My In-Company Project with KIC InnoEnergy Iberia about the use of policies such as Innovative Procurement Policies to promote the use of Clean Coal Technologies in Spain.

1. Promoting Innovation
through Policies:
The Clean Coal Tech
sector in Spain
In-Company Project
Final Presentation
ESADE Business School
November 7, 2013 - Barcelona, Spain

2. Agenda
Intro
• The Company
• World Energy Outlook
• Project Background
3 min.
Methodology 1 min.
Findings 7 min.
Recommendations 7 min.
Conclusion 2 min.
20 min.

3. The Company
KIC InnoEnergy
“Promote innovation in the field of
sustainable energy”

4. World Energy Outlook
40% of energy demand growth covered by Coal

5. Project Background
Innovation Drivers
Value Chain
Innovative
Procurement
Policy
Policy
Tech.
Market

6. Methodology
Interview Insights
Qualitative InterviewsSecondary Sources
Government Industry
Stakeholders Analysis

7. 8 Findings
9 Interview Insights
4 Recommendations

8. COAL IS VILIFIED
Finding #1

9. “Coal is Dirty!”

10. Coal has come a long way
• New technology  safer, cleaner
• Environmentally friendly practices
Coal’s bad stigma is outdated

11. THE RENEWABLES
HYPE
Finding #2

12. A good start, but there’s still work to do
• Ballot-Friendly Topic
• Carbon-Unfriendly
World
CO2
Emissions

13. Energy Mix by World Region
Renewables only account for 4.7% of world energy

14. COAL: A PARTNER IN
ENERGY SECURITY
Finding #3

15. Europe is a net coal-importing region
Spain imports coal despite available local deposits
MtCO2 / year
Top 3 Coal
Exporters to
Spain

16. Price of Energy Production: Coal vs. Gas
Coal price: Cheaper and more Stable

17. CLEAN COAL TECH:
NO CLEAR WINNER YET
Finding #4

18. Main equipment at a Power Plant
Many options for retrofitting and modernizing
NOx treatment
still expensive

19. HELE Technologies
High-Efficiency and Low-Emissions is possible now
Zero-Emissions,
“not viable”.
Partial capture,
“OK”
CCS Efficiency Penalty:
5 - 10%

20. NO SPANISH
TECHNOLOGY PLAYERS
Finding #5

21. Major Clean Coal Technology Players
Few Spanish High-Tech firms
Multinationals are
preferred because they
can handle financial risk
Unwilling to share
name of local
partners

22. POLICY
BENCHMARKING:
MODERNIZE PLANTS
AND INCREASE R&D
FUNDING
Finding #6

23. 6 Trends in Clean Coal Policy
Power Plants: Build Big and use the Latest Technology
Clean Coal
Policy
Trends
Invest more in
HELE
technologies
R&D projects
Invest more to
demonstrate
CCS projects
New power
plants should
have the latest
technology
Favour the
instalation of
large capacity
power plants
Reduce
production
from small,
old, inefficient
power plants
Put market
incentives in
place to create
the desired
actions

24. GOVERNMENT
FUNDING:
CLEAN COAL IS LOST
IN THE SHUFFLE
Finding #7

25. MINETUR Aid Programs 2008-2011
Clean Coal barely makes an appearance

26. CDTI Approved Projects 2010-2013
• 2,799 approved projects analyzed
• Only 6 related to Clean Coal (<0.3%)
Concerns exist about the process to
certify a purchase as “innovative”
Little Innovative Procurement Aid for Clean Coal

27. PLAN NACIONAL DEL
CARBÓN:
ALLEVIATING THE
SYMPTOMS, NOT
CURING THE CAUSE
Finding #8

28. Plan Nacional del Carbón Aid
Less money for the same things
Doubts about how to
“enforce” innovative
procurement

29. Results so far: Nothing to smile about
The Spanish Coal Sector is slowly dying
Government must act
swiftly if they wish to
influence companies
decisions

30. SPECIFIC AID
PROGRAMS FOR
CLEAN COAL TECH
Recommendation #1

31. Leveling the playing field for Coal
• Implement Communication campaigns to
inform the public of the benefits and role of
Coal (Industry & Government)
Increase aid for Clean Coal to reflect its true role
Require companies to specify R&D
requirements with time in advance

32. INNOVATION MUST
TAKE PLACE IN THE
ENTIRE VALUE CHAIN
Recommendation #2

33. Coal Sector Value Chain Innovation
Many improvement options lay outside generation

34. ADD A 4TH “20” TO THE
20/20/20 INITIATIVE:
COST
Recommendation #3

35. Reduce Energy Cost by 20%
• Renewables are still more expensive
• Coal has a strong cost incentive
If Energy Cost is given higher priority, Coal will help
Current initiatives leave out
cost from the equation
Emissions by 20%
Renewables to 20%
Energy Efficiency by 20%
Current
20/20/20
Initiative

36. TRANSITION
TOWARDS
ALTERNATIVE USES
FOR COAL
Recommendation #4

37. Coal as a transition source of Energy

38. Emerging Technologies
New Technologies allow non-traditional solutions
CO2-to-Plastics
CO2 capture in
Concrete
Coal-to-Liquids

39. CONCLUSION
Findings & Recommendations

40. Coal is not going anywhere

41. A Change in Paradigm
Redefine the problem. It’s not Coal
 Shut down inefficient
plants
 Increase R&D
 HELE Technologies
 CCS Projects
 Alternatives uses of Coal
 CO2-to-Products

42. Summary of Recommendations
1. Create specific aid programs for Clean Coal
2. Innovate in the entire Clean Coal Value Chain
3. Add a 4th "20" to the 20/20/20 initiative
4. Transition towards alternative uses of coal

43. Q&A
Thank you
Special thanks to: