Copenhagen Cleantech Journal 1 by Julie Krogh

COMMISSIONER Applauding green s. 8 collar focus

HALDOR TOPSOE

DONG ENERGY Clusters create champions

Catalysing your s. 32 future

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Cleantech C o p e n h a g e n

J o u r n a l

C O P E N H AG E N C L E A N T EC H PA RK - P RO B A B LY T H E B E ST C L E A N T EC H LO C AT I O N I N T H E WO RL D

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CLIMATE MINISTER digs in at new cleantech beacon s. 8

COPENHAGEN CLEANTECH PARK

Cluster and infrastructure milestone s. 18

Copenhagen Cleantech Journal P U B L I S H E D BY B U S I N E S S F RE D E RI KS S U N D I N C O L L A B O RAT I O N W I T H C O P E N H AG E N C A PAC I T Y A N D C O P E N H AG E N C L E A N T E C H C LU ST E R

Cleantech C o p e n h a g e n

WELCOME TO COPENHAGEN CLEANTECH JOURNAL #1

J o u r n a l

IN COLLABORATION WITH COPENHAGEN CLEANTECH CLUSTER

OUR INVITATION TO JOIN FORCES TOWARDS A BRIGHT, GREEN FUTURE! The future looks bright for global green growth, and we are thrilled that you have picked up the first edition of the Copenhagen Cleantech Journal. CCJournal is designed to promote global cleantech visions and solutions, thus providing industries, research institutions and private and public organisations with a platform for discussing and encouraging best practice in cleantech locations as well as investment and business partnerships.

EXECUTIVE EDITOR Peter Bo Andersen, MD

PUBLISHER Copenhagen Cleantech Park Copenhagen Cleantech Cluster partner

LET US WALK THE CLEANTECH WALK! It is no coincidence that the CCJournal is being launched from Northern Europe’s and Scandinavia’s unrivalled green hub – Copenhagen – where green, sustainable thinking comes naturally. We are open for your suggestions, requests and environmentally clean business. We invite you to join us as we walk the cleantech walk with our partners in the Copenhagen Cleantech Cluster – probably the best cleantech location in the world.

ADDRESS Copenhagen Cleantech Park c/o Business Frederikssund Havnegade 5, DK-3600 Frederikssund Tel. + 45 47 31 37 01 www.cphcleantechpark.com

THE EUROPEAN UNION The European Regional Development Fund

Investing in your future

TRANSLATION Ad Hoc Translatørservice A/S

Peter Bo Andersen, MD, Copenhagen Cleantech Park and Steen Donner, CEO, Copenhagen Capacity, partners of Copenhagen Cleantech Cluster.

Steen Donner and Peter Bo Andersen

10.000 copies

Photo: Carsten Lundager

PRINTING HOUSE CO2-neutral printing by KLS Grafisk Hus A/S

CONTENT

GRAPHIC DESIGN WATERFRONT Communications A/S

COMMISSIONER Applauding green p. 8 collar focus

FRONT PAGE PHOTO OF LYKKE FRIIS Anders Birch

MINISTER FOR CLIMATE AND ENERGY HAS A GROUNDBREAKING DAY THE IMPORTANCE OF FRAMEWORK CONDITIONS FOR CLEANTECH AND RENEWABLE ENERGY MAYOR OLE FIND JENSEN: THE CLEANTECH LOCATION OF TOMORROW

Copenhagen Cleantech Journal

p. 4

p. 12

p. 18

DONG ENERGY Clusters create champions

p. 14

TOPIC: THE ERA OF SCARCITIES

p. 20

RAMBOLL: ENERGY EFFICIENCY IS A COLLECTIVE UNDERTAKING

p. 24

CLIMATE MINISTER : “AN INSPIRATIONAL CLEANTECH CASE!”

p. 28

CAPITAL REGION CHAIR: THE GREEN REGION OF CHOICE

HALDOR TOPSOE

Catalysing your future

p. 32

INVEST IN DENMARK: DENMARK IS THE BEST PLACE TO DO BUSINESS

p. 38

COPENHAGEN CLEANTECH CLUSTER NEWS & MILESTONES

p. 41

CLEANTECH DATES

p. 43

p. 36

Copenhagen Cleantech Journal

PHOTO: LARS DALBY AND PREBEN PATHUEL

MINISTER FOR CLIMATE AND ENERGY HAS A GROUNDBREAKING DAY

wealth of ideas, plans and applications that the green energy trend is generating,” says Keld Lindegaard Andersen. HE TOOK THE COMPANY’S HELM IN 2005 and has developed Topsil into an enterprise that has faced difficult odds only to become a hugely successful company, listed on NASDAQ OMX Copenhagen since 1986.

The first step is important. Also at Copenhagen Cleantech Park, where Denmark’s Minister for Climate and Energy, Lykke Friis, broke the ground upon which the park’s first cleantech beacon will soon be up and running.

Keld Lindegaard Andersen

Climate Minister Lykke Friis gets inspiration from Topsil management and green industries first hand

THE COMPANY’S GROWTH HAS IMPRESSED THE MINISTER, herself a woman who likes to work in high gear. Before the groundbreaking ceremony, held in the Greenfield part of the new commercial area Copenhagen Cleantech Park, CEO Keld Lindegaard Andersen gave a presentation about Topsil and a tour of its current domicile.

”WELL BEGUN IS HALF DONE,” said a smiling Lykke Friis on a sunny day in early April as, amidst much fanfare, she cut the first sod of Topsil’s new plant in Frederikssund, part of the Copenhagen Region.

Copenhagen Cleantech Journal

In view of Topsil’s exponential growth in recent years, the plant is slated for completion in a mere 18 months’ time and is being built to meet the need for expansion from the start. Topsil’s customers are

TOPSIL PRODUCES ULTRA-PURE SILICON WAFERS ABOUT THE SIZE OF A CD. The wafers begin as melted polysilicon. Rods with seed crystal are dipped into the molten silicon and slowly extracted as large cylindrical ingots. Once the ultra-pure silicon ingots have been sliced and polished into wafers with high electrical resistivity they are ready for use in semiconductor manufacturing. “Our products are used in systems for regulating extremely high voltage

developing at full speed, but so are its rivals on the international market. As a result, Topsil is taking concrete action to solidify and then enhance its position.

current in trains, for example. Obviously, the current intensity and voltage used vary greatly between train engines and computers. Silicon is also used in wind turbines, and much of the silicon we produce is used in industrial electric motors so they can run with maximum energy efficiency. Since we are focusing on the emerging electric and hydrogen vehicle markets, our company can clearly benefit from the

Few Danish companies of Topsil’s size can match the financial performance of the company, whose revenues catapulted from DKK 147 million in 2006 to DKK 456 million last year. Its earnings before interest and taxes almost tripled in the same period, soaring from DKK 33 million in 2006 to DKK 89 million in 2010. When asked about the location of Topsil’s chief competitors internationally, the CEO named several countries, including Japan, but said China is also seeing a rise in the number of manufacturers. However, they lack the advanced technology Topsil possesses, and the company will increase its advantage when it moves into its new plant in the Copenhagen

BY LARS ABILD

Climate Minister Lykke Friis exploring ultra-pure silicon production

Copenhagen Cleantech Journal

MINISTER FOR CLIMATE AND ENERGY HAS A GROUNDBREAKING DAY

Clusters can play a crucial role as we collectively realise the vision of a Denmark without fossil fuels. A vision that takes companies that can be at the vanguard.” AS THE PRIME MOVER OF THE COPENHAGEN CLEANTECH PARK, Topsil is taking

its place at that vanguard. CEO Keld Lindegaard Andersen explains that Topsil, although currently the sole of its kind in Denmark, operates in an international forum, where competitors and customers alike are located elsewhere – in Europe, the USA and especially Asia.

KLIMAMINISTEREN TOG STIKKET HJEM “GODT BEGYNDT ER HALVT FULDENDT”, sagde en storsmilende klima- og energiminister Lykke Friis, da hun i april under stor bevågenhed tog det første spadestik til Topsils nye fabrik i den kommende Cleantech Park uden for Frederikssund. Som det er tilfældet med Topsils meget hurtige vækst i de seneste år, er det planen, at den nye fabrik skal stå klar til indflytning om kun 12 måneder og fra starten være gearet til udbygning.

The new cleantech park will accomodate Topsil and its focus on growth and use of green energy

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Cleantech Park, where it can perfect its production process with an optimised production flow and a new range of highly specialised machines. ”WE APPRECIATE THE STRONG FOCUS the local authorities and Business Frederikssund have put on promoting the Copenhagen Cleantech Cluster and establishing the Copenhagen Cleantech Park. In a sense, it lets us take our own medicine,” says CEO Keld Lindegaard Andersen, continuing: “Three out of four of our wafers end up in cleantech applications. Creating a link between the dynamics of Topsil’s market and our company’s dynamics is a smart strategy.

Copenhagen Cleantech Journal

WE HAVE BUILD A COMPANY THAT FULLY RESPECTS THE ENVIRONMENT and that is as clean as possible. We can calculate our water and electricity consumption. The quality of the air. We have to think in terms of cost efficiency and minimum adverse environmental impact and use alternative energy sources to the maximum extent. In this way, we hope to inspire other companies to follow our lead.” MINISTER FOR CLIMATE AND ENERGY LYKKE FRIIS has a keen eye on global cleantech development. Not only the opportunities it offers but also the mounting challenges that arise as

many players vie for a spot on the international stage. In a speech addressing the large gathering, including Topsil employees, politicians and prominent members of the business community, Lykke Friis said: “Although Denmark’s brand of cleantech has made it across the Atlantic, the competition is also much stiffer than even just a few years ago.

Topsils kunder har fart på, men det har konkurrenterne på de internationale markeder også. Derfor bliver der nu sat ind, så Topsil kan holde fast og siden forbedre sin position. TOPSILS PRODUKT ER ULTRARENT SILICUM i form af en skive på størrelse med en CD. Den starter sit liv som en stang af polysilicium, der smeltes om. Når materialet når en bestemt renhed og dermed en særlig høj elektrisk

Consequently, having a company like Topsil that can serve as an attractive beacon from the start clearly adds value to the creation of a cleantech park like this one, thus motivating others to join the Copenhagen Cleantech Cluster.

modstand, kan den bruges i blandt andet cleantechindustrien. ”Tre ud af fire af vores skiver ender i cleantech applikationer. Det giver god mening at skabe sammenhæng mellem det, der driver vores marked, og det, som driver Topsil. Vi skal lave en virksomhed, der er så miljørigtig og ren, som den kan blive. VI KAN BEREGNE, HVORDAN VORES FORBRUG AF VAND OG EL SKAL VÆRE. Hvordan skal luften være? Vi skal gøre det omkostningseffektivt og så lidt miljøbelastende, det er muligt. Vi skal i videst mulig omfang bruge alternative energikilder, og vi håber, at vi på den måde kan inspirere vore omgivelser til at tænke i samme baner,” fortalte Topsils administrerende direktør Keld Lindegaard. Han understregede samtidigt, hvor vigtigt det har været, at Frederikssund Kommune og Frederikssund Erhverv

har skubbet på for at få Copenhagen Cleantech Park etableret. Nøjagtig det var den danske klima- og energiminister også glad for, og hun var derfor opmuntrende i sine ord til de fremmødte: ”Selvom Danmarks grønne brand er nået over på den anden side af Atlanten, så er konkurrencen langt større end for bare få år siden. Men når man som I er i gang med at skabe en cleantech-park, så er det klart, at det er vigtigt med et fyrtårn som Topsil, der skyder op fra starten. Det skal gøre det nemmere at få overtalt andre til at være med og slå sig ned i Copenhagen Cleantech Park. Og det er vigtigt, når vi i fællesskab skal realisere visionen om, at også Danmark skal blive fri for fossile brændsler. Det kræver virksomheder, der kan gå foran.”

Copenhagen Cleantech Journal

PHOTO: KLAUS HOLSTING

BY PAULA LARRAIN

Connie Hedegaard, European Commissioner for Climate Action:

CLIMATE COMMISSIONER HEDEGAARD APPLAUDS GREEN COLLAR FOCUS

“Experience shows that setting long-term goals gives us some influence on where we want the market to go.”

