added value - Statkraft

New knowledge
added value
Statkraft has room for both small, daily improvements and
great visions for the earth’s future. This has made the company
Europe’s leader in renewable energy. Learn more about our
research and development activities.

Three perspectives on R&D in Statkraft
Vision and reality
Climate change is the most serious
threat facing mankind. But despite the bleak
outlook, climate change also offers opportunities
for companies with tradition, resources
and expertise within renewable energy. The
development of renewable energy will be
one of the most important tasks in the world
in the time ahead, and it will be demanding,
both in terms of technology and finance.
Statkraft takes these challenges seriously,
and therefore focuses on research and
development, both in the long and short
term, to meet the world’s future needs for
renewable energy. Challenges regarding
the environment and sustainability must be
solved when new energy facilities are built.
Innovation and new approaches are vital in
order to find sustainable solutions.
Statkraft and research communities we
cooperate with, have significant knowledge
about these issues. In order to solve the
climate challenges, we believe in cooperation
between business, industry and research
institutions.
Innovation is one of Statkraft’s three core
values. We want to further develop existing
solutions and to implement new technologies.
Statkraft’s innovation activities will
contribute to increase the Group’s future
competitiveness, and create results and
added value for the company and society
in general. There is room for both daily
improvements as well as grand visions about
the earth’s future in Statkraft. This has made
us the largest producer of renewable energy
in Europe. Here we would like to offer some
examples of what we do.
Christian Rynning-Tønnesen
president and CEO, Statkraft
Without research and
development Statkraft would
not be Europe’s leader in
renewable energy.
maturity
exploration
Corporate
R&D programs
improvement
Statkraft’s innovation strategy is closely aligned to our business
strategy as we believe this is the key to turning R&D results and
knowledge into actual innovation. We also seek to develop a balanced
R&D portfolio with regards to levels of technological maturity
and development lead time.
Improvement projects are aimed towards continuous improvement of
current operations. The purpose is to increase efficiency and further
develop sustainable and environmentally friendly solutions in ongoing
operations. Through the improvement projects we solve our short
term challenges in existing business.
Three R&D programs are established to meet the medium term need
for development within specific business areas; hydropower, wind
power and district heating. Through these R&D programs we develop
competitive advantages and new business models to enhance future
efficiency and quality in our operations. Finding environmentally
friendly solutions and implementing actions to prevent unnecessary
negative consequences to nature and wildlife counts for a significant
part of the programs. The projects are performed in close collaboration
with national and international R&D communities.
Finally, our exploration activities are focused on technologies that
may become important in the longer term. Promising opportunities
may lead us to engage in long term development efforts and bring
new sustainable solutions to the energy market.
Read and learn more about:
time
Weather is money. Providing hydrologists with a more precise
“crystal ball”.
Save the salmon! Researchers look for the optimum balance
between salmon and power generation.
Wind energy turbines with suction. New technologies driving
down costs of offshore wind farms.
What will our rubbish cost? The answer will be of value to
Statkraft’s district heating ventures.
World leader in osmotic power. Developing the perfect membrane
remains one of the key challenges.

maturity
exploration
Corporate
R&D programs
improvement
time
Continuous improvement of
current operations, solving
short term challenges in
existing business
Learning from your
own errors is an important
source of knowledge.
The R&D work in Statkraft under the “Improvement”
label addresses everyday issues
and give quick results. In these projects we
look at existing facilities, investigate faults
and renovate or improve elements in the day
to day operations.
“Our motivation is to learn as much as possible
about what is going on and to get the
most out of our resources, such as increasing
the effect from turbines, or to sensibly renovate
a dam. It is about learning from previous
errors, and introducing measures that are as
inexpensive as possible, while at the same
time complying with all regulatory requirements,”
says Anne Marit Ruud, section head
Construction.
Input to Improvement projects can come
from our own business areas, from research
institutions, consultancy firms or from the
industry organization Energy Norway.
The R&D work also has an important recruitment
function. “Some of our R&D funds
are for example spent on professors and
students at the Department of Hydraulic and
Environmental Engineering and the Hydropower
and water research labs at the Norwegian
University of Science and Technology
(NTNU. We have seen a significant increase in
Master’s degree students specializing within
hydropower related topics. The latter is
particularly important to us, as it contributes
to the recruitment of necessary expertise for
the future” Ruud stresses.
