CLEEN Annual Report 2013 by CLEEN Ltd

CLEEN ANNUAL REPORT 2013

C L E E N CLUSTER FOR ENERGY AND ENVIRONMENT

CLEEN Annual Report 2013

Report scope

Index

This report is intended for all stakeholders who have an interest in CLEEN Limited (Oy) operations and the drivers behind. The report reviews the year 2013; the fifth operational year of CLEEN Ltd. It focuses on the current status and future plans of the operational principles, research and development activities, as well as communications and stakeholder relationships. Due to the nature of the company only minor emphasis is put on the financial analysis. This annual report is not the Annual Report (Toimintakertomus) pursuant to the Finnish Limited Liability Companies Act (Osakeyhtiรถlaki 624/2006).

Introducing CLEEN

Research Programs

ceo review

research programs

cleen in brief

best

shareholders

ccsp

board of directors

desy

efeu

fcep

Corporate Governance

operation principles

mmea

programs & processes

sgem

r&d council

r&d council members

Network Activities & Communication

management

selected activities

SRA development process

stakeholders

SRA implementation model

communications

science council & scientific advisory boards

Financials

research: portfolio & overview

program portfolio status Q1/2014

research

income statement

balance statement

contact information

C L E E N 9

CLEEN

I N T RO DU C I N G

I N T R O D U C I N G

INTRODUCING CLEEN

CEO review

Year of the Horse, 2014, will be the year of change for CLEEN Ltd. During 2013, plans were made and set for internationalizing the CLEEN open innovation platform, to have a significantly more ambitious target setting, as well as the growth and renewal of industries. These three elements comprising CLEEN 2.0 have been implemented by initiating publicprivate partnership based cooperation with Chinese and Indian industrial and research partners and by launching the target-oriented Strategic Research Agenda (SRA) with corresponding SRA Project Portfolio development. At the same time, the firstgeneration SRA with related research programs are entering their final phase. The Future Combustion Engine Power Plants (FCEP) program is paving the way by turning off its engines in Q1/2014. On the other hand, the last first-generation thematic research program consortium focusing on Material Value Chains (ARVI) is holding its horses to tackle resource efficiency while waiting for the public funding decision. During 2013, the first-generation CLEEN platform for open innovation-based public-private partnership was running at full speed.

Besides their drive and enormous resources, the strong and uniform faith of their governments, businesses and academia to increase productivity by combining the R&D&I demands of various industries, scientific disciplines and societal needs is enviable. Thus, it has been a privilege and pleasure to present the research and operational principles of CLEEN to the highest officials of the Kazakhstan government, the Shenzhen and Binhai New Area Science and Technology Commissions, as well as to the board of the largest utility company in India, to name just a few. Based on the feedback, we are on the right track, but we have to move much faster and be more agile to maintain the edge. The first action to implement CLEEN 2.0 is to export the CLEEN platform to emerging markets in cooperation with INSIGMA Group Co. Ltd (Hangzhou) and the Danish Technology Institute. The mutual aim for 2014 is to establish a Sino-Nordic Cleantech Innovation Institute in Tianjin Binhai New Area. From our point of view, it is based on the encouraging Sino-Finnish cooperation in the MMEA program, which was initiated by our partners in Green China Lab (Shenzhen) and GreenNet Finland. The mission of the Cleantech Innovation Institute is to combine high-end but diverse Nordic cleantech and scientific excellence into comprehensive solutions and to tailor them in cooperation with local partners to fulfil Chinese needs for a cleaner environment.

The portfolio consists of seven programs with a total research volume exceeding 40 Mâ&#x201A;Ź, executed by 80 companies representing 14 industries and 20 research institutes. All of these are aiming for the common goal of a comprehensively monitored and assessed environment and a sustainable future energy system. This platform has attracted a high level of interest in the most rapidly developing countries, such as China, Korea, India, Kazakhstan and Ecuador.

This necessitates joint research programs and demonstrations with Nordic and Chinese companies, research institutes and authorities. The first demonstrations will focus on air quality, which is the most acute environmental issue in China, and in which Finnish universities, research institutes and companies are globally acknowledged scientific and

CLEEN recognizes as a relevant megatrend that the population in urban areas is estimated to grow up to two billion people, representing a 50% growth in cities. Together with the rise of the middle class (consumption), environmental awareness and digitalization, this will bring opportunities to the ones capable of creating cross-industrial and multi-disciplinary systemic solutions for a healthy living environment.

technological spearheads. If united, the performance of the air quality-related atmospheric and (ultra) fine particulate physics of Finnish scientists, as well as the monitoring and filtering technologies of Finnish companies, will be unbeatable. Besides China, concrete cooperation is emerging with our Indian partners. A memorandum of understanding was signed with Oil and Natural Gas Company (ONGC) aiming to have ONGC as one of the key partners in the Efficient Energy Use (EFEU) and Carbon Capture and Storage (CCSP) programs within 2014. ONGCâ&#x20AC;&#x2122;s strong commitment to cooperation is an acknowledgement of Finnish scientific excellence and offering in the field of bioenergy, energy efficiency and bio-based CO2 capture solutions. The second action to implement CLEEN 2.0 was the launching of a renewed process for the continuous review of SRA. The current SRA is based on global megatrends, which are grouped into four SRA Themes. From the CLEEN perspective, the megatrends can be highlighted in view of the updated New Policies Scenario of IEA for the next twenty years. The radical change of the global energy markets is driven by the major increase (>60%) in primary energy demand in Asia, tripling of the share of variable renewable energy in primary energy to more than one fifth in the European Union, and the dramatic increase (>130%) in unconventional gas production especially in North America. As before, energy-efficiency includes the highest economical, technical and ecological potential and is applicable practically in all human-set processes but, unfortunately, it will most probably remain untapped to a great extent. Besides energy,

One of the major vehicles for the change in a global energy outlook is natural gas and, especially in its intercontinental state, liquid natural gas (LNG). IEA assumes that during the next twenty years the increase of LNG trade clearly outpaces the increase in natural gas demand, though impressive itself at 50%. Besides the geographic shift in production and demand, the current fivefold price in Japan as well as two- to threefold prices in China and the EU compared to the US will create an invincible driver for global trade, energy flows and investments. The LNG trade comprising new hubs with spot pricing, havens, ships, and production and power generation systems will provide trillions of dollars of investment demand. In addition, the enlarged gas infrastructure will enable the distribution and use of renewable gases. A billion dollar question for Finland is what kinds of competences, technologies, products and services our share in this market will be based on. Could it be small-scale terminals and hubs in technologically challenging and ecologically vulnerable Arctic environments, such as the Northern Sea Route, technologies for synthetic natural gas or energy, or environmentally efficient gas to power solutions? Most probably, a small country should not focus on a single technology aiming to fulfil a narrow market need, but it should aim for the markets that necessitate combining various interests and competences and where agility and cooperation skills are crucial.

INTRODUCING CLEEN

The architecture of a future energy system is driven by the mitigation of environmental impacts and the scarcity of natural resources. The change is facilitated by efficient energy conversion, distribution and use, as well as by renewable energy. In the EU, the globally highest share of variable renewable energy has created forerunner markets for solutions that address the increased system dynamics and insecurity of supply. It is also assumed that the EU will triple the share of variable renewables to almost one quarter of its primary energy need within the next twenty years. Although it is assumed that the rest of the world will present even higher growth figures, the EU will maintain its leading position. Fortunately, the pace of development in power electronics, ICT and electricity markets will enable order-of-magnitude performance leaps to adapt real-time power demand to available generation. Complemented with sulphur and particulate free gas-to-power dispatch power sources and powerto-gas storage solutions, the two SRA Themes will form an essential part of the future sustainable and competitive energy system that could be demonstrated in our home market. Urbanization is a widely recognized global megatrend, but it is not a homogeneous one. It is based on estimates of an increase in the global population from 7 to 9 billion in twenty years, equalling the growth in urban areas. However, it is a truly multi-faceted phenomenon with an aim to mitigate utmost poverty in Africa and to further increase productivity in the most developed and wealthiest economies. China alone has an ambitious plan to move 300 people into cities and to transfer the nation from a manufacturing and investment driven economy to a service and consumption driven one to address the inevitable need to increase productivity. At the same time, the leaders of P.R.China strongly emphasize the harmony of

the society, a much cleaner environment, and comprehensive resource efficiency. The opportunity is as wide as it is diverse, so we decided to focus on a healthy urban environment and to start with ensuring clean air for urban citizens while noting that water and soil will soon be on the agenda. Sustainable healthy indoor air necessitates realtime and forward-looking outdoor air monitoring, advanced HVAC systems, and distributed energy systems with peak power management and demand response, thus, coupling the above three SRA Themes strongly together. Finally, increasing industrialization, the demand for natural resources, the valuation of viable land space, people awareness, digitalization, and big and open data will produce a demand and an opportunity for “environmentally efficient industrial regions” where natural resources are refined in an environmentally sustainable and transparent way. Besides the technooperational innovation in industrial ecosystems or symbioses, new measures and validation for environmental efficiency have to be created and transparently monitored. If “Homo Urbanus” is the focus of our first three SRA Themes, the forth one is definitely “Terra Mater”.

INTRODUCING CLEEN

The portfolios will speed up the research to market value chain, transforming it from linear to parallel, and incubating global competence and business ecosystems. The benefits are further multiplied by uniting aggressively growing small enterprises, world-leading multinational corporations and universities on the same platform. Hopefully, these platforms may be orchestrated from Finland, although the platform members will be located all over the globe. Breaking the silos and ensuring cooperation of various well-defined and efficient public funding instruments is an option to bring the productiveness of the Finnish innovation system to the next level.

core competences and their relevance to cope with equally long-term and global systemic opportunities in energy and the environment. The focus is NOW on matching the increasing variable renewable power to demand, discovering the business opportunities lurking in massive investments in the global gas infrastructure, and ensuring clean air in megacities. All three should be linked together and tackled in close cooperation with the globally best possible partners on the leading public-private partnership open innovation platform, which will leverage its wings from Europe to Asia. However, please be aware of change – it is inevitable.

Tommy Jacobson, CEO 7th March 2014

As important as it is to continuously renew the operational models of R&D&I, it is equally crucial to take care of the long-term development of Finnish

The third action of the CLEEN 2.0 implementation is to hand over the CLEEN platform by the firstgeneration thematic SHOK Programs to the nextgeneration target-oriented SRA Project Portfolios, which comprise diverse R&D&I instruments. The Portfolios facilitate and enable information exchange between various public funding instruments, which are tailored for diverse parties, time to markets and geographic locations. This means close and real-time cooperation with curiosity research, development, demonstration and commercialization projects, but servicing the shared target(s).

INTRODUCING CLEEN

CLEEN in brief

CLEEN was established in 2008 to promote industry’s competitiveness by initiating, facilitating and managing wide, deep and shared R&D&I between various industries and academia in the field of energy and environment. By complementing its mission CLEEN has a vision that the world’s leading companies and research institutes, that consider energy and environment aspects as a major success factor, will realize their joint R&D&I on CLEEN platform and that the R&D&I operations carried out within CLEEN have created and will create breakthrough innovations with a global impact. CLEEN has 45 shareholders including several international companies which are technology and market leaders globally and have significant R&D activities or interests in Finland, as well as the most relevant national research institutes. The status of Strategic Centre for Science, Technology and Innovation (SHOK) for energy and environment was granted to CLEEN in 2008 by the Finnish Prime Minister lead Research and Innovation Council.