Long-term goals, investment in green collar education and more money to research. According to the EU climate action commissioner, these are Europe’s keys to remaining at the fore of clean technology.

When it comes to energy efficiency, European Commissioner for Climate Action Connie Hedegaard has done a great deal to turn the market in its present direction. She also asserts that continual improvement is a must. “To keep our lead in the cleantech sector, we have to set some long-term goals and invest in research and education. Similarly, we need to reward those who dare to be in the vanguard. Experience shows that setting long-term goals gives us some influence on where we want the market to go,” says Connie Hedegaard. Thanks in part to her tremendous personal efforts to get climate on the agenda, energy has become good business. Many in Europe and beyond have realised that energy is a growing

Copenhagen Cleantech Journal

sector. As a result, the Chinese have recently drawn up a five-year energy plan, earmarking USD 738 billion for investment. To have any chance of competing with that plan, Europe must act now to set goals and invest in its energy future. “Looking 40 years into the energy sector’s future can seem abstract, but setting long-term goals gives a rough picture of the direction in which we want to head. Then companies start adapting to the plan, which in turn spurs investment and research,” says Connie Hedegaard, highlighting Denmark’s energy strategy, which takes the country all the way to 2050. ACTION IS IMPERATIVE Companies need to know that politicians’ actions speak as loud as their words, for which reason it can pay to pioneer green technology. Politicians can galvanise investment by providing both direct and indirect support.

“We can provide direct incentives through research funding and better boost the development of ideas into marketable products. To this end, we can support the frontrunners directly. However, we can also enlist the immense financial power held by most European countries’ public sectors by getting them to focus on purchasing green goods. This also offers an indirect means of helping companies at the cutting-edge of green solutions,” says Connie Hedegaard. Another means of both supporting established industries and attracting new investors entails more closely regulating the construction sector, a solution that Denmark has employed for many years. The commissioner feels that all countries can focus more strongly on energy efficiency in the construction sector. “In building construction, for example, it is possible to impose minute requirements as regards the proper energy solutions – right down to a particular pump known to be the most energy-efficient. You can

MORE RESEARCH AND SUPPORT FOR GREEN COLLAR EDUCATION This is the road Europe needs to take if it wants its cleantech industry to lead the world’s green charge.

Copenhagen Cleantech Journal

CLIMATE COMMISSIONER HEDEGAARD APPLAUDS GREEN COLLAR FOCUS momentum already at that stage. As I said, I always feel that development in this sector is inordinately slow. Still, just four or five years ago the idea that

emerging economies like China, India and Brazil might set climate goals for themselves was only a remote desire. Today, they are all on the bandwagon. At

the climate conference in Copenhagen two years ago, they first openly acknowledged a responsibility for climate change, and since then the world has made a distinct leap.

KLIMAKOMMISÆR CONNIE HEDEGAARD: GRØN UDDANNELSE ER VEJEN FREM LANGSIGTEDE MÅL, mere forskning og støtte til grøn uddannelse. Det er vejen frem for Europa, hvis cleantechindustrien skal blive ved med at holde fanen højt i forhold til resten af verden. Det mener klimakommissær, Connie Hedegaard, der om nogen har været med til at rykke markedet derhen, hvor det er i dag i forhold til energieffektivitet. “Samtidig med investering i forskning og uddannelse skal vi belønne dem, der tager en chance og går i front. Det viser sig nemlig, at når vi sætter langsigtede mål, så er vi med til at trække markedet derhen, hvor vi gerne vil have det”, siger Connie Hedegaard.

PHOTO: SUGURDUR OLAFSSON - NORDEN.ORG

also pose requirements to individual house-holds. All in all, a great many things can be done from the political side to help set development on the right course,” says Connie Hedegaard.

THE WILL IS THERE A climate action commissioner’s vision is one thing. Another is the will to implement that vision both among the member countries’ politicians and industry. What kind of will does the commissioner sense exists? “Ultimately, I will always think that development goes at too slow a pace, but a great deal is also going on right now. Denmark has set its long-term goals; Sweden is in that process; and the UK has also adopted a plan. So, the market and the individual companies already understand the need for action. Moreover, they have also begun to move independently because they can see that gains are already to be made. Maersk Line’s decision to start sailing its container ships more slowly has an extremely positive impact on carbon emissions, but this may not be the company’s sole consideration. Indeed, they

Copenhagen Cleantech Journal

save vast amounts of fuel. Five years ago that may not have counted for so much, but, when I meet with them now, they have obviously joined the frontrunners by sailing in a more environmentally sustainable manner. The next step is to spread awareness of these prime examples, so other companies can see the direct benefits of following suit.” How do you see the possibilities of achieving results via clusters like Copenhagen Cleantech Cluster? “Unquestionably, joining forces in a cluster like CCC generates a positive effect. The initiative was already in the pipeline back when I was minister for climate and energy and we were considering how to take advantage of Denmark’s leading-edge position. We met with some reluctance, and everyone was focused on individual areas of expertise. However, we asked very candidly: Where are we at the forefront? What happens if the whole water sector cooperates? What about biofuel? And what about all those people in renewables? I firmly believe that these clusters can engender collective

improvements and accelerate innovation.” GREEN COLLAR EDUCATION IS THE WAY FORWARD How is European industry meant to compete with countries like China now that they are close to achieving European competence in wind turbine production? “Europe cannot compete on tax burden, holiday weeks, working hours, salaries, etc. We can, however, compete and win when it comes to offering better solutions. To this end, we must ensure a stronger focus on education. For example, we could upgrade our contractors’ competences in energy-efficient renovation, or provide other forms of green collar education. On this front, support is already available from the European Social Fund.”

Det er afgørende, at man hurtigt sætter handling bag ordene, så virksomhederne kan se, at politikerne mener det alvorligt, og at det derfor godt kan betale sig for dem at være på forkant. Den udvikling kan politikerne skubbe fremad med både direkte og indirekte støtte.

som den offentlige sektor har i de fleste europæiske lande ved, at man i sine indkøb satser på grønne varer og derved indirekte støtte frontløberne”, anbefaler Connie Hedegaard. MEN EN TING ER EN KLIMAKOMMISSÆRS VISIONER. Noget andet er viljen blandt medlemslandenes politikere og industrien selv. “Grundlæggende vil jeg altid synes, at tingene går for langsomt, men der sker også en hel del lige nu. Danmark har sat sine langsigtede mål, Sverige er i gang med at lave sine, og Storbritannien har også lige vedtaget en plan. På den måde er markedet og de enkelte virksomheder allerede nu med på, at der skal ske noget. Og de er også begyndt at rykke af sig selv, fordi de kan se, at det allerede nu kan betale sig”, pointerer Connie Hedegaard.

Derfor er hun også stor tilhænger af industriens indsats i Copenhagen Cleantech Cluster. “Det giver helt klart en god effekt at pulje kræfterne som i CCC. Jeg tror meget på, at man via disse klyngesamarbejder kan blive bedre sammen og komme hurtigere med innovation”, siger Hedegaard, der samtidig slår et slag for mere uddannelse. “Europa kan ikke konkurrere på skattetryk, ferieuger, arbejdstid, lønninger osv., men vi kan konkurrere og vinde på at tilbyde bedre løsninger. Her er det meget vigtigt, at vi også sørger for at satse mere på uddannelse. Det kan for eksempel være en opgradering af håndværkere i forhold til energieffektiv renovering eller på anden måde sørge for grøn videreuddannelse. Her støtter EU allerede gennem den sociale fond”.

“VI KAN BELØNNE DIREKTE MED FORSKNINGSMIDLER og i højere grad sørge for, at vi kommer hurtigere fra de gode ideer til produkter, der kan gå på markedet. Her kan man støtte frontløberne direkte. Men man kan også bruge den enorme økonomiske magt,

What has paved the way for the unique market situation prevailing in the energy sector at present, and are you surprised that it is nonetheless developing so rapidly? “In Denmark as in Europe, politics have been the driving force. The oil crisis in the 1970s was the first wake-up call, and energy efficiency began gaining

Copenhagen Cleantech Journal

BY JAKOB BUNDGAARD, M.SC., PH.D., PARTNER AT MOALEM WEITEMEYER BENDTSEN AND HONORARY PROFESSOR AT AARHUS UNIVERSITY The section below presents some recent approaches to creating renewable energy incentives.

THE IMPORTANCE OF FRAMEWORK CONDITIONS FOR CLEANTECH AND RENEWABLE ENERGY INTRODUCTION In 2009, Shawn Lesser of Sustainable World Capital took a global look at cleantech and ranked the top ten cleantech countries. Denmark came in number one. His rankings were based on key factors like government initiatives and programmes, major investment mandates and entrepreneurial innovation, as well as on cultural and social drivers. Denmark topped the list because it has made fossil fuel independence a goal, pioneered the cleantech industry, taken on the role as Europe’s largest exporter of energy technology and made financial support a possibility. Lesser observes that Denmark is a paragon of cleantech, with public-private sector partnerships that encourage knowledge sharing and entrepreneurship.

and demonstration facilities, among other things. These elements are shaped by different means. Legislation and regulation have a critical impact on the pace at which economies undergo change or conversion and on the prevalence of new technologies. Only when a stable framework exists can research and investment decisions be made with a long- term commitment.

for renewable energy sources is based on the political objective of improving the technology and the market potential. An optimal incentive structure takes into account the existing dynamics of the system, the removal of barriers and the lifecycle of the given renewable. Eager proponents of the “send-more-money” philosophy need to be realistic about this.

In another survey, Copenhagen Cleantech Cluster (CCC) has yet to reap the full benefits of its Danish status, ranking only no. 5 among the world’s clusters. In the long run, the success of the cleantech and renewable energy sector depends on a credible and stable regulatory regime. This brief article will review the key features of a good framework for the cleantech industry.

Cap-and-trade systems constitute an important instrument, as they limit maximum emission rates while also providing for tradable permits (Emission Allowances). Such a system has been introduced by the Kyoto Protocol and in the EU. In theory, this system should create a market situation where renewables become a more attractive alternative if fossil fuel prices are high at the same time. An energy taxation directive exists in the field of taxation. The directive includes minimum rates for energy products and has set the partial harmonisation of duty rates as a target, with the aim being to realise the EU’s internal energy market. Parallel to this, a number of countries have introduced specific environmental taxes, including carbon taxes.