3D erosion estimates
Some of Statkraft’s rockfill dams have
had short period leaks through the core. To
increase employees’ expertise for estimating
the strength of the dam and the water flow
force it can handle, there is an R&D project
under way to develop a 3D estimate model.
The model is capable of estimating both the
quantity of water and the direction of the
water flow through the dam. Other issues
under consideration include the direction of
the plastering rock in the dam. A Master’s
student has been hired to carry out the R&D
project, and she is using Statkraft’s Jukla
dam as a case study.
Hydrologists get a new
“crystal ball”
In order for Statkraft to optimize power
production, prognoses for influx to power
plants and reservoirs are an important aspect
of the decision-making basis. Today hydrological
models deliver influx prognoses up to ten
days ahead, but carry with them a degree of
uncertainty. When using hydrological models,
one must take some uncertainties into consideration.
One type of uncertainty relates to the
observations of precipitation and temperature.
Other uncertainties originate from conditions
in the hydrological model, such as snow and
groundwater reservoirs.
Together with SINTEF, project personnel
from Statkraft aim to
establish a framework to
describe the various
sources of uncertainty
and finally determine
their net effect.
This means that the
influx prognoses can
be based on probability
rather than
expected values, which
means they will be
far more informative
when projecting the
power generation.
Can chemistry undercover
transformer faults?
In order to identify the fault that caused the transformer at the
Svartisen Power Station to fail in 2011, Statkraft has initiated
an R&D project for chemical analyses. This incident was very
costly for Statkraft, and a thorough analysis of the mechanisms
that took place may therefore be very useful in the long term,
both to strengthen the expertise in the company and to prevent
future disruptions and similar failures. Samples are collected
from the crash location in the transformer, and to identify various
causal connections, the analyses are reviewed together with electric
measurements from before the breakdown. The results will be
used for updating requirement specifications and operational
routines in order to improve future reliability in operations.
51.5
TWh
In 2011, Statkraft
produced a total of
51.5 TWh of energy
(51.5 billion kilowatt
hours). This is
enough to supply
more than two
million homes with
energy (measured
by Norwegian consumption,
which is
the world’s highest).
Of this production,
91 per cent
came from renewable
sources, while
natural gas power
(mainly in Germany)
contributed 8.9 per
cent.
Did you know ...
… that Statkraft is
Europe’s largest
producer of renewable
energy?
Statkraft has a total
of 3400 employees
in 20 countries
around the world.

hydropower
maturity
exploration
Corporate
R&D programs
improvement
time
Three R&D programmes aim
to meet the medium term
needs for development within
three core business areas.
Did you know ...
… that in 2011,
Statkraft produced
46 TWh of energy
from its hydropower
plants, equivalent
to the consumption
of more than 1.7
million Norwegian
homes?
100
million
For the period
from 2011 to 2014,
Statkraft has
allocated a total of
NOK 100 million to
its hydropower R&D
programme.
Best possible flow
The project «Flow Control Technology» is
another example of a successful partnership
with suppliers. The goal for this project was
to apply new technology and knowledge to
minimize the negative effect of flows in the
lead blades on Francis turbines. Both when
the water is entering and exiting the turbine,
there is a risk of wear, strain and loss of
energy efficiency due to flow phenomena. In
short, it is about creating the best possible
flow in production.
The project found solutions for some of
these challenges which can be applied to
both hydro and wind power.
A turbine revolution
Norwegian water is usually very clean, but outside of Norway, power
producers often face major challenges in connection with sediment
and silt in the water flow. As a result of the intense water pressure,
these particles may cause severe damage in the turbines, leading to
rapid wear. To cope with this problem, SN Power (where Statkraft is the
majority owner) has entered a partnership with the supplier Dynavec
to develop a new Pelton turbine design. In conventional turbine
designs, the turbine is in one piece, making it difficult to achieve the
optimum coating or surface treatment. This new design is revolutionary
as it is module based, i.e. in individual sections. The advantage
is that each section can be thoroughly coated before the turbine is
assembled. This decreases wear and increases its life span.
Another advantage of the new design is that the individual parts
can be replaced without having to move the entire wheel. Thus, the
facility does not have to be shut down for longer periods of time during
maintenance, and downtime is greatly reduced. This is the very
first solution of this kind, and a fine example of explicit technology
development carried out with a supplier.
