economic Affairs in imple-
menting and monitoring energy policy and it does so adequately. The
quality of staff is high and they are very motivated to deliver good results.
A sign of professionalism is that Policy Studies continuously examines its
own functioning critically. In consultation with the Ministry of Economic
Affairs it was decided, for example, to have the SDE calculations reviewed
by an independent third party, the German Fraunhofer research institute.
It is nice to see that Policy Studies can move in step with us when time starts
to press for political reasons. There is a shifting of activities so that the right
quality can nevertheless be delivered on time. Policy Studies is our premier
supplier of sustainable energy data. Given the government’s ambitions for
sustainable energy, it is important for the future that Policy Studies will
continue to sketch good scenarios to monitor feasibility of policy objectives.
This requires good people, good scenarios and good data. ECN will be able
to continue playing an important role on the road towards the sustainable
energy objectives for 2020. In 2010 there will be an interim evaluation of the
‘Clean and Efficient’ programme. If the results turn out to be disappointing,
it will be up to Dutch government to consider possible additional measures
and their effects. Policy Studies can play a key role in designing these
measures by calculating their effects quantitatively and objectively.”
Eric Eijkelberg (Deputy Director of Energy and Sustainability at the
Ministry of Economic Affairs)
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‘ European objectives are unachievable without sustainable use of biomass as an energy source’ Biomass, Coal & Environmental Research Jan Willem Erisman, unit manager
“Brussels is aiming high with its climate and energy package. All sustainable energy options will be needed to achieve the European objectives,
including sustainable use of biomass as an energy source. It is good that the European Commission is aiming to formulate sustainability criteria
for biofuels, because it will obviate the need for discussion about the greenhouse gas balance or potential competition with food supplies. Biofuels
are usable in the same way as fossil fuels. Therefore, they are usable relatively quickly as an important sustainable source for green gas, electri-
city, heating and transport, and as a green raw material for the chemical industry, with highly promising possibilities for limiting emissions of
greenhouse gases. The Biomass, Coal & Environmental Research (BCE) unit marketed some important second-generation technologies in
2008, bringing the production and use of truly sustainable biofuels like ‘green gas’ and biomass pellets a lot closer. The development towards use
of biomass that does not compete with food supplies will continue worldwide. There is still a lot to discover for the new generation of biofuels.
The unit can make a valuable contribution in this field. We possess the ideal combination of knowledge and technology for producing
biofuels, computing environmental effects and developing sustainability criteria.”
“The Biomass, Coal and Environmental Research (BCE) unit has two pro-
grammes, ‘Biomass and Coal’ and ‘Environmental Research’. Within the two
programmes we do not only conduct scientific research, we also develop
and implement market-focused technology. The unit has also developed a
programme for research into the different aspects that play a role in the
sustainable use of biomass. We are further examining seaweeds as an
alternative to land-based biomass.
The planned agreement with a Dutch sustainable energy company for
construction of the first torrefaction demonstration plant is important to the
unit. Torrefaction, a kind of coffee-burning process, processes materials
like wood or straw so as to create biomass pellets with a high energy den-
sity and very good storage and transport properties. The demonstration
plant will produce these biomass pellets on a commercial scale and they
will immediately be usable in conversion installations. The development of
torrefaction is thus extremely important to the use of sustainable biomass
in energy systems. The unit has built its own pilot plant on the ECN site.
The plant is capable of processing seven tons of biomass each year.
MILENA is a gasification technology that will also be marketed a few years
from now. Early September 2008, Jacqueline Cramer, the Minister of
Housing, Spatial Planning and the Environment, checked the MILENA
biomass gasifier at the ECN site against her own sustainability criteria when
she officially opened the plant. The plant satisfied all her criteria. The plant
forms the basis for the production of green gas, also called Substitute
Natural Gas (SNG). Green gas can be mixed into the gas grid or used as a
sustainable biofuel, for example in gas-powered vehicles. Together with the
OLGA technology (for the removal of tar, ed.), MILENA plays an important
role in plans of the New Gas Platform, which is aiming for a share of 50%
green gas in 2050. A project was started with a leading Dutch utility in 2008
to demonstrate this technology.
The ground these two processing technologies are gaining is evident from the
fact that the unit presented torrefaction and MILENA as two examples of
successful Dutch technology developments at the Poznan climate conference
in December 2008 at the invitation of the Ministry of Housing, Spatial Planning
and the Environment.
The Labscale Combustion Simulator (LCS) for characterising the combus-
tion and gasification properties of biomass was modified and used to
support industry in 2008. The LCS provides a wealth of information about
the combustion and gasification properties of different biomass and about
pollution behaviour in the conversion processes. An oil company commis-
sioned the unit to develop a setup that converts the synthetic gas obtained
from coal gasification into liquid transport fuel. In 2009 this test facility will
make an important contribution to developing the technology for the
second generation of transport fuels.
18 19
Technology transferThe BCE unit has licensed two patents for removal of N2O from fluegas of nitric
acid factories to CRI/Shell. The Kyoto Protocol names N2O (‘laughing gas’) as
an important greenhouse gas. The greenhouse effect of this gas is 310 times
greater than that of CO2. That is why the relatively small emissions of N2O
account for relatively large part of the total intensified greenhouse effect: an
estimated 5% comes from emissions of this gas. CRI has given a commitment
to market the technology worldwide, an effort likely to involve a few million
euros. In all probability the first plant will be equipped commercially with this
technology in 2009.
Rohasys, a Dutch SME, has been licensed for four setups for simulation of the
leaching of contaminated substances in building materials into ground water
and surface water. The first products are expected to be sold in 2009. This
development will enable the standardisation and widespread use of the lea-
ching procedures being developed within ECN. Two other Dutch SMEs,
Dahlman and Applikon, have reported a strong increase in demand for the
OLGA and MARGA technologies licensed by ECN.
The scientific basis of the unit has been reinforced. The unit had 38 scientific
articles published in 2008, in journals including Nature Geoscience and
Science. The unit regularly engaged in the sustainability debate, among other
things by cooperating in a thematic column about biomass in Change
Magazine. A BCE researcher obtained a doctorate at Wageningen University
on a thesis about Characterisation of natural organic matter in relation to the
spread of contaminants in the environment. He demonstrated in his thesis that
natural humic and fulvic acids also occur in waste and greatly increase the
leaching of heavy metals like copper. This made him the third doctoral candi-
date at the Environmental Pollution Risk Assessment group within two years.
With a part-time professor in Environmental Geochemistry at Wageningen
University, the unit now has a very strong scientific basis for conducting
environmental research. One of the unit’s researchers obtained a doctorate
at Delft University of Technology for research into the reduction of particles
in exhaust gases of ships’ diesel engines.”
Top five of 20081. Torrefaction and MILENA, both important second-generation
technologies, reached the market;
2. ECN torrefaction pilot plant processed 7 tons of biomass;
3. Patents for neutralising N2O were licensed to CRI/Shell;
4. Rohasys was licensed for setups for simulation of leaching of
contaminated substances to ground water and surface water;
5. Scientific basis was strengthened by the doctoral research of
BCE researchers.
‘ Less distinction between fundamental and applied research’
“As researchers at VU University Amsterdam we cooperated intensively
with the Biomass, Coal & Environment unit in a European project that
measured CO2 concentrations in the atmosphere. The cooperation was
so good that it was carried forward into a new European project. We also
jointly carried out a Dutch project about the carbon cycle.
The traditional relationship between a university and a knowledge insti-
tution is that the university does the purely scientific work while the
knowledge institution concentrates on applied scientific research. But the
dividing line between fundamental and applied research is blurring a little.
There is obviously a difference because of the university’s educational
function. Some of our graduates work at ECN and some ECN employees
work and do their doctoral theses with us. This cooperation will be further
strengthened by the appointment of a professor occupying an endowed
chair at the VU Amsterdam, funded by ECN, for one day per week.
Another example of a large joint project concerns emissions of methane
and laughing gas. ECN owns a high mast in Cabauw with instruments that
measure the composition of the air. We try to couple these measurements
to emissions by means of modelling. This approach is successful because
there are now plans to carry out a similar project Europe-wide. Throughout
Europe in its entirety, we will create an infrastructure for measuring con-
centrations, together with major European research institutes. The
funding is still uncertain, but there is a project in acquisition under the
seventh framework programme. Within that programme BCE is perfor-
ming measurements and together we are providing the modelling.
We operate in a very large field of study. In our cooperation with BCE we
focus on the greenhouse gas balance in the atmosphere, devoting special
attention to laughing gas and methane. Two ECN employees are currently
doing their doctoral theses with us on measurements of fluxes of these
two gases and of CO2. The intention is for there to be even more joint
doctoral candidates in the near future.
Sometimes we notice that we would like to go even deeper but that BCE
lacks the opportunity to do so. We like to finish projects with a scientific
article, but ECN is a project-driven organisation that has to listen to what
its clients want - and when time is up or the client feels there is no need
for such a conclusion it does not happen. But apart from that our coope-
ration with ECN is highly satisfactory.”
Prof. dr. Han Dolman (Professor of Ecohydrology and Head of the Department
of Hydrology and Geo-Environmental Sciences, VU University Amsterdam)
19
20 21
‘ Energy efficiency and saving are essential for a sustainable energy system’ Efficiency & Infrastructure Peter Alderliesten, unit manager
“Efficiency & Infrastructure (E&I) is the new, concise name of the unit
created in 2008 through the merger of the Energy Efficiency in Industry unit
and the Energy in the Built Environment & Grids unit. Three programmes
are currently elaborated at Energy & Infrastructure: Intelligent Energy Grids,
Energy in the Built Environment and Energy Efficiency in Industry. One of
the common themes in these programmes is heat management, including
the storage of heat. Besides developing heat pumps we are working on the
storage and transmission of industrial or other residual heat. There will be
intensive work on this subject in the coming years, not only within the
ADEM programme of ECN and the three technological universities, but also
in the WAELS project, a collaboration of ECN, TNO and Eindhoven University
of Technology. The WAELS research has identified salt hydrates as a highly
promising material for seasonal heat storage in the built environment.
The development of the thermoacoustic heat pump reached a new mile-
stone in 2008. Together with two Dutch engineers, Bronswerk and Dahlman,
ECN is working on the development of a thermoacoustic system that uses
industrial residual heat as driving force. In this instance the mechanical
power produced consists of a very powerful noise wave. The noise pro-
duced is subsequently used to upgrade another part of the system residual
heat into usable heat. This allows you to make purposeful use of otherwise
useless residual heat for industrial processes. Industry stands for the chal-
lenge to make big savings on energy consumption and this technology will
certainly help.
Using the thermoacoustic heat engine we achieved a conversion efficiency
of 48% of maximum possible efficiency, a world record. The record was an
important milestone towards the conversion efficiencies necessary to cre-
ate a viable system. We have applied for a patent for multistage
thermoacoustic heat pumps in which each stage uses the same acoustical
impedance.
E&I also develops thermochemical heat pumps. For a large carmaker we
developed a heat-powered air-conditioner that uses engine heat to provide
in-car cooling. This ‘sorption cooler’ was then successfully built into one of
the carmaker’s cars. We are also working on and have already tested a
heat-powered air-conditioner for residential dwellings. The market has
expressed interest in it.
Within the Intelligent Energy Grids programme, the unit is focusing on
developing technology for the efficient harmonisation of supply and demand
of energy (electrical or otherwise). At present the balance between supply
and demand is still relatively easy to achieve. However, in the near future
consumers will make less use of mains electricity, because they will start
producing their own electricity. Moreover, more electric vehicles will be
introduced in the market. This may overload the electricity grid. A solution
is to make the grid more intelligent. We are establishing contacts in this field
with universities and with the market. Internationally, we are profiling our-
selves in the field of intelligent grids by participating in forums like the
European Smart Grid Platform.
“The ever-increasing energy prices in recent years have resulted in increased attention to energy saving and energy efficiency. The challenge is
to retain this attention to the demand side of energy system even with the current low energy prices. After all, without the efficient and effective
use of energy, a sustainable energy system will be an illusion and the ambitious targets of the European and national authorities will never be achieved.
The potential for energy saving and efficiency is great, but so are the scale and the complexity of the problem. The demand side affects all sectors
of society, there is not just one lead player. It is ultimately about how you can fulfil the need for heating, cooling, powering, climatising and lighting across
the entire chain with minimum use of scarce raw materials, fossil or other energy carriers and optimum use of the spatial and energy infrastructure;
in other words, how to limit losses and wastage. This reduces dependence on energy and increases possibilities for sustainably fulfilling the
demand for energy. System and process analyses within and overarching the sectors of the chain are essential to get a better insight into the loss
factors and to identify, prioritise and realise promising innovations that contribute maximally to the energy transition.”
22 23
Software technology that received much attention in 2008 was our
PowerMatcher. This smart software technology gears the actions of electri-
cal devices to each other and to the supply of electricity. It provides energy
producers with information about the time when the consumer needs elec-
tricity. The PowerMatcher determines automatically when the charger of an
electric car takes electricity from the grid, for example. It switches on the
charger only when it is most economical to do so. This regulates the energy
load of the grid so as to establish the most favourable possible total load.
It has brought a smart electricity grid another step closer.
We developed a third version of PowerMatcher in 2008, incorporating
a number of new functions. We will use this version in field experiments
and will shortly begin a commercialisation process. In the year under
review, we also built a prototype of the Virtual Synchronous Generator
(VSG). The purpose of the VSG is to compensate for fluctuations in future
energy grids by means of rotating mass. The VSG consists of a computer-
controlled 15 kW generator and a 6 kWh Li-ion storage system. We are able
to test the VSG using a bespoke experimental mini-grid.
Technology transferCompanies are showing more and more interest in ECN’s hybrid membra-
nes. A strategy was worked out in 2008 for using this technology widely in
the coming years under the name of Hybsi®, now registered as a brand
name. Trials have shown that the different types of hybrid membranes have
a large field of application.
ECN’s thin-film palladium membranes, developed for the separation of
hydrogen, are undergoing a similar development. We have worked out a
strategy for wide application of this membrane, under the registered brand
name of Hysep®. The interest of industry has resulted in paid contracts to
deliver membrane modules for separating hydrogen from a gas mixture.
One client wants to examine whether ECN’s Hysep® module technology is
suitable for a new and more efficient hydrogen production process for the
refining industry; another client is examining whether it can use the Hysep®
module technology for its reforming process to be marketed in 2010.”
Top five of 20081. Record efficiency in converting heat to sound in a thermoacoustic
heat engine;
2. Development of PowerMatcher, a smart software technology that
gears the use of electrical devices to the supply of electricity;
3. Highly promising market opportunities for Hybsi® and Hysep® mem-
branes;
4. Prototype of the Virtual Synchronous Generator (VSG) for limiting
fluctuations in future energy grids;
5. Marketing of Stirling micro-CHP system for combined generation of
electricity and heat in residential dwellings.
‘ From a technological point of view you need to use energy so efficiently that it renders collective heat transmission and distribution unnecessary’
“After my political career as a member of the South Holland Provincial
Executive I am now directing my efforts towards sustaining society. As
Innovation Manager of the Rotterdam Climate Initiative, I work mainly on
energy efficiency and sustainable raw materials and fuels. Two-thirds of
all energy used in the Netherlands is in the form of heat or is released as
residual heat. This makes it essential to direct attention towards the heat
sector in order to achieve a sustainable energy system. With its port and
industrial complex, Rotterdam is like one very large heat accumulator,
which explains why heat plays a major role in Rotterdam’s climate plans.
The E&I unit played a central role in preparing the WAVINED plan (an
acronym for Heat Supply in the Netherlands). The staff possesses an
excellent insight into available technologies and the potential role of
technology in supplying heat. You notice in talks with fellow engineers in
industry that they are highly respected for their knowledge and overview.
The ECN name is synonymous with quality. What’s more, it is my expe-
rience that they are highly dependable; they do what they promise.
Because of my administrative way of looking at things, I sometimes feel
that in their enthusiasm E&I people become too bogged down in the
technology. I then think to myself: with a little more feeling for administra-
tive reality you could achieve even more. The talks I have with E&I
employees often boil down to the usefulness of heating grids.
From a purely scientific and technological point of view, you have to use
energy so efficiently that it renders collective heat transmission and dis-
tribution unnecessary. A heating grid would then obstruct the continuing
efficiency improvement. But when I see that a ‘passive house’ costs
between € 20,000 to € 30,000 extra and a heating connection € 4,000
to € 5,000, I would prefer to install a heating grid for the time being.
That does not alter the fact that I can always approach ECN if I have
questions about sustainability and that the researchers always provide
adequate information. But I would like to see ECN give even higher prio-
rity to energy efficiency. Sometimes I get the impression that it is treated
as a changeling, even though it is the first and most logical step towards
achieving a sustainable energy system. I also something think: don’t bury
the strategically strongest people with management duties. In Rotterdam
we call them ‘urban marines’: we don’t deploy people with a strategic
overview in management, but at the heart of society. From there they
carry out changes.”
George Brouwer (consultant to the Board of Governors of Rotterdam
University, and Innovation Manager at the Rotterdam Climate Initiative) 23
24 25
‘ CO2 capture and storage enables the responsible use of large reserves of coal and natural gas for the production of electricity and transport fuels’ Hydrogen & Clean Fossil Fuels Frank de Bruijn, unit manager
“Hydrogen & Clean Fossil Fuels is pursuing technologies that enable high-
efficiency CO2 capture and also production of hydrogen-rich gas. This gas
is suitable for producing electricity in large power plants, or for use as
transport fuel, preferably in combination with fuel cell systems. In the last
quarter of 2008 the first experiments were carried out on the Sorption-
Enhanced Water Gas Shift (SEWGS) plant of ECN. The SEWGS trial plant
converts carbon monoxide and steam into hydrogen and CO2, after which
the CO2 is captured and can be stored underground if desired. Initially the
plant will be used to test and scale up the SEWGS technology. In the near
future we will use the SEWGS plant to simulate the purification of hydrogen
produced from coal gasifiers. With this hydrogen we will then be able to
produce electricity. These technologies are attractive for industrial proces-
ses that use hydrogen on a large scale, as in the refining of crude oil, the
manufacture of chemicals and fuel cells for use in the transport sector.