Incentives for using renewable energy sources can be designed in a variety of ways. It is a well-known fact that taxation is a key instrument of climate and environmental policy. There is even scientific evidence showing that taxes send the right investment signals to innovators and ensure innovation more successfully than direct government support based on policymakers’ guesswork about where to focus innovation activities. Taxes may be levied on pollution and emissions (discouraging), or special taxation incentives may be introduced (encouraging). Taxes can even be used to internalise environmental externalities. A number of different tax incentives have been tried:

DESIGN OF FRAMEWORK CONDITIONS Many situations make investing in renewable energy difficult, one of many reasons for this being the continuing existence of a performance span (supply) compared to fossil fuels. Volatile fossil fuel prices (demand) also make investment difficult. If, in fact, externalities are internalised and reflected in the price of a fossilbased product, then renewables become more competitive, as they do not cause such externalities. The success of the cleantech industry rides on innovation, access to financing, R&D

A number of approaches to the existing challenges can be taken to provide better opportunities for renewable energy and cleantech. There are two overarching approaches: technology push and demand pull. These can take various forms, ranging from direct economic grants and subsidies to various kinds of tax incentives for R&D activities and/or investors. Obviously, a number of other issues need to be addressed before we can realise the goal of optimum framework conditions for renewable energy sources and cleantech solutions. Any government support granted

Copenhagen Cleantech Journal

RECENT EXAMPLES In Sweden, a recent example of direct subsidies is the 2009 contribution for solar panels, which contributed as much as 60% of the investment cost within certain limits for businesses, organisations and individuals. Spain has introduced a special tax regime for solar power investments, including fixed tariffs, accelerated depreciation (up to 30% per year) and an upfront 6% tax credit (to be carried forward for 10 years). The United States economic stimulus package (the American Recovery and Reinvestment Tax Act of 2009) includes a range of energy incentives, including an extension of Production Tax Credits and Investment Tax Credits and the introduction of a new tax credit (the Advanced Energy Investment Credit), the latter being 30% of qualified investment on any qualifying advanced energy project. The act includes an expansion in the amount of New Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds. The act also includes a provision for increasing the tax credit for qualified energy efficiency improvements and certain residential energy property expenditures. The Chinese province of Guangzhou has introduced a specific tax exemption for cleantech companies, which includes a full corporation tax exemption for the first three years and a 50% exemption for the subsequent three years. Germany has introduced very favourable fixed tariffs regarding electricity from renewables. In 2000, the ErneuerbareEnergien-Gesetz (EEG) was launched. The EEG introduced a number of changes, including differentiated tariff rates depending on the renewable energy type, size and site. It also extended the range of technologies to be covered and replaced the StrEG’s percentage-based rates with fixed rates over set periods – 20 years from the

• • • •

Subsidies/grants (tax exemption) Reduced corporation tax rates Tax holidays Investment allowances and tax credits (tax reductions based on the amount of investment and granted in addition to normal depreciation) • Accelerated depreciation (allowing businesses to write off depreciation more rapidly) • Exemptions from indirect taxes, such as import tariffs on inputs. • Export processing zones (special zones for exporters); enterprises in such zones are typically exempt from all indirect taxes and, in some cases, all direct taxes.

start of operation of each new qualifying plant. As a recent example, Bulgaria has increased its feed-in tariffs (FiTs) regarding renewable energy sources. With a decision dated 30 March 2009, the State Energy and Water Regulatory Commission (SEWRC) adopted a new feed-in tariff applicable until 1 April 2010. Significant changes were also introduced that extended the term of renewable energy contracts, e.g. up to 25 years for photovoltaic projects. In South Korea (R.O.K), a recent bill introduced certain enhancement incentives, one being a 50% tax reduction regarding SME start-ups for the first four years after incorporation. Moreover, Green Funds have been established that allow a certain amount of the invested capital to be deducted and provide for a tax exemption from Green Fund dividends. In Denmark, there are fixed tariffs regarding electricity generated from renewable energy. Wind turbines can receive FiTs. The actual payment depends on the date the turbine was connected to the grid. For instance, turbines installed after 2008 receive a tariff of DKK 0.25 per kWh for 22,000 hours. Biogas plants can receive a fixed tariff of DKK 0.745 per kWh or DKK 0.405 per kWh, when used in combination with other fuels. Biomass plants are eligible for a grant of DKK 0.15 per kWh. Other renewable installations, including wave power, solar power and fuel cells, may receive a fixed tariff (including the market price) of DKK 0.60 per kWh for the first 10 years and DKK 0.40 per kWh for the next 10 years. Solar cell panels can be used to store energy on the grid, which in turn entitles the producer to use a similar amount of electricity without paying certain consumption taxes. In addition, Denmark has adopted a system of Tradable Renewable Energy Certificates that can be traded as financial instruments. The certificates are issued to renewable energy producers, who may sell the certificates and make additional profits from renewable energy projects. On 17 September 2010, the Danish legislature adopted new rules regarding individuals’

THE AUTHOR IS AN INDEPENDENT ADVISOR TO CLEANTECH COMPANIES AND INVESTORS ON LEGAL AND TAX MATTERS, INNOVATIVE FINANCING AND STRUCTURING, EU EMISSION ALLOWANCES, CDM AND JI PROJECTS. CONTACT: JBU@MWBLAW.DK

investments in renewable energy. In general, the new rules are intended to improve and simplify the conditions for individuals who invest in renewable energy plants (“REPs”). Renewable energy includes wind power, biogas, biomass, solar power, wave power and geothermal heat. The basic deduction pursuant to the new rules is DKK 7,000. Thus, only REP-derived income that exceeds DKK 7,000 is liable to tax (marginal tax rate of approximately 55%). PERSPECTIVES This article has endeavoured to shed light on the need for a stable regulatory framework that can optimise the framework conditions for renewable energy and cleantech solutions. We have discussed the existing approaches to designing such a framework and specifically illustrated various design strategies such as grants, FiTs and tax incentives – all of which various countries have used widely in recent times. As global competition grows in the time to come, we will see a major leap in incentive schemes for renewable energy and cleantech solutions.

I ARTIKLEN undersøges betydningen af gunstige rammevilkår for succesen og udbredelsen af cleantech. En række forhold skal være på plads samtidig herunder innovation, forskning og udvikling, adgang til finansiering og generel stabilitet i rammevilkårene. Herefter undersøges særligt udformningen af en række tilskudsordninger, feed in tariffer og skattemæssige incitamenter. Det udledes, at skatter er et velegnet instrument til at styre adfærden, og at en række favorable ordninger er blevet introduceret i de senere år i adskillige lande. På baggrund heraf er det forventningen, at vi i de kommende år vil se flere sådanne tiltag internationalt i takt med, at konkurrencen stiger i intensitet.

Copenhagen Cleantech Journal

BY PAULA LARRAIN

PHOTOS: DONG ENERGY AND COPENHAGEN CAPACITY

CLUSTERS CREATE CHAMPIONS

Denmark holds a leading position in offshore wind power due in large part to Danish companies’ ability to join forces on projects.

Even big companies like DONG Energy benefit from partnering with other enterprises in the Copenhagen Cleantech Cluster, such partnership enabling the company to provide sustainable, total solutions based on customers’ energy needs. TAKE A HEAP OF ORDINARY WASTE. To be specific, Copenhageners’ household waste deposited at the Amagerforbrænding incineration plant. Heat the waste up in a large tank and add some enzymes. Voilà, you have a new source of income for Denmark and an energy solution that takes the concept of sustainability to unprecedented heights. It may sound like a revolting mixture, but it is a recipe for the fuel of the future. Non-polluting bioethanol is the liquid that runs from the tap at the other end of the heating tank at the waste treatment plant, a liquid that offers a useful solution to all the world’s problems with waste. And petrol.

are currently working on a project with Novozymes. We can contribute a great deal to the project, but we cannot do it all. Thus, Novozymes supplies the necessary enzymes, and the entire pilot project will hopefully culminate in a product that we can subsequently sell out in the world,” says Anders Eldrup.

Anders Eldrup, CEO of DONG Energy and chairman of CCC

projects. This is what we have done with Amagerforbrænding, where we

“In a project like this one, we at DONG can do one aspect of the venture, but the other 10, perhaps 20, aspects require that we team up in a consortium and supply a total solution,” explains Eldrup. OFFSHORE WIND POWER IS ANOTHER EXAMPLE. At present, Denmark holds a leading position, due in large part to Danish companies’ ability to join forces on projects. Retaining Denmark as a key player will depend on even greater cooperation.

OVERALL, DONG ENERGY IS WELL AHEAD OF THE GAME. The energy provider is a major player in Denmark and a force at the European level as well. To succeed globally, however, DONG Energy has to cooperate closely with other companies, including the companies with which it normally competes for customers and technology.

“Denmark’s continued place at the forefront of this sector requires that several companies join forces. Vestas, Siemens Wind Power and a slew of sub-suppliers have made us frontrunners in the field of wind turbines. Wind power is a major industry generating many jobs.

ALTHOUGH STILL AT THE TEST STAGE, the project is close to realisation, thanks to the cooperation taking place in Copenhagen Cleantech Cluster (CCC) – a new way of thinking business. CEO of DONG Energy, Anders Eldrup, who is also chairman of CCC, heads the project.

Until now, however, the industry has operated on the basis of the principle that each company runs its own race. People have seen themselves as competitors, but globalisation has brought us to a new crossroads. Today Vestas may be the world’s largest, but with the great interest the Chinese are showing in wind power,

“To keep abreast of international competition, we have to pool our resources and come up with joint

Biomass at Amagerforbrænding incineration plant

Copenhagen Cleantech Journal

CLUSTERS CREATE CHAMPIONS

those days are likely to be numbered. Alternatively, we can join forces to ensure that we make the best products, thus still winning the competition,” says Eldrup.

DONG ENERGY: KLYNGER GØR OS TIL VINDERE

THIS VISION HAS ALREADY BEEN REALISED. DONG Energy with Anders Eldrup at its helm has helped establish a new test centre for wind turbines. The centre is intended to prevent the high demand for wind power from churning out defective wind turbines that ultimately have a catastrophic impact on the environment. The offshore renewables centre, called LORC, includes Vestas, Siemens, DONG and Vattenfall – companies that are usually fierce competitors but which must be able to build a future based on their common interests. However, partnering with university researchers is equally important – in this case the University of Southern Denmark. “For one thing, competitors cooperating in this way can team up to ensure that in future we have the required basis for education. For example, by getting universities to give people an education custom-tailored to the industry’s needs. This gives us all the chance to be winners,” says Anders Eldrup. EACH OWNER HAS A SHARE IN THE TEST CENTRE, but conducts its tests independently and can thus still compete with the others. The advantage of a test centre is that tests currently taking one or two

Copenhagen Cleantech Journal

SELV STORE VIRKSOMHEDER SOM DONG ENERGY nyder godt af at gå sammen med andre i Copenhagen Cleantech Cluster (CCC). På den måde kan virksomheden med udgangspunkt i kundernes energibehov levere samlede og langtidsholdbare løsninger, fortæller administrerende direktør, Anders Eldrup, der også er formand for CCC.

years to complete can be made in a single month. Germany already has this kind of centre that is only now becoming a reality in Denmark, a fact that can irk DONG’s CEO. “This is just what can happen if we do not cooperate. Somebody overtakes us on the inside,” says Eldrup. For this reason, cooperation – especially on the waste project – is foremost in the CEO’s mind. The perspectives are immense simply seen from the vantage point of the impact of cars on the environment and the climate in recent years. However, Danes can already now fill their petrol tanks without emitting CO2.

Om relativ kort tid, vil danskerne kunne køre til tankstationerne og købe bioethanol baseret på affald. Projektet ligger fortsat på forsøgsstadiet, men er tæt på at blive til en realitet takket være samarbejdet i CCC. Det er en helt ny måde at tænke forretning på, og allerede nu ser Anders Eldrup store perspektiver for sig.

Bioethanol based on another waste product, namely straw, is available nationwide. BUT ORDINARY HOUSEHOLD WASTE IS BETTER, the explanation being that the processing enables substances like phosphorus to be reused. Then you suddenly have two products in demand.

“HVIS VI SKAL KLARE OS I DEN INTERNATIONALE KONKURRENCE, er vi nødt til at slå pjalterne sammen og finde på fælles projekter. Som i tilfældet med affald og bioethanol, hvor vi lige nu arbejder på et projekt med Amager Forbrænding og Novozymes. Vi kan levere en hel del til projektet, men vi kan ikke det hele. Novozymes leverer således de enzymer, der skal til, og hele

“In other words, this all embodies huge international perspectives and a strong global business potential for us in future. The worst we can do is to sit on our hands and close ourselves in. Rather, let us be open to business partnerships and welcome competition with all its challenges.”

MEN DER SKAL ET ENDNU STØRRE SAMARBEJDE TIL, hvis det skal lykkes at holde fast i lederrollen, påpeger Eldrup. Han fremhæver samarbejdet omkring et testcenter som vejen frem for at klare sig i den globale konkurrence. Her er konkurrenterne Vestas, Siemens, Vattenfall og DONG gået sammen om at opbygge fælles faciliteter, hvor de hver for sig kan afprøve nye produkter. Også i forhold til uddannelse, kan konkurrenterne fremover bygge videre på fælles interesser, mener Eldrup:

forsøgsprojektet skal så forhåbentligt munde ud i et produkt, som vi efterfølgende sammen kan sælge ude i verden”, fortæller Anders Eldrup. Et andet eksempel på, hvordan samarbejdet på tværs af virksomhederne kan føre til mere eksport, er havvindmøllerne. Danmark har på nuværende tidspunkt en førerposition, og det skyldes langt hen ad vejen de danske virksomheders evne til at gå sammen om opgaverne.

