CLEEN Annual Report 2014

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CLEEN Annual Report 2014

Cluster for Energy and Environment



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CLEEN Annual Report 2014


Report scope

This report is intended for all stakeholders who have an interest in CLEEN Limited (Oy) operations and the drivers behind. The report reviews the year 2014; the sixth operational year of CLEEN Ltd. It focuses on the current status and future plans of the operational principles, research and development activities, as well as communications and stakeholder relationships. Due to the nature of the company only minor emphasis is put on the financial analysis. This annual report is not the Annual Report (Toimintakertomus) pursuant to the Finnish Limited Liability Companies Act (Osakeyhtiรถlaki 624/2006).

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Index

Introducing CLEEN. . . . . . . . . . . . . . . 8

Research activities. . . . . . . . . . . . . . 34

ceo review. . . . . . . . . . . . . . . . . . . . . 10

arvi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

cleen in brief. . . . . . . . . . . . . . . . . . . 12

best. . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

shareholders. . . . . . . . . . . . . . . . . . . 13

ccsp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

board of directors. . . . . . . . . . . . . . 14

desy. . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 efeu. . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Corporate Governance. . . . . . . . . . 16

fcep. . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

operation principles. . . . . . . . . . . . 18

mmea. . . . . . . . . . . . . . . . . . . . . . . . . . 50

processes. . . . . . . . . . . . . . . . . . . . . . 19

sgem. . . . . . . . . . . . . . . . . . . . . . . . . . . 52

r&d council. . . . . . . . . . . . . . . . . . . . . 20 r&d council members. . . . . . . . . . 22

Network Activities . . . . . . . . . . . . . 54

management. . . . . . . . . . . . . . . . . . 24

selected activities. . . . . . . . . . . . . . 56

SRA development process. . . . . 25

stakeholders. . . . . . . . . . . . . . . . . . . 58

science council & scientific advisory boards. . . . . . 26

Communication . . . . . . . . . . . . . . . . 60

research programs. . . . . . . . . . . . . 28 program portfolio

Financials. . . . . . . . . . . . . . . . . . . . . 64

status Q1/2015. . . . . . . . . . . . . . . . . 30

income statement. . . . . . . . . . . . . 66

SRA implementation model. . . . 31

balance sheet. . . . . . . . . . . . . . . . . . 67

research. . . . . . . . . . . . . . . . . . . . . . . . 32

contact information. . . . . . . . . . . . 68

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I ntroduci ng

8


C L EEN

9


Int ro d uc i n g C L E E N

CEO review

open innovation practices and position in the middle of the ’research to business’ process. The program is currently being considered for funding by the Finnish Funding Agency for Innovation (TEKES). Based on the present status of its SRA Project Portfolio, Architecture of the Future Energy System, CLEEN has strong faith that it has created a unique and the world’s fastest ’research to business’ R&D&I platform, the performance of which will be demonstrated in the very near future in a field that is one of the most critical for the sustainability of modern lifestyle, and which will be globally scalable and offering tremendous business opportunities for its partners and stakeholders.