Shareholders

Aalto University

Metso Oyj

ABB Oy

Neste Oil Oyj

Agrifood Research Finland, MTT

Outokumpu Oyj

Andritz Oy

Outotec Oyj

Centre for Metrology and

Pohjolan Voima Oy

Accreditation, MIKES

Rautaruukki Oyj

Ekokem Oy Ab

Stora Enso Oyj

Elenia Oy

Technical Research Centre of Finland, VTT

FCG Finnish Consulting Group Oy

Technical University of Tampere

Finnish Environment Institute, SYKE

Technical University of Lappeenranta

Finnish Forest Research Institute, Metla

The Switch Engineering Oy

Finnish Geodetic Institute (FGI)

University of Eastern Finland

Finnish Meteorological Institute, FMI

University of Helsinki

Fortum Oyj

University of Jyväskylä

Foster Wheeler Energia Oy

University of Oulu

Gasum Oy

University of Vaasa

Geological Survey of Finland, GTK

UPM-Kymmene Oyj

Helsingin Energia

Vaisala Oyj

Hollming Oy

Vantaan Energia Oy

Kemira Oyj

Vapo Oy

Kumera Oy

Wärtsilä Finland Oy

Kuusakoski Oy

Åbo Akademi University

Lassila & Tikanoja Oyj

ÅF-Consult Oy

INTRODUCING CLEEN

Board of directors

CLEEN’s Board of Directors was elected at the Annual General Meeting held on 21st March 2013. Mr Ilkka Kojo (Outotec Oyj) was selected as Chairman of the Board in the board meeting 4/2013 held on April 29th. The board held eight meetings and a one-day strategy seminar during 2013. A total of four “gate meetings” (one Gate III and three Gate IV) were held to keep the board in touch with CLEEN’s core activities and to ensure that our programs fulfil their expectations right from initiation through to final reporting. In addition, updates on CLEEN’s research activities and financial status were presented and discussed at every board meeting. The chairman and board members were entitled to remuneration for their attendance at meetings to the sum of €250 and €150 for each meeting attended, respectively.

BOARD MEETINGS 01/2013

23.01.

CLEEN (SHOK evaluation, CLEEN 2.0)

02/2013

15.02.

CLEEN (MMEA gate IV, financial statement 2012, Envitori Ltd)

03/2013

06.03.

CLEEN (Science Council review)

04/2013

29.04.

CLEEN (Board of Director’s organizing meeting,

ARVI gate III, MoU with CLEEN Ltd and Insigma Group Co Ltd)

05/2013

Dazzle, Salomonkatu 17 B, Helsinki

31.05.

(Key Performance Indicators, CLEEN 2.0 follow-up)

06/2013

11.09.

CLEEN (SRA process update, ERP system)

07/2013

08.11.

Haikon Kartano, Haikkoontie 14, Porvoo

(CLEEN 2.0 implementation, CLEEN strategy)

8/2013

Helsingin Suomalainen Klubi

19.12.

(SGEM gate IV, CCSP gate IV, SRA theme goups)

BOARD MEMBERS

DEPUTY BOARD MEMBERS

Ilari Kallio (Wärtsilä Finland Oy), vice chair

Ari Henriksson (UPM-Kymmene Oyj)

Pertti Järventausta (Tampereen tekn. yliopisto)

Mikko Hupa (Åbo Akademi)

Ilkka Mannonen (Vaisala Oyj)

Matti Rautanen (Metso Oyj)

Ilkka Kojo (Outotec Oyj), chair

Heli Antila (Fortum Oyj)

Outi Krause (Aalto yliopisto)

Kai Sipilä (VTT)

Petri Lehmus (Neste Oil Oyj)

Hannu Lepomäki (BMH Technology Oy)

Jarmo Saaranen (VNT Management Oy)

Jouni Pylvänäinen (Elenia Oy)

Jarmo Tervo (Pohjolan Voima Oy)

Sari Siitonen (Gasum Oy)

Vesa Hynninen (Vantaan Energia Oy)

Dick Kronman (ABB Oy)

G O V E R N A N C E 19

G OV E R N A N C E

C O R P O R AT E

C O R P O R A T E

CLEEN operation principles

CLEEN programs & processes

fig.1

fig.2 PROCESS

ccsp desy mmea

WORKING GROUP

MANAGER

PLANNING TEAM

PLANNING TEAM LEADER

OWNER

SAB

sgem

SAB

mmea

RESEARCH

SCIENCE COUNCIL

R&D COUNCIL

PSG

STAGE & GATE

PSG

AGREEMENTS & IPR

LEGAL COUNSEL

CEO

efeu best

fcep

SAB

fcep

WORK GROUP 1 SRA

WORK GROUP 2 FUNDING

SAB

ccsp

PSG

FUNDING & FINANCE

CONTROLLER/ FUNDING DEVELOPER

COMMS TEAM

COMMUNICATIONS

COMMS MANAGER PROGRAM MANAGER TEAM

WORKING COMMITTEE

SAB

PROGRAM MANAGER

PROGRAM MANAGEMENT

efeu SAB

SCIENTIFIC EXCELLENCE

SCIENCE COUNCIL

CHAIR OF SCIENCE COUNCIL

CTO

communications

BACK OFFICE

finance

legal

SHAREHOLDERS’ GUIDANCE

R&D COUNCIL WORKING GROUP /SRA/

CHAIR OF R&D COUNCIL

PUBLIC FUNDING SOURCES

R&D COUNCIL WORKING GROUP / FUNDING

CONTROLLER/ FUNDING DEVELOPER

administration

* PSG = Program Steering Group * SAB = Scientific Advisory Board * SRA = Strategic Research Agenda

CORPORATE GOVERNANCE

R&D council CLEEN’s R&D Council is our most important forum for information distribution, and it acts as a channel for the shareholders to influence R&D activity within CLEEN. The Council has a central role in implementing CLEEN’s strategy, and it supports the management and the Board of Directors, for example, in updating the Strategic Research Agenda (SRA) and in developing the activities in CLEEN. The Council also aims to initiate discussions on new research programs and to follow up the implementation of the Strategic Research Agenda by providing feedback on ongoing research programs. Various roles and objectives of CLEEN’s shareholders and research consortiums are clarified in figures 1 and 2. In 2013, the R&D Council’s two general assemblies were held in June and November (June 11, 2013 and November 22, 2013). Professor Mikko Hupa from Åbo Akademi University acted as chairman at both of these general assemblies. Professor Kaarle Hämeri from the University of Helsinki acted as deputy chair of the Council in 2013. DIRECTION FROM WORKING GROUPS TO DEVELOP THE ACTIVITY The R&D Council incorporates annually confirmed working groups, which support CLEEN’s development targets. In 2013, the two working groups were active in pursuing the following tasks: 1. SRA update, chair: Dr. Mikko Laakso (Vaisala) 2. New project and funding models, chair: Mrs. Marja Englund (Fortum)

accepted the SRA update group’s proposal for a new SRA update process. According to the new process, the SRA update was launched in the second general assembly of the R&D Council in 2012, and it continued throughout the year 2013. The new process is presented in Figure 3. In spring 2013, the SRA update group first carried out foresight and background analyses to identify the most relevant global challenges and trends as the basis for building new SRA and new R&D&I programs and project on the CLEEN platform. CLEEN shareholders and the participants of ongoing research programs were widely engaged in this process, utilizing a new online discussion tool to collect ideas for new research themes and projects. As a result, four major themes were identified for further analysis: 1. Architecture of the Future Energy System 2. Sustainable Production, Handling and Use of Gases for Energy Production

In the first general assembly of the R&D Council in June 2013, SRA theme groups were established for each of these themes with the task of writing themespecific strategic research agendas. These groups started their work in August 2013 and presented their proposals for strategic research agendas for each theme in the second general assembly of the R&D Council in November 2013. International evaluators were invited to give comments and suggestions to the SRAs before finalizing the proposals. The chairmen, principal writers and international evaluators for the SRA theme groups were as follows: Architecture of the Future Energy System Chair: Professor Erkki Antila, University of Vaasa Principal writer: Professor Matti Lehtonen, Aalto University International evaluators: Dr. Karin Alvehag, PhD Power Systems, Expert in the field of economic network regulation, Sweden Professor Lennart Söder, Dept of Electric Power Systems, KTH, Stockholm, Sweden Sustainable Production, Handling and Use of Gases for Energy Production Chair: Dr. Sari Siitonen, Gasum Principal writer: Dr. Tero Hottinen, Wärtsilä International evaluators: Dr.-Ing. Klaus Altfeld, expert in gas quality/gas utilization, E.ON New Build & Technology GmbH, Germany M.Sc. Ton van Wingerden, Expert in the field of Natural Gas and Asset Management, The Netherlands Sustainable City Chair: Mrs. Marja Englund, Fortum Principal writer: Prof. Miimu Airaksinen, VTT International evaluators: PhD Walter F. Dabberdt, Vaisala Corporate Science Adviser, New York, USA Dipl.-Ing., Research Engineer, Hans-Martin Neumann, AIT Austrian Institute of Technology GmbH, expert in the fields of smart cities, sustainable urban development and urban energy concepts

Environmentally Efficient Areas Chair: M.Sc. (tech.) Osmo Huhtala, Fortum Principal writers: Dr. Riina Antikainen, Finnish Environment Institute Research prof. Olli Salmi, VTT International evaluators: Professor Karel Van Acker, KU Leuven, Policy research centre for sustainable materials management (SuMMa), Belgium Secretary General, Jean-Pierre Birat, European Steel Technology Platform (ESTEP), Belgium In late 2013, the Board of Directors of CLEEN decided to give permission to launch the program and project preparation in all of the four SRA Themes. However, the Board wanted a more specific goal to be formulated for each theme before launching the projects/programs. A clear goal would create more target-oriented programs and also help in evaluating their success. PROJECT AND FINANCING MODELS TO CORRESPOND WITH THE RESEARCH STRATEGY The starting point for the work of working group 2 was to review various project and financing models and their suitability for implementing CLEEN’s strategic research agenda. During 2013, the working group continued the mapping process launched in 2012 for CLEEN shareholders to identify those EU platforms and working groups that the shareholders find interesting and/or in which they are active participants. In addition, the working group analyzed the kinds of project models that would be suitable for the realization of CLEEN’s new SRA (Figure 4) and invited other SHOKs to share good practices. Furthermore, the working group studied the IPR rules for different funding schemes. The chairs of the working groups, together with the chair and vice-chair of the R&D Council, the chair of the Science Council and the CTO of CLEEN, formed the core team of the R&D Council, the task of which is to prepare, on the basis of the working groups’ work, the Council’s proposals to the Board of Directors and the management of CLEEN.