”En af de ting, som konkurrenterne i et sådan samarbejde kan gøre i fællesskab, er at sikre, at vi fremover har den uddannelsesbasis, der skal til. For eksempel ved at få universiteterne til at uddanne folk, der er skræddersyet til industriens behov. På den måde har vi alle muligheden for at vinde i den globale konkurrence”.

Copenhagen Cleantech Journal

BY PAULA LARRAIN

PHOTOS: PREBEN PATHUEL , PETER RAHBEK AND MUNICIPALlTY OF FREDERIKSSUND

THE CLEANTECH LOCATION OF TOMORROW

FACTS ABOUT FREDERIKSSUND Frederikssund is in idyllic North Zealand, famous for its gently rolling hills, forests and lakes. The town overlooks Roskilde Fjord, where Denmark made its largest find of Viking ships. This puts the town along the Vikings’ legendary sailing routes and nearby the ostensible site of Denmark’s first capital. Established in 1810, Frederikssund itself is a young market town, but it has long provided the backdrop to the annual, open-air Viking plays, celebrating their 60th anniversary this year.

Mayor Ole Find Jensen is proud of his municipality. He says so when politely asked. But you do not actually need to ask. His face automatically lights up when the talk comes round to his area, region and its story. ”I AM ALWAYS THRILLED WHEN NEWCOMERS PRAISE OUR AREA. It is beautifully clean and green here. And must continue to be. Striking a good balance between natural and urban spaces will always be important to us, as will clean businesses. The area should offer an aesthetically pleasing environment. Also for the people we hope to see moving here over the next 30 years. Frederikssund has become a key player in the Copenhagen Cleantech Cluster.” Copenhagen Cleantech Park, located just outside the town, saw its first sod cut in the spring of 2011, an event that also heralded a new future for the area between Roskilde Fjord and the Oresund region. When the park is completed, the mayor envisages that about 5-6,000 new jobs will emerge from the area’s cleantech venture. ”TODAY FREDERIKSSUND IS A COMMUTER TOWN. In other words, most people commute to work somewhere else every day. Presumably this will change over time, and a crucial step in that direction will be

Mayor Ole Find Jensen

the new motorway,” says Ole Find Jensen. Frederikssund will move mentally even closer to a central international location when the new, planned motorway from the Oresund region becomes a reality. This combined with the new fjord connection will create a modern infrastructure that attracts businesses. However, infrastructure is more than new roads. The local authority must also be able to offer the best business framework. On this front, the mayor is aware that his town will be competing with many other towns regionally and internationally.

Frederikssund local authority, North Zealand’s second largest in terms of area, offers spectacular landscapes and easy access to the coast and to nature. Located an easy hour’s drive from the capital of Copenhagen, Frederikssund is an attractive local authority area in which to settle.

NONETHELESS, FREDERIKSSUND AND COPENHAGEN CLEANTECH PARK HAVE A CLEAR HEAD START. Frederikssund’s trade organisation made the local authority aware of the possibilities, a foresight that in the mayor’s view propelled the town towards becoming a world-renowned cleantech location. “The development process has also connected us with a network of talented researchers and key energy players. This gives us an immediate means of specifically defining terms like sustainability so we can walk the cleantech walk. The support offered by our new cluster network is invaluable,” says the mayor, who looks forward to new growth. Controlled green growth, that is, with full respect for the surrounding environment.

Frederikssund’s vision is to be a strong, sustainable and developmentoriented part of the Greater Copenhagen region and a centre for inspiring housing and commercial development. Frederikssund in 2011: Number of inhabitants: 44,182 Labour force: 23,285 Number of km2: 248.63 Source: Local Authority of Frederikssund

FREMTIDENS CLEANTECH LOKATION BORGMESTER OLE FIND JENSEN ER STOLT AF SIN KOMMUNE. Det bekræfter han høfligt adspurgt. Men man behøver egentlig ikke at spørge. Ansigtet lyser automatisk op, når talen falder på kommunen, området og hele historien: “Jeg bliver altid så glad, når folk kommer herud og roser vores område. Her er også fantastisk flot. Og det skal her blive ved med at være. En god balance mellem natur og by vil altid være vigtigt for os”. For der skal være noget pænt at se på. Også for nye tilflyttere, der forhåbentlig strømmer til over de kommende 30 år, nu hvor cleantech erhvervsområdet er blevet en central spiller i Copenhagen Cleantech Cluster.

“The beautiful landscape around us is a salient feature of Frederikssund. We want it to remain so. We must not merge with the capital, but rather be an alternative. A highly desirable place to live.”

FØRSTE SPADESTIK TIL COPENHAGEN CLEANTECH PARK lidt uden for byen

Copenhagen Cleantech Journal

blev taget i foråret 2011, og det blev samtidig startskuddet til en ny fremtid for området mellem Roskilde fjord og Øresundsregionen. Når det hele er på plads, forestiller borgmesteren sig, at der vil komme 5-6.000 nye arbejdspladser ud af områdets satsning på cleantech. “Frederikssund er i dag en pendlerby. Det vil sige, at der er langt flere, der pendler ud i det daglige. Det vil formentlig ændre sig med tiden, og en af de mest afgørende tiltag bliver den nye motorvej”, fortæller Ole Find Jensen. Mentalt set kommer Frederikssund endnu tættere på at være en central international beliggenhed, når den nye, planlagte motorvej fra Øresundsregionen er en realitet. Og sammen med en ny Xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx

forbindelse over Roskilde Fjord skal den moderne infrastruktur trække flere store virksomheder til. INFRASTRUKTUR ER DOG MERE END BLOT VEJE. Kommunen skal også kunne tilbyde de bedste rammer for erhvervslivet, og her er borgmesteren bevidst om, at det skal ske i konkurrence med mange andre byer - regionalt og internationalt. Frederikssund og Copenhagen Cleantech Park har dog et klart forspring. Allerede på et tidligt tidspunkt var byen gennem sin erhvervsorganisation opmærksom på mulighederne, og det har i borgmesterens optik været en stor gevinst for hele processen mod at blive fremtidens foretrukne cleantech lokation og et globalt anerkendt område for cleantech.

Copenhagen Cleantech Journal

PHOTO: LIANHE ZAOBAO

BY JØRGEN ØRSTRØM MØLLER, VISITING SENIOR RESEARCH FELLOW, INSTITUTE OF SOUTHEAST ASIAN STUDIES (ISEAS), SINGAPORE. ADJUNCT PROFESSOR SINGAPORE MANAGEMENT UNIVERSITY & COPENHAGEN BUSINESS SCHOOL. SENIOR FELLOW, DIPLOMATIC ACADEMY, SINGAPORE.

TOPIC: THE ERA OF SCARCITIES THE EXISTING MODEL – let us call it American Style Capitalism – catapulted the world into the industrial era, phenomenally improving the standard of living globally and lifting billions out of poverty. Unsurprisingly, we forget that this model was tailored to the circumstances 200 years ago: the opening up of North America, Latin America, Africa and large parts of Asia, an unparalleled revolution in transport combined with formerly unthinkable technological breakthroughs and a new mindset focusing on business and economics. To this should be added the easy access to the raw materials used in industrial production. The whole structure was founded on cheap commodity prices. We could and did produce without considering the possible impact on our future supply of raw materials. Why bother? The world is infinitely abundant. Just go West, young man and you shall find. WE NOW REALISE THE ERROR OF THIS PHILOSOPHY. Suddenly, we are standing on the brink of an abyss, coming to grips with a harsh reality. There is not enough of

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FOOD SCARCITY. The FAO reports that 40

countries already face food shortages. Just to maintain the status quo for nourishment, world food production must increase by 40% by 2040 and 70% by 2070. Robert Zoellick, President of the World Bank, repeatedly asserts the urgent need to tackle the food problem. Even optimistic forecasts project a sweeping decrease in agricultural production that will affect South Asia, most of Southeast Asia, parts of China, the Middle East, Africa, except for Egypt, the southern USA and Mexico plus Latin America, with the exception of Argentina – areas covering three quarters of the world population. The commodity price index conveys an equally gloomy picture. For years remaining constant, it is now sharply rising, more than tripling since the turn of the millennium.

everything. Raw materials are increasingly scarce. Global warming and climate change top the global agenda. Whole nations like the Maldives risk literally going under. Millions and millions of people living in coastal communities risk displacement – just look at Bangladesh, Indonesia, Thailand and Vietnam to feel a shiver. HOW DO WE COPE WITH THIS CHALLENGE? The great British historian and philosopher Arnold Toynbee coined the phrase ‘response to challenge’. Only when confronted with circumstances threatening survival do civilizations respond by generating new technology or societal models. Some say the European age began about 500 years ago in response to the challenge posed by the closing of the Silk Road, the traditional trade route to Asia through the Asian heartland. This forced the Europeans to take to the sea if they still wanted their precious spices. IN HIS BRILLIANT BOOK, COLLAPSE, Jareed Diamod describes how civilizations fully aware of the environmental dangers

Jørgen Ørstrøm Møller

ENERGY LOOKS THE SAME. Assuming global growth in the coming decades, a steep rise in energy consumption, primarily in Asia, will translate into higher energy prices. There is much talk about renewable energy, but the truth is that coal is predicted to substitute for oil in the wake of almost inevitably increasing oil prices. Thus fossil fuels will continue degrading the environment, fuelling not only growth but also climate change. Water is a real horror story. Physical or economic water shortages are affecting

threatening their survival refused to respond and consequently perished, for example the Norse settlements in Greenland. We are still in control of our own destiny. We can respond as the Europeans did 500 years ago or we can close our eyes and perish as the Norsemen in Greenland did. The choice is ours. Let us look at the challenges before we look at responses.

precipitates climate change. WE NEED TO CHANGE OUR WAY OF THINKING, make reducing our resource consumption a far higher priority. To achieve this, we need a new economic and societal model that lets us leave the era of plenty behind and enter the era of scarcity.

Singapore Foreign Minister George Yeo (right) receiving a copy of How Asia Can Shape The World from its author Jørgen Ørstrøm Møller

about half the world population in the southern USA, Mexico, Africa, the Middle East, South Asia and northern China. A CLEAN ENVIRONMENT IS THE FIFTH SCARCITY. The World Bank has calculated that half of China’s economic growth needs to be checked to address the problems engendered by that growth. This makes net growth only half the amount that we read about in the papers. These five scarcities are interlinked. To grow more food, we need more water, which is already scarce. Desalination is a solution, but that requires more energy – already scarce. To generate more energy, we have to use more fossil fuels, especially coal, one of the few non-scarce resources (75% of China’s energy comes from coal), but that impacts the environment and

To manage this turnaround, we have to go beyond economics and technology. Cleantech is a commendable and imperative solution, but a true change in the composition of energy sources will require a far more determined effort. Look at China. It wants to increase the share of renewable energy from 7.5 percent of primary energy consumption in 2005 to 15 percent in 2020 – a period of 15 years to achieve a relatively modest increase of 7.5 percentage points. Already now, China is devoting USD 35 billion annually to clean energy, a figure almost double that of the USA and larger than the total EU expenditure. A WIDE RANGE OF MEASURES are being deployed. Grid power companies are required to buy power produced by renewable energy generators. Grid companies attain tax benefits for using renewable energy. A set of preferential prices is taking effect. R&D subsidies are being granted for various new technologies like wind power and

Copenhagen Cleantech Journal

The world is experiencing a seminal shift, the kind that comes every couple of centuries and fundamentally changes the way we think and act. The business world is undergoing tremendous upheavals. The economic model created and perfected by thinkers and economists from Adam Smith to Paul Krugman is fading away almost as fast as the polar icecaps.

TOPIC: THE ERA OF SCARCITIES

solar photovoltaics (PV). Households in western China receive subsidies for using renewable energy. These are only examples, but illustrate the vast panoply of measures that we need to marshal in an effort to impel a visible change towards a sustainable energy supply.