The CATO-1 project funded under the Knowledge Infrastructure
Investments Decree (Bsik) stopped at year-end 2008. The project was
focussing on developing knowledge and technology regarding CO2 cap-
ture and storage (CCS). Through CATO-1, ECN obtained unique test
setups for pre-combustion capture technology (CO2 capture for combu-
stion) and for developing oxyfuel technology (the burning of fuels with
pure oxygen). These now play a major role in European projects and
illustrate the importance of CATO-1 to the Dutch research infrastructure.
In successor CATO-2, in which we focus on the pre-combustion and
oxyfuel technology, ECN will use the same test setups to develop second-
generation pre-combustion capture technology.
The unit is also involved in Nuon’s ‘CO2 Catch-up’ initiative for small-scale
demonstration projects for CO2 capture in the Integrated Gasification
Combined Cycle (IGCC) station at Buggenum, and is active in other initia-
tives for pre-combustion capture technology. Something worth mentioning
is that the eight oil companies that are cooperating in the CCS field have
invited the unit to submit proposals for research, technology development
and trial plants for pre-combustion capture technology.
Technology transferECN’s spin-off company, SulphCatch, signed an agreement with HyGear
in 2008. SulphCatch will now become the most important supplier of
sulphur-removing adsorbents for HyGear’s hydrogen production units.
The adsor bents of SulphCatch have considerable adsorption capacity
according to HyGear.
European cooperation in the field of hydrogen and fuel cells entered a new
phase in 2008. A noteworthy event was the establishment of N.ERGHY
(European Grouping on Hydrogen and Fuel Cells) in March. N.ERGHY is a
European initiative in which fifty leading universities and knowledge institu-
tions are participating, including ECN. ECN is one of the parties behind the
initiative to establish the group that is participating in the Joint Technology
Initiative (JTI), a public-private partnership that under the EU banner is
bundling research, technology development and demonstrations in the field
of hydrogen and fuel cells so as to get innovations to the market quickly. The
technology for fuel cells must be ready for market introduction in 2015.
The Netherlands is one of the countries where the developments are pro-
mising. We are involved in the major Hydrogen Region programme in the
south of the Netherlands and Flanders for the purpose of starting up hydro-
gen applications and infrastructure.
“There are many initiatives focusing on using technologies for CO2 capture, hydrogen and fuel cells. Thy Hydrogen & Clean Fossil Fuels unit is keen
to join these initiatives, as time is running out. We must abandon the linear innovation model in which the technology is first optimized completely
in the lab and only then go into the field for trials with the knowledge we have acquired. By letting these phases partially overlap, we can adapt the
development of new technology at an early stage to practical conditions and also save time. A very serious option is undoubtedly the capture
and underground storage of CO2. This makes it possible to use fossil fuels in the longer term as well, while simultaneously reducing CO2 emissions into
the atmosphere. Numerous recent energy scenarios, of parties like the International Energy Agency, show that we cannot do without this option. For its
research into usable hydrogen technology and CO2 capture, Hydrogen & Clean Fossil Fuels is keen to set up cooperation with other research
institutions and with companies. The trend is clear: industry, government and knowledge institutions are joining forces to tackle the complex
transitions jointly. I am convinced that this approach will yield results.”
26 27
Additionally a first step was taken towards establishing the Dutch
Hydrogen Coalition DutchHy in 2008. On 20 November, twelve parties,
including ECN, signed a letter of intent for this purpose. Besides the cities
of Amsterdam, Rotterdam and Arnhem, the participants include compa-
nies like Air Products, Linde, Shell, Nedstack, Plugpower, Hygear, VDL
APTS and HyTruck. The objective is to bring about acceleration of the
introduction of hydrogen in the Dutch energy system. The coalition advo-
cates setting up a national hydrogen programme with an envisaged
budget of € 80-90 million.”
Top five of 20081. First experiments with SEWGS plant (hydrogen production and
CO2 capture);
2. Establishment of N.ERGHY/JTI, bundling research, technology
development and demonstrations in the field of hydrogen and
fuel cells;
3. World record performance Solid Oxide Fuel Cell at 600 °C;
4. Reduction of platinum use in PEMFC by half without compromi-
sing performance;
5. Development of pre-combustion capture technology in CATO-2.
‘ Wind energy is going to make a big contribution to the objective of getting about 20% of energy consumption from sustainable sources in 2020’ Wind Energy Theo de Lange, unit manager
‘ For us the benefit of cooperating with ECN lies mainly in the independent way that ECN looks at new technologies’
“At Nuon we deal with the Hydrogen and Clean Fossil Fuels unit mainly for
the development of fuel cells and the capture and storage of CO2. We also
work with other units in fields like torrefaction and the production of syn-
thetic gas from biomass. For us the benefit of cooperating lies mainly in the
independent way that ECN looks at new technologies. At ECN we get a
good expert judgement plus excellent access to technological knowledge.
For fuel cells our first contacts date from the premature phase, when we
were checking out possibilities in this field, and Hydrogen & Clean Fossil
Fuels gave us excellent feedback about the choice of development routes.
The unit was not subsequently involved in the trials that we set up, but later
we did make very grateful use of their knowledge when evaluating the
trials. Our research into CO2 capture and storage (CCS) took place in a
similar way. Initially, Hydrogen & Clean Fossil Fuels acted as a sounding
board for us: in this phase we opted for pre-combustion removal of CO2
and the unit supported us in selecting the best technologies. Now that we
are far advanced with our trials in the CO2 Catch-up project in Buggenum,
Hydrogen & Clean Fossil Fuels is again a valued sounding board in their
evaluation. The same holds for the incorporation of the results of the trials
in the design of our Magnum station.
We are now going to build a trial plant for the real-life capture of CO2 and
ECN is involved in the work. We have become smarter and so has ECN:
together we can benefit from the hands-on knowledge that this trial will
yield.
We have a very good understanding with ECN. It is a pleasant organisation
to cooperate with. Very good technologists work there and in the market
ECN is a much sought-after knowledge institution, among other things in
the role of sounding board. Ideally we would like to work with the same
person in a project from start to finish, although we do recognise that with
a large organisation this is not always possible.”
Robert de Kler (Head of Technology and Engineering Services of Nuon)
“In the short to medium term, wind energy remains one of the key options for cheap, large-scale and sustainable production of electricity. Wind energy
is going to make a big contribution to the objective of the Dutch government to get about 20% of energy consumption from sustainable sources
as early as in 2020. But in the longer term, too, wind energy will play a big role. In the Netherlands we have a favourable combination of a lot of wind, the
proximity of the relatively shallow North Sea and considerable knowledge and experience of maritime technologies and wind energy. What’s more, there
has been a revival of the wind industry in the Netherlands. Various onshore and offshore turbines are being developed in our country and large wind
energy companies have intensified their activities. This offers great opportunities for the Wind Energy unit to build up a strong position. The effect of
the current economic crisis on the wind energy sector is difficult to predict. But I am confident that precisely this sector - as part of a new economic
course - will emerge stronger from the crisis. The Wind Energy unit can make a major contribution.”
26
28 29
“Our research activities increased again in 2008 and we are increasingly
working together with both universities and industrial parties. Our wind
test field and the rotor and materials test facility of WMC have shown to
be of great value. To put more structure into our market-related activities,
we have established an Industrial Support Group. The group will work
specifically on transferring to industry the knowledge and technology
obtained from the unit’s long-term research.”
“In 2008, research at the Wind Energy unit focused on subjects such as
calculations for the design of wind turbines. Enormous cost and time
savings are achievable in the design phase, the path from idea to product.
You need in-depth knowledge of the aerodynamics and constructional
dynamics of wind turbines. It is important to be able to predict properly
the interaction between wind, waves and turbine to enable us to design
efficient turbines that are well controllable under all operational conditi-
ons. Something else that is obviously important is for the turbine to
produce as much energy as possible over its full service life of about
twenty years. Condition monitoring systems and optimum strategies for
maintenance and operation are indispensable. This is another field in
which Wind Energy occupied a prominent position internationally in 2008.
The slowdown that occurred in 2007 in research into blade monitoring has
largely been made up and the proposed research into the flight leader
concept is now underway. This concept will enable us, using the extensive
monitoring of a small number of turbines in an offshore wind farm, to predict
the mechanical and fatigue loads on all turbines in the farm. In cooperation
with some industrial partners and as part of a major European project, we
set up a new R&D activity in 2008, aimed at finding solutions to problems
that frequently occur in gearboxes and other drive train components. The
research includes a very extensive measurement programme so as to
determine the loads that occur in practice.
A research field gaining in importance is farm aerodynamics. The objec-
tive is to optimise the energy yield of a complete wind farm instead of
doing so for each individual wind turbine. ECN holds various patents on
control strategies for wind farms and wants to test them in practice. This
is being done in Wieringermeer on our own test farm. The official opening
of the ‘scaled wind farm’ took place there on 5 September. The scaled
wind farm consists of ten wind turbines, ten small test masts and four
large test masts. This experimental wind farm, visited in December by
Maria van der Hoeven, Minister of Economic Affairs, is unique in that
information about the performance of the turbines located at the upwind
side of the farm is used to adjust the other turbines and vice versa. It is
possible to change the pitch-angle of the rotor blades, the yaw angle and
the rotational speed of these turbines. By identifying the air flow through
the wind farm we can develop control strategies and test them so as to
increase the electricity production of an entire wind farm. It is an essential
addition to the development of computational models that the unit has
been doing for many years. So the scaled wind farm enables ECN to
strengthen considerably its position among the world’s top in wind energy
research. Although the start-up of the scaled wind farm was delayed due
to technical problems, we have made important steps forwards in our
research into wind farm aerodynamics.
The importance of the activities of the Wind Energy unit is evident from the
big participation in the second Dutch Wind R&D Workshops that the unit
organised in cooperation with the Delft University of Technology, WMC and
SenterNovem. The number of published scientific articles, which received
greater attention in 2008, came to four. A special activity in 2008 was the
Aeolus Wind Race. In the race near Den Helder the ECN wind racer-
powered by a wind turbine rotor-achieved an average speed of almost
25 km per hour and came second in a race straight into the wind.
Technology transfer“A number of R&D activities in the field of aeroelasticity are now in the
final phase. They include research into a new aerodynamics module that
can be connected to existing commercial design software, and the inte-
gral wind turbine design package called Focus, which is a co-development
with WMC, for which a new version has been issued.
The unit decided in 2008 to develop new rotor aerodynamics activities.
Together with a number of Dutch universities and the Center for
Mathematics and Computer Science, we have embarked on a highly
promising long-term R&D path, in which Computational Fluid Dynamics
is being used to design better wind turbine rotors. An important success
was the sale of licences for the Control Design Tool and the delivery of
wind turbine control algorithms to various wind turbine manufacturers in
the Netherlands and other countries. The industry has a lot of interest for
the possibility of using this tool to control the wind turbine in a way that
increases its energy yield and makes it better suited to extreme situations,
like emergency stops. There is also considerable interest in our work on
system identification, which in simple terms involves giving the turbine
controller a self-learning capability.”
Top five of 20081. Opening of ECN scaled wind farm for validation of new control
strategies for wind farms;
2. New R&D activity: measurement programme on wind turbine
drive train components (including gearboxes);
3. Record sale of licences for design software and O&M software;
4. Successful Dutch Wind R&D Workshops;
5. Establishment of Industrial Support Group.
30 31
‘ Our work basically consists of simultaneously solving puzzles in various specialised fields’
“AE-Rotor is part of Suzlon and designs rotors. Production takes place in
India, China and the United States, while most product development
occurs in the Netherlands and Germany. In Baroda (Vadodera) in India
the company makes moulds in the designed aerodynamic shape. By
means of the moulds it is possible to produce rotor blades anywhere in
the world.
The design of rotor blades requires close cooperation between the dis-
ciplines of aerodynamics, glass fibre reinforced construction, materials,
production processes and production tools. The Wind Energy unit is very
strong in aerodynamics, and our cooperation with them is based on this
specialisation.
When we sought aerodynamics support in 2007, we looked around carefully
to see where the best knowledge was available. You don’t need to go far,
because the best wind turbine knowledge in the world can be found within
a radius of 800 km, in Denmark, northern Germany and the Netherlands.
At the start of 2008 we entered into a partnership with the Wind Energy
unit with the aim of obtaining mutual insights. What’s important for us is
that we get access to the specialised knowledge of Wind Energy; for ECN
it is important to be able to take part in a real development instead of, as
often happens, fulfilling a sideline role as an adviser. One of the ECN
employees works on-site at our organisation two days a week.
The development philosophy of our Asian company played a role in opting
for this cooperation. The fear of sharing knowledge is far less in Asia than
in Europe, so mutual openness is rewarded. The motto is: hedge your
bets. So we are keeping open an option for a development line outside
our company. If your favourite design does not succeed, you always have
another one in reserve, according to this philosophy - Europeans some-
times have to get used to this approach.
We greatly appreciated Wind Energy’s willingness to participate in our
activities in this way. Our work basically consists of simultaneously solving
puzzles in several specialised fields. That is after all the context in which
aerodynamic knowledge is used, and participation in that process offers
a good counterweight to scientific navel-gazing... the danger to which all
knowledge institutions and companies are exposed. Through our coope-
ration with Wind Energy, we are able to use the best available knowledge
for this technological puzzling. We benefit from the open exchange of
knowledge and have noticed that this model is increasingly being used,
for example in high-tech campuses around large companies.”
Klaas Schuring (Vice-President of AE-Rotor Techniek PLC)
‘ Around 2015 solar energy will be able to compete with the consumer price for grey electricity’ Solar Energy Paul Wyers, unit manager
“Since April 2008 the government has been stimulating the use of solar energy by means of a long-term compensation per kilowatt-hour of
produced solar electricity. This SDE scheme (Sustainable Energy Production Stimulation) is still small in terms of scale and system output.
Nevertheless it is pleasing to see that after five years there finally is another subsidy scheme for the use of photovoltaic systems. The condi-
tions of SDE are likely to be relaxed in the coming years. If the reduction of costs develops as we expect, the costs of generating solar electricity
around 2015 will have dropped so far that solar electricity will be able to compete with the consumer price for grey electricity. At that time
it will be worthwhile for consumers to use this technology even without a subsidy. PV panels made of crystalline silicon currently account for
approximately 85% of the market for solar cells. Developments at the Solar Energy unit continue to focus on cost reduction through cheaper
production techniques and higher panel efficiency. For the more distant future the unit is focusing on developing thin-film silicon on foil and
on research into organic solar cells. The big challenge is to improve the efficiency and stability of these solar cells. This will enable us to make
another important step towards inexpensive and reliable solar electricity.”
30
32 33
“The development of technology as well as the scaling up of production
is necessary for cheaper solar electricity. This must be done in coopera-
tion with producers and knowledge institutions. Roughly 85% of the solar
electricity systems produced in 2008 consists of silicon panels. Therefore,
two-thirds of the researchers at the Solar Energy unit are working on
silicon PV technology. The solar panels are constructed of solar cells
made of silicon wafers interconnected electrically and sandwiched
be tween glass and plastic films. In 2008 the unit increased the conversion
efficiencies of different cell types and modules manufactured by produc-
tion methods usable in industry. For very thin (120 µm) multi-crystalline
p-type silicon back contact cells (‘PUM cells’) we got an efficiency of
16.8%. On n-type multi-crystalline silicon cells (200 µm thick) we achieved
an efficiency of 16.7%, the highest published efficiency for such cells
produced entirely by means of industrial production methods.
A pilot line was installed in January 2008 to produce modules with silicon
back contact cells at ECN. The series connection is established by using
conducting adhesive to connect the contact points on the back of the
cells to contact points on a kind of PCB. So far approximately 100 fully
functional modules have been made on this line. This includes the modu-
les made of PUM cells of 160 µm. The efficiency of these full-size
modules is 15.4%, just 0.1% below the world record for modules with
multi-crystalline silicon solar cells. In 2009 this world record for module
efficiency is likely to be broken. This development in module technology
is being supported by research at the Delft University of Technology,
where a research assistant is conducting research for ECN into the
mechanical load of solar cells in relation to, among other things, this
module technology.
Another important activity of the unit is research into the effects of con-
taminants in silicon wafers on the performance of solar cells. By performing
tests on wafers deliberately contaminated with certain metals, we have
identified the tolerance of solar cells to such contaminants. The unit is
working on a specification of a so-called ‘solar grade silicon’ that states
which contaminants are permissible in solar cell wafers. A workshop that
we organised on this subject in Amsterdam in November 2008 was atten-
ded by many international experts.
The market share of thin-film modules has grown strongly over the past
two years. We are conducting research into two of these ‘technology
families’: thin-film silicone PV and organic PV. On a polymer solar cell
made entirely of commercially available materials, we achieved a conver-
sion efficiency of 5%. We also experimented with the ‘reverse’ structuring
of such polymer cells. This may allow us to achieve better stability because
it makes the cells less sensitive to oxidation by water vapour or oxygen.
With this structuring we have achieved an efficiency of 4%.
Internally, the Solar Energy unit directed its attention more towards fun-
damental research focused on substantially higher efficiency. Together
with universities and other research institutions, we are looking for ways
of using nanotechnology to increase efficiency, for example. This is pos-
sible by making the cell sensitive to a larger spectrum of offered light.
