1. Sector Overview

Overview
While at an early stage, there is an increasing investment in the development of ocean renewable energy technologies - wave, tidal and offshore wind. Norway is also alone in the development of osmotic power, which harnesses the power released in the mixing of salt and fresh water. While this is a technology that is shore-based, it will also be covered in this report.

In 2007 Norway implements EU Directive 2001/77/EC on increasing the electricity production from renewable resources. The objective of the Directive is to increase the use of renewable electricity to 22.1% of the EU member countries’ total electricity use in 2010, from 13.9% in 1997.

Norway is also known as a major oil and gas supplier, ranking as the second largest energy supplier to Europe. Considerable investment in improving recovery rates, extending field lives and improved drilling technologies have been prime focuses of research activity.

The move to consider offshore renewable energy production and technology development in Norway has been driven by several factors. Firstly, the energy resources recoverable from offshore Norway are considerable, whether through wave, tidal or offshore wind technologies. Secondly, there is a political drive to look at technology development for renewable energies and the possibility to link this to Norwegian expertise in offshore structures and operations is considerable. Thirdly, with a drive to reduce emissions from oil installations on the Norwegian Continental Shelf, ocean renewable energies may offer a competitive alternative to the concept of producing power onshore and cabling it to oil rigs (potential power shortages in mid-Norway make it necessary to build additional zero-emission power generation capacity). Lastly, Norway is committed to meeting GHG emission targets of 30% reduction from 1990 levels by 2020.

Studies conducted by both NVE and SWECO Grøner indicate that offshore renewable energy resources greatly exceed Norway’s total energy consumption. Estimates of available wind power close to costal areas are in the range 85-114 TWh total capacity, whereas estimates of potential wind energy resources in deeper water (60m-300m) are 12970TWh. Even if a 1% recoverable figure is applied, the potential for more consistent wind conditions and stronger winds makes this attractive.

Similarly estimates of wave energy resources are 600TWh make this an attractive energy source, with approximately 12-30TWh exploitable. For tidal energy the potential is much lower, with a potential reserve of approximately 1TWh.

Companies such StatoilHydro and Statkraft have been involved in a number of the developed technologies - both companies are known for their innovation cultures. Strong research environments have also greatly influenced development, with SINTEF, NTNU and IFE central in technology development.

2. Market and Sector Challenges (Strengths and Weaknesses)

Much of the technology for wave and tidal power is still at demonstration stage, while some is still at the concept development stage. Wind energy technologies have been developed onshore and moved to shallow water offshore environments without much adaptation. Technology is proven, although efficiencies of the wind farms remain relatively low.

Europe, led by German companies, have developed substantial wind farms offshore with current installed capacity in Europe of 1050 MW and a further 1500 MW due for completion by 2009. The European Wind Energy Association (EWEA) stated ambition is 150GW offshore wind generation by 2030, and it is seen as essential to reaching Germany’s climate targets that these goals be achieved. Germany, already known for its substantial onshore wind energy generation capacity is looking to mirror generation levels offshore.

Offshore wind energy in Scotland is being pioneered by a Canadian company, Talisman Energy. The Beatrice Wind Farm is the flagship project for offshore wind energy development in Scotland, the UK and Europe. The €41 million2 project aims to install two demonstrator wind turbines adjacent to the Beatrice oil field, 25 km off the east coast of Scotland. http://www.beatricewind.co.uk/

The move to offshore environments presents interesting possibilities. The visual impact of building wind farms can be reduced and the wind regimes offshore are much stronger. The theoretical energy resources are also considerable, and far exceed Norway’s domestic energy consumption.

However, challenges are generated in developing structures to cope with 30m waves, anchoring systems for deep water (80m-300m+), installation, cable infrastructure and maintenance.

Government policies and support for introducing wind energy and ocean renewable projects are too low. Even for onshore projects, subsidy rates are considered too low by wind energy developers. When the increased cost of introducing new technology to an environment where both installation and maintenance costs are much higher, the lack of subsidies at present will be a barrier to developing even demonstration projects.

Energi21 will submit their report on the potential for ocean renewable energy technologies on 5 February 2008, and it is estimated that a revised support regime may be proposed by October 2008. This government appointed committee has already sent out a draft report for comment by industry, identifying solar energy, offshore wind energy and carbon capture and storage as areas where world-leading clusters can be developed.

3. Sub-Sector Identification

Wave
One of the prime technologies has been developed by Fred Olsen Renewables and is called the FoBox.  This will be one of the technologies trialed at the Marine Energy Test Centre (METSenter) being planned at Karmøy on Norway’s west coast.

Other Norwegian developed technologies include WAVEenergy AS and Pelagic Power. WAVEenergy AS was founded in 2004 to develop the Seawave Slot-Cone generator (SSG) concept.  The SSG is a wave energy converter based on the wave overtopping principle utilizing a total of three reservoirs placed on top of each other, in which the potential energy of the incoming wave will be stored. The water captured in the reservoirs will then run through the multi-stage turbine for electricity production.

Tidal
Tidal energy creates challenges in both changing tide directions and the irregular current flows. Different installation designs are being developed, with designs varying greatly. Companies developing tidal power in Norway include Hammerfest Strøm, Hydra Tidal (Statkraft is one of the major share holders) and Tidal Sail. Hammerfest Strøm has created a 300 kW tidal power prototype that has performed for three years without failure or technical problems in a 50-metre-deep location outside of Hammerfest.

Offshore Wind
This is one area in which technology developed from the offshore oil and gas industry for deepwater exploration has been applied to renewable energy development. Two main solutions to deep water anchoring have been proposed: a tension leg system and floating structure with seabed tethering. The former solution has been selected by SWAY, which also uses a downwind turbine - such that the blades are mounted behind the nacelle. This has been done to cope with the stronger winds found in offshore environments, with the design providing stability in strong winds. The first prototype is under development with estimated development costs of NOK 200 million.

Offshore wind developments have been limited to shallow waters, but this has led to corrosion issues where steel structures have been employed. The move to deep water introduces new challenges, but the link to the offshore oil and gas technology industry is clearly demonstrated by AkerKværner’s move into the design and manufacture of support structures for the seabed installation of wind turbines in Germany. Water depths for these projects are typically 30-45m.

Osmotic Power
Statkraft has developed this technology over the last 10 years. The concept was developed by the inventor of membrane desalination, but instead of applying pressure to a membrane to extract clean water, this process looks to nature to create electricity. The development of semi-permeable membranes for this application allow fresh water to pass through to a salt water solution creating a pressure. This pressure difference is used to generate electricity. It is estimated that 5 Watts per sq.m can be generated, and cost estimate would make this one of the most competitive renewable energy forms.

Site locations are suited to river estuaries where there are readily available sources of fresh and salt water. Water filtration is applied to reduce degradation of membranes, making the brackish water released to the sea cleaner than the fresh water entering the plant. Membranes are estimated to last from 6-8 years. Installation of the first pilot plant is planned just outside Oslo.

Canadian Government & Industry Contacts

Embassy of Canada in Norway
E-mail: john.winterbourne@international.gc.ca
Internet: http://www.canada.no

Excerpt from: Sector Market Ocean Renewable Energy - Norway, Foreign Affairs and International Trade Canada, November 2007.

The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information.