The Chinese example underscores how the world must change its economic paradigm and, even more so, its societal structure to tackle the era of scarcities. ESTABLISHED ECONOMIC THEORY operates with productivity as production per man hour. In the future productivity should be defined as the maximum output per unit of input. The equation must include the entire lifecycle of a product. Most of us feel good when buying a new fridge with a label declaring that it is more, say 15 percent, energy-efficient. We fail to consider the fact that manufacturing that fridge required resources that effectively negate the advertised energy savings. Many products, mobile phones for example, are ‘programmed’ to last for a limited time because they become technologically obsolete long before they physically break down. ESTABLISHED CONSUMPTION THEORY operates with increased consumption as a function of economic growth. We

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materialistically focus on gobbling up resources regardless of mounting scarcities. Our future consumption must be less materialistic and more founded on the results of recent economic studies that tell us people’s wellbeing – let us call it happiness – depends more on what we do for others than money. Today, newspapers carry advertisement after advertisement encouraging us to buy new products and more of them. Some decades from now, whatever media we are using will tell us to buy less, go for

durability and find satisfaction somewhere beyond the material.

VERDEN HAR BRUG FOR EN NY ØKONOMISK ORDEN

CAN IT BE DONE? We do not know. What we do know is that the current economic model and societal system venerating material consumption and resource exploitation are simply unsustainable. We must conceive a new model and start to work on its premise.

“VORES NUVÆRENDE ØKONOMI- OG SAMFUNDSMODEL, der ophøjer det materialistiske forbrug og udbytning af ressourcer, er ganske enkelt ubæredygtig. Derfor er vi nødt til at finde en ny økonomisk verdensorden, hvis præmisser vi kan begynde at arbejde ud fra. Så klart kan det siges”, ifølge professor Jørgen Ørstrøm Møller, dansk diplomat gennem mere end en menneskealder og nuværende fellow på Institute of Southeast Asian Studies.

After 38 years in Denmark’s diplomatic corps (8 years as State Secretary at the Ministry of Foreign Affairs), Jørgen Ørstrøm Møller retired in 2005 and took up a position with ISEAS in Singapore.

”Grundfæstet økonomisk teori opererer med produktivitet som produktion per arbejdstime. I fremtiden bør produktivitet defineres ud fra hele produktets livscyklus.

He has since published Political Economy in a Globalized World (2009) and HOW ASIA CAN SHAPE THE WORLD – from the Era of Plenty to the Era of Scarcities comes out in 2011.

MANGE AF OS HAR DET GODT MED AT KØBE ET KØLESKAB, der sælges som, lad os sige, 15 procent mere energieffektiv, men vi tænker ikke over, at produktionen af køleskabet har krævet så mange ressourcer, at det alt i alt ophæver den annoncerede energibesparelse”, siger

Analysing current problems, this latest book puts forward ideas for a new model based on the scarcity concept and applies these ideas to the future development of Asia and, indeed, the world.

Jørgen Ørstrøm Møller og fortsætter: “DEN GRUNDFÆSTEDE FORBRUGSTEORI opererer med øget forbrug som forudsætning for økonomisk vækst. Vi fokuserer på at hugge i os af ressourcer uden hensyntagen til den stigende knaphed. Det fremtidige forbrug må derfor være mindre materialistisk og i stedet mere funderet på resultaterne af nye økonomiske studier, der fortæller os, at folks tilfredshed i stigende grad afhænger af, hvad vi gør for hinanden og i mindre grad af penge. I den kontekst skal man se udviklingen i den grønne industri, der netop udspringer af udsigten til knappe resourcer og som markerer et afgørende skift i vores måde at indrette os på”, mener Ørstrøm Møller.

omvæltninger og den økonomiske model, der blev skabt og perfektioneret af tænkere og økonomer fra Adam Smith til Paul Krugman er ved at fade ud - næsten lige så stærkt som polerne smelter”. Det paradigmeskifte nødvendiggør, ifølge Ørstrøm Møller, at vi begynder at indstille os på et nyt liv: ”Vi bliver nødt til højt at prioritere en reduktion af vores ressourceforbrug. Og for at opnå det, har vi brug for både en ny økonomisk og samfundsmæssig model, som tillader os at forlade velstandsæraen og imødekomme en ny æra af knaphed”.

“VERDEN OPLEVER ET SKIFT af typen, der kun kommer med et par århundreders mellemrum og som fundamentalt ændrer vores måde at tænke og handle på. Erhvervslivet undergår lige nu enorme

Copenhagen Cleantech Journal

BY PAULA LARRAIN

PHOTOS: RAMBØLL

ENERGY EFFICIENCY IS A COLLECTIVE UNDERTAKING When it comes to consulting and engineering expertise, few in the world can rival Rambøll. Right now, the Danish company has people actively listening when it urges a shift to collective thinking and common solutions in the field of energy. THE RAMBØLL HEAD OFFICE IN COPENHAGEN makes its own compelling case. The monumental, glass-encased building immediately brings energy to mind. How the building is cooled in the summer, though, is a natural question. Although the answer is not obvious, it lies, of course, in one of the solutions Rambøll can provide as a world frontrunner in cleantech.

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The day has yet to come, but the ideas are on the drawing board and will eventually become a tangible feature of sustainable building design.

Søren Holm Johansen

Of course, the solution was expensive to conceive and build, but those costs will not take long to recover in the form of lower energy bills. Not to mention the sustainable perspective of the solution.” IN SHORT, THIS TYPE OF SOLUTION IS RAMBØLL’S FORTE. Today, the company is eager to make the most of the titanic

RAMBØLL’S GREATEST CHALLENGE is the basic resistance to collectivist thinking that it faces from both companies and authorities in other countries. Consequently, much of Rambøll’s present work entails convincing customers to think alternatively and see the potential in using common solutions rather than focusing on their own needs. “Denmark has been thinking in terms of collective energy solutions for decades, with the district heating system being a prime example. By teaming up with Copenhagen Cleantech Cluster, we want

”WE SIMPLY USE THE COLD GROUNDWATER,” says Group Executive Director Søren Holm Johansen about the new building, which is not only an architectural gem in Copenhagen’s new Ørestad district, but also a benchmark in terms of energy efficiency. An area that will bring revenue to Rambøll and Denmark in the future. “When the combination of machines, sunlight and people at work raises the temperature inside the building too high, our system conducts coolant water down under the building all the way to the cold, Danish groundwater, where it is cooled and sent back up to the building,” explains Holm Johansen about this cutting-edge solution.

cleantech potential that has arisen from recent years’ global climate realisations. The Rambøll head office is the newest of the new on the market, but in a few years’ time it will be possible to build office complexes that are not only self-sufficient in energy but actually make money supplying energy to others.

Rambøll head office in Ørestad

Copenhagen Cleantech Journal

ENERGY EFFICIENCY IS A COLLECTIVE UNDERTAKING

to stand united and manifestly show what we have produced together. It demonstrates how every element can be taken into consideration and supplied to international markets in a total package.

“Energy-efficient solutions make financial sense and create an opportunity to liberate ourselves from fossil fuels in the long run. The better buildings become

As expert consultants in this field, we can help inspire other markets to think innovatively. This lets us profile our region and profit from the experience we have gained through the last 40 years,” says Søren Holm Johansen. THINKING IN SOLUTIONS beyond the individual company’s interests also impacts the bottom line. While visiting customers in Chicago in the spring of 2011, Lars Ostenfeld Riemann, Service Area Director for Building & Design, made a presentation on sustainable energy solutions that sparked a lot of enthusiasm among American companies and authorities. This signals an appreciable and relatively nascent demand for precisely the kinds of total solutions Rambøll can provide. ”THE DEVELOPMENT IN DANISH AUTHORITIES’ energy supply requirements has provided a lengthy learning process for architects and engineers. This is why we can offer a range of solutions when we go to places like the USA or Russia, whose architects and engineers have yet to approach the level of expertise we have here. This truly opens up opportunities for Danish cleantech companies to advance

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at utilising heat, the less coal and oil they need. It starts mundanely enough with insulation, but in today’s world we can just as well start by exploiting the

free heat generated from both the sun and from the people that occupy the buildings.”

ENERGIEFFEKTIVITET ER EN FÆLLES OPGAVE

on this front,” assesses Lars Ostenfeld Riemann. HE BRINGS UP THE CASE of Danish beer giant Carlsberg. When the company was extending its old premises in Valby, three different energy solutions were presented. The first solution entailed mounting solar panels directly on the new buildings, and the second slightly larger solar panels also directly on the buildings. Meanwhile, the third solution proposed investing in a solar heating system that was several kilometres from Carlsberg’s headquarters, but could be connected to the existing district heating system and thus both meet the company’s need for a green financial reporting profile and provide

RAMBØLLS HOVEDKVARTER I KØBENHAVN leverer casen i sig selv. Den kæmpestore bygning med glasflader hele vejen rundt leder omgående tankerne over på energi. Spørgsmålet om hvordan man får kølet bygningen ned om sommeren, falder helt naturligt. Svaret ligger ikke lige for, men det ligger i en af de løsninger, som Rambøll kan levere.

the cheapest energy solution. Carlsberg was to buy into the solar power plant in the countryside and thus share the power generated by the solar panels with other companies. In other words – a collective solution.

“VI BRUGER SIMPELTHEN DET KOLDE GRUNDVAND”, fortæller koncerndirektør Søren Holm Johansen om den nye bygning, som ikke blot er en arkitektonisk perle i Københavns nye Ørestadskvarter, men også det nyeste inden for energieffektivisering. Noget af det som Rambøll og cleantech industrien skal leve af i fremtiden. Når det kommer til rådgivning og ingeniørkundskab, er Rambøll blandt verdens absolut førende. Og der bliver lige nu lyttet aktivt til den danske virksomhed ude i verden, når den maner til kollektiv tankegang og fælles løsninger på energiområdet.

“The possibility of mounting solar panels right on roofs and facades appeals to many companies because it directly signals their energy efficiency. But there are better paths to sustainability, and this is where the collective consciousness comes in,” says Søren Holm Johansen. WHEN YOU CONSIDER THE HIGH PRICE of oil, optimising energy efficiency already makes total financial sense for a company.

pointerer Søren Holm Johansen.

DEN STØRSTE UDFORDRING, Rambøll mærker, er en grundlæggende modstand mod netop at tænke kollektivistisk. Meget af Rambølls arbejde her og nu handler derfor om at få kunderne til at tænke alternativt og se mulighederne i fælles løsninger i stedet for kun at fokusere på egne behov. Og det giver god mening også i forhold til virksomhedernes bundlinjer. ”Mange virksomheder er tiltrukket af muligheden for at sætte solpaneler direkte op på deres tage og husfacader for på den måde at signalere direkte, at de er energieffektive. Men der findes en bedre måde at gøre det på, og det er så her, den kollektive bevidsthed spiller ind”,

Direktør for byggeri og design, Lars Ostenfeld Riemann, var i foråret 2011 på besøg hos kunder i Chicago, hvor hans indlæg om bæredygtige energiløsninger vakte begejstring blandt amerikanske virksomheder og myndigheder. Her er der en mærkbar og forholdsvis ny efterspørgsel på netop de totalløsninger, som Rambøll kan levere. “UDVIKLINEN I DE DANSKE MYNDIGHEDERS KRAV til energiforsyningen har været en lang læreproces for arkitekter og ingeniører. Derfor har vi mange alternative løsninger med, når vi rejser ud til eksempelvis USA og Rusland, hvor deres arkitekter og ingeniører slet ikke har den viden, der skal til for at opnå det niveau, vi har her. Så danske cleantech-virksomheder har virkeligt gode muligheder for at rykke på den her front”, vurderer Lars Ostenfeld Riemann.

Copenhagen Cleantech Journal

PHOTOS: ANDERS BIRCH AND LARS DALBY

BY LARS ABILD

“We can see that the cleantech race is on. Danish companies’ competitiveness is threatened, and in a few cases jobs have been moved out of the country. In this context, Topsil A/S is an inspirational story. The company has specialised in manufacturing the silicon wafers used in an array of green technologies – from wind turbines to high-speed trains. Few, however, excel at this kind of production.”

“AN INSPIRATIONAL CLEANTECH CASE!”

”THIS IS WHY TOPSIL A/S – in spite of the stiff competition – has chosen to make Denmark’s Green IQ the focus of its longterm business development. This is the kind of cleantech innovation we need and would like to see more of if we are to be contenders in the cleantech race.”