3. Sustainable City CONTINUOUS ANALYSIS OF SRA UPDATE NEEDS In November 2012, the Board of Directors of CLEEN

4. Environmentally Efficient Areas

CORPORATE GOVERNANCE

CLEEN R&D council members

CLEEN management

status 31st December 2013

COMPANY REPRESENTATIVES

RESEARCH INSTITUTE REPRESENTATIVES

CLEEN ADMINISTRATION AND BACK-OFFICE

ABB Oy Andritz Oy Ekokem Oy Ab Elenia Oy FCG Planeko Oy Fortum Oyj Foster Wheeler Energia Oy Gasum Oy Helsingin Energia Hollming Oy Kemira Oyj Kumera Oy Kuusakoski Oy Lassila & Tikanoja Oyj Metso Oyj Neste Oil Oyj Outokumpu Oyj Outotec Oyj Pohjolan Voima Oy Rautaruukki Oyj Stora Enso Oyj The Switch Engineering Oy UPM-Kymmene Oyj Vaisala Oyj Vantaan Energia Oy Vapo Oy Wärtsilä Finland Oy ÅF-Consult Oy

Aalto University University of Helsinki Geological Survey of Finland Finnish Meteorological Institute Finnish Geodetic Institute University of Eastern Finland University of Jyväskylä Lappeenranta University of Technology Agrifood Research Finland Finnish Forest Research Institute Centre for Metrology and Accreditation University of Oulu Finnish Environment Institute Tampere University of Technology University of Vaasa Technical Research Centre of Finland (VTT) Åbo Akademi University

Chief Executive Officer Chief Technology Officer Communications Development Finance and Funding Legal and IPR

Jukka Tolvanen Seppo Hulkkonen Toni Andersson Jouni Pylvänäinen Yrjö Halttunen Marja Englund Reijo Kuivalainen Sari Siitonen Timo Arponen Hannu Lepomäki Carl-Gustav Berg Jyri Talja Mikko Talola Matti Rautanen Jukka-Pekka Nieminen Juha Ylimaunu Satu Jyrkönen Jorma Isotalo Harri Leppänen Mikael Hannus Jari Kemppi Antti Raukola Mikko Laakso Pertti Sahi Ilari Kallio Pekka Järvinen

Risto Lahdelma Kaarle Hämeri, vice chair Jarmo Kallio Jouni Pulliainen Tiina Sarjakoski Timo Jääskeläinen, Jorma Jokiniemi Jouko Korppi-Tommola

Tommy Jacobson, D.Sc.(Tech.) Jatta Jussila-Suokas, D.Sc. (Tech.) Karoliina Peippo, M.Sc. (Econ.) Teija Laitinen, Lic.Sci. (Tech.) Sanna Laaksonen Essi Heinänen, Master of Laws

PROGRAM MANAGEMENT Timo Hyppänen Markku Järvenpää Leena Paavilainen Heikki Isotalo Riitta Keiski Harri Juvonen Seppo Valkealahti Erkki Antila

Sustainable Bioenergy Solutions for Tomorrow (BEST) Carbon Capture and Storage Program (CCSP) Distributed Energy Systems (DESY) Efficient Energy Use (EFEU) Future Combustion Engine Power Plants (FCEP) Meas., Mon. and Environmental Assessment (MMEA) Smart Grids and Energy Markets (SGEM)

Kaisu Leppänen, M.Sc. (Chem.) Sebastian Teir, D.Sc. (Tech.) Kari Sipilä L. Sc. (Tech) Jussi Manninen, Ph.D. (Tech.) Juha Leppävuori, M.Sc.(Phys.) Matti Kytö, L.Sc. (Tech.) Tero Eklin, Ph.D. (Chem.) Jani Valtari, M.Sc. (Tech.)

Kai Sipilä Mikko Hupa, chair

INVITED MEMBERS Finnish energy industries Chemical Industry Federation of Finland Finnish Forest Industries The Federation of Finnish Technology Industries The Finnish Funding Agency for Innovation, Tekes

Kati Takala Sami Nikander Alina Ruonala-Lindgren Mervi Karikorpi Teija Lahti-Nuuttila

CLEEN SRA development process

CLEEN SRA implementation model

fig.3

fig.4

STAKEHOLDERS INFORMED SRA UPDATED

INPUT COLLECTED

THEMES SELECTED

DEMO

SRA

PROGRAM/ PROJECT INITIATIVES HANDED OVER

GROUP PROJECT BY RESEARCH INSTITUTES

PROGRAM/ PROJECT INITIATIVES IDENTIFIED

INPUT ANALYZED

DEMO

GROUP PROJECT BY COMPANIES

COMMUNICATION AND HAND-OVER

DESCRIPTION OF THEMES, CONFIRMATION OF SRA

BOUNDARY CONDITIONS CLARIFIED

CORPORATE R&D

BASIC RESEARCH

TEKES SHOK PROGRAMS WIDE PUBLICITY RESTRICTED PUBLICITY

BASIC RESEARCH

EVALUATION AND SELECTION OF THEMES

JOINT CORPORATE R&D

BASIC RESEARCH

INPUT COLLECTION

PROJECT WITH INDIA

PROJECT WITH CHINA

EUREKA HORIZON 20200

DEMO

EEGI

SET PLAN

PPP

KIC

GROUP PROJECT BY RESEARCH INSTITUTES

CORPORATE GOVERNANCE

Science council & scientific advisory boards Just over three years ago, we launched a goaloriented project to develop CLEEN’s quality and high standards. The reason for this was not poor quality or other problems, but the desire to build CLEEN into a key strategic player that is able to bring together industrial relevance and scientific excellence in its programs. The Science Council is part of this vision – a tool that navigates CLEEN onwards and upwards.

is impossible to kick-start excellence just like that, and that long-term work is needed in order to build expertise. The Science Council also emphasized the significance of internationalization, especially the great importance of flexibility in operations and their funding when aiming to the top of the world. The Finnish innovation funding system is too rigid, and it too should be reformed.

The task of the Science Council is to assess and develop the quality and scientific excellence of CLEEN and its programs. The Scientific Advisory Boards, SABs, designated for the programs are responsible for the actual assessment of the scientific contents of programs. Both the Science Council and the SABs are outside advisory bodies and are not involved in actual decision-making.

The first CLEEN programs are coming to a conclusion. For the evaluation of the success of the programs, the Science Council has updated and simplified the evaluation criteria. Although the required information can be obtained from the programs fairly easily, they do, however, provide an extensive overall picture of the achievements of the programs in different fields.

Members of the Science Council represent multidisciplinary, broad-spectrum Finnish expertise. The SABs consist of top international experts in their fields. With this combination, we are able to deal with wider entities and quality issues on the one hand, and also to get our teeth into the details of excellence and support thematic programs on the other hand. The processes used for assessing the quality of CLEEN are working well and are a natural part of CLEEN’s operations. Outside opinions without any personal interests to pursue have been found to be useful in the programs. The processes for running the assessment are clear and cost-effective. In the evaluation of SHOKs, CLEEN’s assessment processes were commended. All SHOKs were evaluated in 2013. The SHOK instrument received criticism but, on the other hand, it seems that the expectations set for the SHOKs were unrealistic. In the public debate following the evaluation, it looked as if SHOKs were expected to produce miracles with regard to the competitiveness of our industry in just a few years. The Science Council considered it appropriate to comment on this debate especially with respect to high standards. In late autumn 2013, the Science Council stated in the journal Talouselämä that it

The updating of CLEEN’s Strategic Research Agenda (SRA) was launched in 2013, and it will continue in 2014 as preparation work for the research programs. The Science Council discussed the contents of SRAs from the viewpoints of quality and high standards. The Council emphasized, for example, the need for focusing, increased internationalization, and more challenging research questions beyond the state-ofthe-art. The Science Council stresses the significance of competitive bidding in the building of research teams – participation in the preparatory work for the programs should not automatically guarantee research funding. This new principle will be applied in the launch of new programs. Along with the SRA update and new programs, CLEEN will enter a new development stage in 2014. In view of high standards, the quality processes are now in-built from the very beginning. This should mean, e.g. an increasing amount of top research, stronger interaction between industry and academia, internationalization, and greater visibility. Together, all of these will increase CLEEN’s effectiveness. As a result, the competitiveness of enterprises will be strengthened and products will be renewed.

Prof. Peter Lund chair of the Science Council

SCIENCE COUNCIL MEMBERS Prof. Peter Lund, chair Prof. Lassi Linnanen Prof.em. Jouko Korppi-Tommola Adjunct prof. Markku Karlsson Prof. Minna Halme Prof.em. Liisa Viikari Prof. Erkki Antila Prof.em. Hans Söderlund Dr. Mikko Laakso

Aalto University Lappeenranta University of Technology University of Jyväskylä VTT Aalto University University of Helsinki University of Vaasa VTT Vaisala Oyj

SCIENTIFIC ADVISORY BOARD (SAB) MEMBERS SMART GRIDS AND ENERGY MARKETS (SGEM) Prof. Ronnie Belmans (Power Systems Research) Prof. Antonello Monti (Power Utility Aspects) Prof. Lennart Söder (Integration and Interfacing Research)

Katholieke Universiteit Leuven E.ON / RWTH Aachen University Kungliga Tekniska Högskola

FUTURE COMBUSTION ENGINE POWER PLANTS (FCEP) Prof. Marcus Alden (Combustion Physics and Diagnostics) Prof. Konstantinos Boulouchos (Modelling, Simulation and Energy Systems) Prof. Nikolaos Kyrtatos (Engine Emissions)

Lund University ETH Zürich National Technical University of Athens

MEASUREMENT, MONITORING AND ENVIRONMENTAL EFFICIENCY ASSESSMENT (MMEA) Dr. Andreas Ciroth (Environmental engineering, LCA error calculation, sustainability consulting) Prof. Kostas Karatzas (Informatics Systems & Applications) Dr. Michel Matti Maricq (Impact of biofuels and “designer” fuels on engine emissions, PM measurements) Prof. H.W.J. Russchenberg (Environmental Remote Sensing, Mathematics and Computer Science)

GreenDeltaTC GmbH Aristotle University of Thessaloniki Ford Motor Company Delft University of Technology

CARBON CAPTURE AND STORAGE PROGRAM (CCSP) Prof. Mohammad Abu Zahra Prof. William Mitch Dr. E.J. (Ben) Anthony, Emeritus Scientist

Masdar Institute, Chemical Engineering Yale School of Engineering and Applied Sciences Natural Resources Canada

CLEEN research: portfolio & overview

CLEEN program portfolio status Q1/2014

During 2013, seven research programs were ongoing in CLEEN, the total volume of which was 40.7 million euros:

fig.5

ARVI

During 2013, altogether 80 companies and 22 research institutes participated in these research programs; 34% of the companies are SMEs. The companies financed the seven ongoing research programs in 2013 with 13.7 million euros in total. The research institutes’ share of the financing was 4.9

In addition to the ongoing research programs, CLEEN prepared one new program during 2013: the program for Material Value Chains (ARVI). The topic of this new program is sustainable use of natural resources and, more specifically, recycling of different material streams. The plan is to launch this program in early 2014.