CLEEN 2.0 IS IN OPERATION With the latest review of the Strategic Research Agenda (SRA) of CLEEN Ltd, the shareholders of CLEEN identified four SRA Themes, two of which proceeded to active SRA Project Portfolio development in 2014. The main principles of CLEEN 2.0 are realized in the first two SRA Themes under implementation: the SRA Project Portfolio in Architecture of the Future Energy System and the one taking form in the Healthy Urban Living theme. The target of the SRA Theme Architecture of the Future Energy System is to tackle the radically increasing dynamics and unreliability caused by the increased complexity, diversity and weather dependency of renewable energy systems of the future. The target of the SRA Theme is to be quantified and concretized in the Åland Islands, which is one of the largest archipelagos in the world. Besides obvious technological, economical and societal benefits arising from being a naturally isolated system of its own, the unique and vulnerable nature of Åland makes it an obvious choice to showcase one of the cleanest energy systems on the globe that world-leading companies and research organizations can provide. The planning and execution of the demonstration are in close and simultaneous cooperation with company-driven R&D projects, e.g. the European Union ERA-Net SG+ projects, the FLEXe applied SHOK research program, and four on-going curiosity research projects funded by the Academy of Finland. The ’research to business’ process is speeded up by executing these diverse projects with a different maturity e.g. Technology Readiness Levels simultaneously on the CLEEN’s SRA Project Portfolio platform and ensuring their common strategic target setting and activities through the CLEEN SRA Project Portfolio Steering Group. The connection to the European smart grids competence and activities is ensured by a specific ERA-Net SG+ coordination project, which CLEEN is executing with B.A.U.M GmbH (Germany) and RSE SpA (Italy) on behalf of the Austrian Federal Ministry of Transport, Innovation and Technology. The FLEXe SHOK program serves as the core and glue of the SRA Project Portfolio due to its planned annual volume of €12 million with the five-year commitment of leading multi-industrial and multi-disciplinary partners and the state-of-the-art

A NEW STRATEGIC OPENING FOR BIOECONOMY In the middle of the financial turmoil of 2014, the Finnish government launched the so called BCD strategy in order to get Finland back on the growth track. BCD stands for Bioeconomy, Cleantech and Digitalization and aims to promote R&D&I, as well as business activities in these three thematic fields. Based on CLEEN’s program portfolio and the Strategic Research Agenda, it is obvious that the activities of CLEEN also realize the government’s BCD strategy, including digitalization, through heavy utilization of big and open data. This is the case in the Measurement, Monitoring and Environmental Efficiency Assessment (MMEA) program where the goal is to determine comprehensive state of the surrounding environment as well as enabling demand response and self-healing networks developed in the Smart Grids and Energy Markets (SGEM) program. However, to further strengthen and complement its position in Bioeconomy, CLEEN’s Board of Directors have been negotiating to seriously deepen strategic cooperation with its sister company, the Finnish Bioeconomy Cluster FIBIC Ltd. A TACTICAL FINANCIAL STRUGGLE Besides good achievements and some luck in the implementation of its new strategy (CLEEN 2.0) and the above-mentioned strategic opening, year 2014 was a tactical financial struggle. As a result of low interest rates, the end of financial support by the government for the development of CLEEN’s SHOK concept, the unexpected

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Int roducing C L EEN

...BUT THE WHEELS ARE TURNING Despite some tactical financial drawbacks during 2014, the implementation of CLEEN 2.0 has proceeded as planned. Our shareholders and customers have welcomed and adapted with enthusiasm the CLEEN 2.0 ideas to speed up innovation and commercialization through cooperation between diverse R&D&I projects on the global scale. They have also acknowledged the value of strategic target setting to promote and ensure open innovation and R&D&I based public-private partnership. A new shareholder, University of Turku, was also welcomed and recognized with proud to our steadily growing strategic scientific team. Besides, the prompt kick-off for the Material Value Chains (ARVI) SHOK program after having positive public funding decision serves also an important opening to the globally important field of material efficiency and recycling. Strategically, ARVI will serve as a launch pad for CLEEN’s activities in circular economy and an interface to bioeconomy. Finally, the possible merger with FIBIC would ensure that CLEEN Ltd and its home base have reached the next level and will stay in the very frontline of modern industrial R&D&I.

major cut in public funding for the last funding period of the Smart Grids and Energy Markets (SGEM) SHOK program and the planned completion of the Future Combustion Engine Power Plants (FCEP) SHOK program, the company’s net income has decreased by one third. Although some relief of the launch of the Material Value Chains (ARVI) SHOK program, this has forced the management to move its efforts from strategic development to more tactical operations. Even though it has streamlined CLEEN’s operations by cutting most of the fat, concerns have arisen on how to ensure continuous flow of new ideas and to safeguard adequate development resources to secure the company’s position in the leading edge also in the long term. New public funding sources, e.g. the European Union and the Academy of Finland introduced in the diverse projects included in the CLEEN 2.0 SRA Project Portfolio, will release some financial pressure in the future. This will necessitate enthusiastic selling efforts of the CLEEN value added to the ’public customers’ of CLEEN. A new source of revenue was also developed by offering project and program manager services to the projects included in CLEEN’s portfolios.