Technology transferCooperation agreements were signed in 2008 with two large companies
in the solar cell industry for the module technology for PUM back contact
cells. With one of these companies we additionally concluded a licensing
agreement for use of the results of this cooperation. Also in 2008 we
signed a license agreement with a company for the production of pat-
terned films to which PUM cells are glued. Under the agreement this
company has committed to marketing the technology, an effort likely to
involve several million euros.
Since April, ECN and the Holst Centre in Eindhoven have been working
intensively on roll-to-roll processing of polymer solar cells. Konarka, an
American manufacturer of polymer solar cells, selected ECN as its partner
for testing its products. Together with Konarka and other players, ECN is
endeavouring to raise the characterisation of organic solar cells to a
higher level worldwide, particularly by developing test procedures.
Together with LIOF and Solland Solar B.V., ECN established the Solar
Academy B.V. in 2008. The academy is a training and education centre for
employees working in the solar cell industry, focused principally on the
production of silicon solar cells. Over the past years ECN has established
a good curriculum and trained more than 100 people. These activities
have now been bundled and embedded at the Solar Academy. The trai-
ning centre responds to one of the major obstacles standing in the way
of further growth of the solar cell industry: the shortage of sufficiently
qualified personnel. The Solar Academy is located in Limburg (Avantis
industry park).”
Top five of 20081. Installation of a pilot line for producing modules with silicon back
contact cells;
2. Establishment of the Solar Academy;
3. Research into the effect of contaminants in silicon wafers on the
performance of solar cells;
4. Konarka’s selection of ECN as its partner for testing polymer
solar cells;
5. Fundamental research into the use of nanotechnology to
improve the efficiency of solar cells.
34 35
‘ The PV industry is now moving fast enough to lift off and the credit crisis will cause no more than a temporary weakening of growth’
“In our field everybody knows ECN. There are three leading institutions in
the world in the solar cell technology and ECN is one of them. The Solar
Energy unit is very active at conferences and everybody knows what they
do and wants to cooperate with them.
An important result of the cooperation between the Solar Energy unit and
Tempress, a fast-growing company that now has 100 employees, is the
technology for boron diffusion on n-type silicon wafers. Tempress will
shortly market the technology. We are too small to maintain our own deve-
lopment laboratories, but ECN has a complete line that allows you to see
whether a proposed innovation is truly an improvement. ECN operates
closer to industry than to universities, so together with the research centre
you can develop a new technology to industrial level.
The solar energy market is growing incredibly. In 2005 the annual fair in
Barcelona was modest, but the one in Valencia in 2008 was enormous, with
4 ha of floor space. In China, where we do a lot of business, industrial sites
of thousands of hectares are being set up especially for the manufacture of
solar cells. They are crammed with buildings. The PV industry is now moving
fast enough to lift off and the credit crisis will cause no more than a tem-
porary weakening of growth.
The Netherlands does more than you think in the solar energy world. To
start with the country has a big indirect influence on solar energy, with ECN
as the pivot. So it’s a pity that there is hardly any domestic market for which
Tempress can produce products. The Germans have approached PV on big
scale and systematically, creating an industry with 100,000 workers. Much
of the technology developed by ECN is used in Germany. The development
of the plasma nitride anti-reflection coating by the Solar Energy unit formed
the basis of an industry with sales of more than € 200 million at one of our
German counterparts.
We still have loads of plans to develop things together with Solar Energy,
but we can see that the unit is barely big enough. Perhaps they are just a
little too small to maintain their leading position. It is ridiculous not to direct
more money from the gas revenues towards the development of solar
energy. The amount of influence that this group of ECN has in the solar
world is seriously underestimated.”
Fokko Pentinga and Frans Derks (Respectively Managing Director and
Production Manager of Tempress Engineering & Services)
‘ E&S provides the infra - structure for energy research at ECN and for technology at other innovative companies’ Engineering & Services Jaco Saurwalt, unit manager
“The raison d’etre of Engineering & Services (E&S) lies in its support for developing energy technology. E&S provides the infrastructure for
energy research and for technology at other innovative companies. This challenges the unit to look proactively for new developments, which
means that intensive contacts with other innovative companies are vitally important. That is why E&S opened an office at the Philips high-tech
campus in Eindhoven towards the end of 2008. This office has a double function. On the one hand, we focus on the scouting of new develop-
ments, technology intelligence and the use of the Eindhoven region’s facilities for energy research. On the other, we direct our expertise towards
local clients, among other things with laser operations for PV cells.”
34
36 37
“The broadly-based profile of process engineering all the way through to
construction and chemical or material characterisation, proves unique
time and again. Besides work for the ECN research units, we are increa-
singly developing test setups and/or prototypes for small and large
companies. In this respect 2008 was an absolute top year, with major
projects like the Malachite radiation setup in Moscow (together with the
Joint Research Centre, JRC) and the development of an efficient and
switchable LED lighting fixture for the Alenco company.
The substantive development of Engineering & Service has moved ahead
too. It is necessary to estimate product and process costs at an ever-earlier
stage for the deliberations on whether to develop or expand processes. An
entire range of model-based tools have been developed for this purpose.
The importance of laser technology is increasing and it is becoming
cheaper all the time. Laser technologies are usable to fix microstructures
to large surface areas, for example. The use of fibre lasers now costs not
more than one-quarter of the cost of traditional lasers. Technically, too, the
fibre lasers provide extra possibilities. With the beam quality you can direct
fibre lasers far better and get the heat exactly where you want it.
Four laser systems have been added to our facilities in Eindhoven and we
have acquired a great deal of process and application knowledge. In
Eindhoven we are focusing on the further development and manufacture
of prototypes, mostly for local customers. The expectation is that we will
quickly become one of the largest players in the Netherlands in the field
of innovative laser processes. That does, however, not mean that other
techniques for fixing microstructures to large surfaces will receive no
further attention. The importance of these technologies is increasing,
particularly in energy research. Engineering & Services is one of the ini-
tiators and is now developing a roadmap for precision operations.
Setting up new industrial activities requires a specific kind of support. The
transfer of knowledge and provision of advice to SMEs is solidly supported
in the Netherlands by means of innovation vouchers of the Ministry of
Economic affairs. The vouchers enable companies to obtain a subsidy for
research and have it performed by Engineering & Services. Various compa-
nies again used this facility in the past year. As far as Engineering & Services
is concerned, SMEs may call on us even more frequently in 2009.”
Top five of 20081. Malachite, a large radiation setup in Moscow;
2. Success of innovation vouchers;
3. Opening of Eindhoven office on the High Tech Campus;
4. Production of affordable and switchable LED lighting fixture;
5. Use of laser technologies.
‘ Extraordinary skill is needed for the very tight tolerances that this work requires’
“From the Joint Research Centre (JRC) at Petten I have been working with
ECN for many years and in particular with their Engineering & Services
unit, where the workshop is located. We benefit from their good skills and
the direct lines with the people who do the work. Quality is always perfect.
At JRC I handle quality control prior to radiation experiments in the High
Flux Reactor (HFR). This involves checking matters like dimensions, elec-
trical wiring and similar. If it is necessary to modify the test setup the work
is performed by E&S. We strive for the highest possible quality and the
unit fulfils that goal excellently. JRC performs many such quality controls
in other countries, like Germany. Two years ago we were asked whether
we could use our expertise to make a radiation setup for the IR8 reactor
of the Kurchatov Institute in Moscow. Twelve years ago we made a radi-
ation setup for radiating metal samples for our HFR and it works excellently.
Now they want to start radiating their own samples in one of the positions
in their reactor core, as part of the entire upgrading of the reactor.
On the strength of our know-how and the technical concept of Engineering
& Services, we won this terrific project. After the initial contacts in early
2007, the actual work got under way in early 2008. A project of this com-
plexity usually takes 2,5 years, but by early 2009 everything was ready to
be shipped to Moscow.
Our capsule will be placed in one of the positions in the reactor core, with
dimensions of 70 x 70 mm. It has double containment and between both
walls rinsing occurs with a mixed gas of helium and neon. A special cover
protects the material to be radiated against gamma radiation, because the
intention is that only neutron radiation will reach the test material. The
purpose of these radiations is to age materials artificially to discover
whether they are suitable for prolonged use in very aggressive environ-
ments, such as the core of a high-temperature reactor.
Extraordinary skill is needed for the very tight tolerances that this work
requires. We have found during our many years of cooperation with
Engineering & Services that they amply possess this skill in many fields.”
Gerard Berg (Joint Research Centre)
37
38 39
ECN profile: facts and figures
Ambition and missionECN (Energy Research Centre of the Netherlands) occupies a unique
position in Europe with its wide-ranging knowledge of energy technology.
ECN aims to carry out groundbreaking research that will have a major
influence on energy transition and to bring technologies to every stage
of development and market them. The strenghth of a research organisa-
tion like ECN lies in this portfolio, which enables ECN to develop the new
generation of technologies needed to meet the government’s sustainable
energy targets. Many technologies developed at ECN have reached
maturity in recent years, increasingly resulting in third-party economic
activity. In this way ECN is actively counteracting the innovation paradox
identified by the Wijffels Committee.
ECN’s mission: ECN develops high-quality knowledge and technology for
a sustainable energy system and transfers these to the market..
40 41
Personnel and organisationECN is well aware that the organisation’s capital lies in its people. Top research requires top personnel.
Therefore, this is the guiding principle in the strategic plan and for the new People Management introduced by
ECN in 2007. All projects started in this framework are focused on the employee’s development and career
opportunities, on creating greater clarity between employer and employee and on offering tailor-made facilities.
ECN has a great need for employees who stand out because of their knowledge and competences. The following
diagrams provide a good picture of developments in ECN’s workforce. Note that the number of foreign employ-
ees has increased steadily since 2005, culminating in 10% in 2008.
Turnover, operating result and productivityThe figures on page 41 unambiguously show that ECN’s turnover has risen sharply since 2000, to a total of
more than € 80 million.
It is pleasing to note that productivity continues to increase slightly; the graph ‘productivity 2000-2008’
shows that ECN has managed to maintain the upward line in its turnover/FTE ratio since 2000. Compared
to 2007 the operating result has stabilised.
Productivity 2000-2008 (turnover/FTE ratio)
140
120
100
80
60
40
20
0 2000 2001 2002 2003 2004 2005 2006 2007 2008
Rat
ioft
e
mln
eu
ro
Turnover 2000-2008 in millions of euro plotted against number of FTEs
900
800
700
600
500
400
300
200
100
0 2000 2001 2002 2003 2004 2005 2006 2007 2008
90
80
70
60
50
40
30
20
10
0
Turnover fte’s
41
Number of foreign employees
60
50
40
30
20
10
0 2000 2001 2002 2003 2004 2005 2006 2007 2008
Female Male
Nu
mb
er
Job families/numbers of employees
Family Number of employees as of 12.31.2008 Management 56 8,24%Research 244 35,89%Research Support & Technological Development 114 16,77%Technical Realisation & Maintenance 107 15,74%Consulting 37 5,44%Administration 65 9,56%Facility Services 28 4,12%Fire Department 23 3,38%Unclassified 6 0,89%Total 680
42 43
Technology transferFrom its position as a large technological institution, ECN develops high-
quality knowledge and technology for a sustainable energy system and
brings the knowledge and technology to the market. The focus on bringing
technology to the market is a pivotal part of the mission contained in the
current strategy plan for 2007-2011. ECN’s patenting and licensing policy
was aligned to this focus in 2008.
Patents play an important role when bringing knowledge and technolo-
gies to the market. Patent rights protect the path from development of
trials to application in products sold in the market. Particularly in the final
phase, the development costs can be substantial and the risks for busi-
nesses increase accordingly. Patent rights prevent other parties from
obtaining commercial advantage from the use of an invention without
having contributed to the development costs.
ECN manages and operates its own patent portfolio. Two goals are pur-
sued: on the one hand, the social goal of maximising the reach or
application of the technology, and on the other the optimisation of royal-
ties or other revenues (for example from follow-up research).
For the transfer of technology, the Corporate Development department
contributed to 30 projects in 2008 by providing strategic advice on the
commercialisation of technologies, initiating and structuring commerciali-
sation processes, supporting and conducting negotiations with commercial
parties and preparing agreements needed in the commercialisation pro-
cess. Among other things this resulted in nine agreements being concluded,
including four licensing contracts for use of ECN technology.
Under these agreements the industrial parties have committed to provi-
ding between €30-35 million of new investment volume for the marketing
of technologies developed by ECN (2007: €26 million). A high percentage
of these investments are likely to be made in the Netherlands by Dutch
companies. In due course ECN will also be able to receive a significant
revenue stream in the form of royalties from product sales, technology
rights and emission certificates for the investments. A salient point is that
revenues from existing licensing contracts topped €1 million in 2008
(2007: €0.7 million).
Special mention should be made of the good progress towards esta-
blishing the Solar Academy, an initiative of ECN, LIOF and Solland Solar.
The academy is a commercial training and education centre dedicated to
the solar cell industry. It uses a curriculum that has been developed by
ECN in recent years and that has been used to train more than one hund-
red people. This training centre tackles one of the biggest obstacles
standing in the way of further growth of the solar cell industry, namely the
availability of sufficiently qualified personnel.
Publications in 2008 PS E&I BCE H2SFF WIND SOLAR E&S TOTAL 2007 2006 2005 2004
ECN reports 33 37 34 15 45 17 6 187 206 201 212 272Peer-reviewed articles in scientific journals 6 13 38 10 4 14 0 85 41 64 99 90Peer-reviewed articles in specialist periodicals 11 22 5 1 2 1 1 43 17 35 25 n.a.Submissions for conferences 15 17 27 24 7 39 2 131 90 213 275 165Books and book chapters 13 2 8 2 0 0 2 27 9 19 n.a. n.a.
Scientific publicationsECN’s commercial activities stem from a continuous process of deepe-
ning its knowledge. Quality must be visible not only at the end of the
research path, in the market, but also at the start, in the research. ECN
attaches great importance to its scientific prowess. Wherever possible
the institution seeks cooperation with universities and recruits talented
young researchers. The €30 million for the ADEM programme has given
this strategy a strong boost. For a period of four years, ECN may recruit
and train 30 young scientists (doctoral candidates – ed.). Five will work
at Petten on their theses, the other 25 at the technological universities on
research relevant to energy. This adds up to new people and new know-
ledge plus structural cooperation with research departments at the
universities. ECN encourages the writing of articles for publication in
scientific journals and specialist periodicals.
Patents Internal Filed in the Current patentsyear applications Netherlands in portfolio
2002 18 16 892003 10 5 862004 11 7 912005 13 6 832006 11 5 772007 10 6 702008 18 14 83
PatentsA substantial quantity of intellectual property was generated through the
research activities undertaken in 2008. The number of current patents in the
portfolio rose to 83, and additionally 18 new patent applications were filed.
44 45
Safety, health & environment The application submitted in 2007 for a licence to widen the field of research
– so as to conduct research into hazardous waste (including biomass waste)
- resulted in 2008 in the scope of the existing licence being broadened. The
North Holland provincial government now issues the licences instead of the
municipality of Zijpe. At the same time, virtually all nuclear activities within
ECN were ended at the start of 2008. In 2009 the nuclear energy licence
granted under the Nuclear Energy Act will be replaced by a new licence with
very limited scope (e.g. for small radioactive sources in analysis tools and
instruments).
Working with numerous hazardous chemicals requires elaborate risk control.
This is necessary not only because of the legal requirements, but also
because many clients impose risk control as a precondition and because it is
a spearhead of ECN policy on safety, health & the environment (SHE). Use
of our long-standing inspection system was continued in 2008: see the
results in the graph. In 2008 it again proved possible to satisfy on average
the very stringent ECN standard of one non-conformance per 20 employees
per inspection (0.05). This inspection will be widened in 2009, however: the
indicator will include not only hazardous substances but also many other SHE
subjects, such as the actual usability of the emergency exits or the wearing
of prescribed personal protection equipment.
ECN’s pursuit of improved control of SHE risks received an extra boost in
2008 by obtaining the OHSAS 18001 certificate, the international manage-
ment system for safety & health. Besides a quality certificate (ISO 9001), ECN
now holds certificates for SHE: ISO 14001 and OHSAS 18001. The audits
made clear that ECN deserves the certificates. On the other hand, it was also
evident that there is still room for improvement (the upward spiral).
Improvement is generally reflected by a reduction in the lost time injury fre-
quency or LTIF (number of incidents of lost time injury per million hours
worked). There were no injuries in 2008 that resulted in lost time, bringing
the five-year average closer to the provisional target of 0.8. Further reduction
of this figure by increasing SHE awareness and addressing associated beha-
viour will remain the core of ECN’s SHE policy in the coming years. It is
satisfying (although paradoxical) to note that the number of near-accident
reports continues to increase.
Spatial quality and accommodationIt took a large part of 2008 to refurbish the general laboratories (building
31). Delivery took place in February 2009, after which furnishing started
and the internal relocation got under way to accommodate all employees
at the right place. There was an exchange of ideas with the buildings
aesthetics committee. This resulted in a decision to give certain facilities
the same look and feel, now and in the future, which will allow the premi-
ses to convey a calm image.
There was a far-reaching renovation of the roads on the ECN site, making
allowance for visual requirements. Preventive and corrective maintenance
was completed on schedule. The network of pipes for extinguishing water
was modified, increasing its capacity and reducing sensitivity to faults.
The building management system was replaced and now acts as planned
as the ‘eyes and ears’ of the buildings and measures their use.
