1. TaiwansGreenEnergyIndustry Status,StrengthandOpportunities AlexTongVicePresidentandGeneralDirectorGreenEnergyandEnvironmentResearchLaboratoriesIndustrialTechnologyResearchInstitute October31,2012Copyright 2012 ITRI 1

2. IndustrialTechnologyResearch Institute(ITRI) AnonprofitR&Dinstitutionfoundedin1973. Amultidisciplinaryresearchcenterwithsixcorelaboratories,eightfocus/linkagecenters,severalleadinglabsandvariousbusinessdevelopmentunits. PlayingavitalroleintransformingTaiwanseconomyfromalaborintensiveindustrytoahightechindustry.Copyright 2012 ITRI 2 3. ITRI Contributes to Industry Greatly Unlike any U.S. agency, ITRI has thesole mission of developingtechnology for commercialization purposes. In 2004, it had a budget of$579 million, had spun off morethan 100 companies, and had sent17,000 of its former employees (trained in science and technology)into the Taiwanese workforce.(from p. 7 of the PCAST report)ITRI and Fraunhofer are the only two R&Dinstitutes high-lighted in the report!!!Copyright 2012 ITRI 3 4. Outline ChallengesandTargetsofGreenEnergy CurrentStatusofGreenEnergyIndustry OpportunitiesforCooperationCopyright 2012 ITRI 4 5. ChallengesandTargetsofGreenEnergyCopyright 2012 ITRI 5 6. Grand Challenges for TaiwanAdverseImpactsonTaiwan 99%energysupplyreliesonimports 65%foodimportation Waterresourceshortage Seriousclimatechangethreats Disastermitigation Lowcarbonsociety TemperatureriseinTaiwanwasplanninginurgent1.43Cinthelastcentury,almost twicetheglobalaverage(about0.6C)needSource:EnvironmentalProtectionAdministration,Taiwan,2009Copyright 2012 ITRI 6 7. CO2 Emissions in Taiwan Taiwanreleased240milliontonsofCO2 in2009 CO2 emissionhasgrown1.2%annuallysinceyear2000,slowerthanannualeconomicgrowthrateof3.1% Taiwanranks#6globallybyIMDintermsofgreentechcompetitivenessCO2 Emission and GDP of Taiwan (2009) CO2 Intensity in Taiwan (2009)unitkg CO2/1000 NTDunit1000 Ton CO2unitmillion NTD300,000 15,000,000CO2 Intensity CO2 EmissionGDP 22.0250,000 12,500,000 20.0 18.0200,000 10,000,000 16.0 14.0150,000 7,500,000 12.0100,000 5,000,00010.02000 2001 2002 2003 2004 2005 2006 2007 2008 20092000 2001 2002 2003 2004 2005 2006 2007 2008 2009SourceBureauofEnergy,MonthlyEnergyStatistic2010.Copyright 2012 ITRI 7 8. GreenNewDealinTaiwan Consensusonalowcarbonsociety CO2emissionreductiontothe2000levelby2025,andtohalfofthe2000levelby2050 Promotionoflowcarbonpolicymeasures Enhancereductionmeasures(e.g.increaseofenergyefficiencyandsaving)inindustrial,residential&commercialandtransportationsectors InitiatetheNationalEnergyR&DProgramtoexplorenewtechnologiesandinnovations LaunchGreenEnergyIndustryProgramforimplementationandvaluecreation PromulgateRenewableEnergyDevelopmentActinJuly2009Copyright 2012 ITRI 8 9. DawningGreenEnergyIndustryProgramFiveStrategies 2015TargetValue1. TechnologyBreakthrough 37.4billionUSD2. CriticalInvestment3. EnvironmentInfrastructure4. ExportMarketsExpansion2011ProductionValue5. DomesticMarketGrowth13.4billionUSD Main Industry2009ProductionValue PV,LEDlighting 6.5billionUSDNextWave Worldstoptwoplayers Expanddomestic industry demonstration2008ProductionValueWind,ElectricVehicle,EICT 4.7billionUSDPotential Acceleratetobecomeatrilliondollarindustry LowcarbonsocietydemositeIndustry Biomass,Hydrogen&FuelCell Strengthenresearchanddevelopment Enhancepreproductionandsystemverification Source:BOE(2012/01)Copyright 2012 ITRI 9 10. CurrentStatusofGreenEnergyIndustryCopyright 2012 ITRI 10 11. Potential Green Energy Industries in Taiwan RenewableEnergyEnergyConservation IndustryIndustry PV LEDLighting WindPower SmartGreenBuilding Bioenergy EV/LEV CCS SmartGrids EnergyStorageSystem EnergysavingServices H2 &FuelcellCopyright 2012 ITRI 11 12. TaiwansSolarPhotovoltaicIndustry Taiwanranks#2inPVcellproductionwith4.3GWproductionand12%growthratein2011 BOElaunchedtheMillionRooftopPVsPromotionOfficeinMarchtoincreasedomesticPVmarket TaiwanhasacompletePVindustrysupplychain.Developing