MMEA CCSP

G IV

SGEM

CONSORTIUM MEMBERS

TARGET SETTING

REPORTING

FINAL ASSESSMENT

SRA INITIATIVES

G = Gate SGEM = Smart Grids and Energy Markets FCEP = Future Combustion Engine Power Plant MMEA = Measurement, Monitoring and Environmental Efficiency Assessment

RESEARCH

EFEU

million euros. A detailed breakdown of the financing provided by companies and research institutes can be found in the diagrams on pages 32 and 33. During 2013, CLEEN’s programs received public financing totaling 22.1 million euros from Tekes, the Finnish funding agency for technology and innovation.

DESY

EXECUTION PLANNING

G II The latest program, BEST, which was launched in spring 2013, is a collaborative program between CLEEN Ltd and FIBIC Ltd, the strategic center for science, technology and innovation (SHOK) in the field of bioeconomy. The BEST program is the first truly joint research program between two SHOK companies.

AGREEMENTS

BEST

G III

FCEP

- Smart Grids and Energy Markets (SGEM), 11.7 M€ - Future Combustion Engine Power Plants (FCEP), 8.0 M€ - Measurement, Monitoring and Environmental Efficiency Assessment (MMEA), 11.4 M€ - Carbon Capture and Storage Program (CCSP), 2.9 M€ - Efficient Energy Use (EFEU), 2.6 M€ - Distributed Energy Systems (DESY), 0.3 M€ - Sustainable Bioenergy Solutions for Tomorrow (BEST), 3.9 M€

CCSP EFEU DESY BEST ARVI

= Carbon Capture and Storage Programme = Efficient Energy Use = Distributed Energy Systems = Sustainable Bioenergy Solutions for Tomorrow = Material Value Chains

CLEEN research fig.6

fig.7

fig.8

fig 6. Allocated resources made by industry to CLEEN’s programs in 2013 ABB AGCO Sisu Agnico Eagle Finland Aidon A-Lab Andritz Anturikeskus Arbonaut Cybersoft Dekati Ecocat Eigenor Ekogen Ekokem Elektrobit Elenia Empower Emtele Envor Group Fatman Fingrid Fortum Foster Wheeler Energia Gasek Gasum Green Net Finland Harp Technologies Helen

5.8% 7.6% 0.2% 0.0% 0.4% 0.8% 1.1% 0.4% 0.5% 0.7% 0.3% 1.4% 0.0% 0.2% 1.5% 1.0% 7.2% 1.7% 0.0% 0.6% 1.1% 7.2% 0.6% 0.0% 1.6% 0.5% 0.6% 3.4%

HiQ Finland Helsinki Region Environmental Services Authority (HSY) HT Enerco Indmeas Indufor Inno-W Inray Jyväskylän Energia Kemira Kumera Lentokuva Vallas Luode Consulting Mantsinen Group Measurepolis Development Metso Metsähallitus Metsäliitto Cooperative MHG Systems Modulight MW Power Neste Jacobs Neste Oil Nordkalk Numerola Oulun Energia Outotec Pegasor

1.2% 0.6% 0.0% 0.8% 0.3% 0.8% 0.1% 0.2% 0.3% 0.3% 0.9% 0.3% 0.1% 0.9% 7.5% 0.2% 0.6% 0.0% 0.8% 0.1% 0.3% 0.2% 0.0% 0.3% 1.1% 0.2% 3.2%

In the case of the DESY program, companies do not do any in-kind but fund the program. BEST program is a jointly managed program between CLEEN and FIBIC.

Pohjolan Voima Profium Ramboll Finland Rautaruukki Savosolar Senfit Space Systems St1 Sulzer Pumps Finland Suur-Savon Sähkö Stora Enso Tapojärvi Tekla The Switch There Corporation Tieto UPM-Kymmene Vaisala Vantaan Energia Wapice Wellquip Vibrometric Viola Systems Wärtsilä ÅF-Consult Total

fig.9

fig 7. Allocated resources made by research institutes to CLEEN’s programs in 2013 0.4% 0.6% 1.1% 0.0% 0.0% 0.6% 0.5% 0.0% 0.5% 0.2% 0.9% 0.1% 0.8% 1.0% 3.3% 0.5% 0.8% 8.1% 0.4% 0.2% 0.4% 1.3% 0.2% 10.0% 0.5% 100.0%

Aalto University European Forest Institute Finnish Forest Research Institute Finnish Geodetic Institute Finnish Institute of Occupational Health Finnish Meteorological Institute Geological Survey of Finland (GTK) University of Helsinki University of Jyväskylä Lappeenranta University of Technology Helsinki Metropolia University of Applied Sciences Centre for Metrology and Accreditation (MIKES)

12.7% 0.1% 1.1% 1.3% 0.3% 3.7% 0.5% 1.3% 0.5% 10.6% 0.4% 2.3%

MTT Agrifood Research Finland University of Oulu Finnish Environment Institute (SYKE) University of Tampere Tampere University of Technology Turku University of Applied Sciences University of Eastern Finland University of Vaasa VTT Technical Research Centre of Finland Åbo Akademi Total

fig 8. SME contribution in CLEEN programs in 2013 SME LargeCAP Research Institutes Total

12.7% 38.4% 48.9% 100 %

fig 9. Funding Tekes Companies (incl DIF) Research organizations Total

54.3% 33.7% 12.0% 100 %

1.0% 5.6% 2.8% 0.2% 19.5% 0.7% 3.8% 2.5% 26.8% 2.1% 100.0%

P R O G R R A M S

PRO G R A M M E S

R E S EA RC H

R E S E A R C H

RESEARCH PROGRAMS

best

ccsp

desy

efeu

SUSTAINABLE BIOENERGY SOLUTIONS

CARBON CAPTURE & STORAGE PROGRAM

DISTRIBUTED ENERGY SYSTEMS

EFFICIENT ENERGY USE

fcep

mmea

sgem

arvi

FUTURE COMBUSTION ENGINE POWER PLANTS

MEASUREMENT, MONITORING & ENVIRONMENTAL EFFICIENCY ASSESSMENT

SMART GRIDS & ENERGY MARKETS

MATERIAL VALUE CHAINS

RESEARCH PROGRAMS

best SUSTAINABLE BIOENERGY SOLUTIONS FOR TOMORROW

RESEARCH PROGRAMS

The key areas of the research are: 1. Future bioenergy scenarios and strategies 2. Sustainability (incl. health & safety issues) 3. Flexible and cost-efficient solutions for multi-fuel biomass supply chains 4. Understanding new markets 5. Biomass availability, price and quality 6. Analysis and design of bioenergy systems and concepts

The BEST program is the latest addition to the CLEEN program portfolio, launched in early 2013. BEST is a joint research effort between CLEEN and the Finnish Bioeconomy Cluster (FIBIC). The program combines the strengths of the forest and energy sectors, complemented by the know-how of technology and consulting companies and research organizations. The BEST consortium consists of 21 industrial and 13 research partners. The planned duration is four years (2013–2016) with an annual budget of roughly €4 million. The first results have already started to emerge, but the majority of the results of the first funding period (2013–14) are targeted in 2014. The key issues studied in 2013 are summarized in the following. One of the main objectives of BEST is to create a joint understanding of the future strategic opportunities of bioenergy and the necessary capabilities for seizing them. The work has started with a critical review of existing scenarios and outlooks related to bioenergy and the supply and demand of biomass, and also of the political, economic, societal and technical drivers affecting them. Based on this summary and the know-how of the program participants, a set of bioenergy scenarios will be created and analyzed. One of the outcomes will be an action plan on how to turn the development favorable for Finnish actors and stimulate sustainable growth.

The Sustainable Bioenergy Solutions for Tomorrow (BEST) research program focuses on building the big picture of the future strategic opportunities of bioenergy and facilitating collaboration across traditional business area boundaries. The aim is to strengthen the capabilities of the Finnish bioenergy community to enable growth in sustainable global bioenergy business.

In the area of bioenergy sustainability, the first stage in creating a framework for managing the overall sustainability of different bioenergy chains has been completed. This has included summarizing, analyzing and classifying key sustainability indicators and methods from the point of view of different bioenergy actors. Specific sustainability challenges related to agribiomass, climate impacts and social issues have been identified and studied. A first set of measurements to analyze emissions at power plants has been conducted to identify and solve possible problems in work safety. A first draft of new-generation multi-fuel biomass terminal concepts has been created, aiming at radically improving the cost-efficiency, flexibility and reliability of biomass sourcing. In addition to the physical terminal, a virtual terminal including the data management of

the whole terminal supply chain is being studied. A simulation model for bioenergy supply chains has been built and tested, and the model will be applied in case studies. The model utilizes biomass (both forest and agrobased) availability data summarized in other tasks of the program. Development of measurement technologies needed in the new terminals and supply chains has been started. Methodology for assessing biomass availability and distribution is being developed, and the airborne laser scanning method has already been shown to provide good accuracy in the prediction of biomass availability. With respect to raw material quality, prediction models for natural drying of energy wood have been developed, and special emphasis has been put on including dry matter losses in the models. The first version of the calculation model of storage costs and losses was also developed. The role of bioenergy and biomaterial concepts as part of the energy systems in future cities has been studied. Special emphasis has been put on assessing waste systems and estimating future (waste) material production and characteristics in cities. A lot of data and knowledge regarding bioenergy opportunities and challenges in India has already been gained via studies, surveys and research trips. Two extensive surveys have been completed to assess the availability and potential of different biomass resources. The current supply chains and bioenergy technologies have been studied and site locations for theoretical biomass plant case studies have been considered. Numerous new connections have been established in India in order to support the building of a Finnish-Indian collaboration network. Finland’s participation in the IEA Bioenergy collaboration is being coordinated through BEST, and strategic planning of the work and knowledge transfer from the network to Finnish actors has been started. Furthermore, new opportunities for international collaboration have also been identified and will continue to be discussed and explored in 2014.

RESEARCH PROGRAMS

ccsp CARBON CAPTURE & STORAGE PROGRAM

The main objective of the Carbon Capture and Storage (CCSP) research program is to achieve technological and conceptual breakthroughs in know-how, development and commercialization of Carbon Capture and Storage (CCS) for participating companies and research organizations - and at the same time to build up novel collaboration coalitions between the parties.