“An important initiative entails Denmark’s active efforts to convince the EU to raise its 2020 target for reducing carbon emissions from 20% to 30%. This will increase the momentum and create bigger markets for cleantech companies.” If you were to recommend investing in Denmark what would you offer in an area like cleantech?

Why did the Minister choose to break ground for a new Topsil plant, thus marking an important milestone within the Copenhagen Cleantech Cluster?

”OUR SOLID GROWTH IN GREEN EXPORTS already reflects the ambitious framework conditions Denmark offers. In fact, Denmark is the European country where energy technology makes up the largest share of the nation’s total goods export, close on 10%.” “Consequently, we are pushing to continue developing energy technology, for example by strengthening our focus on energy research. In 2010, we granted more than DKK 1 billion to energy technology research for the first time.

”COOPERATION AND NETWORK ARE KEY WORDS in the global knowledge economy, and innovative solutions to global challenges are central competition parameters. To this end, the synergy between initiatives like Risø Park, the coming park at the Technical University of Denmark in Roskilde, and Copenhagen Cleantech Park plays a pivotal role.

Lykke Friis, Minister for Climate and Energy: “Cooperation and network are key words in the global knowledge economy, and innovative solutions to global challenges are central competition parameters.”

This serves to give cleantech companies in the cluster unique access to specialised knowledge and competences, and provides an inspiring framework within which to develop ideas, innovate and share knowledge.” “Having Topsil as an impetus enhances Copenhagen Cleantech Cluster’s potential to be a beacon for the Danish cleantech industry.” What are the Minister’s ambitions for Denmark when it comes to cleantech? What is the most important initiative in this connection?

”THE SHIFT TO A GLOBAL GREEN ECONOMY is to provide the impetus for growth. The key is to identify on a large scale the instruments that can combine green companies’ growth potential with the savings society gains from new cleantech. This is where it can be worth your while to be ambitious. To this end, the government has taken a major step with its Energy Strategy 2050, which specifically delineates how we can make Denmark independent of fossil fuels in 2050 and fully convert to clean energy.”

The Green Labs DK scheme has proved a source of inspiration, providing DKK 129 million in support to establish one of four international-class test centres. This testifies to the fact that the Danish cleantech cluster ranks among the absolute elite when it comes to innovative technology and knowledge in fields such as energy efficiency, renewable energy, transport and water.” Is it necessary to be the first mover – why not wait to draw on other countries’ experience?

å 28 Copenhagen Cleantech Journal

Copenhagen Cleantech Journal

“AN INSPIRATIONAL CLEANTECH CASE!”

”DENMARK NEITHER CAN NOR WILL BE THE FIRST MOVER in every field of technology. When it comes to technology politicians are not always the best at picking the winners. Neither do we possess all nor half of the resources that countries like the USA or China have at their disposal to focus on the full spectrum of promising technologies. This makes it crucial for Danish companies and knowledge institutions to exchange ideas and solutions with their peers abroad.” “To be at the leading edge of tomorrow’s energy solutions can, however, give significant advantages. Just look at the Danish wind turbine industry. Denmark has some of the world’s best wind resources, while for a number of years we have also offered attractive framework conditions for developing wind power. This combination has formed the bedrock for an industry that today employs 25,000 people and turns over billions of Danish kroner internationally”. “It therefore makes sense to put the thrust

KLIMAMINISTER LYKKE FRIIS: DANMARK SKAL GÅ FORREST

the instruments used to foster possible golden egg solutions must neither deplete our national coffers nor weaken other businesses’ competitive power.”

LYKKE FRIIS, MINISTER

“Topsil er en solstrålehistorie. Virksomheden har specialiseret sig i produktion af siliciumskiver, der indgår i en række grønne teknologier – lige fra vindmøller til højhastighedstog.

Med Topsil som lokomotiv har Copenhagen Clean-tech Park derfor gode muligheder for at udvikle sig til et fyrtårn for den danske cleantechindustri, pointerer ministeren og understreger, at det lige nu kan betale sig for virksomhederne at være ambitiøse på klimaområdet.

NØGLEORDENE I DEN GLOBALE VIDENSØKONOMI bliver ifølge ministeren “samarbejde og netværk” og derfor regner hun med, at Copenhagen Cleantech Park kommer til at spille en central rolle i fremtiden.

Professional experience: 2009 Minister for Climate and Energy and Minister for Gender Equality 2006 Pro-Vice Chancellor, University of Copenhagen 2003 Director of European Affairs, Confederation of Danish Industry 2002 Research Director, Danish Institute of International Affairs (DUPI) 1999 Senior Research Fellow at DUPI Education: 1997 Ph.D. obtained at the University of Copenhagen 1993 M.A. in Political Science from the University of Copenhagen 1992 Msc. Econ., London School of Economics and Political Science

30 Copenhagen Cleantech Journal

“Cleantech-virksomhederne i klyngen får gennem samarbejdet en unik adgang til specialiseret viden og kompetencer samt inspirerende rammer for idéudvikling, innovation og videndeling.

Derfor har Topsil A/S - trods den kraftige konkurrence - valgt at satse på den grønne IQ i Danmark som kernen i sin fremadrettede forretningsudvikling. Det er netop den form for grøn innovation, vi har brug for og gerne vil se mere af, hvis vi skal klare os i det grønne kapløb”, siger Lykke Friis.

Climate Minister Lykke Friis calls for initiative, energy and commitment

of efforts on a fewer number of areas where the market potential is greatest and Danish companies have comparative advantages internationally. However,

DET GRØNNE KAPLØB ER I GANG, og Danmarks konkurrenceevne er truet. Derfor giver det god mening at bakke op om virksomheder som danske Topsil A/S, mener klimaminister Lykke Friis.

“DEN GRØNNE OMSTILLING af den globale samfundsøkonomi skal bruges som en motor for vækst. Nøglen er i stor skala at identificere de instrumenter, der kan kombinere vækstmulighederne for grønne virksomheder med generelle samfundsmæssige besparelser fra ny grøn teknologi”, siger Lykke Friis. Og den danske regering vil blive ved med at skubbe på for, at den energiteknologiske udvikling fortsætter:

“I 2010 bevilligede vi for første gang over 1 mia. kr. til energiteknologisk forskning. ET AF FYRTÅRNENE ER GREEN LABS ORDNINGEN, der netop har ydet 129 mio. kr. i støtte til etablering af fire testcentre i international klasse. Det vidner om, at den danske cleantechklynge kan begå sig i den absolutte elite med innovativ teknologi og viden inden for f.eks. energieffektivisering, vedvarende energi, transport og vand”.

Copenhagen Cleantech Journal

PHOTOS: POUL MØLLER/HALDOR TOPSØE A/S AND VOLVO

BY LARS ABILD

to enter a new market – the refining industry, now a key business area. Using catalysts, the company removes sulphur and other impurities from oil, thus producing ultra-low sulphur diesel and gasoline for cars, trucks and jets. Topsoe catalysts

Haldor Topsoe founded the business in 1940.

springs from the close collaboration between researchers, the production group and the sales team. OPTIMISING OPERATIONS Used worldwide, Topsoe’s catalysts and technologies help improve the energy efficiency of chemical processes, lower environmental impact and minimise use of the world’s precious resources. In the refining industry, Topsoe’s catalysts purify oil, ensuring more eco-friendly fuels. Topsoe’s catalysts clean off-gases from power plants and the exhaust from heavy vehicles. In the chemical industry, catalysts and processes optimise energy resources. Seventy years of unwavering commitment to catalysis have made Topsoe a market leader. To achieve this success, the company says it has focused on four key areas: research, sales, technology and plant design, as well as catalyst production.

CATALYSING YOUR FUTURE A quick look at an ammonia plant can provide insight into Haldor Topsoe and its commitment to catalysis. The plant produces an astonishing 1,000 tonnes of ammonia every day. What is more, were it not for the Haldor Topsoe catalyst used in the process, the tempo would be rather different. To be exact, it could take almost a million days to produce the same amount. The catalyst optimises the chemical processes, thus vastly accelerating production while also reducing the energy used. DR HALDOR TOPSOE FOUNDED THE BUSINESS IN 1940, which has always focused on catalysis. At that time, the industrial potential of catalysis was still undiscovered. Today, catalysis plays a key

32 Copenhagen Cleantech Journal

role in the world’s industry – 90% of all chemical processes are based on catalysis, and 60% of all industrial products are made with catalysis. All Topsoe catalysts are manufactured

“One aim of our R&D is to use our knowledge to create solutions that will benefit the environment and our clients now and in the future,” says Executive Vice President for Research and Development Jesper Nerlov: “We put extensive resources into developing our existing catalysts and processes. We focus on creating solutions that will meet our clients’ future needs while also observing tomorrow’s environmental legal requirements.” About 30 years ago, Topsoe decided

in Denmark or Texas. The company continually optimises its production processes and adapts its production facility design whenever a new catalyst is developed. This extraordinary flexibility

FROM FLARE TO FUEL Natural gas is recovered with crude oil

at oil fields. However, since transporting gas from remote oil fields is extremely expensive, half of all recovered gas ends up being burnt off as a waste product. In Qatar, Topsoe has supplied technology and catalysts to a plant that can produce 34,000 barrels of diesel fuel daily based on natural gas, corresponding to the total diesel consumption in Denmark. Gas-to-liquid diesel has better properties than regular diesel and meets the most stringent environmental requirements. Utilising waste gas instead of flaring it serves to reduce carbon emissions. Alternative fuels are also in focus as we move towards a time when oil in its various manifestations is no longer the given means of transporting people across land, sea and air.

Jesper Nerlov

CAN A CAR RUN ON PAPER? There is another new product that can meet market needs, a technology that turns wood waste and biomass, such as household waste, into dimethyl ether, or DME. DME is a clean, environmentally friendly fuel – so clean, in fact, that the hot exhaust gas could be used to blow-dry hair. Topsoe is participating in a Swedish project aimed at converting black liquor, a waste product in the paper mill industry, into DME. Volvo has tested DME and describes it as their preferred alternative fuel.

Seventy years of unwavering commitment to catalysis have made Topsoe a market leader.

Volvo has tested DME and describes it as their preferred alternativ fuel

Copenhagen Cleantech Journal

CATALYSING YOUR FUTURE

“This project is unusual because it covers every phase of the value chain,” explains Jesper Nerlov: “From paper mill waste and the production of DME to fuelling stations and the trucks that actually run on DME.” Wood waste can also be converted into fuel. In the United States, Topsoe is participating in a similar project that converts woodchips into gasoline.

ABOUT HALDOR TOPSOE

PHOTO: ADAM IHSE/EXPONERA

Topsoe develops products using its know-how about chemical reactions at the atomic level of processes. R&D ranges from atomic-level studies to large-scale demonstrations of catalysts and processes. Topsoe continuously strives to improve its catalysts and processes while also exploring and developing products in new business areas. Research and development take place in close collaboration across the company. Researchers probe the possibilities. Sales engineers uncover clients’ needs. Design engineers develop chemical plants. And employees at the production plants optimise catalyst production. In its research, Topsoe collaborates with research institutions and universities around the world. This international knowledge network ensures that knowledge is shared, thus boost ing global achievements within catalysis. Dr Topsoe’s goal is to combine the skills of the researcher with those of the businessman. Intensive research positions the company at the cutting edge of technology and enables it to offer the best solutions as well as venture into new territory. Dr Topsoe calls it “from science to dollars”. The company was founded on the idea that basic research is essential to developing competitive products that meet not only the needs of today but also those of tomorrow.

FOSSIL FUELS Undoubtedly, catalysis will also be an important tool in solving the world’s energy and climate challenges. Alternative fuels have now been put on the table, but fossil fuels will continue to form a significant part of the world’s energy supply for many years to come. “This makes it vital that we use fossil fuels in a sustainable manner,” says Jesper Nerlov. THE PREEM CASE – A PROVEN TECHNOLOGY At the Preem Refinery in Gothenburg, Sweden, Topsoe technology converts tall oil from the paper industry into ultra-low sulphur diesel. Tall oil is non-edible, so the renewable fuel production process neither exacerbates global food shortage problems nor contributes to rising food prices. However, we also need new green energy technologies to meet our future needs. To this end, Topsoe’s catalysts and catalytic technologies can convert energy sources like biomass made from household and wood waste into diesel. “The Preem case demonstrates the flexibility of Topsoe technology: The tall oil produced from wood waste can be used to produce diesel that is fully compatible with the existing infrastructure. This technology lets us produce renewable diesel fuel that does not require newly designed engines, new filling stations, etc. We can use it as is,” says Jesper Nerlov.