Optimum conditions for salmon
Statkraft is also engaged in more long term research, for example
through the research centre CEDREN, one of a total of 11 research
centres for environmentally friendly energy (FME) established by the
Research Council of Norway. CEDREN addresses issues concerning
environmental design. A basic theme is how future facilities and river
systems can be designed to even further preserve the environment
while maintaining power production.
One example is the EnviDORR project, which has developed a new
model for hydropower facilities, which optimizes the relationship between
power generation and salmon, both in the current and future
climate. The model becomes a tool for regulating water flow and
production in a river system, so that conditions are optimal, both for
the salmon and for Statkraft.
We develop clean energy for the
future, in interaction with the
environment and society in general.
How should Statkraft relate to a changing European
energy market? How can the company
utilise and further develop its strong hydropower
position?
These are just some of the questions we seek
to answer through the Hydropower programme
which will secure access to relevant technology,
contribute to sustainable solutions, and
ensure recruitment and expertise building in
Statkraft.
“The program has a strategy function that
involves looking further and higher ahead to
develop hydropower as a renewable source of
energy for the future” says programme head
Uta Gjertsen. One of the challenges high on the
agenda are ageing hydropower facilities. Many
of the facilities and components are now nearing
the end of their design life time, and require
rejuvenation and upgrades.
“We also have many projects abroad. This is
demanding for us as the developer, in terms of
both technical and environmental requirements.
There are other geological and topological conditions,
other climate and social conditions we
must take into consideration,” Uta says.
Another important issue is related to the
changing European energy system, with more
renewable and inflexible power generation (solar
and wind). “As the share of inflexible energy
increases, it will impact us who produce flexible
hydropower. This so-called regulating power issue
is an important area of knowledge in terms
of Statkraft’s future opportunities,” Uta argues.
All the projects in the Hydropower programme
are externally operated, meaning that
they are executed in partnership with other
research institutions and suppliers.

wind power
maturity
improvement
Corporate
R&D programs
exploration
time
Three R&D programmes aim
to meet the medium term
needs for development within
three core business areas.
The development of
offshore wind power requires
massive research
and development efforts.
In order to compete in the rapidly
growing offshore wind market,
Statkraft has to limit the financial risk
associated with investments. Cost
reductions are therefore one of the
main objectives in the R&D programme
for competitive wind power.
“Compromising on safety and the
environment simultaneously is unacceptable”
says Jørgen Krokstad, who
heads the programme.
There are greater challenges connected
with establishing and operating
wind farms in deep waters than
onshore. Therefore around 70 per cent
of the programme’s funds have been
allocated to offshore wind and 30 per
cent to onshore wind. In addition the
programme’s diverse activities involve
wind turbine technology development,
operation and maintenance of wind
farms, health, safety and consequences
for the environment.
One important ambition is to
promote development of internal
expertise through the R&D activities.
“This is critical in order to succeed in
the offshore wind market in the long
term. In-house expertise is the most
important aspect in terms of reducing
risk associated with major investments,”
Krokstad argues.
Mobile wind farm control
It is important for wind power producers to receive updated and
exact operating data, and to be independent of the turbine suppliers.
Statkraft’s wind farm programme has therefore developed a system
for improved monitoring of the wind farms, called “Wind Power Management
System”. The system will function as an independent basis
for analysis of the wind farm and is an important element for achieving
increased control of the farms. The system is currently delivered
as a web application, however, a mobile app is planned for the future.
Offshore wind turbines
sucked in to the seabed
One of the main challenges for Statkraft’s ambitions within offshore
wind energy is to cut costs related to turbine installations far
out to sea. Additionally, these installation efforts must take place
in a way that does not harm the environment. Important progress is
achieved on both fronts, in the form of a new concept for the foundations
for offshore wind energy turbines.
The current technology, which is being used at the Sheringham
Shoal wind farm outside the UK, is based on so-called mono pillars,
which are driven into the seabed. This technique generates a lot of
noise, and it requires installation vessels and good weather.
The new concept is being developed by Universal Foundation,
where the Fred. Olsen Group is the main owner. It involves the application
of the suction anchor principle, a Norwegian patent originally
developed for the petroleum industry. In short, this means that the
foundations are sucked in to the seabed using negative pressure.