RESEARCH PROGRAMS

The key areas of the research are: 1. CCS in Combined Heat and Power (CHP) systems 2. CCS related to multi-fuel technologies and Bio-CCS 3. Monitoring methods & technologies related to CCS 4. Acceptability of CCS 5. Solid looping technologies 6. Mineral carbonation

The CCSP consortium consists of 17 companies and nine research partners. The research program started up in 2011 and is scheduled to run for five years. The annual budget for the program has been about â&#x201A;Ź3 million so far. In addition, national participation in various international networks related to CCS is organized via the program. Active international research collaboration is also carried out with the Swedish CCS project, NORDICCS and ICT (India). In 2013, a new method for analyzing and measuring the amine emissions from post-combustion CO2 capture plants has been developed. The method is one of the most accurate in the world, and it has been awarded with FINAS accreditation, making it the first accredited method for measuring amine emissions. The new, accredited method has already drawn interest from many relevant global actors in the field of CCS. Further work on postcombustion capture has been carried out related to the development of models for making process simulations of post-combustion CO2 capture more accurate, including models simulating the formation of heat-stable salts and the gas flow in structured packed bed columns. Oxy-fuel combustion is one of the most promising technologies for CO2 capture and is therefore being further developed in the program. Detailed models for the heat transfer and behavior of limestone in oxy-fuel combusted Circulating Fluidized Bed (CFB) boilers are being developed. The feasibility of

using oxy-fuel CFB boilers in multi-fuel CHP plants is also evaluated. Results show that using oxy-fuel combustion in a biomass-fired CHP plant could be a promising combination for achieving significant CO2 emission reductions. The results further indicate that, when taking only the operational costs into account, the economic penalty is relatively small if all heat can be utilized. Bio-CCS is also being studied in close collaboration with the Zero Emission Platform and Biomass Technology Platform Joint Task Force. A cold model test rig has been constructed and used for developing chemical looping combustion (CLC), and simulation tools for CLC have been further developed. Techno-economical studies of the performance of industrial-scale CLC power plants show that CLC can be a competitive CO2 capture technology in certain cases. Possibilities for CO2 utilization are also being studied. Thermo-catalytic decomposition of methane is being developed as a method to reduce CO2 emissions in natural gas combustion, achieving a 75% hydrogen yield in laboratory experiments. Cultivation of micro-algae using actual power plant flue gases has been successfully carried out. The feasibility and sustainability of this concept is currently being assessed. A first laboratory pilot plant for storing CO2 as precipitated calcium carbonate using steelmaking slags is being built. The plant is expected to be operational in 2013. Other options studied include methanol and formic acid synthesis.

RESEARCH PROGRAMS

The key areas of the research are: 1. Hybrid energy and storage solutions 2. Analysis of the business concept 3. Local energy sources, sustainability and energy self-sufficiency

desy DISTRIBUTED ENERGY SYSTEMS

DESY program consists of DESY Research and DESY Demonstrations. The program brings together the energy users, energy producers, technology providers, engineering and consultant companies and researchers whose ambition is to tackle the present and foreseen challenges of distributed energy systems, laying the ground for their real market penetration. The DESY program will analyze, compare and recommend the best and most efficient business model alternatives among the many renewable energy paths available for business opportunities in today’s technological platforms. Methods will be developed for designing and sizing hybrid energy components and optimizing the entire system. The goal is to optimize hybrid energy systems using the best available components and optimal dimensioning to fulfil the environmental criteria set on the energy systems of the future. The final model could be used as a design and operation model for hybrid energy systems using renewable energy sources.

Two demonstrations are in use and in the measurement phase, one is under construction and the rest of the demos are in the planning phase. ACTIVE DEMONSTRATION CASES:

1. Hybrid solutions and energy storing; towards efficient sizing, optimization and simulations tools of hybrid energy systems 2. Business concept; analysis, service, financing, market analyses, risks, potential, scenarios, energy policy, law enacting, trends of sustainable society 3. Local energy, sustainability and energy self sufficiency; energy efficiency, environmental impacts, life-cycle, recycling, town planning, infrastructure THE MAIN RESULTS AFTER ONE YEAR The DESY model has been developed in cooperation with research partners. The model simulates energy systems in buildings and district area heating

The program is also involved in international cooperation with the IEA DHC-CHP, Annex X/TS1 ’Low Temperature District Heating for Future Energy Systems’.

THE DESY PROGRAM HAS THREE MAIN THEMES:

STATISTICS OF PUBLICATIONS

Process analyses and carbon footprint calculations have been carried out at bio-ethanol plants, microCHP plants and zero-energy buildings.

1. 2. 3. 4. 5. 6. 7. 8.

DESY research topics are local energy sources, technical hybrid solutions, energy storing, business concept analysis, sustainability and energy selfsufficiency.

The Distributed Energy Systems (DESY) program consists of 12 industrial partners and six research partners. The total program volume for 2012–2014 is one million euros.

networks. Energy sources can include ground heat, solar heat and electricity, small-scale wind power, as well as biofuels, wastes, process heat, and natural water resources. Heat and electricity storage facilities can be connected to the systems in buildings and districts. CHP production is recommended when the heat load is sufficient. A low-temperature district heat network is recommended in areas with small houses and zero-energy buildings, making solar energy and heat pumps accessible in buildings and district heat networks as part of the energy solution. Double direction of electricity and heat trade should be made possible in the district.

Bio-refinery plant connected to bio-ethanol plant, Envor Group Oy (under plan) Geoenergy, Vaasa, Vaasa UN (under plan) Eco-Energy Centre, Karjalohja, Akrieer Oy (under construction) Eco-CHP demonstration plant, Ekogen Oy (in use, under testing) Energy Village – Creating regional energy selfsufficiency, Ostrobothnia, Sevon Inst./Vaasa UN (under plan) Drop in the Sea – Integrated hybrid renewable energy solutions for island operation, Island Ostrobothnia, Sevon Inst./Vaasa UN (under plan) Self-sufficient farm, Jyväskylä, Jyväskylä UN (under plan) Zero-energy building, Hyvinkää, Fortum Oyj (in use, under measurement)

RESEARCH PROGRAMS

The key areas of the research are: 1. Understanding and measuring energy efficiency, 2. Analysis and optimization of complex systems, 3. Technology research 4. Energy efficiency services and solutions

efeu EFFICIENT ENERGY USE

The focus areas are regional energy systems, energy chains, and industrial systems. Although independent, the focus areas are quite closely linked to one another. Each of the focus areas will need to undergo major systemic changes due to changes in regulation, consumer behavior and new technology. The planned duration of the EFEU program is September 2011 – December 2016 with a total program volume of €12 million. The research study in 2013 was conducted by twelve industrial partners and five research partners. The key achievements of 2013 are briefly highlighted in the following. Methods and tools for energy efficiency business models and regional energy analysis and optimization have been developed within the focus area of regional energy systems. A regional energy-efficiency estimation model to assess fulfilment of regional energy-efficiency plans and their environmental and economic impacts has been developed and applied for the analysis of the Lohja and Lappeenranta–Imatra regions. An optimization method to solve a regional heat supply network from supplies to consumers has been demonstrated in the Lohja case. Research in energy chains has focused on gaseous fuels. Energy and CO2-efficiency of the production

of biomass-based synthetic natural gas has been analyzed using available energy-efficiency analysis methods. Based on the shortcomings of the aforementioned methods, a novel analysis method based on a combination of primary energy and exergy analyses has been developed and validated on the same case. Optimization methods and tools to tackle energy chain problems have been expanded to study LNG-distribution possibilities in Finland. Utilization of waste heat, more precisely latent heat from wet dryer off-gas, was investigated on a pilot scale. Preliminary results indicate that a 30% reduction in primary energy is achievable. This means that the specific energy consumption for each ton of removed water from concentrate and lignite can be reduced from 3,700 and 3,100 MJ / t water down to level of 2,600 and 2,200, respectively. Two energy-efficiency-based speed control methods for reservoir pumping applications have been developed and evaluated both with laboratory and pilot tests. Modelling of multiphase flows for jet pump technology provides information on the usability of pumps to transfer pressurized nitrogen and on the optimization of jet pump technology to transfer oil-liquid-gas fluids.

The Efficient Energy Use (EFEU) research program (2011–2016) aims to build knowledge and competence to enable future economic growth in new product and service innovations in energy efficiency. Methods and tools will be developed to measure, model, analyze and optimize energy efficiency at the system level instead of optimizing individual system components.

RESEARCH PROGRAMS

fcep FUTURE COMBUSTION ENGINE POWER PLANTS

The Future Combustion Engine Power Plants (FCEP) research program (2010-2014 with four Funding Periods) is focused on reciprocating engine and related power plant technologies. The objective of the programme is to improve energy efficiency and the environmental impacts of combustion engine power plants to meet future market requirements.

RESEARCH PROGRAMS

The key areas of the research are: 1. Combustion process 2. Energy efficiency of the engine and auxiliaries, such as heat recovery systems and power conversion technologies 3. Emission control 4. Fuel flexibility 5. Automation and control for optimized power plant usage In addition, there is an important national objective to establish unique, world-class research facilities in Finland for energy-producing combustion engines and their auxiliary systems. The duration of the FCEP program is January 2010 – February 2014 with a total program volume of €37.8 M. The research is conducted by eight industrial partners and nine research partners. There have been no changes in the consortium. The key achievements of 2013 are briefly highlighted in the following. In the area of engine combustion, the objective is to increase fundamental understanding of factors influencing the performance, emission formation and emission reduction of internal combustion engines. The result highlights include the first-published Large Eddy Simulations (LES) of supersonic fuel sprays, pretabulated detailed chemistry for combustion (LES), and fully automated Computational Fluid Dynamics (CFD) combustion optimization. On the experimental side, the medium-speed single-cylinder research engine with, e.g. adjustable valve timing and fuel injection parameters is now capable for high-pressure (30 Mpa) and high-speed (1290 rpm) operation. Highpressure operation means higher power density, i.e. more power from the same size. High gas density also provides an opportunity for better combustion control and improved fuel/air mixing. According to the first results, low soot levels are possible, and there is potential to reduce NOx emissions by valve timing. New engine-integrated devices to increase energy efficiency have been designed and built for testing. The performance and safety tests of the Electro Hydraulic Valve Actuation (EHVA) device have been conducted. The forthcoming doctoral dissertation, ’Fully Variable Valve Actuation in Large Bore Diesel Engines’, will conclude the characteristics of the EHVA hydraulic and control system. A high pressure turbocharger with a power output possibility was developed and tested in the laboratory. Tests with a new smart fuel pump prototype showed a clear increase in efficiency compared with a commercial pump, but a new design is needed to improve longterm durability. The Organic Rankine Cycle (ORC) is suitable for small-scale heat recovery from mediumand low-temperature heat sources. A real-scale prototype is being built, and tests have been run to

evaluate the potential of the ORC process as part of an engine power plant. In the area of efficient power conversion, the focus has been on the improvement of generator efficiency, fault ride through time improvement, and vibration control design methods. The results of several studies are available. The new adaptive mass damper has performed well in engine tests, and it has proved to be an efficient tool in vibration minimization. Novel SCR catalyst material studies have generated valuable knowledge of catalyst efficiencies and durability against poisoning. The next step – tests with a diesel exhaust gas side flow – generated more knowledge of catalyst chemistry, catalyst loading and an optimal catalyst structure when using high-sulphur fuels. A significant improvement was achieved with pre-turbo methane catalyst studies. Conversion efficiency with the latest development version has remained high for much longer than before, and tests are continuing. Options for future LNG logistics in Finland, as well as biogas solutions, were explored. A number of new fuel options and fuel combinations, including liquid biofuels, were also examined. Certain fuels were found to be promising considering engine efficiency, emissions, estimated fuel price, and availability. This work supported the development of simulation models to predict the performance and emissions of fuels. A few potential low cost sensors have been developed to the validation phase, e.g. a cylinder pressure sensor based on an acoustic resonator. Sensors together with new intelligent solutions, such as the vibration reduction methodology and fault diagnostics core, help to achieve optimal control throughout the lifetime of the power plant. The new fully optical research engine, the upgraded extreme value engine and the renewed medium speed engine research laboratory are examples of new research infra in universities and research units. The upgrade of the medium speed engine laboratory will significantly improve experimental gas engine research possibilities within the research organizations.