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HALDOR TOPSØE: EN KATALYSATOR FOR FREMTIDEN FOR AT FORSTÅ VIRKSOMHEDEN HALDOR TOPSØE kan det være nyttigt at kaste blikket på noget helt andet for en stund – eksempelvis et ammoniak anlæg. Hvert døgn producerer et sådan anlæg hele 1.000 tons ammoniak, men var det ikke for katalysatorer fra Haldor Topsøe, var tempoet et ganske andet. Så kunne det tage op imod en million dage at producere den samme mængde. Katalysatorer optimerer de kemiske processer, så hastigheden bliver langt højere, og på samme tid bliver der brugt mindre energi. DR. HALDOR TOPSØE GRUNDLAGDE SIN VIRKSOMHEDE I 1940 og har siden haft fokus på katalyse. På det tidspunkt var processens potentiale endnu ikke opdaget i industrien, i modsætning til i dag, hvor katalysatorer spiller en nøglerolle i produktionen. 90 procent af alle kemiske processer baserer sig på katalysatorer, og 60 procent af alle

industrielle produkter bliver til på baggrund af dem. TOPSØE ER I DAG MARKEDSLEDER, hvilket er et resultat af mere end 70 års koncentreret fokus på katalysatorer, og de bliver nu brugt over hele verden fra deres udgangspunkt i enten Danmark eller Texas, hvor de produceres. “Både i forhold til forskning og i udvikling er det vores mål at skabe fremtidssikrede løsninger, der både gavner miljøet og vores kunder”, siger Jesper Nerlov, vicedirektør og ansvarlig for forskningen i Topsøe. OG HALDOR TOPSØE GØR SKAM EN FORSKEL I FORHOLD TIL MILJØET, for det er netop nogle af virksomhedens produkter, der kan optimere udnyttelsen af ressourcer eller effektivisering af energi: I raffinaderi-industrien, er det Topsøes katalysatorer, der rengør olien, renser udledningen fra kraftværker eller

udstødningen fra tunge køretøjer. Lige nu er der stor fokus på, hvilke brændstoffer, der skal bruges fremover, og her er Haldor Topsøe på vej med en banebrydende løsning på både affaldsproblematikken og brændstofknapheden. I det nordlige Sverige kører for tiden et projekt, som via Topsøes katalysatorer omdanner affald fra papirindustrien til miljøvenligt brændstof. Så miljøvenligt faktisk, at man ville kunne føntørre sit hår ved udstødningen. Volvo har allerede med succes testet brændstoffet, der kaldes DME. “Dette projekt er usædvanligt, fordi det viser alle faser i værdikæden. Fra affaldsproduktet over produktionen af DME til lastbiler, der rent faktisk kører på DME”, forklarer Jesper Nerlov. Et lignende projekt med savsmuld er lige nu i gang i USA.

At the Preem Refinery Topsoe technology converts tall oil into ulta-low sulphur diesel

Copenhagen Cleantech Journal

BY PAULA LARRAIN

PHOTOS: SIGURDUR OLAFSSON/NORDEN.ORG, EIVIND SÆTRE/NORDEN.ORG AND JOHANNES JANSSON/NORDEN.ORG

WE WANT TO BE THE GREEN REGION OF CHOICE The chairman of the Capital Region of Denmark, Vibeke Storm Rasmussen, wants to help promote cleantech industries. A better infrastructure and focus on education are two means to this end. WHAT ROLE WILL THE CAPITAL REGION OF DENMARK PLAY IN THE COPENHAGEN CLEANTECH CLUSTER? “The Capital Region is going to be the Scandinavian hub for growth in general and for tomorrow’s cleantech industry in particular. We have to make locating here attractive for green companies, a goal we will accomplish, for example, by having a well-functioning infrastructure that facilitates employees in taking public transport to work. Mobility is crucial if we are to develop the region into an enviable commercial area. And we must always be on the leading edge of green public initiatives, thus fostering attractive opportunities for companies, public and private alike, to cooperate on developing new products.” WHY SHOULD FOREIGN COMPANIES CHOOSE TO SET UP BUSINESS IN THE GREATER COPENHAGEN AREA? “Because all public authorities here focus strongly on sustainable green growth. In the years to come, sustainable solutions will permeate our decisions at every level, a trend that is engendering some fantastic opportunities for fruitful cooperation.” WHAT SPECIFICALLY WILL YOU AS A LOCAL AUTHORITY DO TO ATTRACT MORE

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Chairman of the Capital Region of Denmark: Mobility is crucial if we are to develop the region into a enviable commercial area

THE CAPITAL REGION AND REGION ZEALAND HAVE GRANTED DKK 40 MILLION IN REGIONAL BUSINESS SUPPORT. WHY IS THAT NECESSARY? “Because development does not necessarily simply happen. Businesses often complain that public authorities institute tight regulations. But such restrictions are often precisely what it takes to stimulate development. Restrictions can challenge businesses to develop new innovations and thus be first on the market with competitive products.

Vibeke Storm Rasmussen

FOREIGN INVESTMENT? “First and foremost we will ensure that the region’s infrastructure induces companies to locate their activities here. Consequently, we are striving to develop Copenhagen Airports, establish the Fehmarn Fixed Link to continental Europe and construct an express motorway and railway connection from Helsingborg to Elsinore and on down to Køge, south of Copenhagen. From the transport standpoint this will interlink the entire region. But we need to do more. We also have to train and educate people with a view to creating the right pool of welleducated human resources.”

VI VIL VÆRE DEN GRØNNE REGION FORMANDEN FOR REGIONSRÅDET i Hovedstaden København, Vibeke Storm Rasmussen, vil gøre sit for at fremme den grønne industri. Blandt andet med en bedre infrastruktur og en satsning på uddannelse. Og det kræver, at politikerne i regionen spiller en aktiv rolle i Copenhagen Cleantech Cluster.

The wind turbine adventure is an excellent example. However, besides establishing the proper regulations, we also have to provide constructive opportunities for cooperation between the public and private sectors as well as give the financial vitamin boost needed to get these new initiatives up and running.

“Region Hovedstaden skal være det store nordiske knudepunkt for vækst i det hele taget og for fremtidens cleantechindustri i særdeleshed. Vi skal gøre det attraktivt for grønne virksomheder at placere sig her i regionen, og det gør vi f.eks. med en velfungerende infrastruktur, så medarbejderne let kan tage den kollektive trafik på arbejde.

WHAT DO YOU SEE AS THE GREATEST CHALLENGE FOR COPENHAGEN CLEANTECH CLUSTER? “The biggest challenge for Copenhagen Cleantech Cluster is to promote and safeguard inclusiveness, knowledge sharing and partnerships between the cluster partners while preventing self-protective competition from compromising such partnerships.”

danske hovedstadsregion. “Alle offentlige myndigheder her er stærkt optagede af at være grønne. Og det vil også fremover gennemsyre vores beslutninger på alle niveauer. Det giver fantastiske muligheder for virksomhederne at indgå i gode samarbejder - blandt andet med den offentlige sektor, siger regionsformanden, der er meget bevidst om, at investeringerne ikke lander her automatisk. De rigtige rammebetingelser og offentlige investeringer bliver afgørende”.

MOBILITETEN ER UHYRE VIGTIG, hvis vi skal udvikle os til gunstige erhvervsområder”, siger Vibeke Storm Rasmussen.

“VI ARBEJDER KRAFTIGT PÅ AT UDVIKLE KØBENHAVNS LUFTHAVN, få bygget Femern Bælt-forbindelsen, få bygget en ekstra fast forbindelse fra Helsingborg til Helsingør og videre ned mod Køge i Ring 5 med både en ny motorvej og jernbane, så hele regionen hænger transportmæssigt godt sammen.

Hun mener, at det giver god mening for udenlandske virksomheder med interesse i Cleantech at slå sig ned i i den

Men det er jo ikke nok i sig selv. Vi skal også uddanne folk, så der er den rigtige veluddannede arbejdskraft at trække på.

En direkte økonomiske hjælp til erhvervsfremme har også vist sig at være nødvendigt for at sætte skub i processen. For nylig besluttede de to store regionsråd omkring hovedstaden at bevilge 40 millioner til området. Men myndighederne kræver også noget den anden vej”. “Ofte klager erhvervslivet over skrappe restriktioner fra de offentlige myndigheders side. Men mange gange er restriktionerne lige præcis det, der skal til. Restriktioner kan udfordre erhvervslivet til at udvikle nyt og dermed komme først på markedet med konkurrencedygtige produkter. Det danske vindmølleeventyr er et glimrende eksempel herpå”, påpeger Storm Rasmussen.

Copenhagen Cleantech Journal

BY PAULA LARRAIN

PHOTO: PREBEN PATHUEL

DENMARK IS THE BEST PLACE TO DO BUSINESS

Invest in Denmark, Ole Frijs Madsen: “We can offer an array of unique conditions for companies wanting to focus on areas like Cleantech.”

“Climate is a challenge,” comments Ole Frijs Madsen with a twinkle of typically Danish self-irony. On an April day with rain pelting the windows of the Ministry of Foreign Affairs, you get the joke instantly. As director of Invest in Denmark, he spearheads a global organisation whose work centres on attracting investors to the country and getting them to stay.

THE ADVANTAGES ABOUND, so although Ole Frijs Madsen and his team work intensively to market Denmark abroad, attending, for instance, 2,000 meetings a year, they had a good hand from the start. The results speak for themselves. Foreign companies already account for a relatively large share of Danish exports, and currently employ 19 percent of all workers in the private sector. In fact, foreign companies are responsible for 27

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percent of total exports, but constitute only one percent of all companies in Denmark. PREDICTABILITY IS KEY Despite the financial crisis and a general global decline in foreign investments, Invest in Denmark succeeded in creating and retaining 1,436 direct and indirect jobs in 2010. Denmark’s exceptional political stability plays a key role in interested investors’ considerations. “When we are in contact with companies looking to set up business in Denmark, we give them an in-depth, comprehensive analysis of their possibilities. Naturally, the fact that Denmark is a secure country with a well-functioning society counts for a great deal. For instance, compared with many other countries, we have a high degree of legal predictability and as good as non-existent corruption. Similarly, our business policy is traditionally stable, which offers another major incentive for potential investors,” says Ole Frijs Madsen. THE DANISH LABOUR MARKET boasts a highly educated and flexible workforce. Moreover, Danish consumers are by and

large among the most receptive to new technology. This has made Denmark an ideal test market. A fact that Better Place, an American electric vehicle provider, has discovered. ”BETTER PLACE IS A GOOD EXAMPLE of a new investor that we have attracted to Denmark and that sees how Danes’ readiness to test out and adopt new products and technologies creates potential in the Danish market,” says Ole Frijs Madsen. Better Place is headquartered in Silicon Valley and, despite its relative youth, already has 72 employees in Denmark. Companies like Better Place have a lot to gain from the high level of education in Denmark and the easy access they enjoy to the research community. This is why Invest in Denmark’s involvement in clusters like the Copenhagen Cleantech Cluster makes such good sense. “Ultimately, it comes down to improving the foreign companies’ bottom lines. To that end, our flat hierarchies and innovative labour force truly enable us to offer unique business opportunities that also produce returns in the long run.”

THE MISSION IS BEING ACCOMPLISHED he reports, for fickle weather aside, foreign companies looking to set up business in Denmark will be hard-pressed to find any minuses. “We can offer an array of unique conditions for companies wanting to focus on areas like Cleantech. Our flexible labour market model, the flexicurity model, affords companies the latitude to adjust the size of their workforces according to their needs. We also have a highly educated labour force, a safe business environment and a flat organisational structure that opens the doors to networks with both researchers and decision-makers,” says Ole Frijs Madsen.