The technique does not require costly installation vessels, unlike the
current solution. It is also gentler on the marine environment as it
generates less noise.
Doctor of offshore
wind energy
Statkraft is also an active participant in
the two major national FME programmes
Nowitech and Norcowe, in cooperation with
both national and international industrial
players. These programmes produce knowledge
within the most important disciplines
for offshore wind energy, including several
PhDs. New theoretical models are being developed,
as well as simulation programmes
for wind generation and wind turbine construction,
measuring techniques and testing
stations. The aim is to raise Norwegian R&D
knowledge on offshore wind energy to a top
international level.
Did you know ...
… that Statkraft’s
wind power
production in 2011
increased by 24 per
cent to 0.8 TWh?
This is enough to
supply more than
31 000 Norwegian
homes. Statkraft
develops and operates
wind farms in
the UK, Norway and
Sweden.
80
Statkraft has allocated
NOK 80 million to its
wind power R&D programme
for the period
from 2011 to 2014.

iomass
maturity
exploration
Corporate
R&D programs
improvement
time
Three R&D programmes aim
to meet the medium term
needs for development within
three core business areas.
What will biomass
cost in the future?
Statkraft’s district heating facility is
fuelled by various forms of bioenergy, including
waste. Fluctuations in the demand for biomass
impact prices and availability. Forecasts
on how access, price and selection of various
types of biofuels will develop in both long
and short term are critical in order to develop
competitive business models for the future.
Biomass is an environmentally
friendly and renewable energy
source that is a natural part of
Statkraft’s area of interest.
440 GWh
Did you know …
… that in 2011,
Statkraft produced
440 GWh of energy
based on bio fuels?
This figure includes
Norwegian and
Swedish bio fuel
facilities, and is
enough to heat
around 28 000
houses.
More environmentally friendly
bio heat at Marienborg
In the spring of 2011, Statkraft Varme decided that
there was a need to rebuild the biofuel facility at Marienborg
in Trondheim. The original goal was to reduce
the risk of fire and explosions, but extensive changes
were also made to increase the level of automation and
to increase the facility’s flexibility to use various types
of fuel. Furthermore, we wanted to ensure that the
facility is efficient and does not have larger emissions
when being partially run than when at full capacity. The
project was carried out in cooperation with the Swedish
boiler supplier KMW Energi AB. The facility has been in a
test phase since 2011, and the results are excellent. Stable
operations, lower emissions, high level of flexibility
and good profitability are among the important milestones
reached. In all, the project has provided Statkraft
Varme with a safer and more robust facility.
Office building
School
hot water ∏
cooled water π
A lot of biomass research
Heat Production Plant
Residence
CenBio is a multidiscipline research centre for environmentally
friendly energy (FME) which looks at the entire
bioenergy value chain from raw material to the traded
product.
One of the objectives for the centre is to develop a
sustainable utilisation of biomass for the generation of
electricity and heat. Statkraft is taking part in CenBio
to participate in concentrated, focused and long-term
research efforts at a high international level.
Biomass is a renewable resource that could replace
fossil fuels within heating and power generation, and
in the long-term, perhaps even the transport sector.
As a leading national player within development and
operation of renewable heating, Statkraft is engaged
in finding the best possible utilisation of biomass in the
energy system, both today and in the longer term. What
can be done to strengthen already established activities?
How can the company make use of its specialist
expertise in terms of developing new business opportunities?
These are key questions in the bioenergy R&D
programme.
“The bioenergy programme is closely connected to
our district heating activities. Our ambition is to reduce
risk and increase profitability, while strengthening our
ability to realize new bio-related business opportunities,”
says programme head Monica Havskjold.
Biomass is a commodity that can be traded both locally
and globally, and to ensure the optimum access to fuel, a
good understanding of the market is required, particularly
in a long term perspective. The Bioenergy Programme
in Statkraft will help us establish this expertise.
Cost efficiency is a key term in the R&D programme.
Development of new system solutions and technologies
for energy conversion are prioritized areas. Projects that
help improving existing equipment and solutions are often
completed through a joint effort between Statkraft
and the supplier.
“An important milestone for the programme is to contribute
to reduce the ecological footprint. This involves,
among other things, replacing fossil fuels with biomass
as well as utilizing the fuel in an efficient manner,”
Monica emphasizes.