RESEARCH PROGRAMS

The key areas of the research are: 1. Interoperable environmental measurement systems 2. Environmental efficiency management system 3. New online and remote sensing technologies 4. SME program

mmea MEASUREMENT, MONITORING & ENVIRONMENTAL EFFICIENCY ASSESSMENT

The aim of the Measurement, Monitoring and Environmental Efficiency Assessment (MMEA) research program is to develop new technologies, methods, tools and services for environmental observation systems both in industrial processes and in the surrounding environment. The program started in May 2010 and is planned for five years (2010–2015) comprising of five Funding Periods (FP) with a total budget of 54.5 M€.

The MMEA consortium is truly cross-sectional and multidisciplinary; the consortium consists of 42 partners, 29 of which are companies, including 19 small and medium-sized enterprises. The research contribution of the SMEs represents about a quarter of the total research volume. For the fourth funding period (FP4), one new partner (Profium Oy) joined the consortium, significantly strengthening it in the area of semantic services. For FP4, the Tekes eligible budget is €11.4 million. The total Tekes eligible budget for the period 2010–2015 is estimated to be €54.5 million. During 2013, the MMEA program was focused further. Both external and internal cooperation was improved; several tasks were closed and new pilot cases were formed. During the period of 2010–2013, MMEA’s research network steadily increased. MMEA has tight cooperation with several projects funded by the Academy of Finland. FidiPro Professor Chandrasekar’s research group at Colorado State University has been tightly linked with MMEA research in the area of remote sensing. The China Testbed joint research project is progressing well. Cooperation has also been established with an enterprise group project and with several national and EU research projects. A Scientific Advisory Board (SAB) was invited to conduct an evaluation in September 2013. Two members of the board were from academia and two from companies. SAB’s main task was to critically evaluate the scientific quality and implementation of the program. As a general outcome, the scientific quality was evaluated very high. SAB observed that MMEA has improved in many areas, such as in focusing, dissemination and in external and internal cooperation. Exploitation of the research results looks promising. One spin-off initiative is under development. Several MMEA research results have already been utilized

in the partner’s internal product development and commercialization projects. Several patent applications are also in progress and, additionally, at least three innovation disclosure notifications have been reported. Two enterprise groups have been initiated and several are known to be in the preparation phase. New business cases have been formed in the Asian market. The work package of interoperable measurement systems has continued to open up the data sources and the development of tools for environmental monitoring data processing platform technologies, as well as the concept of an environmental information market place, Dataoperator (formerly known as Envitori). The platform technology provides tools that facilitate data processing chain development. Testbed is a system that connects selected data sources to Testbed web pages and to selected applications, and Dataoperator enables data sharing on a commercial basis. EnviTori’s vision is to enable development of an environmental monitoring service that creates new solutions to various end-user problems. During 2013, several new data sources were connected to the platform, and the MMEA Testbed web page was launched (http:// testbed.mmea.fi). A semantic service prototype and a participatory sensing system have also been created. The work between the work packages of data fusion and environmental efficiency assessment was earlier merged in order to generate a development platform for an environmental management system at the end of the program. Novel solutions will be obtained by combining real-time measurements and LCA tools. New data quality assurance algorithms have been developed for industrial environments. A predictive emission monitoring system was also developed for NOXs. Decision support systems have been created for applications in road maintenance and wind farms. Additionally, an LCA model has been developed to evaluate the effects of wood pellets.

Individual Disclosure Notifications 3 | Patent applications 6 | Open source software 1 | Other 35 | Total 261

RESEARCH PROGRAMS

mmea MEASUREMENT, MONITORING & ENVIRONMENTAL EFFICIENCY ASSESSMENT

The main achievements of the remote sensing work package are related to the portable 3-band radar, advanced lidar systems, and new algorithms for weather and environmental radars. LIDAR demonstrator prototypes have been developed for humidity and boundary layer detection applications. New UAV remote imaging concepts, such as thermal mapping and hyperspectral imaging, have also been developed. In the particles and emissions research area, new particulated measurement instruments with new measurement have been developed. Different cost-effective lasers have been determined, and the manufacture of novel instrument prototypes has been started. New UV-LED concepts and a sensor for the detection for floc formation in waste water have also been developed. In the work package for dissemination and internationalization, the SME activation and roadshows have been steadily continued. In the

China Testbed pilot, an air quality pilot system with Enviobserver and Pegasorâ&#x20AC;&#x2122;s PPS-M sensor was installed at Shenzhen University. A mobile air quality participatory sensing pilot with students was also conducted. An agreement (MoU) was signed with the Chinese Academy of Environmental Sciences (CRAES) in order to carry out a pilot arrangement at their site during FP4 (funding period). In the China Testbed pilot, a memorandum of understanding was signed in 2012. The EnviObserver (EO) software with mobile application has been installed in a server in Shenzhen for testing purposes. The air quality instruments have been modified and prepared to be implemented in Shenzhen University. The pilot proceeds to investigate the utilization of various data sources and the business potential of the environmental monitoring services, with special focus on the utilization of the MMEA Platform.

RESEARCH PROGRAMS

sgem SMART GRIDS & ENERGY MARKETS

RESEARCH PROGRAMS

The key areas of the research are: 1. Smart grid drivers and scenarios; market integration and new business models 2. Future infrastructure of power systems 3. Active resources of the smart grid 4. Customer interface for the smart grid 5. Intelligent management and operation of smart grids

The SGEM consortium consists of 19 industrial and eight research partners. Industrial partners consist of five companies operating in the energy technology area, five local Distribution System Operators (DSOs), two energy retailers, the Finnish national Transmission System Operator (TSO) Fingrid, and six companies operating in the ICT sector. The program is scheduled to run for five years with a total budget of €57 million. During the fourth funding period (4FP), the SGEM program structure remained the same as during the third funding period (3FP), with seven work packages (WP) each led by a dedicated manager. This coordination structure was established during the second funding period and has proven itself to be successful. The process of integrating partner objectives into larger common deliverables and Proof-of-Concepts continued throughout 4FP. WP1 concentrated on international relations, defining of future research directions after the SGEM program, and benchmarking of the SGEM results. Additionally, work around an overall smart grid roadmap continued. Questions such as drivers affecting grid development, security of supply, and incentives and implications of DG were investigated.

The aim of the Smart Grids and Energy Markets (SGEM) research program, which spans over the period of 2010–2014 with five funding periods, is to develop internationally acceptable smart grid solutions that have the potential to be demonstrated in full scale in the Finnish infrastructure. At the same time, the benefits of an internationally networked research environment will accumulate the know-how of world-leading ICT and smart grid providers in Finland.

In WP2, the Lappeenranta University of Technology (LUT) and Suur-Savon Sähkö continued to demonstrate real-life operation of a low-voltage direct current (LVDC) network. The Proof-of-Concept of an LV network with four households has been in operation for 20 months without any hiccups. The customers have been satisfied with the reduction of short interruptions and improved power quality.

In WP3, research focused on the future aggregate potential of different load appliances for Demand Response (DR) in HV networks. Research shows that up to 10–15% of the reserve capacity in the transmission networks can be covered by DR. In WP4, the main target was a novel implementable holistic Demand Response (DR) functionality. This has been realized by determining, developing and demonstrating different DR functions by various studies and demonstrations in the Adjutant block of flats in Espoo, by actions and customers of the electricity retailers and network companies Oulu Energy, Helen Supply, Helen Networks, Elenia Networks, Fortum Distribution, Vantaa Energy Networks and Fingrid, in cooperation with the industrial partners Empower IM, ABB and There Corporation, as well as universities and research institutes. The work has included various DR applications at the equipment and system level, interfaces for data communication and DR benefit analysis, and also participation in IEA DSM activities, which has provided SGEM with an international overview and experience in DR and Energy Efficiency. Implementation and demonstration of the interactive customer gateway and microgrid concept and applications are studied in LUT as the Green Campus and in TUT as an AC microgrid laboratory environment. Development and analysis of load estimation methods have comprised different approaches (e.g. load profiling, a Kalman-filter based predictor, and artificial neural networks) based on smart metering data. The effects of DR and own production of small-scale customers on load profiling has also been studied.

RESEARCH PROGRAMS

sgem SMART GRIDS & ENERGY MARKETS

WP5 focused on the effect of distributed generation on distribution networks. The research has resulted in improved simulation models for analyzing wind generator control models, short-term wind generation forecasting, and rules for the grid connection process for microgeneration. Participants of WP5 have initiated an international cooperation with IEA WIND Task 25 and the Nordisk Toppforskning TFI program. In the research of electric vehicle (EV) charging, work continued in the implementation of an ISO/IEC-15118 communication protocol, and the first pilot case has been in operation since July 2013: a parking hall with tens of charging poles and communication using a centralized SECC server. WP6 demonstrated a proof of concept of self-healing networks. It consisted of the calculation of automatic fault location at the substation, combined with the utilization of public wireless networks and first tests with a low-cost fault indicator, developed by VTT. The accuracy of fault distance calculation has been estimated to be around 1â&#x20AC;&#x201C;2 km, which makes it possible to detect temporary faults and predict emerging problems in the networks.

WP7 developed methodologies for the optimization of the usage of flexible resources (i.e. DER and DR) from the viewpoint of different market players (customer, DSO, TSO, retailer, aggregator), including business and pricing models. Highlights of the outcomes include developing and demonstrating of novel network tariff structures and a DER value assessment. WP7 also investigated consumersâ&#x20AC;&#x2122; attitudes, motives and prerequisites regarding smallscale electricity production. When it comes to using the allocated funding, the program stayed within the budget of the program: 52% of the planned resources for 4FP were used on the status by 31 October 2013. Calculated cumulatively from the beginning of the program, 84% of the total budget has been spent, and it is estimated that 94% of the full SGEM budget will be spent by the end of 4FP. The start of 4FP activities was delayed due to a late funding decision by TEKES. Currently, 61% of planned deliverables have been finalized. However, the majority of the results are targeted to be completed at the end of 4FP (28 February 2014).