Inspection of hazardous substances 2007/2008
0,120
0,100
0,080
0,060
0,040
0,020
0,000 HCFF WIND SOLAR EBEG EEI GTS E&S BCE
Rat
io o
f non
-con
form
ance
s to
FTE
s at
uni
t 2008/2 inspection 2008/4 inspection 2007/2 inspection 2007/4 inspection ECN standard
ECN: LTIF, LTIF 5-year average
4
3
2
1
0LTIF
LTIF LTIF 5- year average Target figureLTIF 5- year average
20002002
20042006
20082010
Reports of near-accidents
200
150
100
50
0Num
ber
Actual number Target value
20002002
20042006
20082010
44
In the course of 2008 the EGON and EEI units have merged to the new E&I unit.
46 47
Nuclear Research and consultancy Group
Nuclear applications for sustainable energy and medicine“Nuclear energy again attracted considerable attention in the Netherlands
in 2008,” says Rob Stol, General director of NRG. In the first half of the year
three reports were published on the energy issue and the role of nuclear
energy. A report entitled ‘Brandstofmix in beweging’ (‘Fuel mix in motion’)
was published in January by the Energy Council, while in March the Social
and Economic Council published a report called ‘Nuclear Energy and
Sustainable Energy Provision,’ which was followed by publication of the
‘Energy Report’ of the Ministry of Economic Affairs. The government is
using these reports to work out several scenarios for the possible use of
nuclear energy. The scenarios will be submitted to the Lower House of
Parliament in spring 2010, enabling the Cabinet to reach a decision in a
responsible way about the role of nuclear energy in the fuel mix.
Stol: “For NRG 2008 was an eventful year. It was one in which we fleshed
out our strategy for the future, but also one in which the High Flux Reactor
could not start up unplanned.” During the maintenance shutdown in August
an irregularity was discovered in the HFR’s primary cooling water system.
This was reason for NRG not to start up the reactor. “The decision not to
start up obviously had a big impact,” says Stol. “The High Flux Reactor
meets 30% of the world’s demand for medical isotopes and 60% of European
demand. Millions of patients worldwide are dependent upon these isotopes
for diagnosis, treatment and pain relief. Additionally, the reactor makes an
international contribution to research on sustaining nuclear energy.”
Stol: “Even though this important role brings with it a lot of pressure, safety
is always the number one consideration for NRG. We had this in mind when
we took the decision not to start up and when we examined possibilities for
putting the reactor back into service. In the second half of 2008, all employ-
ees and external experts worked hard to be able to restart the reactor.”
Closing down the reactor had considerable impact on the entire operations
of NRG. “However, the changing public debate about nuclear energy also
meant that NRG has very good prospects in various fields.” Examples are
research into recycling and final storage of radioactive waste. The consul-
tancy arm of NRG developed excellently. “With our knowledge, we are able
to serve the nuclear and non-nuclear markets well.”
NRG’s ten-year milestoneNRG celebrated its tenth anniversary in 2008. This milestone was cele-
brated with an open day and an information newsletter delivered to
75,000 addresses in Petten and the surrounding area. Stol: “We literally
opened our doors and showed what NRG does.” Attracting the maximum
number of 500 visitors, the open day was a great success. In the anniver-
sary year the intention was to reshape the organisational structure of ECN
and NRG. However, this operation was deferred for the time being
because of the unscheduled shutdown of the HFR.
InfrastructureThe shutdown of the High Flux Reactor unintentionally focused extra
attention on the need for a replacement around 2015: the PALLAS reac-
tor. NRG held talks in 2008 with the three consortiums vying for the
construction of PALLAS. This consultation phase was an important step
towards draft plans for PALLAS, which will be ready mid 2009. With the
construction of PALLAS in Petten, all NRG’s knowledge and infrastruc-
ture can continue to be used in the future for energy research and the
production of medical isotopes.
CooperationTogether with the Energy Research Centre of the Netherlands (ECN) and
the Joint Research Centre of the European Commission (Institute for
Energy, IE), NRG decided in 2008 to intensify the strategic cooperation
in Petten. Stol: “Together, we want Petten to become the capital of energy
research in Europe. Strengthening these ties will enable the three insti-
tutions to fulfil their mission in Europe even better.” The mission is to
support national and European government policy through research and
technology development and to expedite the transition to a sustainable
energy system. The Petten initiative is well aligned to the European
Commission’s wish to establish greater structure and harmonisation
be tween research institutions in Europe.
MedicineAttention focused in the second half of 2008 on the shutdown of the HFR
and the subsequent shortage of medical isotopes. To deal with the shor-
tages as effectively as possible, there were regular consultations with
numerous parties involved in radiopharmacy. Stol: “AIPES (Association of
Imaging Producers & Equipment Suppliers), which includes representa-
tives of reactors that produce isotopes, played an important coordinating
role. The Belgians (BR2 reactor) and French (Osiris reactor) displayed
great flexibility in adapting their reactor schedules to safeguard the secu-
rity of supply of isotopes as far as possible.”
‘ The changing debate on nuclear energy offers newperspectives for NRG’
48 49
Developments in nuclear medicine are constantly moving forward. NRG
constantly cooperates with hospitals and the radiopharmaceutical indu-
stry on the development of ‘new’ radioisotopes usable in nuclear medicine.
There is also a ceaseless pursuit of optimisation of the production of
lutetium at NRG. The High Flux Reactor and laboratories like the Jaap
Goedkoop Laboratory in Petten play an indispensable role in this setting.
Lutetium from Jaap Goedkoop LaboratoryEarly 2008 patients were treated with the radioisotope lutetium that NRG
produced for the first time in the new Jaap Goedkoop Laboratory. The
chemical is used to treat notably stomach cancer, intestinal cancer and
pancreatic cancer. Stol: “I am proud that early 2008, after a period of
trialling and testing, the first lutetium was produced in our specially
equipped medical production laboratory.”
EnvironmentImportant conditions for sustaining nuclear energy are the availability of
sufficient raw materials and a solution for nuclear waste.
Recycling of wasteNRG completed a research experiment in 2008 demonstrating that plu-
tonium can be recycled more effectively. Not only can energy be recovered
from the plutonium, the life of the waste can be reduced by a factor of
ten. “By doing so NRG has developed a process that can make an impor-
tant contribution to sustaining nuclear energy and decomposing global
plutonium stocks,” says Stol.
Cooperation in final storage of nuclear wasteDutch research into the final storage of nuclear waste concentrates mainly
on the scientific and technical aspects of safety and the feasibility of final
storage. The relatively small quantity of Dutch waste and the complex and
long preparations for final storage make a purely national research pro-
gramme less attractive. That is why this research is carried out in an
international context. Stol: “Our neighbouring country Belgium is a suitable
and attractive partner. Belgium is studying the final storage of waste in deep
underground Boom clay, a formation that occurs both in the Netherlands
and in Belgium. NRG, COVRA and Belgian research institutions took the
first steps in 2008 towards joint research into final storage.”
EnergyNRG is helping to enlarge the share of nuclear energy in the Dutch energy
mix. Stol: “We shifted the activities in 2008 from the maintenance of
knowledge to the construction of new nuclear power stations.” NRG is
cooperating in the building of a new nuclear power station in Finland and
a fusion reactor in France and in the lengthening of operating times of
nuclear power stations in the United Kingdom. Stol: “We believe that the
construction of new nuclear power stations is an essential step towards
sustaining energy systems in our country. This is another field where we
should keep in step with developments in the rest of Europe.”
New-builds“The rapidly growing global demand for electricity and the realisation that
as a clean, reliable and affordable option nuclear energy is indispensable
mean that research into a new generation of nuclear power stations is
gathering speed all the time,” says Stol. NRG’s development of innovative
reactor fuels, which extract more energy from uranium and produce less
waste, has attracted worldwide interest. The safety of new reactor fuels
obviously has high priority. For the High Temperature Reactor (HTR), a
highly promising innovative nuclear powered combined heat-and-power
concept, NRG has started a unique research experiment with research
partners from Japan, South Korea and France to examine the optimum
composition of the reactor fuel. The world’s top graphite specialists met in
the Netherlands at the start of 2008 at the invitation of NRG. Stol: “The
group of more than seventy specialists from countries including Japan,
China, the United Kingdom, the United States, South Africa and France
concluded that the new HTR reactors can start being built before 2012.”
Nuclear Research and consultancy Group (NRG) is dedicated to the development
and use of sustainable nuclear technology for energy, environment and health. NRG was
established in 1998 out of merger of the nuclear activities of ECN and KEMA. In 2005
KEMA’s interest was sold to ECN, which now owns all shares. In the near future the legal
form of NRG will change from a commercial partnership to a foundation, and a
holding company with two foundations (NRG and ECN) will be established as planned.
With applied international research, production and consultancy, NRG’s service-provisioning
is focused on the nuclear and medical sectors and also on the chemical, oil and gas industries.
NRG is Europe’s largest producer of isotopes for nuclear medicine and meets more than
30% of global demand for these products.
49
50 51
Energy AdvisoryCommittee (EAC)
Prof. dr. E.M. Meijer, Unilever
Prof. dr. F.G.H. Berkhout, VU University Amsterdam
Ir. T.P. Bokhoven, ConSolair B.V.
Dr. ir. T. van Herwijnen, ETC Energy Technology
Mw. dr. ir. R. Janssen-van Rosmalen, Energy Plus
Prof. dr. G.J. Kramer, Shell Global Solutions
Prof. dr. dipl. ing. M. Kühn, University of Stuttgart
Mr. dr. P.W. Kwant
Ir. G.J.M. Prieckaerts
Prof. dr. J.H.W. de Wit, Delft University of Technology
Consultative groups
Biomass, Coal & Environmental ResearchIr. M. van Berlo, Afval Energie Bedrijf
E. Goudappel, Jacobs Nederland B.V.
Ir. H. Klein Teeselink, HoSt
R. de Kler, Nuon
H. Kursten, Eneco
Ir. G.R. Küpers, KandT Management B.V.
Ir. K.W. Kwant, SenterNovem
W. Schonewille, Havenbedrijf Rotterdam N.V.
(Port of Rotterdam Authority)
E. van Seventer, Agrotechnology &
Food Innovations
Dr. ir. W. Willeboer, Essent Energie Productie
Efficiency & Infastructure, Intelligent Grids ProgrammeH. Slootweg, Exendis
R. Schaacke, Betronic
M. van der Meiden, TenneT
Ir. J. Hodemaekers, Stedin
F. Verheij, KEMA
Ir. E. Raaijen, Exendis
J. Thomassen, Nedap
M. Eijgelaar, Essent New Energy
Ir. M. Bongaerts, Alliander
W. Altena, Logica
Efficiency & Infrastructure, Energy Efficiency in Industry ProgrammeDr. ir. W.J.W. Bakker, Dutch Separation
Technology Institute
Mr. drs. G. Brouwer, Rotterdam Climate Initiative
M. Clement, SenterNovem
Dr. T. Graafland, Shell Nederland BV
Ir. H. Keuken, Process Design Centre
Prof. dr. ir J.T.F. Keurentjes, Akzo Nobel
Ir. G.J. Koopman, Royal Association of Dutch Paper
and Cardboard Manufacturers (VNP)
Dr. ir. G.J. Kwant, DSM
Ir. A.M.G. Pennartz, KWA Bedrijfsadviseurs
Efficiency & Infrastructure, Energy in the Built Environment ProgrammeW. van den Bogerd, Ihto-Van der Beijl B.V.
Dr. L. van Bree, National Institute of Public Health
and the Environment
Ir. H.M. Croes, Government Buildings Agency/Ministry
of Housing, Spatial Planning and the Environment
Ir. C.J.G. Hamans, Rockwool
Ir. P. Hameetman, BAM Vastgoed
Ir. J.J. Overdiep, Gasunie
T.H. Reijenga, BEAR Architecten
R. van der Meer, UNETO-VNI
J. Verlinden, Ministry of Housing, Spatial Planning
and the Environment
H. Westra, Delft University of Technology,
Faculty of Architecture
G.J. Zijlstra, Zijlstra Management & Advies
Prof. dr. ir. R. van Zolingen, Shell Solar Energy Systems B.V.
P. Heijnen, SenterNovem
Hydrogen & Clean Fossil FuelsIr. E.H. Lysen, University of Utrecht
Ir. F. Denys, SenterNovem
Dr. I.S. Williamson, Air Products
Drs. J.J.P. Huijsmans, Shell Global Solutions
Dr. M. Steen, JRC-IE
Ir. R.C.F. de Kler, MBA, NUON
Dr. E.K. Erdle, Efceco
Wind EnergyIr. G.F. Bakema, Essent
Ir. van de Brug, Ballast Nedam
Prof. ir. W.L. Kling, TenneT
Prof. dr. ir. G.A.M. van Kuik, Delft University
of Technology
J.T. Olesen, VESTAS Wind Systems
A/S, Danmark
Dr. D. Quarton, Garrad Hassen & Partners, UK
M. Sc. F. Rasmussen, Risø National
Laboratory, Danmark
Ir. H.P.G.M. den Rooijen, Shell Wind Energy B.V.
Ir. dipl. V. Schellings, GE Wind Energy, Germany
D.P. Molenaar, Siemens Nederland B.V.
Solar EnergyProf. dr. C. Balliff, University of Neuchatel
Prof. dr. P. Blom, University of Groningen
Dr. M. Fleuster, Solland Solar Energy BV
Dr. O. Hartley, Q-Cells
Mr. F. van den Heuvel, Scheuten Solar
Dr. L. Podlowski, Solon AG
Prof. dr. R. van Zolingen, Shell Solar
and University of Eindhoven
Dr. F. Witte, SenterNovem
External ReviewCommittees
Policy StudiesIr. E.C.R.H. Eijkelberg, Ministry of Economic Affairs
Ir. F.J. de Groot, VNO-NCW
Ir. E.J. Postmus, Gas Transport Services B.V.
Ir. E. Luken, SenterNovem
Drs. P.J. Aubert, Energy Council
Dr. L.A. Meyer, Netherlands Environmental Assessment Agency
Drs. T.E.M. van Leeuwen, Netherlands Environmental Assessment Agency
M.J. Smit, Ministry of Traffic, Public Works and Water Management
NRGIr. P.J. Buijs, DELTA Technologie & Innovatie
Ir. J.C.L. van Cappelle, EPZ
Dr. H.D.K. Codée, COVRA
Prof. dr. ir. T.H.J.J. van der Hagen, RID
Ir. P.G.T. de Jong, Urenco Nederland B.V.
Ir. G.R. Küpers, Kandt Management
Mw. mr. A. van Limborgh, Ministry of Housing, Spatial Planning and Environment
Dr. P.J.W.M. Müskens, Ministry of Housing, Spatial Planning and Environment
Ir. G.C. van Uitert, Ministry of Economic Affairs
Prof. dr. ir. A.H.M. Verkooijen, RID
52 53
Supervisory Board
Prof. dr. R.F.M. Lubbers
(69, male, Dutch, Chairman from June 2005)
• Minister of State
• Chairman of Universitair Asiel Fonds (UAF)
• Chairman of Board of Governors of University of Tilburg
• Chairman of Board of Governors of Confederation of
Netherlands Industry and Employers VNO-NCW
• Coordinator of Rotterdam Climate Initiative
• Earth Charter
• Worldconnectors
• Managing Board of Breesaap B.V..
Term of appointment
First appointed in June 2005.
Current appointment runs until June 2013
H.A.D. van den Boogaard
(69, male, Dutch)
• Chairman of Supervisory Board of Grimaflor B.V.
• Committee member of Achmea Association
• Ex-officio Chairman of Fortis Fonds Barneveld
Term of appointment
First appointed in May 1996.
Current appointment runs until June 2009.
Ir. L.M.J. van Halderen
(62, male, Dutch)
• Former Chairman of Board of Directors of NUON
• Member of Supervisory Board of Draka Holding
• Chairman of Supervisory Board of Isala clinics (Zwolle hospitals)
• Member of Supervisory Board of Foundation Rural Energy
Assurance Services (FRES)
Term of appointment
First appointed in June 2008.
Current Appointment runs until June 2012.
Ir. A. van der Velden
(68, male, Dutch)
• Chairman of Supervisory Board of Vitens N.V.
• Chairman of Supervisory Board of Nedap N.V.
• Deputy Chairman of Supervisory Board of Stork N.V
• Member of Supervisory Board of TKH Group N.V.
• Deputy Chairman of Netherlands Environmental Impact
Assessment Committee
• Member of the Committee on Development Cooperation
for the Advisory Council on International Affairs
Term of appointment
First appointed in February 1996.
Appointment term ended on 1 February 2008.
Drs. G.H.B. Verberg
(66, male, Dutch)
• President Energy Delta Institute
• Chairman Supervisory Board Berenschot Holding
• Chairman Supervisory Board UCN N.V.
• Vice-chairman Board URENCO Ltd.
• Member Supervisory Board Essent N.V.
• Member of General Energy Council
• Member of Advisory Board E.ON Ruhrgas AG
• Member of Supervisory Board International
Institute for Social Studies (Den Haag)
• Chairman of the Board Clingendael
international Energy Program
• Member of the Supervisory Board Winterschall Nederland b.v.
• Member of the Supervisory Board of the
Groninger Museum Foundation
• Member of Advisory Board Advanced Power a.g.
• Member of Advisory Committee Waddenfonds
Term of appointment
First appointed in June 2005.
Current appointment runs until June 2013.
52 53
• Member of Supervisory Board of Gelder Groep
• Chairman of Supervisory Board of Rabobank IJsseldelta
Term of appointment
First appointed in April 1996.
Term of appointment ended on 1 June 2008.