maturity
exploration
Corporate
R&D programs
improvement
Intense research is
underway on new
resources and
new technology in
a number of energy
areas. Statkraft
is focused on
solutions that will
have long-term
significance, and
is already a world
leader in osmotic
power. But the
company also
sees opportunities
in geothermal
energy, new forms
of energy storage
and so-called smart
energy technologies.
time
Activities focused on technologies
that may become
dominant in the long term.
Osmotic power:
Selecting
the perfect
membrane
Statkraft is spearheading work in osmotic
power, and is currently investing considerable
resources in developing the right technology.
Facts
osmotic power
Statkraft is now a world
leader within the development
of osmotic power – a
clean and renewable energy
form with a global potential of
between 1600 and 1700 TWh.
When freshwater meets
saltwater, for instance, when
a river runs into the ocean,
vast amounts of energy are
liberated. This energy can be
utilised for power generation
through osmosis.
“We don’t know if we will succeed, but
osmotic power is a very exciting opportunity.
We really need to explore whether
osmotic power can be a part of the future,”
says Stein Erik Skilhagen, who heads the
osmotic power department in Statkraft.
He points out that the ambitions for
renewable energy requires a steady flow
of new, clean energy sources.
“Today we see strong growth in new
technologies, such as solar power and
offshore wind. We still need more renewable
energy, and osmotic power may play
a vital role here,” Skilhagen argues.
The idea of utilising the naturally occurring
phenomena of osmosis first started in the 1970s, but it was not
until the end of the 1990s that the idea was taken further through a
partnership between SINTEF and Statkraft. In 2009, Statkraft opened
the world’s first osmotic power prototype at Tofte outside Oslo, a
technology testing facility. One of the main challenges is to develop a
membrane with the necessary properties.
“The membrane is the heart of an osmotic power plant. The other
technology is mostly already available, while the membranes are now
the main focus for innovation and research,” says Geir Brekke, Head of
Technology in Statkraft’s osmotic power department.
“The function of the membrane is to separate freshwater and
saltwater in such a way that enables water molecules to travel from
the freshwater to the saltwater, without salt molecules going the opposite
way. This creates pressure on the saltwater side, which can be
utilised to operate a turbine”, Brekke explains.
Developing a membrane with the right properties requires patience and a
lot of experimentation, but researchers at Statkraft and SINTEF are making
steady progress. Perhaps the osmotic era is just around the corner?
The membrane is the
heart of an osmotic
power plant. The
other technology
is mostly already
available, while the
membranes are
now the main focus
for innovation and
research,” Geir
Brekke and Stein Erik
Skilhagen explain.
Geothermal energy:
A globe of power
The earth’s interior hides
vast amounts of renewable
energy. The challenge is to
bring it to the surface.
A large proportion of Iceland’s energy
needs is covered by utilising heated
groundwater for both electricity generation
and, not least, through district heating.
In Norway, and most other countries,
a similar access to the same heating
resource would entail a far greater drilling
depth. Thus far, this resource is far
too costly for commercial use unless the
natural conditions are in place.
In order to generate electricity of the
heat from the earth’s interior, the temperature
needs to be at least 120-125 degrees
centigrade, and the higher the temperature,
the higher the efficiency. One thing
is that the drilling operation itself is quite
expensive, another challenge is that
there are no methods to
specify what sort
of geology and
heating potential
there is at
great depths
without drilling
first. A lot
of the current
research is
therefore focused
on achieving
improved estimates
and developing efficient drilling
methods to lower costs and increase
drilling speeds.
Statkraft recognises that geothermal
energy may become increasingly
important. The company is therefore
considering building a 1.5 MW deep geothermal
demonstration plant for heating
purposes in Norway.

maturity
exploration
Corporate
R&D programs
improvement
time
Activities focused on technologies
that may become
important in the longer term.
Smart Energy Technologies:
New balance
An electricity system must always balance
production and consumption. An increased development
of inflexible sources such as solar
and wind, and a lack of storage opportunities
to cope with this, contribute to challenging
this balance. Intense work is therefore underway
to increase the flexibility of the system.
The current electricity system is designed
for a one-way flow of electricity. However,
in the future, the system must handle electricity
going both ways.