highefficiency,lowcosttechnologyisthekeystrategyto Increaseourcompetitiveness 612 5417 100CompaniesCompanies CompaniesCompanies Companies SourceGEL,ITRI(2012/4)Copyright 2012 ITRI 12 13. CostperformanceLeaderinPVindustry Nonvacuum,printedCIGSSolarCellUSD0.4/Wp Easyforcompositioncontrol Lowequipmentinvestment 95%(nonvacuum)vs30%(vacuum) materialsutilization Leadingnonvacuumprocessandefficiency PrintedCIGS+Cdfreebuffer 14.2%efficiency(5cm*5cm) Flexiblemodule Completed!Completed!Developing! PrintedCIGS CdfreeIn(Ga)freeCopyright 2012 ITRI 13 14. TaiwansWindPowerIndustry AccumulatedinstallationofonshorewindpowersysteminTaiwanhasreached563.75MWbetween2000~2011. Totaloutputvaluesofwindpowerproductsin2011cametoaroundNTD6.6billionwith80%wenttocomponents,15%tomaterialsand5%totheremainingsystems. BOElaunchedtheThousandWindTurbinesPromotionOfficeinMarchtoincreasedomesticwindpowermarket Thelargescaledevelopmentofoffshorewindpoweristheglobaltrend.WindPowerIndustryChain AccumulatedInstallation(MW)Equipment Service System600 (55) (23) (6)500400Material WindFarm Maintenance300 operation200Component/WindsimulationSubsystemandassessment1000Turbine 2004 2005 2006 2007 2008 2009 2010 2011systemSourceGEL,ITRI(2012/3)Copyright 2012 ITRI 14 15. OffshoreWindPowerPotentialinTaiwan Shallowwater(520m) Area:177,920ha Capacity:9GW 2.7GW inPhase1(30%)9GW Mediumdeepwater(2050m) Area:654,700ha Capacity:48GW 6.3GW inPhase2(13%) Deepwater(50100m) Area:1,195,400ha Capacity:90GW 12GW optional(13%)Source: ITRI/GEL(2011/04)Estimatedwithin12milewithawindfarmlayoutin4D10D(D:Rotordia.,100m),turbinesizeis3MW.Copyright 2012 ITRI 15 16. CurrentR&DforOffshoreWind Technologychallenge: costofenergyNTD4/kWh LowerinitialcapitalcostLightertowerheadmass Noveldrivetraindesign:HTSG+Directdrive Hybridblade:carbon/glassfiberhybriddesignfortyphoonresistant LowerO&Mcost Higherreliabilityandavailability Intelligentmaintenance:faultprognosis,healthmonitoring,Source:USDOE(DepartmentofEnergy)ANationalOffshoreWindStrategy:CreatinganOffshorepreventivemaintenanceWindEnergyIndustryintheUnitedStates.February2011 Typhoonresistantdesign:typhoonloadspectrum,fatigueresistantbladeCopyright 2012 ITRI 16 17. WhyBioButanol? WorldLeading3rdGenerationBiofuelTechnology Globalbioethanolproduction:86.5billionliter(2010);134 billionliter(2020)* Superiorfuelpropertiestoethanol Comparedtoethanol,butanolwithhigherenergycontent,lessevaporative,less corrosive,higherhydrophobic Challenges LowproductivityofbiobutanolandfossilbutanolisnotsustainableEthanolButanolGasoline MolecularformulaC2H5OH C4H9OH HeatingValue(kcal/L)5,6006,600 7,700 Airtofuelratio 91112 1215 Rvp (psi@100F) 2 0.33 4.5 *Source:OECDandFAOSecretariats,2011Copyright 2012 ITRI 17 18. ITRIs BiobutanolTechnology Innovativepathwayresults in50%increaseinfeedstockutilization EthanoliscalledHalfInnovativeTraditional TraditionalPathway Butanol PathwayEthanol PathwayBurnFuelsince1/3ofGlucosefeedstockcarbonsturn PyruvatetoCO2 during C6H12O6H2C6H12O6 2 CO2fermentationAcetateAcetyl-CoA Ethanol 2 CO2 ITRIsCarbonLossFree Acetoacetyl-CoA AcetonePathway(gamechanger)CO2 1.5 Butanol 2 Ethanol Theoreticalcarbon Butyrate Butryl-CoA Butanol yieldis100%(50%C6 1.5 C4 C6 C4 + 2 CO2C6 2 C2 + 2 CO2 highercarbon utilization)Carbon Yield (%)Theoretical Microorganism Providesbutanol aCurrent maximum superiorfuelITRIs Process83100AcclimatizedBacteriaLiterature*45-5766.7GMO (E. coli)Ethanol Process 6466.7YeastCopyright 2012 ITRI 18 19. BiobutanolBusinessModel CreatingadvantagesofcarboncreditbusinessbyInnovativetechnologyAdvantagesofIndustrial Production Currentexperimentalresultsindicated acarbonyieldof83%,improvesthefeedstockutilizationsignificantly ExistingethanolprocesscanbeswitchedtothenewprocessbyminormodificationBusinessModelTechnologyOverseas LicensedInvestment ProductionITRI Joint Venture Major Alcohol CompanyRoyaltyProducers Local (Carbon credit or(ITRI DNA) Overseas JV Butanol) IndustryCapital New ButanolFacilitiesBenefit