Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Presentation (January 2006)
38 slides from Norsk Hydro Asa's investor presentation, Jan 10, 2006
Slide 1: Capturing the value potential in New Energy
Capturing the value potential in New Energy Alexandra Bech Gjørv Head of New Energy 10-01-2006
Slide 2: Strong drivers for new energy solutions: energy demand
Strong drivers for new energy solutions Energy demand will increase by 60 % by 2030 20000 15000 Other renewables Hydro Mtoe 10000 Nuclear Coal Gas Oil 5000 0 2002 2030 Date: 10-01-2006 • Page: 2
Slide 3: Strong drivers for new energy solutions: replacing reserves
Strong drivers for new energy solutions Replacement of oil and gas reserves is challenging Date: 10-01-2006 • Page: 3
Slide 4: Strong drivers for new energy solutions: security of supply
Strong drivers for new energy solutions Security of supply mbbl/d 140 120 100 80 60 40 20 0 2002 2030 Outside OPEC OPEC Unconventional oil Date: 10-01-2006 • Page: 4
Slide 5: Strong drivers for new energy solutions: climate change
Strong drivers for new energy solutions Increased awareness of climate change Source: Prof. Socolow, Princeton Uni. US Date: 10-01-2006 • Page: 5
Slide 6: Strong drivers for new energy solutions: investment capital
Strong drivers for new energy solutions New energy companies attract investment capital Date: 10-01-2006 • Page: 6
Slide 7: Strong drivers for new energy solutions: wind employment
Strong drivers for new energy solutions EU: 70 000 employed within wind energy 1 000 employees 250 200 150 100 50 0 2005 2015 Date: 10-01-2006 • Page: 7
Slide 8: Strong drivers for new energy solutions: incentives
Strong drivers for new energy solutions Authorities establishing incentives to meet challenges Date: 10-01-2006 • Page: 8
Slide 9: Predicting broad future energy mix
Predicting broad future energy mix Date: 10-01-2006 • Page: 9
Slide 10: A significant growth market in new energy
A significant growth market in new energy TWh/year MBbl/day 1400 1200 1000 930 3 2,5 800 600 2 600 400 1 160 170 120 0,5 200 52 60 2 1 35 0 Wind Solar Biopower Geothermal Wave Bio-fuel 2002 2030 for power and 2020 bio-fuels Power in TWh/year and equivalent Mbbl/day, Bio-fuels in Mbbl/day Source: IEA
Slide 11: Power from fossil fuels – large uncertainties; incentives for renewables
Power from fossil fuels – large uncertainties Incentives for renewables 30.11.05 – 133 €/MWh !!!! Wave and tidal 90 ? €/MWh Offshore wind UK 60 ? ? Biopower ? Onshore wind Norway 45 Power price – Germany ? 2007: 44 €/MWh Nuclear In 30 Power price – Norway 2007: 34 €/MWh Incentives 15 0 02 0 38 20 2
Slide 12: Industrial peers engage in several technologies
Industrial peers engage in several technologies Shell BP TOTAL Statoil Hydro Vatten- Statkraft E-on Dong GE fall Wind Solar Hydro Biopower Geothermal Carbon capture Hydrogen Biofuel Date: 10-01-2006 • Page: 12
Slide 13: Hydro is positioned in the most mature new energy technologies
Hydro is positioned in the most mature new energy technologies Anticipated market potential - 2015 High Wind offshore Wind Bio-power nearshore Bio-fuel Wind onshore Solar crystalline Solar thin film Hydrogen fuel cells Wave Small hydro Geothermal Hydrogen Low Tidal R&D 2005 Maturity of technology Co
Slide 14: Hydro develops natural resources in innovative and efficient ways
Hydro develops natural resources in innovative and efficient ways A unique capability platform z Stakeholder management for access to resources z Competence in large scale project execution z Offshore/geo experience Our talents Our values z Metals and chemical processes and logistics z Relevant R&D
Slide 15: Hydro's New Energy ambitions
Hydro’s New Energy ambitions z Increasing our activities in new energy solutions z Capabilities in place for significant growth z A preferred partner through our technical, operational and commercial skills Date: 10-01-2006 • Page: 15
Slide 16: Our New Energy business
Our New Energy business Date: 10-01-2006 • Page: 16
Slide 17: Hydrogen solutions for Europe
Hydrogen solutions for Europe Hydrogen fuelling systems from Hydro Reykjavik Reykjavik z Reykjavik z Hamburg z Berlin Date: 10-01-2006 • Page: 17
Slide 18: Hydrogen solutions for Europe: Hamburg