Dr. ir. C.P.Jongenburger
(49, male, Dutch)
• Member of Board of Directors of Wuppermann AG
• Board member of the Netherlands Study Centre for
Technology Trends (STT)
• Member of Netherlands Academy of Technology and Innovation
• Member of Industry & Science Advisory Board of Icos Capital
• Member of Advisory Board of Advies ReSteel BV
Term of appointment
First appointed in February 2008.
Current appointment runs until February 2012.
Prof. dr. W.C. Turkenburg
(62, male, Dutch)
• Professor of Science, Technology and Society, Faculty of
Science, Utrecht University
• Head of the Department of Science, Technology and Society,
Faculty of Science, Utrecht University
• Scientific Director of the Copernicus Institute for Sustainable
Development and Innovation, Utrecht University
• Member of the Board of the International Institute for Industrial
Environmental Economics (IIIEE), Lund University, Sweden
• Member of the Board of Directors of the International Energy
Initiative (IEI), with regional offices in Bangalore (India) and
Sao Paulo (Brazil)
• Member of the Board of the SENSE Research School
• Member of the Board of Directors of Advies Eiffel Utilities
• Deputy Chairman of the steering group of the BSIK research
programme CATO (CO2 capture, transport and storage)
• Member of the Programme Committee for Energy Reseach at
Universities of the Netherlands Organisation for Scientific
Research NWO and SenterNovem
• Chairman of the Netherlands Platform for Communication on
Climate Change (PCCC)
• Member of the Executive Committee of Global Energy
Assessment (GEA), IIASA, Laxenburg, Austria
• Member of the SCEF committee (Special Committee on
Energy Physics) of the Foundation for Fundamental
Research on Matter (FOM)
• Member of the TE (Future Energy Supplies) committee of
the Social and Economic Council of the Netherlands (SER)
• Member of the Organising Committee of the 10th
International Conference on Greenhouse Gas Control
Technologies (GHGT-10), Amsterdam, September 2010.
• Associate Editor of Energy for Sustainable Development, IEI
and Elsvier
• Lead Author of IPCC Special Report on Renewable Energy
Sources and Climate Change Mitigation
Term of appointment
• First appointed in September 2001.
Current appointment runs until September 2009
Dr. ir. A.W. Veenman
(62, male, Dutch)
• Former Chairman of Board of Directors of NV Nederlandse
Spoorwegen (Netherlands Railways)
• Former Chairman of Board of Directors of Stork N.V.
• Member of Supervisory Board of Rabobank Nederland
• Member of Supervisory Board of TenneT BV
• Member of Supervisory Board of Gemeentelijk
Vervoerbedrijf Amsterdam (GVB) NV
• Member of Supervisory Board of SPF Beheer BV
• Chairman of Supervisory Board of ICTRegie
• Chairman of Advisory Board of National Aerospace
Laboratory (NLR)
• Chairman of Museum Committee of Centraal Museum Utrecht
• Chairman of Science, Technology and Society Council, KIVI
NIRIA
• Chairman of Rootliep Committee (rail forum)
• Chairman of Talent to the Top Monitoring Committee
(diversity)
• Member of Board of the Next Generation Infrastructures
Foundation (NGInfra, BSIK)
• Member of Board of the Samas Foundation (continuity)
• Member of Advisory Board of Arthur D.Little Nederland
• Member of Advisory Board of Erasmus School of
Accounting & Assurance
Board of Directors
Dr. A.B.M. (Ton) Hoff
(Chairman of the Board of Directors)
• Chairman of the European Research Alliance
• Chairman Advisory Board of the Competence Center for
Energy and Mobility (CCEM)/Swiss
• Vice chairman of Advisory Group on Energy for 7th
Framework Programme, European Commission
• Member of EMVT (Electro Magnetic Power Technology)
• Member of Confederation of Netherlands Industry and
Employers VNO-NCW Energy Committee
• Member of Advisory Board of Syntens West-Nederland
• Member of Netherlands Academy of Technology
and Innovation
• Member of Supervisory Board of Energy
Valley Foundation
• Member of Advisory Board of Equens (formerly Interpay)
• Member of Supervisory Board FOM (Fundamental
Research of Matter
• Board Member of ATO
(Association Technology Conveyance)
• Board Member of WEC
(World Energy Council) Netherlands
Dr. C.A.M. (Kees) van der Klein
(Director)
• Meeting of Shareholders of Enatec b.v. (development of
Stirling engines)
• Meeting of Shareholders of RGS b.v. (development of
solar cell components)
• Member of Advisory Council of Fuel Cells and Hydrogen
Competence Network of the federal state of North
Rhine-Westphalia, Germany
• Chairman of the Programme Committee of Energie
Forschungszentrum Jülich (energy research centre)
• Member of Scientific and Technical Committee (WTA) of
Forschungszentrum Jülich
• Member of Sustainable Electricity System Transition
Platform
• Member of Energy Research Programme Committee of
the Netherlands Organisation for Scientific Research
NWO/SenterNovem
• Member of Executive Board of ACTC/NWO
• Vice-Chairman of BSIK programme CATO
• Member of Board of Gas Research and Sustainability
Program (GrASp)
• Member of Advisory Board for Master of Business in
Energy Systems Delft TopTech (Delft University of
Technology)
Drs. G.H.L. (Gerald) Santing
(Director)
• Treasurer of De Lichtenberg/Nijenstede Foundation
(support fund)
54 55
Corporate GovernanceReport
The Board of Directors and the Supervisory Board subscribe to the gene-
ral principles and criteria set out in the Tabaksblat Code, i.e. integrity and
transparency, with proper supervision and reporting. Although the Code
is directed at Dutch companies quoted on the stock exchange, the Board
of Directors and the Supervisory Board decided in 2004 to implement
those parts of it that are relevant to ECN, and regulations containing these
relevant parts were drawn up in 2006. These were not amended in 2008.
The ECN Board of Directors consists of a Statutory Director and two
directors. The former is the Chairman of the Board. He or she bears
ultimate responsibility for the organisation as a whole, reporting to the
Supervisory Board. The Statutory Director is appointed, suspended and
dismissed by the Supervisory Board. The current Director has been
appointed for an indefinite period. The Director’s remuneration is set by
the Supervisory Board.
The Supervisory Board comprises six members. Its tasks are to supervise
the management of the organisation by the Board of Directors and the
general running of the organisation and its affiliated companies. The
Supervisory Board advises the Board of Directors.
The members of the Supervisory Board are appointed by the Minister of
Economic Affairs on the recommendation of the Supervisory Board. The
Supervisory Board consults with the Board of Directors and with the
Works Council when making these recommendations. Candidates must
fit the profile laid down by the Supervisory Board. The Supervisory Board
draws up the profile taking account of the nature of ECN, its activities and
the expertise, experience and independence required of its members.
The Supervisory Board evaluates the profile annually. Members of the
Supervisory Board are appointed for a period of four years and may be
reappointed twice at most.
The Board of Directors and the Supervisory Board are responsible for
ECN’s corporate governance structure, reporting to the Minister of
Economic Affairs. The Supervisory Board provides the Minister of
Economic Affairs with any information he or she may require.
Report SupervisoryBoard
The Supervisory Board held four regular meetings and one additional mee-
ting in the year under review. The Board of Directors attended each meeting.
Due to illness Mr H.A. D. van den Boogaard was able to attend only the
meeting on 18 March 2008. A total of four members were absent from a
meeting at least once. Subjects dealt with at the regular meetings included:
• financial affairs of ECN and NRG, including the annual accounts, the regular
financial reports, the investment plan, the operational plan and associated
companies;
• the strategic plan for 2007-2011 and the recommendations of the External
Review Committees and the Energy Advisory Committee;
• the restructuring of ECN and NRG;
• the shutdown and repair of the High Flux Reactor (HFR);
• other matters: the report from the internal ECN Scientific Advisory Council,
the new PALLAS reactor, the new ECN top management structure.
Two of the four consultative meetings of the Works Council with the manage-
ment representative were attended by a member of the Supervisory Board.
The Supervisory Board has two committees, the Audit Committee and the
Remuneration and Appointments Committee, which each prepare special
subjects for the Supervisory Board. Regulations for both committees were
drawn up and approved by the Supervisory Board in 2005 as part of
Corporate Governance.
Audit CommitteeThis committee, comprising Mr H.A.D. van den Boogaard (Chairman), Prof.
dr. W.C. Turkenburg and Drs. G.H. Verberg, met three times in 2008.
Matters dealt with at the meetings included the annual accounts and
management letter, the auditor’s report, the restructuring of ECN and
NRG, the funding of the HFR and the shutdown and repair of the HFR. An
additional Audit Committee meeting held on 18 November 2008 in the
presence of Prof. dr. R.F.M. Lubbers and dr. ir. A. Veenman was devoted
entirely to the repair of the HFR.
Remuneration and Appointments CommitteeThis committee, comprising Dr. ir. A. Veenman (Chairman), Prof. dr. R.F.M.
Lubbers and Dr. ir. C.P. Jongenburger, met twice in 2008. Subjects dealt with
included new conditions of employment at ECN/NRG, the composition of
the Supervisory Board and recommendations to fill vacancies occurring in
2009, personnel policy, remuneration, targets of the Director, succession
planning for the ECN Board of Directors and the naming of a Works Council
representative on the Supervisory Board.
Conflict of interestUnder the regulations, any conflicting interests of a member of the Supervisory
Board, the Board of Directors or the external auditor of material importance to
ECN or the person in question must be reported immediately to the Chairman
of the Supervisory Board. No such reports were received in 2008. There was
compliance with the relevant provisions of the regulations.
IndependenceIn the opinion of the Supervisory Board, there was compliance with requirement
that each of its members must be independent, with the exception of a maximum
of one. The Supervisory Board regards all its members as independent.
ChangesThe composition of the Supervisory Board changed in 2008. Mr ir. A. van der
Velden stepped down on 1 February 2008 and Mr dr. ir. C.P. Jongenburger was
appointed a member of the Supervisory Board. Mr ir. L.M.J. van Halderen step-
ped down on 1 June 2008 and Dr. ir. A. Veenman was appointed a member of
the Supervisory Board.
The Supervisory Board thanks the Board of Directors and staff for their
efforts and achievements in 2008, which made the past year a successful
one for ECN.
Rotterdam, 18 March 2009
56 57
Directors’ Report
IntroductionThe consolidated annual accounts of Stichting Energieonderzoek
Nederland (ECN) comprise the annual accounts of ECN and the group
companies:
• VOF Nuclear Research and Consultancy Group
• (including NRG Personeel v.o.f.)
• NRG Nuclear Services BV
• ECN Nucleair BV
• ECN Wind Energy Facilities BV (WEF)
• SunLab BV
ECN’s mission can be described as follows: ‘ECN develops high-level
knowledge and technology for a sustainable energy system and transfers
it to the market.’
ECN, a private-law organisation, is a task-driven organisation that occu-
pies a unique position in Europe due to the knowledge it is able to provide
in the field of sustainable energy. Its high-quality research infrastructure
enables it to develop, further develop and utilise knowledge and innova-
tive technology. ECN aims to carry out groundbreaking research that will
have a major influence on energy transition, applying knowledge and
technological development in practice.
In recent years, a number of technologies developed at ECN have reached
maturity. In 2008, fourteen new patents were registered and royalties for
the first time exceeded € 1 million.
ECN’s research activities focus in particular on multi-annual, demand-dri-
ven programmes formulated in close consultation with the Ministry of
Economic Affairs, and SenterNovem. The aim is to increase the substantive
synergy between the EZS research programme and the Energy Research
Strategy contracts. The quality of current ECN research is high across the
board, in some cases even trend-setting in Europe. The nuclear technology
research activities were hived off to the Nuclear Research and consultancy
Group (NRG) in 1998. NRG has gained a good position for itself in its par-
ticular area of the international scientific world as a centre of expertise,
focusing on developing knowledge, products and processes for the safe use
of nuclear technology in energy, the environment and health.
ECN holds a 70% capital share in NRG; the remaining 30% is held by ECN
Nucleair BV, a company wholly owned by Stichting ECN. This structure is
a left-over from the former situation (until 2006) in which the 30% stake
was held by KEMA. A more appropriate structure was examined in 2008.
Due to the temporary shutdown of the High Flux Reactor (HFR) operated
by NRG, this restructuring has been postponed.
The activities of ECN Wind Energy Facilities BV relate to the operation of a
trial wind farm for multi-megawatt wind turbines. They comprise research into
the “wake effects” among wind turbines erected on the farm, supplying the
power they generate back to the grid, and renting out testing space to third
parties wishing to erect their own prototype turbines. The turbines were sold
to NIB Capital in a sale and leaseback transaction at the end of 2003. In
September 2008, a proprietary ‘scale farm’ was added to the farm, in which
it is investigated how wind turbines in large wind farms respond to each other.
SunLab BV markets a measuring instrument for solar cells. This instru-
ment enables manufacturers to optimise the production of solar panels.
Situation as at the balance sheet date. The solvency ratio (equity divided by total assets) remained stable at
6.5%, and liquidity rose slightly to € 71,3 million. Part of these resources
(€ 32 million) is not at the free disposal of ECN and will be used to meet
liabilities.
There has been a delay in the proposed setting-up of a Joint Undertaking to
regulate the role of the Supplementary Programme in the running of the HFR
from 2008. However, in 2008 conditional funding was obtained from the Ministry
of Economic Affairs totalling € 4 million (for the period 2008-2011) and € 8
million (for 2008). The amounts to be received from the Ministry in 2009 are not
yet known. Intensive consultations between Euratom and the Ministry are under
way, which are expected to produce effect at some time in 2009.
The ECN workforce as of 31 December 2008 increased by 60 persons
compared with 31 December 2007, from 958 (NRG 325) to 1,021 (NRG
341). The number of full-time equivalents (FTEs) rose to 934 (NRG 312)
up from 852 (NRG 286).
Developments during the financial yearECN is well aware that the organisation’s capital lies in its people. In 2008,
a new remuneration and benefits package was developed after a bench-
mark study had been carried out. The major conclusion from the
benchmark study was that ECN & NRG pays above-average compensa-
tion and benefits to the lower salary groups but applies a below-average
remuneration package for the higher salary groups. The remuneration
package was based on the following principles:
• aligns with the strategy and market position;
• attracts competent employees and binds them to the organisation;
• is competitive;
• is encouraging and inspiring;
• is affordable.
The remuneration package was developed in close consultation with
delegations of the trade unions and the Works Council. We hope to com-
plete this project in 2009 and implement the new compensation and
benefits system as soon as possible (phased, if required).
A summons was issued against ECN and NRG in July 2007 by the
Association of Former Employees of ECN & NRG (OMEN). OMEN has
applied for a declaratory judgment that ECN et al. did not have the power
to change the indexation provisions in the pension schemes for former
ECN employees. In 2008, the court pronounced an interlocutory judge-
ment against which OMEN has appealed. No provision has been formed
for any financial consequences resulting from these proceedings.
In August, the HFR was not started up as a trace of gas bubble in the primary
cooling water system was identified during major maintenance and inspec-
tions. This necessitated a reanalysis of the safety of the system. Based on an
examination program and safety studies, seals and a detection system have
now been installed and the reactor restarted in February 2009. An action plan
for the final repair work to be carried out in the spring of 2010 is being drafted.
In 2008, investments totalled € 11.9 million. The major investment was
made in one of the buildings, which will be commissioned early in 2009
to replace several outdated buildings that will be demolished over time.
Investments were made, too, in an upgrade of a number of pilot lines and
various items of laboratory equipment.
58 59
Financial resultsNet operating income increased slightly to € 132.0 million. In 2007, this
figure was positively affected by a non-recurring gain of almost € 2.0
million.
The shutdown and repair costs of the HFR put significant pressure on
both turnover and result of NRG. The HFR was inoperative between
August 2008 and February 2009.
Wage costs increased by 5.5%, particularly due to the increase of 60 FTE,
the 1.75% general pay rise as at 1 January 2008 and the increase in the
year-end bonus to 4.4% up from 2.9%.
Financial expenses were € 1.0 million higher than last year due to a € 1.8
million write-down of the securities portfolio. The scope of the item ‘secu-
rities’ further decreased following repayments (€ 3.9 million) and a
reclassification (€ 7.2 million) to current assets.
Just like last year, the income from participating interests was negative as
a result of start-up losses due to development activities still in progress in
the 30% holding RGS Development BV. In 2008, agreement was reached
with the other shareholders that ECN will no longer contribute to future
financing of RGS. As a result, the ECN interest will decrease. The scope of
this decrease will depend on a business valuation yet to be performed.
In 2008, € 3.1 million was added to the provision for radioactive waste.
This was primarily caused by higher engineering costs incurred for the
design of a facility in which high and low radioactive waste can be sepa-
rated and packaged in order to prepare for transportation to COVRA.
Also, an amount of € 1 million was provided to defray the decontamina-
tion costs of a building of NRG.
On top of the fixed amount of € 2,0 million pledged for index-linking, a
performance-related amount of € 0.4 million was made available during
the financial year for index-linking of the pensions administered by
Centraal Beheer Achmea.
The net profit after tax was € 0 (2007: € 2.5 million).
Expectations for 2009The second half of 2008 witnessed a dramatic slow-down of the economy.
This trend continued into the first few months of 2009. Luckily, ECN is not
in the eye of the financial crisis but expectations are that the current
circumstances will not leave ECN or its business relations unaffected.
Several assignments have already been delayed or cancelled. On the
other hand, a vigorous plea is made from various sides (including the
Innovatieplatform) to accelerate innovation through intensified research,
particularly in the field of sustainable energy. Amidst this uncertainty, ECN
will pursue a frugal financial policy and a prudent recruitment policy.