One reason for this is that end users are
becoming “prosumers”; they both cosume
and produce energy. Productions can occur
by roof-mounted solar panels, wind turbines
etc. To enable and optimize all energy
resources in an efficient manner, and regardless
of their localisation, “smart grids” and
“smart technologies” should be applied.
There is a strong international focus on
technologies. All links in the chain, from
generation to consumption, must be adapted
to a more flexible future, and the result
will be a “smarter” connection across the
value chain. It is challenging to say anything
for certain as to how existing profitability
will be affected and what new opportunities
may arise for innovative companies.
The driving force for this development is
stronger in areas with a great need for renewable
energy, however, Norway will
not be unaffected. The consequences
may be significant for
Statkraft, particularly in Europe,
but this development also creates
growth opportunities. Hence,
Statkraft is performing
analysis to evaluate
drivers and
barriers as well
as cost, volume
and market
access for
smart energy
technologies.
Norwegian reservoirs are often dubbed Europe’s future batteries as they can store water.
Energy Storage:
Airy storage plans
When the wind does not blow, the sun
does not shine and the reservoirs are at
their lowest, we need backup energy. Both
pumped storage power, air below ground
and recently developed batteries can be the
solution.
Norwegian reservoirs are often referred
to as “Europe’s future batteries”. The reason
is that we can save our water when for
instance German and British wind farms
have sufficient generation and are
able to transmit power to us.
When there is no wind, we may
use the reservoirs and send
power in the opposite
direction.
Did you know ...
… that we already
have battery packages
with great
capacity? There
is for instance a
facility in the US
with a capacity of
a whopping 32 MW
(8 MWh).
From
This is not yet the reality, as these plans
require major transmission cables to the UK
and Germany.
Pumped storage is one way of storing
energy. Water is run through turbines when
there is a need for electricity and pumped
back into the reservoirs at other times of the
day, when electricity is cheaper.
Through its Exploration programme of
energy storage, Statkraft is monitoring development
and performing analyses regarding
technologies that might compete with
pumped storage and hydro power reservoirs,
such as compressed air below ground
and new battery technology. The automotive
industry’s focus on lithium-ion batteries
has indicated that this storage method may
develop substantially in coming years.
The emerging storage technologies may in
near future contribute within several regulation
processes to maintain proper and economic
viable operation of the grid, such as
load shift, peak shaving, spinning reserves,
as well as firming intermittent wind and
solar power before it enters the grid.
R&D to innovation
– striving for excellence.
Innovation is essential to secure future competitiveness and market position in the energy
sector. Equally important is finding innovative solutions to provide the world’s future need
for renewable energy in order to reduce climate changes. Statkraft is conscious about the
responsibility we carry with regard to future generations.
Research and development are key tools for
promoting innovation. The main objective of
our R&D activities is to develop technology
and knowledge in order to continuously improve
our existing business and operations,
finding new ways to produce pure energy or
smarter ways to operate in the market.
In order to turn R&D investments into
actual innovation we pay special attention to
the following 3 criteria:
1
Relevance to business strategy is
a key criterion for successful innovation
in Statkraft. We strive for close
alignment between the business
strategy and the R&D activities we
idea generation
initiate. Value-creation and market orientation
are drivers for R&D-investments. Close cooperation
between the business areas and R&Ddepartment
is essential to realize this ambition.
2Building competence and knowledge
for the future is a long
term investment, and must rely on
a shared effort amongst several
stakeholders, both nationally and
internationally. Statkraft plays an active role
in this matter, focusing on development of
strategic long-term collaboration with external
partners, to promote knowledge sharing and
common understanding of future threats and
opportunities.
selection
execution
3The innovation value chain
(see figure below) illustrates the
importance of being great at all
stages of the value chain in order
to turn R&D investments into
innovation and added value. We strive to continuously
develop our ability to identify great
ideas and to select the most promising projects
to invest in. Furthermore, we follow up
execution to secure high quality and relevant
solutions, and we emphasize the implementation
of new knowledge and new solutions
in our daily operations and business models.
In this way we seek to create value both in
our business and towards society at large.
implementation
We know we must maintain the same high quality in all stages of the innovation chain if we are to be successful with innovation. (Hansen and Birkinshaw, 2007, HBR)

www.statkraft.com
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