Hydrogen solutions for Europe Hydrogen fuelling systems from Hydro Reykjavik Hamburg Date: 10-01-2006 • Page: 18
Slide 19: Hydrogen solutions for Europe: Berlin
Hydrogen solutions for Europe Hydrogen fuelling systems from Hydro Reykjavik Berlin Date: 10-01-2006 • Page: 19
Slide 20: Wind – hydrogen at Utsira
Wind – hydrogen at Utsira Date: 10-01-2006 • Page: 20
Slide 21: Hydro Technology Ventures
Hydro Technology Ventures z New Energy - Solar - Wind - Bio - Enabling - Distributed - Oceanic renewables Energi vekst z Oil and Gas - Accelerated application of new technology Date: 10-01-2006 • Page: 21
Slide 22: Investment in exciting energy technologies
Investment in exciting energy technologies Wave power: Large resources, challenging developments Date: 10-01-2006 • Page: 22
Slide 23: Our wind adventure
Our wind adventure Date: 10-01-2006 • Page: 23
Slide 24: A successful early start at Havøygavlen
A successful early start at Havøygavlen z A significant 140 mill. NOK position in 2001 z Learning from tough terrain, complex winds and harsh climate z Good commercial positioning gives IRR well above cost of capital Date: 10-01-2006 • Page: 24
Slide 25: An attractive onshore portfolio in Norway
An attractive onshore portfolio in Norway Finnmark z Excellent wind conditions z Incentive system in place 2007 El-certificate system Norway/Sweden Fosen and Central Norway South Western Norway Date: 10-01-2006 • Page: 25
Slide 26: Annual global wind power development
Annual global wind power development Actual 1990-2004 Forecast 2005-2009 Prediction 2010-2014 MW 30 000 25 000 20 000 15 000 10 000 5 000 0 1990 2004 2009 2014 Existing capacity Onshore (forecast) Offshore (forecast) Prediction Source: BTM Consult ApS - March 2005 Date: 10-01-2006 • Page: 26
Slide 27: Why offshore wind?
Why offshore wind? z Stronger, more stable winds z Shortage of good land sites z Avoiding community and environmental conflicts z Economies of scale Date: 10-01-2006 • Page: 27
Slide 28: Challenging marine operations
Challenging marine operations Date: 10-01-2006 • Page: 28
Slide 29: Hydro's E&P skills create value in New Energy
Hydro’s E&P skills create value in New Energy z Expertise in marine operations z Complex permitting is no obstacle z Preferred partner through track record in project development, contract and risk management Date: 10-01-2006 • Page: 29
Slide 30: Acquired significant position offshore UK
Acquired significant position offshore UK z Very attractive winds and support schemes z Scira: 315 MW Offshore shallow waters z Positioned for GBP 300 million investment z Many uncertainties – still an option Date: 10-01-2006 • Page: 30
Slide 31: Hywind – taking the next step
Hywind – taking the next step z Capturing even better winds z Cost effective and robust z Minimum offshore work z Site independent, less conflicts Date: 10-01-2006 • Page: 31
Slide 32: Successful test of breakthrough technology
Successful test of breakthrough technology z 3 year R&D program z Hydro patented solutions z Next step is full-scale demo Date: 10-01-2006 • Page: 32
Slide 33: Commercialization
Commercialization Commercial park Demo park Demo Technical focus Cost focus Market focus Date: 10-01-2006 • Page: 33
Slide 34: A truly global potential
A truly global potential z Deepwater sites near major consumption areas, with price/incentive premium Map: NASA Date: 10-01-2006 • Page: 34
Slide 35: Hywind – a challenger to Ormen Lange?
125 TWh Hywind Hywind – a challenger to Ormen Lange? z The gas in Ormen can generate 125 TWh/year for 20 years z Same as two offshore blocks of Hywind – Forever! Date: 10-01-2006 • Page: 35
Slide 36: Hywind
Hywind Date: 10-01-2006 • Page: 36
Slide 37: Forward-looking statements/ use of non-GAAP financial measures
Forward-looking statements/ use of non-GAAP financial measures In order to utilize the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentation contains certain forward-looking statements
Slide 38: Hydro company description
Hydro is a Fortune 500 energy and aluminium supplier founded in 1905, with 36,000 employees in nearly 40 countries. We are a leading offshore producer of oil and gas, the world's third-largest integrated aluminium supplier and a pioneer in renewable energy and energy- efficient solutions. As we look