Copenhagen Cleantech Journal

THE DANISH LABOUR FORCE The Danes are among the world’s best educated. In 2010, Denmark was ranked number one with respect to skilled work. In addition, 40 percent of the population has a higher education, a greater percentage than in countries like the United Kingdom or the Netherlands.

EU COMMISSIONER THRILLED WITH THE COPENHAGEN CLEANTECH CLUSTER

FACTS ABOUT INVEST IN DENMARK • • • •

The EU commissioner for regional development, Mr. Johannes Hahn visited Copenhagen this year to hear more about Copenhagen Cleantech Cluster (CCC) and the development and ambitions of the largest Cleantech cluster project. There was a strong recognition of CCC’s cluster perspective, which the EU representatives would like to see more of in other countries. Especially the integrated collaboration across sectors for the benefit of all actors was an experience that opened the eyes of the commissioner, who believes that a project such as CCC can be an inspiration to all of Europe. - There are many market opportunities in this cluster project, not just in Europe but also in the rest of the world, and it could be important for the job creation across Europe, the enthusiastic commissioner stated. www.cphcleantech.com

Part of the Ministry of Foreign Affairs. 28 employees covering the main markets in North America, Asia and Europe 25 employees located throughout Denmark Focus on knowledge-intensive companies within Information and communication technology, Medico and bio-technology and Cleantech

DANMARK: DET SIKRE VALG “KLIMAET ER EN UDFORDRING”, konstaterer Ole Frijs Madsen, med et strejf af typisk dansk selvironi. På en dag i april, hvor regnen pisker mod ruderne i Udenrigsministeriet, forstår man humoren prompte. Han er chef for Invest In Denmark, der arbejder målrettet på at tiltrække og fastholde investorer. Og det går faktisk meget godt, for bortset fra omskifteligt vejr er der ikke mange minusser for udenlandske virksomheder, der gerne etablerer sig her. “VI KAN TILBYDE EN RÆKKE UNIKKE FORHOLD for virksomheder, der gerne vil satse på eksempelvis cleantech. Udover vores fleksible arbejdsmarked, har vi en høj grad af veluddannet arbejdskraft, fysisk sikkerhed og en flad magtstruktur, der giver mulighed for at indgå i netværk med både forskere og beslutningstagere”, påpeger Ole Frijs Madsen. Udenlandske virksomheder løfter allerede i dag en forholdsmæssig stor del af den danske eksport og de beskæftiger lige nu 19 procent af alle ansatte i den private sektor. Udenlandske virksomheder står for hele 27 procent af den samlede

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eksport, selvom de kun udgør en enkelt procent af alle virksomheder i Danmark. ”Når vi er i kontakt med virksomheder, der gerne vil etablere sig i Danmark, giver vi dem en tilbundsgående og samlet analyse af deres muligheder. Her vejer det naturligvis tungt, at Danmark er et sikkert land med et velfungerende samfund”, siger Ole Frijs Madsen og fremhæver den juridiske forudsigelighed og en næsten ikke eksisterende korruption.

NEWS

”Når alt kommer til alt, handler det om at forbedre de udenlandske virksomheders bundlinjer. Og her tyder alt på, at vi med vores flade hierarkier og innovative arbejdskraft kan tilbyde noget helt særligt, der også giver gevinst i det lange løb”.

MIT-TALENTS LOOK TO DENMARK

For five days, 25 MBA students from the MIT Sloan School of Management in Cambridge, USA, visited Denmark and Copenhagen Cleantech Cluster to learn more about how Denmark has become a successful case story in cleantech.

DANMARK ER OGSÅ ET IDEELT TESTMARKED, som eksempelvis den amerikanske elbilleverandør, Better Place, har fået øjnene op for.

- We wanted to visit Denmark and meet with the leading companies and learn what the key drivers of success have been and to see what lessons could be applied to other countries, including the U.S., which is hoping to improve its renewable energy penetration, Megan Glendon says, one of the MIT-students www.cphcleantech.com

”Better Place er et godt eksempel på en ny investor, som vi har trukket til Danmark og som ser en mulighed i det danske marked, fordi danskerne generelt er et testparat folkefærd, som hurtigt tager ny teknologi til sig”, fortæller Ole Frijs Madsen. Better Place har hovedsæde i Silicon Valley og er relativt nystartet, men har allerede 72 ansatte i Danmark.

ICN BUILDS BRIDGES TO ASIAN AND ITALIAN CLUSTERS

International Cleantech Network (ICN) is expanding, and welcomes both a strong Italian cluster and the first Asian cluster in ICN, the latter having already reached out to all ICN partners and thus proved ICN a beneficial bridge between clusters.

Having recently welcomed the strong North Italian cluster, Lombardy Energy Cluster, ICN is now pleased to also welcome the Singapore Sustainability Alliance (SSA) as a new partner. www.cphcleantech.com

RISØ DTU - A NEW EU INITIATIVE ON INCREASED USE OF RENEWABLE ENERGY

The EU has just launched a new project aiming to reach 20 per cent renewable energy in the EU countries in 2020 in a more profitable and efficient way. The project named “RES4LESS” is a two-year collaborative research and development project coordinated by the Dutch Energy Research Centre ECN and Risø DTU is a partner in the project, and leads a project group. RES4LESS’ purpose is to encourage national policy makers to create better framework conditions and incentives to increase utilization of renewable energy sources and thereby stimulate new approaches to promoting renewable energy sources through increased cooperation between the member states. www.cphcleantech.com

TOPSOE FUEL CELL SIGNS MOU WITH KOREAN SK HOLDINGS The Memorandum includes a very strong effort for the commercialisation of fuel cells for small units for private housing as well as large stationary units and

PHOTO: HALDOR TOPSØE

poses a unique opportunity for Topsoe Fuel Cell to demonstrate and supply the fuel cell technology for the fast-growing Asian economy, and it is a significant step towards the upcoming commercialisation. www.topsoefuelcell.com

Copenhagen Cleantech Journal

MILESTONES

DENMARK REACHES MILESTONE

A new wind turbine test centre at Lindø and three other Green Labs dedicated to developing new energy technologies will strengthen Denmark’s international reputation as a green technology laboratory. The board for Green Labs’ Danish programmes has granted DKK 129 million to the four centres, where companies can test and demonstrate new climate and energy solutions that present global market potential. www.cphcleantech.com

ONE-STOP-CLEANTECH RESSOURCES

Copenhagen Cleantech Cluster operates a “One Stop Shop” where you can gain an overview and access to the cleantech cluster. The One Stop Shop is the knowledge center that ties all the projects and partners together and below are some of the facilities shown.

FUNDING OPPORTUNITIES

The ability to see competitors as partners and create strong networks is central to advancing more innovative solutions from the cleantech industry. CCC Business specific networks aim to introduce businesses that work within same industry and to provide them with the benefits of being part of a cluster, including access to a pool of tacit knowledge. Examples of new networks are; “The Smart Grid Network”, “Network for Development of Hydrogen and Fuel Cell Technologies in Copenhagen”, “The Sustainable Biofuels Network”, “Innovation Network of Environmental Technology”.

INTERNATIONAL CLEANTECH NETWORK (ICN)

MATCHMAKING

Analysis is essential for providing ICN partners with beneficial information. ICN will conduct supply chain studies, mapping of test and demonstration facilities and create a tool for overviewing the clusters’ competencies. Matchmaking activities will be arranged across the clusters between companies, universities and local authorities. ICN strives to match the business opportunities in each cluster with the leading competencies in the other partner clusters so as to add value to each. Education and exchange programmes between companies and universities in the clusters will form part

RESEARCH-TO-BUSINESS

Whether companies need a continuous dialogue with research institutes or a full-scale partnership, this initiative aims to bridge the gap between research institutes and companies. Examples of activities include Risø DTU creating a market place where PhDs meet

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ities. Obtaining and providing new knowledge for the partners to use constitutes the entire foundation of ICN, and is therefore something that will continuously be evaluated and developed. The ICN website functions as a communication platform for the partners, and in addition articles relevant to the partners will be produced. www.internationalcleantechnetwork.com

B2B NETWORKS

You can now find information on Danish and Pan-European public funding opportunities within Research & Development, Demonstration Activities, Network Activities, Market Take-up and Export Subsidies. www.cphcleantech.com

Introducing you to the right people and projects is a cornerstone of Copenhagen Cleantech Cluster. Over the next few years the cluster will facilitate matchmaking between research institutions and companies and build networks with relevant stakeholders.

of ICN’s mission to expand the pool of highly-skilled labour and thereby create growth for the companies in the clusters. Communication is stressed throughout all ICN activ-

with companies, SCION DTU arranging a number of events with a focus on different international markets, and the University of Copenhagen matching researchers and start-ups.

COPENHAGEN CLEANTECH PARK - KICK-OFF

CCP has been kicked-off and is part of one of the largest business estate and urbanisation development projects in Denmark.

DATES 18-23 SEPT. 2011 GREEN PARTNERSHIPS U.S.A - DENMARK

A one week matchmaking event with the objective of forging partnerships and pursuing collaboration between U.S. and Danish companies and organizations. The events are held in San José and Washington DC and is arranged by the Confederation of Danish Industry, Danish Energy Industries Federation, and the U.S. Embassy in Denmark, the U.S. Commercial Service, the Climate Consortium and The Danish Trade Council.

10-14 OCT. 2011 GREEN WEEK 41 ANNUAL COPENHAGEN CLEANTECH WEEK 11-12 OCT. 2011 GLOBAL GREEN GROWTH FORUM

3GF is an initiative by the Danish government, launched with the support of the Korean government and developed in association with the international Global Green Growth Institute.

11 OCT. 2011 “MEET THE VISIONAIRIES” CCC ANNUAL CONFERENCE - COPENHAGEN 24 OCT. 2011 INTEGRATION OF SOLAR POWER INTO POWER SYSTEMS - AARHUS, DENMARK

ICN aims to achieve this through working across the clusters within four key areas of activities in the international collaboration.

25 OCT. 2011 INTERNATIONAL WORKSHOP ON LARGE-SCALE INTEGRATION OF WIND POWER INTO POWER SYSTEMS - AARHUS, DENMARK The estate - probably in one of the best cleantech locations in the world and is located in the Copenhagen area, is about 350 hectares, and is expected to hold 6,000 workplaces and 6,000 homes, is being developed with world class environmental - as well as a knowledge infrastructure and in such a way that the synergies of the Copenhagen Cleantech Cluster are fully utilized - in particular with the aim of making the cluster area even more attractive for foreign direct investment and retention and recruitment of highly qualified staff.

THE EUROPEAN UNION The European Regional Development Fund

Investing in your future

Copenhagen Cleantech Journal

THE EUROPEAN UNION The European Regional Development Fund

Investing in your future

Sender: Copenhagen Cleantech Journal, c/o Copenhagen Cleantech Cluster, Nørregade 7B, DK-1165 Copenhagen K, Denmark

Thinking outside the box doesn’t have to start with a square.

Start with Denmark Start with Denmark • Denmark is rated an attractive business environment with a fast, cost efficient business establishment and transparent, stable taxation system - making it easy to set up your business • A highly skilled and motivated workforce makes Denmark the optimal location for knowledge intensive business activities • Labour market regulations in Denmark are some of the most flexible in Europe – allowing you to easily adjust your organizational set up We look forward to hearing from you Headquarters Invest in Denmark Ministry of Foreign Affairs of Denmark Asiatisk Plads 2 1448 Copenhagen K Denmark Tel.: +45 33 92 11 16

Europe Invest in Denmark Ambassade Royale du Danemark 77, Avenue Marceau 75116 Paris France Tel.: +33 1 4431 2193

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North America Invest in Denmark Royal Danish Consulate General 885, Second Avenue, 18th Floor New York, N.Y. 10017 USA Tel.: +1 212 223 4545

Asia-Pacific Invest in Denmark Shanghai Technology Innovation Center 100 Qin Zhou Road, 2nd building, 711 Shanghai, 200235 China Tel.: +86 21 6085 2000