In February 2009, it was announced that the Ministries of Economic
Affairs and Housing, Spatial Planning and the Environment will make
available € 30 million to enhance testing of materials at four national
energy research institutes. The funds will be divided among ECN and the
three Universities of Technology for their ‘Advanced Dutch Energy
Materials Innovation Lab’, briefly called ADEM. Half of the money is des-
tined for the education of young top talent (doctoral students), the other
half for the acquisition of new research equipment. This multi-annual
program will start in 2009.
In addition, no efforts will be spared to provide clarity on the Supplementary
Program for management of the HFR. The action plan for final repair of
the HFR will be elaborated in greater detail as well.
The level of investments is expected to be lower in 2009 than in 2008, due
to the special investment in a building made in the latter year.
ECN is well-positioned to capitalise on any opportunities that may arise
in the current market circumstances.
Petten, 28 april 2009.
Dr. A.B.M. Hoff
Financial Report
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Consolidated balance sheet (x € 1.000)(before appropriation of profit) Clarification 31-12-08 31-12-07
ASSETS Fixed assetsIntangible fixed assets 1 1.626 1.523Tangible fixed assets 2 37.768 31.021Financial fixed assets:• Participations in knowledge-based companies 3 44 592• Other participations 3 12 23• Securities 3 12.453 25.190• Other receivables 3 4.860 5.544Total financial fixed assets 17.369 31.349Total fixed assets 56.763 63.893
Current assetsWork in progress 4 16.332 17.105Receivables and prepaid expenses 5 25.262 23.268Inventories 5.907 4.175 47.501 44.548
Cash and cash equivalents 6 71.339 69.884
TOTAL 175.603 178.325
EQUITY AND LIABILITIES
Group equity 7
Equity 11.326 11.326Minority interest 41 41 11.367 11.367Provisions Provisions 8 - 15 89.799 90.617
Current liabilitiesPrepayments third parties 16 39.536 32.216Accounts payable 16 12.613 10.081Taxes and social security contributions 16 3.013 2.972Debts relating to other personnel costs 16 8.543 8.527Debts relating to pensions 16 4.905 16.973Other liabilities and accrued expenses 16 5.827 5.572 74.437 76.341
TOTAL 175.603 178.325
Consolidated statement of income (x € 1.000)(before appropriation of profit)
Operating income 2008 2007
Income• Financing by the State of the Netherlands 17 44.943 42.141
• Assignments and other funds 18 75.646 74.743• Increase / decrease in work in progress 18 -773 2.947 74.873 77.690
Capitalised corporate production 19 4.239 2.351Other operating income 20 7.986 9.801Total operating income 132.041 131.983
Operating expensesWages and salaries 21 58.250 55.201Social security charges 21 3.305 2.061Pensions 21 7.294 11.316Amortisation of intangible fixed assets 22 155 0Impairment of intangible fixed assets 0 0Depreciation of tangible fixed assets 5.160 4.382Other operating expenses 23 53.645 52.979Total operating expenses 127.809 125.939
Operating result 4.232 6.044
Financial income and expenses 24 -3.012 -1.983 Result on ordinary operations before taxation 1.220 4.061
Taxation on result from ordinary operations 25 -661 -619
Result on ordinary operations after taxation 559 3.442
Share in income from participations -559 -928 Net result 0 2.514
Consolidated cash flow statement (x € 1.000)
2008 2007
Operating result 4.232 6.044Amortisation of intangible fixed assets 155 0Depreciation of tangible fixed assets 5.160 4.382Movement in provisions -1.116 7.236Capitalised corporate production -4.239 -2.351
Movements in working capital• Work in progress 773 -2.947• Inventories -1.732 674• Receivables and prepayments 6.272 -2.386• Current liabilities -3.983 6.718 1.330 2.059Cash-flow from business operations 5.522 17.370
Financial income: - interest received 2.626 3.080Paid tax on profits -661 -619 1.965 2.461Cash flow from operating activities 7.487 19.831
Investments in intangible fixed assets -258 -47Investments in tangible fixed assets -9.446 -12.439Disposal of tangible fixed assets 0 1.888Acquisition of non-consolidated participations 18 -714Investments in other financial fixed assets -127 0Disposal of other financial fixed assets 3.839 93
Cash flow from investment activities -5.974 -11.219 1.513 8.612
Financial expenses: - interest paid -58 -5.063
Cash flow from financing activities -58 -5.063
Movement in cash and cash equivalents 1.455 3.549
Opening balance cash and cash equivalents 69.884 66.335
Closing balance cash and cash equivalents 71.339 69.884
Movement in cash and cash equivalents 1.455 3.549
62 63
Notes to the consolidated financial statements
GeneralUnless indicated otherwise, all amounts stated in the annual report are x EUR 1.000. Stichting Energieonderzoek Centrum Nederland [Energy research Centre of the Netherlands] (ECN) has its registered office in Petten, municipality of Zijpe, the Netherlands. The object of the Stichting is to gain knowledge and experience in the field of energy and to ensure that it is effectively made instrumental to the public interest and the various sub-interests to be distinguished therein.
ActivitiesThe activities of Stichting Energieonderzoek Centrum Nederland, with its registered office in Petten, the Netherlands, and its group companies consist primarily of:a. conducting and commissioning fundamental, strategic, and applied research and
related studies in fields determined by the Stichting itself, or as instructed by the national government, lower government authorities, companies, including electricity companies, other organizations and individuals.
b. making accessible and sharing the results of research and studies as referred to under a., and supervising and providing support in the application of those results.
c. collaborating with companies, included energy companies, and other research insti-tutions in research and studies as referred to under a.
d. contributing to coordinating research and studies in the Netherlands, and collabora-tion internationally.
Group structureStichting ECN heads a group of companies. An overview of the information required under Sections 379 and 214 Book 2, of the Netherlands Civil Code is included below:
Consolidated participations:Name Registered office Share in issued capitalNRG v.o.f. Petten, municipality of Zijpe 70%NRG Personeel v.o.f. Petten, municipality of Zijpe 70%NRG Nuclear Services B.V. Arnhem 100%(formerly DNC Nucleair Technology B.V.) ECN Nuclear B.V. Petten, municipality of Zijpe 100%(ECN Nucleair B.V. holds the other 30% of the shares in NRG v.o.f. and NRG Personeel v.o.f.)Wind Energy Facilities B.V. Petten, municipality of Zijpe 100%SunLab B.V. Petten, municipality of Zijpe 100%
Non-consolidated participationsFor a specification of the non-consolidated participations, reference is made to the note on the participations in the balance sheet.
Consolidation principlesThe consolidated financial statements of Stichting ECN include the financial statements of the group companies, and other legal entities over which Stichting ECN has manage-ment control, or that are managed centrally. If these entities are immaterial to the view presented by the consolidated financial statements, they are not included in the conso-lidation. The consolidated financial statements are prepared in accordance with the accounting policies of Stichting ECN.The financial statements of the group companies, and other legal entities and companies included in the consolidation, have been fully included in the consolidated financial statements. All intercompany balances and transactions have been eliminated. Minority interests in Stichting ECN’s equity and the results of group companies are reported separately in the consolidated financial statements. The results of newly acquired group companies and the other legal entities and companies included in the consolidation are consolidated as from the date of acquisition. On that date, the assets, provisions, and liabilities are valued at fair value. The paid goodwill is charged fully to the result in the year of acquisition of the entity. The results of divested participations are included in the consolidation until the date the group affiliation is terminated.
Accounting principles - generalThe consolidated financial statements have been prepared in accordance with the provisions in Title 9, Book 2, of the Netherlands Civil Code. Valuation of assets and lia-bilities and determination of financial results are based on the historical cost convention. Assets and liabilities are recorded at face value, unless mentioned otherwise. Income and expenditures are accounted for on an accrual basis. Profits are recorded insofar as realised as at the balance sheet date. Liabilities and possible losses originating before the end of the year are recorded if they have become known before the preparation of the financial statements.
Changes in accounting policiesEffective 1 January 2008, the Stichting applies the accounting principles as prescribed under the Dutch Accounting Standard RJ 290 ‘Financiële Instrumenten” for financial instruments. Hence, the accounting policies which the Stichting applies for recognition, valuation and classification of financial instruments in these financial statements differ from those applied in the 2007 financial statements.RJ 290 permits the Stichting to refrain from revising the first-time valuation and classi-fication of financial instruments that have been taken out before the date of the opening balance sheet of the comparative figures of the financial statements in which RJ 290 is applied for the first time. Based on this exemption, the Stichting:• Has refrained from revising the first-time valuation and classification of financial instru-
ments taken out prior to 1 January 2007;• Has recognised all financial instruments taken out since 1 January 2007 in accordance
with the provisions of RJ 290.For the accounting policies applied for financial instruments, reference is made to the notes on the respective balance sheet items. Partial retroactive application of RJ 290 as from 1 January 2007 did not affect the equity and result over 2007.
Financial instrumentsFinancial instruments include primary financial instruments, such as receivables and debts, and derivative financial instruments. For the accounting principles relating to the primary financial instruments, we refer to the note on this specific balance sheet item. The Stichting has not hedged the currency and interest rate risks incurred on derivative financial instruments during the financial year 2008.
Changes in presentationTo facilitate comparison, the figures for the financial year 2007 have been modified where necessary to be in line with the presentation used for the financial year 2008.. Translation of foreign currenciesReceivables, debts, and liabilities in foreign currencies are translated at the exchange rates prevailing at the balance sheet date. Transactions in foreign currencies during the year under review are recognized in the financial statements at the exchange rates prevailing at the transaction date. The exchange differences resulting from the transla-tion as at the balance sheet date are included in the statement of income, taking into account any hedge transactions.
Principles for valuation of assets and liabilities
Intangible fixed assetsIntangible fixed assets are stated at cost incurred, less accumulated amortisation and impairment, if any. Annual amortisation is based on the straight-line method, as explained in the notes to the balance sheet. The useful economic life and amortisation period are revised at the end of each financial year. The goodwill acquired during the year as a result of take-overs (representing the difference between the acquisition price paid and the net asset value of the participation acquired) is fully amortised in the year of acqui-sition.
Tangible fixed assetsTangible fixed assets are stated at cost, less accumulated depreciation and impairments, if any. Depreciation is based on estimated useful life of the respective assets and is calculated as a fixed percentage of cost, taking accounting of the residual value, if any. Depreciation commences when the asset is first used. Land is not depreciated. A pro-vision for major maintenance is formed to defray the costs of periodic maintenance. This provision is included under the item ‘other provisions’ at the liabilities side of the balance sheet. For the accounting policies applied with respect to this provision, reference is made to the note on provisions.
Financial fixed assetsNon-consolidated participations on whose business and financial policies significant influence is exercised are valued at net asset value, but not lower than nil. The net asset value is determined in accordance with the accounting policies of ECN.
Participations with a negative net asset value are valued at nil. If the Stichting fully or partly guarantees the debts of the relevant participation, a provision is formed for an amount equal to the share in the participation’s losses or the sum of the expected pay-ments by the Stichting to the respective participation.
Participations on whose business and financial policies the Stichting has no significant influence are valued at cost net of impairments, if any. The receivables from and loans to participations as well as other receivables are included at market value on their first-time recognition and are then valued at amortised cost, which equals face value, net of any provisions deemed necessary.The investments in equity instruments included under financial fixed assets are listed shares that do not belong to a trading portfolio. These investments are valued at market value (per fund) and any changes in value are directly taken to the statement of income.The bonds stated under financial fixed assets, which do not belong to a trading portfolio either and are held until the end of the investment term, are valued at amortised cost. Bonds taken out before 1 January 2007 are valued at the lower of cost and market value as at the balance sheet date, with the premium or discount upon the acquisition of bonds, divided over their terms, is added or charged to the statement of income, as the case may be.
Inventories and work in progressInventories of raw and ancillary materials and trade goods are valued at the average acquisition price, determined as the lower of average purchase price and net asset value. This lower net asset value is determined based on individual assessment of the inventories.
Work in progress is valued at cost incurred, less the amounts already stated on the balance sheet date and losses already foreseeable on the balance sheet date. The costs incurred include the direct use of materials, the direct wage and machinery costs and other costs that are directly attributable to the research project. The income from the financing of the research project is determined based on the costs incurred in connec-tion with the work at the balance sheet date. Instalments invoiced relating to work in progress are deducted from the value of the work in progress. Any resulting negative balance of work in progress is accounted for under current liabilities.
Receivables and prepaid expensesReceivables are included at face value on first-time recognition and are subsequently stated at amortised cost, which can be equal to the face value, less any bad debt provi-sions deemed necessary. These provisions are based on an assessment of individual receivables.
64 65
ProvisionsProvisions for employee benefitsIn 2006, the pension regulation was changed from a defined benefit regulation into a defined contribution regulation. Under this pension plan, the Stichting pays fixed amounts to the respective pension insurers and funds and has no payment obligations other than those fixed amounts. The amounts are expensed as and when they are payable.
Long-term employee benefitsOther long-term employee benefits concern the benefits included in the remuneration package, such as long-service awards, temporary leave and related benefits. All these benefits are long-term. The net liability relating to these benefits concerns the sum of the future benefits earned by employees in exchange for their services in the current and prior reporting periods. Actuarial gains and losses on other long-term employee benefits are directly added or charged to the income statement.
Redundancy arrangements involve liabilities on account of termination of employment of workers prior to their respective pension start dates. Redundancy payments are recorded if a reasonable case can be made that there is an obligation to terminate the employment of certain workers. Payments are recorded at present value. The liabilities are recorded as such and disclosed under provisions. For bonus and profit sharing schemes based on relevant performance regulations, a liability is included under short-term liabilities.
Provision for radioactive wasteThis provision has been formed for the costs of future treatment and storage of radio-active waste. The provision is stated at present value, and is increased by an annual interest rate of 5% to cover future price increases.
Provision for major maintenanceThe provision for equal distribution of charges due to major maintenance on buildings is determined based on expected costs over a series of years. The provision is usually set up according to the straight-line method. The provision is based on the findings of the Temid report published in 2006 following a survey of overdue maintenance and major main-tenance to be carried out over a period of 10 years. The maintenance performed is deducted from this provision.
Principles for determination of financial results
Operating incomeOperating income includes income from services and products supplied during the year under review, less the taxation of the turnover. Income from research projects is included in proportion to progress made. Costs for these research projects are recognised as incurred.
TaxesCorporate income tax is determined by applying the respective rate to the result for the financial year, taking into account permanent differences between profit calculations for financial reporting and tax purposes. Deferred tax assets (if any) are accounted for only insofar as their realisation is probable.
Share in income from participationsThe results of participations on whose business and financial policies the Stichting exercises significant influence are stated as the share in the profit of these participations to which the Stichting is entitled. This profit is determined in accordance with the prin-ciples for valuation and determination of the result applicable at Stichting ECN.Dividends from participations on whose business and financial policies the Stichting does not exercise significant influence are accounted for as income under the item ‘financial income and expenses’.
Principles for preparation of the consolidated cash flow statementsThe cash flow statement is prepared according to the indirect method. The cash in the cash flow statement consists of cash and cash equivalents. Cash flows in foreign cur-rencies are translated at an estimated average rate. Exchange differences relating to funds are shown separately in the cash flow statement. Profit taxes, interest received and dividends paid are included under the cash flow from operating activities. Interest and dividends paid are included under the cash flow from financing activities.
Notes to the consolidated balance sheet
FIxED ASSETS
Intangible fixed assetsDuring 2008, SunLab B.V. continued the development of the Sherescanner. The related development costs have been accounted for as investment costs. Also a prepayment relating to the period 2009-2012 for rights to storage space for radioactive waste at COVRA NV has been added to this item. In prior years, this item was accounted for under “Inventories”.
Intangible fixed assets can be specified as follows: Concession, permits and intellectual property Movements Total 2008 Total 2007Acquisition cost As at 1 January 1.389 134 1.523 1.476Investments 257 1 258 47As at 31 December 1.646 135 1.781 1.523
AmortisationAs at 1 January 0 0 0 0Amortisation for the year -155 0 -155 0As at 31 December -155 0 -155 0
Book valueAs at 1 January 1.389 134 1.523 1.476Investments 257 1 258 47Amortisation for the year -155 0 -155 0As at 31 December 1.491 135 1.626 1.523
Both the costs of intellectual property and the development costs are amortised in 5 years. The costs of the COVRA positions (1.234) are amortised based on the positions used.
1
Tangible fixed assets Land and Industrial Instruments Assets under Total 2008 Total 2007 buildings Installations and and machinery construction Acquisition cost fixturesAs at 1 January 48.037 42.088 51.936 3.595 145.656 141.562Investments 1.817 699 2.958 6.433 11.907 10.657Transfers 343 732 78 -1.153 0 0Disposals 0 0 0 0 0 -6.563As at 31 December 50.197 43.519 54.972 8.875 157.563 145.656
DepreciationAs at 1 January -30.988 -38.336 -45.311 0 -114.635 -116.710Depreciation for the year -2.030 -863 -2.267 0 -5.160 -4.382Disposals 0 0 0 0 0 6.457As at 31 December -33.018 -39.199 -47.578 0 -119.795 -114.635
Book valuePer 1 January 17.049 3.752 6.625 3.595 31.021 24.852Investments 1.817 699 2.958 6.433 11.907 10.657Transfers 343 732 78 -1.153 0 0Disposals 0 0 0 0 0 -106Depreciation for the year -2.030 -863 -2.267 0 -5.160 -4.382As at 31 December 17.179 4.320 7.394 8.875 37.768 31.021
2
66 67
Depreciation is on a straight-line basis using the following periods.• Buildings 20 years• Temporary buildings and site facilities 10 years• Industrial fixtures and fittings 10 years• Instruments, machinery, etc. 5 years• Computer hard- and software 3 years
The land was acquired from Staatsbosbeheer (the Netherlands National Forest Service) under a long-term lease in 1957. The long-term lease theoretically expires in 2031, but is expected to be renewed by 20 years in 2009.