Basedonapenetrationrateofexistingethanolproductionof3%perannumandtakeover30%shareofnewinstalledcapacity,theincomein2025willbe2.88billionlitersofgasolineequivalent,~15%oftransportationfuelinTaiwanCopyright 2012 ITRI 19 20. CarbonStoragePotentialinTaiwan Taoyuan Saline Aquifer EstimatedCO2 storagecapacityinYHS Gas Field (CPC) thewesternpartofTaiwanTCS Gas Field (CPC) CB Industrial Park (TPC) Onshoreoilandgasstructures:2,800 Potential demonstration sites for CO2 storage Mtons Coastalandoffshoredeepsaline aquifers:9,000~68,000MtonsMostpowerplantsandindustrialparksarelocatedinthewesternpartofTaiwan,wheresuitableenhancedgasrecovery(EGR),sedimentarybasinsandrockformationsforCO2storageareabundant.Copyright 2012 ITRI 20 21. CarbonCaptureBusinessModel CalciumloopingbyCementIndustryLeadingbusinessmodelforscaleupandcommercialization Innovativebusinessmodelandbenefit Engagingcementindustry(1.9MW pilot) forsynergy Zeroadsorbent costandlow storage energyconsumptionincarbon capturereducethecapturecost formUS$45toUS$26/tCO2 28MtsCO2 reductionpotentialin2025 TargetMarketITRI CoretechnologyIP PatentedtechnologyoflowenergyBPPowerplant calciumloopingcycleforpostPowerIndustry Cement EngineeringCementindustry Company combustioncarboncaptureIndustry Petrochemical, Steelindustry Advancedoxyfuelcalcination technology CCS Business ModelCopyright 2012 ITRI 21 22. AdvancedR&DonCCSSeekingLeadingedgeTechnologies MetalOrganicFramework(MOF)asabsorbent MOFsynthesisandmicrostructurecontrol MOFcharacterizationandperformanceevaluation 600kWMOFbasedtestbedsetup CO2 reuse CO2 asfeedstockforfertilizerandchemicals CO2 asfeedstockforelectricfuelsynthesis CO2 sequestration Earthquakecausedleakageprevention AquiferforCO2 sequestrationMOF:MetalorganicFrameworksCopyright 2012 ITRI 22 23. TaiwansLEDLightingIndustry Theworldsthirdlargestpackagingrevenue,thesecondlargestvalueoftheproduction TheproductionvalueofTaiwansLEDindustrywasNTD134.6billion(US$4.5billion)in2011,andexpectedtoreachNTD200billionthisyear(US$6.7billion), abouta50percentincrease LEDlightingislikelytoaccountfor30percentoftheglobalmarketby2015,andLEDlightsourcesandfixturecostsarethekey. HBLEDComponentsupply LEDLightingIndustryChain Korea Taiwan/othersin NorthAmerica JapanChinaAsia /Europe Around40Around90 Around600 CompaniesCompanies Companies Source:SEMITaiwanCopyright 2012 ITRI 23 24. TechnologiesforSmartGreenBuildingIntegrationofInsulation, HighefficiencyPV lighting,andHVACGridconnectivitySmartEnergyManagement SmartMeterEnergyStorage S/W&ToolsforSystemSimulation WirelessLowEFacilities& LEDLightingSystemMonitoringManagementSystemIntegration PlatformCopyright 2012 ITRI 24 25. OpportunitiesforCooperationCopyright 2012 ITRI 25 26. CooperationbetweenTaiwanandEurope TaiwansStrengthEuropesStrength Dynamicsmallandmediumenterprises EuropeanUnion(EU)Unityanddiversity Stronghightechindustries& Institutesandbroadbanduniversitiesforpenetration innovationleadership WelldevelopedPV LargesystemandLEDmanufacturesintegrationexperiences LeveragebothstrengthstocreateawinwinsituationCopyright 2012 ITRI 26 27. BusinessOpportunities PVTaiwanEurope TaiwansPVindustryhasreachedscaleofeconomics Excellentmanufacturingcapabilityandhighproductquality Completeup,mid anddownstreamPVindustrysupplychain GovernmentspolicyinpromotingPVindustries ProposedCooperationModel TechnologyTransfer NonvacuumCdfreeCIGStechnology Products/process Highefficiencysolarmodule,systemcoproductionSaddleshapedsolarpanelroofof2009WorldGamesStadium,Kaohsiung,Taiwan(1000kW)Copyright 2012 ITRI 27 28. ExistingCooperationPrograms TheEnergyResearchCentreoftheNetherlands(ECN), Netherlands WindPower,CarbonCaptureandStorage(CCS),Bioenergy DutchOrganizationforAppliedScientificResearch(TNO), Netherlands CarbonCaptureandStorage(CCS) InteruniversityMicroelectronicsCentre(IMEC),Belgium Photovoltaics(PV)Copyright 2012 ITRI 28 29. Thankyouhttp://www.flickr.com/photos/hanksun88/6608214497/Copyright 2012 ITRI 29