N E T WO R K AC T I V I T I E S

& C O M M U N I C A T I O N

56 57

& C O M M U N I C AT I O N

N E T W O R K A C T I V I T I E S

CLEEN selected activities in 2013

JAN

16.5. SRA working group

18.3. New project and funding models working group meeting

16.5. Roundtable discussion on the low carbon transition in Europe, British Embassy

21.3. CLEEN Annual General Meeting , Helsinki

22.5. Visit to CLEEN by ‘Kestävän talouspolitiikan johtamiskoulutuksen ryhmä’

21.3. ARVI workshop 17.1. Meeting with Korean Embassy Science Officer

22.3. Cooperation possibilities with Carbon Trust, UK

28.5. Cooperation possibilities with Germany Trade and Invest

23.1. CLEEN Board meeting 30.1. MMEA Program Steering Group (PSG) meeting 31.1. SHOK program manager day

FEB 4.2. Science Council meeting 11.2. Cleantech cooperation between China and Finland - Advisor of China’s Ministry of the Environment visit to Finland

30.5. BEST Program Steering Group (PSG) meeting

APR

31.5. Cooperation possibilities with KETEP, Korea

5.4. FCEP Program Steering Group (PSG) meeting

31.5. CLEEN Board meeting 31.5. New project and funding models working group meeting

9.4. Science Council meeting 10.4. Ympäristömonitoroinnin seminaari MMEA 10.-11.4. International cooperation meeting with Insigma, Zhejiang University, S&T Department of Zhejiang Province

JUN

29.4. CLEEN Board meeting

5.6. Cooperation possibilities with Le Réseau d’expertise et de développement en biométhanisation (Canada)

15.2. CLEEN Board meeting 27.2. SHOK media brunch

MAR 14.3. SRA working group 14.3. SGEM Program Steering Group (PSG) meeting

JUL

MAY

6.6. Science Council meeting 7.6. SGEM Program Steering Group (PSG) meeting

6.5. Chinese Embassy delegation visit to CLEEN on R&D activities

7.6. CLEEN R&D Council meeting 11.-12.6. CLEEN Annual Seminar

11.5. Zhoushan Government visit to Finland

25.-27.6. Seminar on managing national R&D programs, Astana, Kazakhstan (CLEEN case study)

15.5. CCSP Program Steering Group (PSG) meeting

AUG 7.8. SRA theme group for Future Energy System meeting 8.8. SRA theme group for Gas theme meeting 12.8. Co-operation possibilities, meeting with Insigma Technology Company Ltd, China 12.8. Meeting of the SRA theme group for Sustainable city 12.8. Meeting of the SRA theme group for Environmentally Efficient Areas 19.8. Meeting of the SRA theme group for Future Energy System 20.8. New project and funding models working group meeting 21.8. MMEA Program Steering Group (PSG) meeting 26.8. Meeting of the SRA theme group for Sustainable city 26.8. Meeting of the SRA theme group for Environmentally Efficient Areas 29.8. Meeting with advisor of the State Council Development Reform Center in China for green growth in China

SEPT

27.9. Meeting of the SRA theme group for Sustainable city

17.10. EFEU Program Steering Group (PSG) meeting

27.9. Meeting of the SRA theme group for Future Energy System

18.10. Science Council meeting

3.9. SRA working group meeting

29.9. MMEA seminar on indoor air quality in China

4.9. ARVI meeting in Tekes

30.9.-1.10. CCSP SAB meeting

5.9. Meeting of the SRA theme group for Future Energy System

30.9. Meeting of the SRA theme group for Environmentally Efficient Areas

10.9. Science Council meeting

21.10. CCSP Nordic seminar 21.-23.10. International Innovation Conference organized by the Provincial Government of Zhejiang. Launch of the Sino-Nordic Cleantech platform in Zhoushan, China 23.-25.10. MMEA SAB meeting

11.9. CLEEN Board meeting 12.9. Meeting of the SRA theme group for Gas theme 16.9. Meeting of the SRA theme group for Sustainable city 17.9. Meeting of the SRA theme group for Environmentally Efficient Areas 18.9. Meeting on cooperation possibilities with Indian ship dismantling 18.9. IEA Bioenergy seminar (BEST) 18.-19.9. TFI BIO Nordic meeting in Finland 19.9. R&D Council core team meeting 25.9. SGEM Program Steering Group (PSG) meeting 26.9. Meeting of the SRA theme group for Gas theme 26.9. FCEP Program Steering Group (PSG) meeting 27.9. EFEU Program Steering Group (PSG) meeting

28.11. Co-operation possibilities, meeting with nordic cleantech clusters

24.10. MMEA seminar 24.-25.10. SGEM unconference

OCT

25.-29.10. Shanghai Pujiang Innovation Forum 28.10. SRA Working group meeting

1.10. Visit to Finland (CLEEN) by National Secretary for Higher Education, Science, Technology and Innovation (SENESCYT), Ecuador

NOV

4.10. Cooperation possibilities with the Industrial Technology Research Institute (ITRI) of Taiwan

7.-8.11. CLEEN Board meeting

7.10. BEST Program Steering Group (PSG) meeting

12.11. BEST workshop 13.11. FCEP Final seminar

7.10. Cleantech Finland partner organizations meeting

14.11. SHOK Program manager day 15.-21.11. China HiTech Fair, Shenzhen. Visit to NIM, Beijing

10.10. CLEEN-Digile China cooperation 11.10. DESY Program Steering Group (PSG) meeting

20.11. CCSP Program Steering Group (PSG) meeting

14.-18.10. Minister Stubb’s business delegation visit to India

22.11. CLEEN R&D Council meeting

14.10. New project and funding models working group meeting

DEC 2.-6.12. CCSP cooperation possibilities with ONGC in India 5.12. Co-operation possibilities, meeting with DTI 9.12. SGEM Program Steering Group (PSG) meeting 11.12. New project and funding models working group meeting 16.12. Science Council meeting 17.12. Life IP coordination group meeting 19.12. CLEEN Board meeting

NETWORK ACTIVITIES

Stakeholders

OTHER FORUMS

PARTNERS:

NON-GOVERNMENTAL ORGANIZATIONS:

SHOK companies: Digile Oy (former TIVIT Oy), FIBIC Oy, FIMECC Oy, RYM Oy, SalWe Oy Cleantech Finland Chinese Research Academy of Environmental Sciences (CRAES), China - Memorandum of Understanding (MoU) signed 2013 Danish Technological Institute (DTI), Denmark Energy Technology Cluster Program, Teknologiakeskus Oy Merinova Ab Finnish Cleantech Cluster – LADEC Ltd EERA Finnish Environmental Cluster for China, FECC Green China Lab Insigma Group Co Ltd – Memorandum of Understanding (MoU) signed 2013 National Institute of Metrology (NIM), China - Memorandum of Understanding (MoU) signed 2013 Oil and Natural Gas Corporation Ltd (ONGC), India – Memorandum of Understanding (MoU) signed 2013

Confederation of Finnish Industries (EK) The Federation of Finnish Technology Industries Finnish Energy Industries Chemical Industry Federation of Finland Finnish Forest Industries The British Embassy in Helsinki, Finland Embassy of the United States in Helsinki, Finland Embassy of the People’s Republic of China in Helsinki, Finland Embassy of the Russian Federation in Helsinki, Finland Embassy of Israel in Helsinki, Finland Nordic Energy Forskning (TFI) Finnfacts (part of TAT Group) Research Institute of the Finnish Economy Finnish Water Forum Finnfund German-Finnish Chamber of Commerce Finnish-Russian Chamber of Commerce

GOVERNMENTAL ORGANIZATIONS:

SERVICE PROVIDERS:

Tekes – The Finnish Funding Agency for Technology and Innovation Academy of Finland Ministry of Employment and the Economy Ministry of the Environment Motiva Finpro Technology Academy Finland (TAF)

Audipek Translation Agency Dazzle Oy

TRANSLATION SERVICES

Delingua Oy Dream Broker Oy

TRANSLATION SERVICES

NETWORK AND MANAGEMENT CONSULTING

ONLINE COMMUNICATIONS TOOLS

Entre Marketing Oy

EXHIBITION AND EVENT MARKETING

Inno-W Oy

WEB PAGES AND RESEARCH PORTAL

Kuudes Kerros Helsinki OY

STRATEGIC BRAND DESIGN CONSULTANCY

Meltwater Group MEDIA RELATIONS Netprofile Oy COMMUNICATIONS Ramboll Finland Oy NETWORK AND MANAGEMENT CONSULTING

“User-driven Service Innovation and Co-creation Management (NOMAD)”-project, 01/2012 – 12/2014, Consortium led by University of Vaasa “Service and social innovations - policy needs and potential impacts (SOPPI)”-project, 2012-2014, Consortium led by VTT Norden, Top-level Research Initiative, Sustainable bio-fuels, member of program committee, 2010 Työ- ja elinkeinoministeriön Ympäristöliiketoiminnan strategisen ohjelman neuvottelukunta, 2012 – (Strategic Program for the Cleantech Business) Ympäristöministeriön Ympäristöinnovaatiopaneeli (2009 - 2010) ‘ICT 2015’ group Expert panel – Nordic Top-level Research Initiative on Climate, Energy and the Environment (TRI): Collaboration projects ”Green Growth in an Era of Climate Change” Expert panel – Technology Centres Programme, The I2E2 Energy Research Centre, Ireland Advisory board – ETLA’s FiDiPro-project “Towards Sustainable Positioning for Value Capture and Investability – A roadmap for Finnish CleanTech” The Finnish Environment Institute´s advisory board, 1.2.201031.3.2014 International Environmental Engineering program of Helsinki Metropolia University of Applied Sciences Doctoral Program in Energy Efficiency and Systems (EES), coordinated by Aalto University ‘Innovatiivisuutta julkisiin investointeihin (IJI)’, project coordination group Ympäristöministeriön Alueellinen resurssitehokkuus Life IP -hankkeen ohjausryhmä 2013 The International and Public Relations Divisions at ProCom – the Finnish Association of Communications Professionals

COOPERATION WITH SHOKS The companies having the SHOK status (CLEEN OY, Digile Oy, FIBIC Oy, FIMECC Oy, RYM Oy, SalWe Oy) have arranged several meetings in various compositions in order to share and review best practices, to explore cooperation opportunities and to coordinate research efforts. Frequent meetings have been arranged with • Chairmen of boards and CEOs, • CEOs and CTOs • CTOs • Communications personnel

The intensive cooperation has realized in the form of joint marketing efforts (e.g. SHOK-summit, marketing material and common SHOK web pages) and shared resources (e.g. legal counsel). An example of a concrete cooperation with SHOKs is a joint program with FIBIC Ltd on bioenergy focused research program. The BEST program aims to create a comprehensive vision of the future bioenergy ecosystem including identification of various sustainability measures and the most sustainable value chains. INNOVATIIVISUUTTA JULKISIIN INVESTOINTEIHIN -PROJECT Since 2012, CLEEN has participated in the EAKR-funded project ‘Innovatiivisuutta Julkisiin Investointeihin’ (http://www. iji-hanke.fi/), with a subproject of ‘Ideasta innovaatioksi’. The objective of the subproject is to develop an operating process for CLEEN for identifying and assessing the potential of scientific publishing, business potential and societal impact of the knowledge arising from SHOK research programs. Within the project, efforts have also been made to discover pilot areas in Southern Finland for knowledge identified in the CLEEN research programs. An operating process for more efficient identification and documentation of knowledge gained from the SHOK research programs has also been implemented for CLEEN in our subproject. The key stages of the operating process are describing the knowledge, defining the knowledge type, defining the burdens and price related to the utilization of the knowledge, and publishing the knowledge in a public database. Within the scope of the subproject, CLEEN has also carried out extensive cooperation with regional innovation and development organizations, such as Green Net Finland, Culminatum Innovation Oy Ltd, Häme University of Applied Sciences (HAMK), Lahti Region Development LADEC Ltd, and Lappeenranta University of Technology. CLEEN has carried out four technology surveys based on the research results of the SHOK programs for the needs of the subprojects of the project partners. The surveys focus especially on distributed energy solutions, energy efficiency in construction, and smart water. One of the surveys supports the energy system planning of Engelinranta, a new suburb in Hämeenlinna.