SecuritiesMovements in the portfolio were as follows: 2008 2007Balance as at 1 January 25.190 25.283• Less : Sales -3.857 -696• Less : Reclassification -7.186 0• Add : Purchases 127 995 • Less : Valuation differences -1.821 -12.737 -392 -93
Balance as at 31 December 12.453 25.190
The securities deposit has been pledged to the maximum value of the credit facility extended by ING Bank, for 15.000.The other securities are at the free disposal of ECN. The reclassification regards the book value of 2 bond loans that will be repaid during 2009. Therefore, they have now been included under the current assets.The bond portfolio has a face value of 19.250 (2007: 23.107). The commercial value amounts to 15.734 as at year-end 2008 (2007: 20.279).The commercial value of the share portfolio amounts to 3.859 as at year-end 2008 (2007: 5.594).
Movements in security portfolios by type: Bonds Shares TotalBalance as at 1 January 2008 20.226 4.964 25.190• Less : Sales -3.857 0 -3.857• Add : Purchases 0 127 127• Less : Reclassification -7.186 0 -7.186• Less : Valuation differences -580 -1.241 -1.821
Balance as at 31 December 2008 8.603 3.850 12.453
Other receivablesThis item includes the receivable from Covidien B.V. (formerly Tyco Mallinckrodt B.V.) regarding the payable lease terms for the Molybdeen building. The basis is an investment of 20.000 and a contract for 20 years. The interest was revised in 2006 under a con-tractual provision, based on which the lease price will be valued for the remaining terms (40 quarters).The outstanding receivable as at year-end 2008 was 5.544. In 2009, an amount of 684 will be repaid. This amount is included under current assets.
Movements in ‘Other receivables’ were as follows: 2008 2007Balance as at 1 January 5.544 6.420• Investments 0 347 • Disposals 0 -571 • Transfer to receivables
and prepaid expenses -684 -684 -652 -876
Balance as at 31 December 4.860 5.544
Specification of receivables according to term: < 1 year > 1 yrs. < 5 yrs. > 5 years total• Lease contract Covidien Molybdeen building 684 3.086 1.774 5.544
Financial fixed assetsMovements in the knowledge-based and other participations were as follows: 2008 2007
Balance as at 1 January 615 829• Less : Disposals 0 0 • Less : Included in the consolidation*) -18 0 • Add : Investments 18 714 • Add : Income from participations -559 -559 -928 -214 Balance as at 31 December 56 615*) NRG Nuclear Services B.V. is included in the consolidation effective 2008
Participations in knowledge-based enterprises Business ECN interests address as at year-end 2008 2007 % • Enatec B.V. Zevenaar 12,8 15 15• RGS B.V. Petten 30,0 0 545• Sundye B.V. Petten 100,0 16 16• Aster intellectual properties B.V. Veessen 20,0 0 0• Solsilc development company Trontheim 10,0 1 1• BO2 Energy Concepts B.V. Petten 92,78 12 15
Total as at 31 December 44 592
Other participations Business ECN interest address as at year-end 2008 2007 % • NRG Nucleair Services B.V. *) Arnhem 100,0 0 18• ToN2 B.V. Petten 100,0 12 5• Solar Academy B.V. Petten 100,0 0 0• Sulphcatch B.V. Petten 80,0 0 0
Total as at 31 December 12 23*) formerly DNC Nucleair Technology B.V.; included in the consolidation in 2008)
3
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CURRENT ASSETS
Work in progress 2008 2007Work in progress 16.332 17.105Provision for work in progress* -948 -1.813
Balance as at 31 December 15.384 15.292*) This provision is included in the balance sheet under ‘Other provisions’.
Receivables and prepaid expensesThe receivables have been included at amortised cost, which may be equal to the face value, exclusive of provisions required. They expire within 1 year and are broken down as follows: 2008 2007Trade debtors 11.686 17.609Receivables from participations 569 495Other receivables 13.007 5.164
Balance as at 31 December 25.262 23.268
The decrease in accounts receivable is primarily due to the inclusion in the 2007 figures of a 5.727 receivable from the European Commission regarding the operation of the HFR. The other receivables include an item of 7.186, being 2 bonds that will be repaid in 2009.Movements in the total bad debt provision were as follows: 2008 2007Balance as at 1 January 398 220• Add : Addition 15 297• Less : Withdrawal -158 -15• Less : Release -50 -104
Balance as at 31 December 205 398
Cash and cash equivalentsCash is freely disposable, with the exception of 31.955 (see specification below). The bonds are pledged to the maximum value of the credit facility extended by ING Bank, which is 15.000. A credit facility of 4.500 is available at ABN AMRO, for which no security has been provided.
2008 2007Cash 7 5 ABN AMRO 19.093 21.927ING / Postbank 52.239 47.952
Balance as at 31 December 71.339 69.884
Not freely disposable:• ING Escrow account 25.690 24.626• ING 6th and 7th framework accounts 3.474 3.037• Sale and lease back obligation WEF BV 2.791 1.638
Total 31.955 29.301
Group equityReference is made to the notes on equity in the statutory financial statements.
ProvisionsThe provisions below mostly are long term.
2008 2007Provision for redundancy costs 8 130 390Provision for pension indexation 9 11.573 12.927Provision for compensation upon commencement of retirement 10 2.266 2.419Provision for Job-Related Discharge Regulation (RBF) 11 1.351 2.056Provision for long service awards 12 1.036 1.084Provision for radioactive waste 13 67.715 64.632Other provisions: • major maintenance 14 2.815 3.258 • WIP 15 948 1.813 • Miscellaneous 15 1.965 2.038
Total 8 - 15 89.799 90.617
Provision for redundancy costsThis provision was formed to cover costs of staff redundancies ensuing from reorganizati-ons. As in previous years, the annual interest addition was based on 5%.
Movements in this provision were as follows: 2008 2007Balance as at 1 January 390 736• Less : withdrawal -210 -337• Less : release -61 -44• Add : addition of interest 11 -260 35 -346
Balance as at 31 December 130 390
Provision for pension indexationThe (paid up) pension entitlements, accrued up to year-end 2006 by both active participants and former participants were deposited with Centraal Beheer Achmea (CBA), and will remain insured by the latter. Effectively, the pension obligation as presented has the character of “contributions to be paid to CBA”; this means it is not a self-administered pension obligation. With the exception of the pension rights based on the pension rules of 1964 (the pension rights with a fixed 3% annual increase), ECN and NRG will annually index the aforementioned pension rights. The indexation will be financed separately from the new pension regulation at ABP. The pension regulation aims at indexation at price index level, but is limited to what can be achieved in any year with the disposable financial resources. For this reason, the indexation provisions in the various pension schemes have been amended (unilaterally). This indexation method is applied to achieve a near market-level result within the limited financial means.
To finance the indexation, the following financing is available, and/or ECN/NRG will make the following financing available as from 2007:• For a period of 10 years, ECN/NRG will pay a fixed amount of 2 million into the deposit
each year.• For a period of 10 years, a preferential allocation of the result of 1 million will be paid into the
deposit each year. This allocation is conditional to sufficient positive result. If the positive result is smaller than 1 million, the full amount of the result will be transferred to the deposit.
• For a period of 10 years, 1/3 of a positive result between 1 and 4 million will be paid into to the deposit each year. This payment is conditional to the result being more than 1 million.
• For a period of 10 years, a payment of half of the positive result above 4 million will be paid to into the deposit each year. This payment is conditional to the result being more than 4 million.
• Result is defined as net consolidated result after taxes. Based on a discounted cash flow analysis, at 5% interest, 16,2 million was provided for at consolidated level in 2006 for the fixed annual payment of 2 million. The obligation for 2009 has been stated under current liabilities.
Movements in this provision were as follows: 2008 2007Balance as at 1 January 12.927 14.215• Less : reclassification -2.079 -2.000 • Less : release 0 0 • Add : addition 0 0 • Add : addition of interest 725 -1.354 712 -1.288
Balance as at 31 December 11.573 12.927
The reclassification of 2.079 relates to transfer of the current portion to current liabilities at year-end 2008. Interest at 5% has been added to the provision to enable adjustment to the future price level. In 2008, 3.513 at consolidated level was transferred to Centraal Beheer Achmea for the indexation. This enabled an indexation of 1,115 per cent. This amount of 3.513 includes 2.000 in defined contributions and an advance payment on the performance-linked payment for 2007 of 1 million. An advance payment of 1.000 was already made in 2007.
Provision for compensation on commencement of retirement Article 24, paragraph 7 of the transitional regulation as included in the pension regulation 1999 on the compensation on commencement of retirement continues to be effective. This com-pensation is based on a graduated scale linked to the years 2000 up to and including 2018 and generates 3 monthly salaries in 2000 to 1,25 monthly salaries in 2018 on commencement of retirement. Under the same tax limitations applying to anniversary and redundancy disburse-ments, this compensation is paid to employees who retire directly after employment.
2008 2007Balance as at 1 January 2.419 2.306• Less : withdrawal -267 -381• Less : release 0 0• Add : addition 0 379• Add : addition of interest 114 -153 115 113
Balance as at 31 December 2.266 2.419
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7
8
9
10
5
6
70 71
Provision for Job-Related Discharge Regulation (RBF) (formerly: FLO)Employees working in shifts were entitled to early retirement under the regulation on job-related discharge from service dictated by age (FLO) as from the age of 57.5. Due to changes in law, this regulation was no longer permitted as of 2006. A new regulation was agreed in consultation with the respective employees in 2006. This regulation became effective on 1 January 2007. Under the new Job-Related Discharge Regulation (Regeling Bezwarende Functies) a personal budget is granted for years of service in a strenuous job. With this budget, employees can accrue life-cycle savings under a life-cycle savings regulation, which can be withdrawn to finance life-cycle leave prior to the pensionable age. In addition, a transitional regulation has been provided for current employees. Under the transitional regulation, a personal budget is granted afterwards for years of service in a strenuous job until 2006. On top of this, the regulation provides for additional compensation in the form of extra leave entitlements per age cohort. A provision has been included in connection with this regulation. This provision is based on the assumption that the tax administration will consider parts of the transitional regulation inadmissible under tax law and impose penalties with respect to the leave entitlements granted of 26 per cent and 52 per cent, respectively.
The withdrawal from this provision consists of two parts: payments to the existing group of beneficiaries under the former FLO regulation, and payments to the present employees in the form of personal budgets under the new RBF regulation. Payments relating to the personal budgets were charged to the provision. Also the costs incurred for the existing beneficiaries during the year under review under the old FLO regulation were charged to the provision.
Movements in this provision were as follows: 2008 2007Balance as at 1 January 2.056 4.564• Less : withdrawal -728 -3.388 • Add : addition 0 844 • Add : addition of interest 23 -705 36 -2.508
Balance as at 31 December 1.351 2.056
Provision for long service awardsThis provision is formed for payment of future long service awards. Movements in this provision were as follows: 2008 2007Balance as at 1 January 1.084 1.048• Less : withdrawal -165 -24 • Add : addition 62 24 • Add : addition of interest 55 -48 36 36
Balance as at 31 December 1.036 1.084
The provision was revised at year-end 2008 based on the following principles:• The payroll as at 31-12-2008 and a retention rate of 74%;• addition of interest of 5% annually;• annual inflation of 2%.
Provision for radioactive wasteThis provision is intended for the costs of future treatment and storage of radioactive waste.
Movements in this provision were as follows: 2008 2007Balance as at 1 January 64.632 56.499• Less : withdrawal -2.990 -1.896• Add : addition 1.844 2.665• Add : third-party contributions 0 4.500 • Add : capitalised
decontamination commitment 1.000 0 • Add : addition of interest 3.229 3.083 2.864 8.133
Balance as at 31 December 67.715 64.632
In 2008, 2.990 was withdrawn from the provision. This largely regards costs incurred for the preparation of processing historic waste and the costs for decontaminating radiolo-gical laboratories. An additional 2.844 was credited to the provision. The main additions are the following: An amount of 1.063 has been added to cover higher costs of engineering for the design of a facility for splitting and packaging high and low radioactive waste in preparation of the transport to COVRA. Moreover, 1.000 has been added for the expected decontami-nation costs for a building at NRG.
Provision for major maintenanceMovements in this provision were as follows: 2008 2007Balance as at 1 January 3.258 3.319• Less : withdrawal -1.984 -1.261• Less : release 0 0• Add : addition 1.541 -443 1.200 -61
Balance as at 31 december 2.815 3.258
The provision for major maintenance serves to equalise the maintenance costs of the building over the years, based on an LT maintenance plan. In the past years, a backlog on this maintenance plan arose. Based on the findings of a report issued by DGV/TEMID in 2006 following a survey of overdue maintenance and (major) maintenance to be performed over a period of 10 years, the provision formed was revised critically. At year-end 2008, the provision was revised based on the data up to and including 2018 and this resulted in an extra addition of 1.541.
Provision for work in progress and other provisionsThe provision for work in progress serves to correct the value of the Work in progress account and to cover a possible risk of budget overruns of projects in progress. The item ‘Other provisions’ includes the provisions for ‘Renovation of Lead Cells’, ‘DWT sludge storage’ and other provisions. The provision for cleaning and maintenance of lead cells was formed for the lead cells in the Hot Cell Laboratories (HCL). The provision has the character of a provision for repair costs and is based on historical figures relating to the cleaning costs per cell. No fixed date has been set for the cleaning of the lead cells. The sludge basin contains 440 bar-rels of sludge from the waste treatment plant. Up to and including 2003, it was expected that these barrels could be processed in the near future. However, the currently available capacity is insufficient to process sludge from prior years. The part whose processing and transport has been delayed for several years has been accounted for under long-term provisions. At the current price level, transport to the COVRA would cost 582.
Other provisions: Work in Lead cells Storage DWT Other Total Progress 2008 sludge 2008 Balance as at 1 January 1.813 545 544 949 2.038• Less : withdrawal -865 -86 0 0 -86• Add : addition 0 0 38 344 382• Add : addition of interest 0 0 0 0 0• Less : release 0 0 0 -369 -369
Balance as at 31 December 948 459 582 924 1.965
Other provisionsThe item “other provisions; miscellaneous”, includes a provision for a correction of proceeds EU (KP6) projects in the amount of 830, regarding the years 2004 - 2008. The correction is the result of a request by the European Commission to test the claims for 61 projects against conflicts with the regulations of these framework programs, detected during an audit as at year-end 2007/early 2008 and, if necessary, to revise the claims.
Current liabilitiesCurrent liabilities are specified as follows: 2008 20071. Prepayments from third parties 34.098 26.3732. Accounts payable related to deliveries
and services from third parties 12.613 10.0813. Taxes and social security contributions
• Corporate income tax 245 157• VAT 0 2• Wage tax 2.768 2.813• Pension charges 4.905 16.973
4. Other social security charges and personnel costs • Other personnel costs 1.040 1.813• Reservation for holiday allowance and leave balances 7.503 6.714
5. Other liabilities and accrued expenses • Funds advanced for 6th framework accounts 3.474 3.037• Miscellaneous liabilities 2.353 2.535• Payable to co-contractors of projects 5.438 5.843
Balance as at 31 December 74.437 76.341
Current liabilities are settled within one financial year.
The main reason for the increase of the item “Prepayments by third parties” regards prepaid contributions of the Ministry of Economic Affairs for the High Flux Reactor (“HFR”). An amount of 3.000 has been received for an advance in respect of the addition to the Supplementary Program (“SP”). Said amount forms part of a commitment of 4.000 in the aggregate, of which 1.000 has been recognised in the 2008 result. Because an “SP” no longer existed as at year-end 2008, the Ministry of Economic Affairs, which had included the contribution to this “SP” for 2008 in the budget, has granted this contribution to NRG as a bridging finance facility. Of this 8.112 bridging finance facility 5.656 has been recogni-sed in the 2008 result. The remainder has been included on the balance sheet as prepaid contribution. Both items of the Ministry of Economic Affairs have been granted subject to the condition that an “SP” will materialise prior to 1 May 2009.
Financial instrumentsFor the notes to the primary financial instruments reference is made to the specific item by item notes. As at balance sheet date, ECN and its subsidiaries did not own financial derivatives. Below, the risks relating to financial instruments are explained.
• Currency exchange risks For most transactions with suppliers and buyers, ECN and subsidiaries apply the euro
as payment currency. As a result, the currency exchange risk of ECN and its subsidi-aries is limited to an insignificant number of transactions outside the eurozone.
• Interest risks The main interest risk that ECN runs at a consolidated level is a difference between
proceeds of investments and cash versus the required additions of interest to provisi-ons. Through active asset management we try to mitigate this risk as much as possible.
• Credit risks These are reduced as much as possible by doing business with third parties that have
a good creditworthiness and an active debtor management.