Surveypal Oy SURVEY AND DATA COLLECTION Visma Solutions Oy ACCOUNTING AND FINANCE Teonsana Communications COMMUNICATIONS

NETWORK ACTIVITIES

Communications

During 2013, we had many international and crossSHOK activities. Last November, CLEEN and three of its research programs, DESY, MMEA and SGEM, participated in the China Hi-Tech Fair in Shenzhen. We organized a full-day Cleantech Open Innovation forum at the fair together with our Chinese partner Green China Lab. The objective was to promote Sino-Finnish cleantech R&D&I operations and cooperation between China and Finland. Prof. Yao Jianquan, academian of China, Deputy Head of the national expert group on Internet of things was one of our keynote speakers of the forum. Ms Pia Viitanen, Minister of Housing and Communications, gave an opening speech at the seminar and mentioned CLEEN as the Finnish public-private-partnership model for Cleantech in cooperation with Chinese partners. CLEEN was also invited to give a keynote speech at the seminar on “Best international practice in managing national R&D programs financed together with business” in Astana, Kazakhstan in June 2013. The seminar was hosted by Mr Kanysh Tuleushin, Vice-Minister of Industry and New Technologies of the Republic of Kazakhstan. Mr Alexander Stubb, Minister for European Affairs and Foreign Trade, Ministry for Foreign Affairs of Finland, visited India with a business delegation in October 2013, where CLEEN also participated. Cleantech was one of the focus areas of the visit. CLEEN’s goal was to discuss and find common R&D interests with Indian partners in order to launch collaborative research

activities that could be combined with the R&D activities of CLEEN’s consortia. In December, CLEEN signed a Memorandum of Understanding (MoU) with the Indian Oil and Natural Gas Corporation Ltd (ONGC). CLEEN’s annual seminar was successfully held at the Helsinki Music Centre in June 2013. The two-day event consisted of keynote speeches covering relevant themes, e.g. innovation systems in China, the EU and the USA, as well as future environmental and energy challenges. The first day ended with a poster session of CLEEN programs. The second day consisted of three simultaneous sessions under the themes of systemic resource efficiency, urbanization and future energy systems. The seminar presentations and posters are available on the CLEEN website. A new free online service offering local weather information was launched within the MMEA program. People can track weather radar images, the water level of lakes, algae and pollen’s spread online, even when staying at summer cabins using mobile phones. The MMEA Testbed online service offers weather and environment observations from all over the country. It gathers information from several operators and organizes them into one convenient place. http:// testbed.mmea.fi

efficiently about the results of the research programs. The communications team consist of Program Manager, Chair of the Program Steering Group (PSG), CLEEN Communications Manager, CLEEN CTO, communications persons from partner organizations, and other active persons from the programs. We also continued to build up close cooperation with Cleantech Finland to coordinate the message of Finnish Cleantech competence and to join forces for enhanced international visibility. Cooperation with other SHOK companies, Tekes and the Academy of Finland has been strengthened t hrough regular communication meetings (ten meetings in 2013). The primary channels of communication between CLEEN and our stakeholders have been our website, research program workspaces and public sites, the CLEEN eNewsletter, various other publications and articles, as well as presentations. We have produced various marketing materials, including CLEEN brochures, research program factsheets, and success cases. In social media, the professional CLEEN LinkedIn group has been open for interactive information sharing. The group also acts as a platform for CLEEN stakeholders to provide and share relevant information from their own point of view. All of the above-mentioned material can be found through the links below.

RELATED LINKS: CLEEN homepage: www.cleen.fi CLEEN Linkedin group: www.linkedin.com/groups/CLEEN-2889884/about CLEEN in SlideShare: www.slideshare.net/CLEEN_Ltd CLEEN in Wikipedia: fi.wikipedia.org/wiki/CLEEN CLEEN intranet (requires login) https://intra.cleen.fi BEST portal (requires login): portal.cleen.fi/best CCSP portal (requires login): portal.cleen.fi/ccsp DESY portal (requires login): portal.cleen.fi/desy EFEU portal (requires login): portal.cleen.fi/efeu FCEP portal (requires login): portal.cleen.fi/fcep MMEA portal (requires login): portal.cleen.fi/mmea SGEM portal (requires login): portal.cleen.fi/sgem SHOK web pages: www.shok.fi

Dedicated CLEEN research program communications teams continued their work and held 14 joint meetings in 2013 in order to communicate more

FINANCIALS

F I N A N C I A L S

Income statement Currency EUR

Balance sheet

1.1.2013 - 31.12.2013

1.1.2012 - 31.12.2012

NET TURNOVER Other operating income Raw materials and services

2 175 574,18 206 164,00 -1 605 107,95

2 406 302,55 237 101,10 -1 913 552,37

GROSS PROFIT (LOSS) Staff expenses Other operating expenses

776 630,23 -488 300,36 -330 520,25

729 851,28 -412 657,03 -197 387,35

-42 190,38 47 047,94 47 868,32 -820,38

119 806,90 65 203,36 66 457,58 -1 254,22

PROFIT (LOSS) BEFORE EXTRAORDINARY ITEMS

4 857,56

185 010,26

PROFIT (LOSS) BEFORE TAX AND APPROPRIATIONS Income taxes

4 857,56 -2 262,43

185 010,26 -45 476,57

2 595,13

139 533,69

OPERATING PROFIT (LOSS) Financial income and expenses Other interest and financial income Interest and other financial expenses

PROFIT (LOSS) FOR THE FINANCIAL YEAR

“NET TURNOVER” includes the CLEEN Commission (€752,461.79), the Program Management Cost (€590,050.26), Direct Industrial Funding (€820,554.92) and other income (€12,507.21) that consists of joint costs of SHOK companies invoiced from CLEEN and further invoiced from other SHOK companies. The CLEEN Commission is entered as income based on the stage of completion of the programs. For Program Management Cost and Direct Industrial Funding, CLEEN Ltd has exactly the same amount of liabilities towards Program Parties to cover the budgeted program management costs and Industrial Partners’ direct funding to Research Partners. The CLEEN Commission, the Program Management Cost and Direct Industrial Funding are charged in advance and entered as “Advances received” in the balance sheet, from where they are entered as income based on the realized costs and therefore do not have any effect on the “OPERATING PROFIT”. “Other operating income” (€206,164.00) consists of public funding by Tekes from the Tekes project CLEENDEVEP. The amount entered as income consists of the payments applied in Q4/2013 and to be applied in Q1/2014 according to the Tekes funding decision (327/11) and the costs entered for CLEENDEVEP during H1/2013 and H2/2013. The payments are included on the balance sheet as “Prepayments and accrued income”. “Staff expenses” comprises the staff expenses and social security expenses of permanent personnel, as well as

the remuneration paid to the members of the Board of Directors, the Science Council and the Scientific Advisory Boards. From the income point of view, the financial position of CLEEN Ltd is satisfactory due to strong equity balance, but it is subject to changes in the CLEEN Commissions. The increase in “OTHER OPERATING EXPENSES” arises from significant investments made in 2013 to improve competitiveness and recognition of the CLEEN platform and to finalize and implement the CLEEN 2.0 project. These investments included the annual seminar of CLEEN (organized every two years), intensification of international cooperation with China and India, and the implementation of new enterprise resource planning. The investments are expected to realize during 2014 in the form of two new research programs comprising the cores of two SRA (Strategic Research Agenda) project portfolios. The new research programs will compensate the loss of research volume and CLEEN Commission in 2015 arising from the completion of FCEP and SGEM programs in 2014.

Currency EUR

1.1.2013 - 31.12.2013

1.1.2012 - 31.12.2012

ASSETS CURRENT ASSETS Short-term debtors Trade debtors Other receivables Prepayments and accrued income Cash and cash equivalents

5 628 352,08 569 915,82 205 809,76 89 054,65 275 051,41 5 058 436,26

4 972 834,56 1 524 903,37 1 333 136,37 12 397,32 179 369,68 3 447 931,19

ASSETS TOTAL

5 628 352,08

4 972 834,56

LIABILITIES CAPITAL AND RESERVES Subscribed capital Other reserves Free invested equity reserve Retained earnings (loss) Profit (loss) for the financial year

2 864 329,83 1 002 500,00 1 581 500,00 1 581 500,00 277 734,70 2 595,13

2 861 734,70 1 002 500,00 1 581 500,00 1 581 500,00 277 734,70 0

CREDITORS Short-term creditors Advances received Trade creditors Other creditors Accruals and deferred income

2 764 022,25 2 111 099,86 2 764 022,25 2 111 099,86 2 054 287,08 1 454 956,21 426 307,89 453 068,00 166 356,98 91 263,05 117 070,30 111 812,60

LIABILITIES TOTAL

5 628 352,08

“Advances received” comprises the CLEEN Commission (€144,563.83), the Program Manager Cost (€595,669.83) and Direct Industrial Funding (€1,314,053.42) invoiced by CLEEN in advance. The same applies to “Trade creditors”, which mainly consists of Direct Industrial Funding invoices filed, but not paid in 2013. “Prepayments and accrued income” (€275,051.41) consist of transferred interest (€34,572.94), prepayments of income tax (€30,415.47), the Tekes grant for CLEENDEVEP (€206,165.00) to be applied in Q1/2014, and some other minor prepayments and accrued income.

The increase in “Cash and cash equivalents” (€5,058,436.26) is due to the Program Management Cost and Direct Industrial Funding being charged in advance and delayed costs realization. The relatively high “Free invested equity reserve” ensures flexibility to adjust and develop the company’s operations due to possible unexpected or sudden changes in its environment.

CLEEN Ltd was granted extension to the CLEENDEVEP project until June 2014. After that, CLEEN Ltd will continue to develop its operations, for which it will apply appropriate public funding. In 2014, “Other operating income” is also expected to include payments applied from an ERDFfunded project concerning innovative public investments in energy and environment.

4 972 834,56

CONTACT INFORMATION

Contact information

Tommy Jacobson CEO +358 40 828 2711 tommy.jacobson@cleen.fi Essi Heinänen, Legal Counsel for SHOKs +358 400 469 905 essi.heinanen@cleen.fi Jatta Jussila-Suokas, CTO +358 40 825 6500 jatta.jussila@cleen.fi Sanna Laaksonen Controller +358 44 016 3235 sanna.laaksonen@cleen.fi Teija Laitinen Development Manager +358 40 529 5886 teija.laitinen@cleen.fi Karoliina Peippo Communications Manager +358 40 542 3399 karoliina.peippo@cleen.fi

Kaisu Leppänen BEST Program Manager +358 44 288 4824 kaisu.leppanen@cleen.fi

Matti Kytö FCEP Program Manager +358 40 502 6334 matti.kyto@cleen.fi

Sebastian Teir CCSP Program Manager +358 20 722 4653 sebastian.teir@cleen.fi

Tero Eklin MMEA Program Manager +358 50 374 6840 tero.eklin@cleen.fi

Kari Sipilä DESY Program Manager kari.sipila@vtt.fi

Jani Valtari SGEM Program Manager +358 50 335 2730 jani.valtari@cleen.fi

Juha Leppävuori EFEU Program Manager +358 40 532 9378 juha.leppavuori@cleen.fi

Jatta Jussila-Suokas Material Value Chains (ARVI) +358 40 825 6500 jatta.jussila@cleen.fi

CLEEN Ltd., Etel채ranta 10, 00131 Helsinki, Finland Business Identity Code: 2200705-1 www.cleen.fi