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Off-balance sheet commitments
Obligationsa) As a partner to the partnership firm NRG, Stichting ECN is jointly and severally liable
for the debts of this firm. In addition, as a wholly owned subsidiary of ECN, ECN Wind Energy Facilities B.V. is jointly and severally liable for the debts in its capacity of managing partner of ECN Windturbine Testpark Wieringermeer C.V.
b) In 2004, ECN received funds from the Ministry of Economic Affairs totalling over 15.800 and in 2006, it received an amount of 8.100 from the Ministry. Both payments served to defray the costs of work related to the disposal of radioactive waste. If due to circumstances, ECN is not able to perform the work itself, or commission the work to third parties under its supervision, it is obliged to repay the non-disbursed amount to the Ministry of Economic Affairs. The payments from the Escrow account that has been opened for this purpose may be solely be remitted, if the payment orders are signed by both parties (the Ministry of Economic Affairs and ECN).
c) The site was acquired in 1957 under a long-term lease from Staatsbosbeheer. In 2003, an application was prepared for an extension up to 2051. This application, however, was suspended and it is now expected to be followed up in 2009. On 1 January 2006, the annual ground rent was set at 204 per year and it will be indexed again based on the development of the consumer price index, all households series.
d) During the financial year 2003, ECN Windturbine Testpark Wieringermeer CV, wholly-owned by Wind Energy Facilities BV, itself a wholly-owned subsidiary of ECN, entered into a sale and lease-back agreement to finance a wind turbine testing field in which large wind turbines will be tested for offshore locations. The ensuing annual lease commitment is 1.632 from 2004 to 2012 (see also under f).
e) On 5 July 2007, ECN and NRG were summoned by the Association of Ex-Employees of ENC & NRG (OMEN). OMEN has applied for a declaratory judgement that ECN et. al. did not have the power to change the indexation provisions in the pension schemes rela-ting to the former employees of ECN. In 2006, the indexation provisions were changed for both active and non-active persons and indexation was made conditional following a previous court decision in which these provisions were regarded unconditional. The court decision could result in a financial emergency for ECN/NRG, since unconditional indexation under the applicable accounting principles requires recognition of a very sub-stantial expense. On 16 July 2008, the judge pronounced an interlocutory judgement. OMEN has lodged an appeal against this interlocutory judgement. OMEN’s main objec-tion against this interlocutory judgement focuses on the judgement of the court that in the event of significantly changed financial circumstances ECN and NRG would have had the authority towards their former employees to unilaterally change the pension plans as at 1 January 2007. This appeal is expected to take quite some time.
f) Specification of contractual commitments entered into:
Description < 1 year > 1 yr < 5 yrs > 5 yearRent for premises in Arnhem(NRG)/Amsterdam(ECN) 657 539 0 Lease of cars 191 195 0 NIB WEF lease commitment 1.632 4.895 0 ECN/WEF scale park lease 180 720 0 Repro services 180 180 0 Cleaning services 370 370 0 Capital expenditure commitments Building 31 750 0 0 Security 741 1.500 0
4.701 8.399 0
g) In response to an announced possible examination into to the extent in which ECN fulfils the concept of ‘entrepreneur’ within the meaning of the Turnover Tax Act, ECN is still convinced that it can fully qualify as entrepreneur. As yet no written confirmation about this assumed position has been received from the tax administration.
h) ECN has entered into a joint venture agreement with DHI Water and Environment and VanderBilt University for the development of LeachXS, a software application for reviewing the lixiviation behaviour of materials, residues and waste. Since 2008, this system has been applied in a project financed by US-DOE, while other projects have been entered into with industrial parties. On top of that a more freely accessible version (LeachXS Lite) will be developed, creating options to more specifically anticipate parties’ needs. A further expan-sion of users and applications is expected for 2009.
i) The item ‘miscellaneous’ in ‘other provisions’ includes a reserve of 830 for the financial con-sequences of the revised claims with the European Union (EU), including an estimate of the impact on projects in 2008. The revised claims for the period of 2004-2007 were filed with the EU in March 2009. As yet we have no certainty that the basic assumptions currently applied will be accepted by the European Commission.
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Bank guarantees providedAs at the balance sheet date, ECN had provided bank guarantees for an aggregate amount of 1.411 through ABN AMRO and ING. These bank guarantees have been provided prima-rily at the request of the EU for the KP6/KP7 projects.
Transactions with affiliated partiesDuring 2008, the possibility granted to NRG to conclude one or several subordinated loan(s) from ECN / ECN Nucleair B.V. to reinforce its equity and the cash flow positions was cancelled.
ECN and NRG perform work one for the other. These transactions are eliminated in the consolidated accounts and relate to services by ECN arising from a joint use of accom-modation, infrastructure (networks and telephone), security, accounting services and other services. NRG on the other hand, performs services in the area of decontamination of buildings and similar services. Fees and fixed rates are agreed per year and documented. In the financial year, the following transactions were effected between affiliated parties:
Between ECN and NRG for a total amount of 10.674 (2007: 9.629) • Transactions primarily relating to the charging-on of the joint use of infrastructure
(6.580 / 2007: 6.393), services from the E&S unit after directly placed orders (1.111/ 2007: 1.132), share in corporate staff services (1.094 / 2007: 911), share in project facilities (1.671 / 2007: 929), and orders placed directly by NRG (212 / 2007: 264).
• Transactions between ECN and WEF BV primarily relate to the costs of engaging managers for WEF and ECN and total 935 in 2008 (2007: 832).
• Transactions between ECN and SunLab relate primarily to the charging-on of the costs of joint use of infrastructure. In 2008, these costs totalled 196 (2007: 144).
• No transactions are concluded between ECN and Stichting EMVT• Transactions between ECN and Stichting Kenniscentrum Windturbine Materialen en
Constructies (WMC) primarily relate to supporting activities of management and the costs of seconding employees for specific projects and total 99 in 2008.
• Transactions between ECN and Solar Academy B.V. relate to support services for completing the fitting out of Solar Academy B.V. and amount to 47 for 2008.
Costs are charged on at the generally applicable rates for internal cost allocation within ECN.
At the end of the financial year, ECN had the following receivables from affiliated parties:between ECN and NRG: a total of 8.698 (2007: 7.198) • between ECN and WEF: a total of 113 (2007: 70).• between ECN and SunLab B.V.: a total of 51 (2007: 45).• between ECN and WMC: a total of 19 (2007: 45).• between ECN and Solar Academy B.V.: a total of 171 (2007: n.a.)
Notes to the consolidated statement of income
Operating income
Financing by the State of the Netherlands 2008 2007• Basic, Engine and Knowledge financing 13.612 13.708• Program and Cooperation financing 31.331 28.433
Total 44.943 42.141
The financing from the Ministry of Economic Affairs comprises subsidies from the Ministry of Economic Affairs, the Ministry of Housing, and the Ministry of Spatial Planning and the Environment granted in 2007. These subsidies are recognized in the financial year for which they were granted. The firm has to prove every year that the funds were spent lawfully. Based on the assessment of the respective ministries, part of the subsidies that have been granted may be deducted from future subsidies.The income received include the EZS funds received by NRG, totalling 9.362, the Knowledge and Program Financing received by ECN based on agreements made in 2005, totalling 33.182, and the funds received from the Ministry of Housing, Spatial Planning and the Environment (VROM) totalling 2.399 (2007: 2.578).
Assignments and other funds 2008 2007Third-party assignments 74.698 72.930Increase / decrease in work in progress -773 2.947 Provision for WIP 948 1.813 175 4.760Total 74.873 77.690
Third-party assignments include income from 100% third-party assignments, or the part performed by third-parties of joint assignments under partnership agreements. Third parties include the assignments commissioned by SenterNovem on behalf of the Ministry of Economic Affairs, assignments commissioned by the EU and other such assignments.
Specification of third-party assignments, including increase / decrease in work in progress, by client: 2008 2007Domestic trade and industry sector 25.587 27.758Domestic energy sector 1.533 2.567European Commission 19.601 19.520Foreign trade and industry sector 15.181 14.048Government agencies 3.922 2.564Technological institutes 1.713 1.698SenterNovem 7.336 9.535
Total 74.873 77.690
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Financial income and expenses 2008 2007
• Interest receivable and related income 3.388 3.080• Interest payable and related costs -6.400 -5.063
Total -3.012 -1.983
Interest receivable and related income 2008 2007Interest payments bonds 586 736Interest payments current account bank/giro 2.068 1.555Result on sale of bonds 0 93Other interest income 734 696
3.388 3.080
Interest payable and related costs 2008 2007Interest payable current account bank / giro 58 212Addition of interest provision for redundancy costs 11 35Addition of interest provision for radioactive waste 3.229 2.864Addition of interest provision for severance pay 114 115Addition of interest provision for long service awards 55 36Addition of interest provision Job-related Discharge Regulation 23 36Additional transitional law retirement regulation 725 712Impairment of securities 1.821 368Other interest payable 364 685
6.400 5.063
TaxesThe nominal tax rate in 2008 was 20% over profits up to 275 and 25,5% over higher profits (2007: 25,5%). The effective tax rate is 27,5% (2007: 15,0%). The difference between the nominal and effective tax burden arises from the exemption of corporate income tax applicable to ECN. The reported tax burden concerns the activities of ECN Wind Energy Facilities BV and SunLab BV.
Company balance sheet ECN – assets (x € 1.000)(before appropriation of profit) ASSETS Clarification 31-12-08 31-12-07
Fixed assetsIntangible fixed assets 257 0Tangible fixed assets 28.180 22.588Financial fixed assets:• Participations in group companies 26 10.430 10.603• Other participations 56 597• Securities 12.453 25.190• Other receivables 4.860 5.544Total financial fixed assets 27.799 41.934Total fixed assets 56.236 64.522
Current assetsWork in progress 12.204 10.987Receivables from group companies 7.302 6.398Receivables from other participations 569 495Trade debtors 7.571 6.683Inventories 233 210Other receivables and prepayments 12.019 4.433 39.898 29.206
Cash and cash equivalents 33.582 42.699
TOTAL 129.716 136.427
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Capitalised corporate productionCapitalized corporate production comprises operating expenses for work carried out by the company’s own staff and with its own operating assets, credited or debited to investments or provisions. 2008 2007Movable assets 774 323Immovable assets 686 212Provision for radioactive waste 2.303 1.476Major maintenance and other provisions 476 340
4.239 2.351
Other operating incomeOther operating income includes the income from the lease of the Molybdeen facility. This item progresses parallel with the depreciation on this facility in accordance with ECN’s accounting method. The difference between the charges to Covidien B.V. based on an annuities calculation (146), and the depreciation determined according to the straight-line method (19), is reported under financial fixed assets. This item also includes the proceeds of WEF from income received from the lease of prototypes and the re-delivery of energy to the public grid of Eneco plus the MEP subsidy via Enerq.
2008 2007• Royalties 1.102 743• Energy supply to Eneco and Enerq 4.696 5.136• Lease of prototypes 716 614• Rental income from lease contract with Covidien 147 146• Final settlement Ministry of Economic Affairs through 2005 0 1.992• Other 1.325 1.170
7.986 9.801
Operating expenses
Wages and salaries, social security and pension charges 2008 2007 1. Permanent employment
contract 46.743 44.4602. Other personnel charges 11.507 10.741 58.250 55.2013. Social security contributions 3.305 2.0614. Pension charges 7.294 11.316
Total 68.849 68.578 Average number of employees (FTEs): 2008 2007• Permanent employment contracts 747,7 727,7• Temporary employment contracts
(including doctoral students) 155,8 124,6
Financial year total average 903,5 852,3
The figures reported above do not include temporary employees through staffing agencies.
Depreciation of tangible fixed assetsThis item is specified as follows: 2008 2007• Buildings, installations, fixtures 2.893 2.570 and site facilities• Instruments and other inventory 2.267 1.812
Total 5.160 4.382
Other operating expensesThis comprises: 2008 2007• Projects 28.669 30.391• Cost centers 18.116 14.556• Staffing agency workers and seconded employees 4.106 3.979• Movement and release bad debt provision -35 183• Addition provision for major maintenance 1.541 1.200• Movement provision for radioactive waste 1.844 2.665• Release remaining provisions -596 5
53.645 52.979Specification audit fee:This item can be specified as follows: 2008 2007• Financial statement audit 142 236• Other audit engagements 257 177
399 413
During 2008, ECN faced an increase in audit fee due to an increase in the number of project audits (recalculation KP6 EU projects).
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Notes to the company financial statements of ECNThe statutory financial statements have been prepared in accordance with the provisions in Title 9, Book 2, of the Netherlands Civil Code.
Accounting principlesThe statutory financial statements have been prepared based on the accounting princi-ples disclosed in the notes to the consolidated financial statements.
Participations in group companies Movements in participations are as follows: 2008 2007 Balance as at 1 January 10.603 8.325Add : Income from participations 2.244 3.315Less : Dividends / payments received -2.417 -1.037
Balance as at 31 December 10.430 10.603
Equity
Signing of the financial statements 2008
Petten, 28 April 2009
Supervisory Board: Stichting Energieonderzoek Centrum Nederland
Prof. dr. R.F.M. Lubbers Dr. A.B.M. Hoff(Chairman of the Supervisory Board) (Chairman of the Board of Directors of ECN))
H.A.D. van den BoogaardDr. C.P. JongenburgerProf. dr. W.C. TurkenburgDr. ir. A. W. VeenmanDrs. G.H.B. Verberg
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Company balance sheet ECN – liabilities (x € 1.000)(before appropriation of profit) EQUITY AND LIABILITIES Clarification 31-12-08 31-12-07
EQUITY 27 Foundation capital 45 45Statutory reserves 135 561Other reserves 11.146 8.206Retained earnings 0 2.514 11.326 11.326
Provisions Provision for redundancy costs 130 390Provision for radioactive waste 61.854 60.074Provision for pension indexation 9.529 10.644Provision for compensation on commencement of retirement 2.266 2.419Provision for Job-Related Discharge Regulation (RBF) 349 458Provision for long service awards 664 751Provision for major maintenance on buildings 2.815 3.258Provision for work in progress 443 559Other provisions 924 949 78.974 79.502
Current liabilitiesAccounts payable 6.120 4.994Debts to group companies 1.219 1.748Taxes and social security contributions 1.826 1.678Prepayments from third parties 15.196 15.728Pension liabilities 3.766 11.325Other social security charges and personnel costs 5.324 5.234Other liabilities and accrued expenses 3.635 3.662 37.086 44.369
Debts to credit institutions 2.330 1.230
TOTAL 129.716 136.427
Company statement of income ECN (x € 1.000)
2008 2007 Operating income:Income• Funds from the State of the Netherlands 35.581 32.805• Assignments and other funds 31.862 29.655• Increase / decrease in work in progress 1.217 1.667• Income at group companies 9.387 9.008
78.047 73.135
Capitalised corporate production 4.064 2.350Other operating income 1.401 2.975
Total operating income 83.512 78.460
Operating expenses:Personnel costs: Wages 38.322 35.913 Social security charges 2.117 1.240 Pension charges 4.853 7.718Depreciation 3.800 3.555Other operating expenses 29.614 25.942Outsourcing to group companies 2.418 1.597
Total operating expenses 81.124 75.965
Operating result 2.388 2.495
Financial income and expenses -4.073 -2.368
Profit on ordinary operations before taxation -1.685 127
Taxation on result from ordinary operations 0 0
Profit on ordinary operations after taxation -1.685 127
Income from participations 1.685 2.387
Net result 0 2.514
Foundation Statutory Other Retained Total capital reserves reserves earnings equityBalance as at 1 January 2007 45 779 8.933 -945 8.812Allocation of 2006 result 0 0 -945 945 0Result after taxation 2007 0 0 0 2.514 2.514Composition of statutory reserve for participations 0 -218 218 0 0Balance as at 31 December 2007 45 561 8.206 2.514 11.326
Allocation of 2007 result 0 0 2.514 -2.514 0Composition of statutory reserve for participations 0 -426 426 0 0Result after taxation 2008 0 0 0 0 0Balance as at 31 December 2008 45 135 11.146 0 11.326
The statutory reserve is a reserve for ‘unallocated result of participations’.
Remuneration of (former) directors and Supervisory Board members 2008 2007Remuneration of directors, including pension charges 321 316Remuneration of Supervisory Board members 59 65
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COLOPHONPublished by: Energy Research Centre of the Netherlands
Text: Meno Jelgersma, Monique Tesselaar, Frans Stravers
Editors: Frans Stravers, Nico Wittebrood
Artwork & Graphic Design: Made in Haarlem
Printed by: RICOH
Portrait Photography: René Koster
Pictures:Stock.xchng, iStock, ECN-archive, Annebeth Leurs,Florentine de Maar
Other information
Auditor’s reportReference is made to the auditor’s report included on the right side.
Provisions in the Articles of Association regarding allocation of the resultAs generating a profit is not the primary aim of the Stichting Energieonderzoek Centrum Nederland, no provisions on profit appropriation have been included in the Articles of Association. The result realised in any financial year is therefore added to the other reser-ves of the Stichting.
Allocation of the result for the financial year 2007The 2007 financial statements were adopted by the Supervisory Board on 18 March 2008. The Supervisory Board determined the allocation of the result in accordance with the proposal.
Allocation of the result for the financial year 2008The result for the financial year 2008 is nil.
Post balance sheet eventsNo relevant material post balance sheet events have occurred.
Auditor’s report
Report on the financial statementsWe have audited the accompanying financial statements 2008 of Stichting Energieonderzoek Centrum Nederland, Petten, which comprise the consolidated and company balance sheet as at 31 December 2008, the consolidated and company profit and loss account for the year then ended and the notes.
Management’s responsibilityManagement is responsible for the preparation and fair presentation of the financial state-ments and for the preparation of the Director’s report, both in accordance with Part 9 of Book 2 of the Netherlands Civil Code. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Dutch law. This law requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and dis-closures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonable-ness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the financial statements give a true and fair view of the financial position of Stichting Energieonderzoek Centrum Nederland as at 31 December 2008 and of its result for the year then ended in accordance with Part 9 of Book 2 of the Netherlands Civil Code.
Report on other legal and regulatory requirements
Pursuant to the legal requirement under 2:393 sub 5 part f of the Netherlands Civil Code, we report, to the extent of our competence, that the Director’s report is consistent with the financial statements as required by 2:391 sub 4 of the Netherlands Civil Code.
Utrecht, the Netherlands, 28 April 2009, Deloitte Accountants B.V.drs. A.J. Heitink RA
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