Tommy Jacobson, CEO 9 March 2015

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Int ro d uc i n g C L E E N

CLEEN in brief

CLEEN was established in 2008 to promote industry’s competitiveness by initiating, facilitating and managing wide, deep and shared R&D&I between various industries and academia in the field of energy and environment. By complementing its mission CLEEN has a vision that the world’s leading companies and research institutes, that consider energy and environment aspects as a major success factor, will realize their joint R&D&I on CLEEN platform and that the R&D&I operations carried out within CLEEN have created and will create breakthrough innovations with a global impact. CLEEN has 44 shareholders including several international companies which are technology and market leaders globally and have significant R&D activities or interests in Finland, as well as the most relevant national research institutes. The status of Strategic Centre for Science, Technology and Innovation (SHOK) for energy and environment was granted to CLEEN in 2008 by the Finnish Prime Minister lead Research and Innovation Council.

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Int roducing C L EEN

Shareholders 1.1. 2015

Aalto University

Outotec Oyj

ABB Oy

Pohjolan Voima Oy

Andritz Oy

SSAB Ab

Ekokem Oy Ab

Stora Enso Oyj

Elenia Oy

Technical University of Tampere

FCG Finnish Consulting Group Oy

Technical University of Lappeenranta

Finnish Environment Institute, SYKE

The Switch

Finnish Meteorological Institute, FMI

University of Eastern Finland

Fortum Oyj

University of Helsinki

Foster Wheeler Energia Oy

University of Jyväskylä

Gasum Oy

University of Oulu

Geological Survey of Finland, GTK

University of Turku

Helen Oy

University of Vaasa

Hollming Oy

UPM-Kymmene Oyj

Kemira Oyj

Vaisala Oyj

Kumera Oy

Vantaan Energia Oy

Kuusakoski Oy

Vapo Oy

Lassila & Tikanoja Oyj

Valmet Oyj

Maanmittauslaitos MML

VTT Technical Research Centre of Finland Oy

Natural Resources Institute Finland (Luke)

Wärtsilä Finland Oy

Neste Oil Oyj

Åbo Akademi University

Outokumpu Oyj

ÅF-Consult Oy

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Int ro d uc i n g C L E E N

CLEEN Ltd Board of Directors

CLEEN’s Board of Directors was elected at the Annual General Meeting held on 28th March 2014. Mr Ilari Kallio (Wärtsilä Finland Oy) was selected as Chairman of the Board in the board meeting 3/2014 held on April 28th. The board held eight meetings and a one-day strategy seminar during 2014. A total of six “gate meetings” (one gate III, four gate IV and one gate V) were held to keep the board in touch with CLEEN’s core activities and to ensure that our programs fulfil their expectations right from initiation through to final reporting. In addition, updates on CLEEN’s research activities and financial status were presented and discussed at every board meeting. The chairman and board members were entitled to remuneration for their attendance at meetings to the sum of €250 and €150 for each meeting attended, respectively.

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Int roducing C L EEN

Board members

Deputy board members

Ilari Kallio (Wärtsilä Finland Oy), chair

Heikki Ilvespää (UPM-Kymmene Oyj)

Pertti Järventausta (Tampereen teknillinen yliopisto)

Mikko Hupa (Åbo Akademi)

Ilkka Mannonen (Vaisala Oyj)

Matti Rautanen (Valmet Oyj)

Ilkka Kojo (Outotec Oyj), vice chair

Toni Andersson (Ekokem Oy)

Kai Sipilä (VTT)

Jero Ahola (Lappeenrannan tekn.yliopisto)

Petri Lehmus (Neste Oil Oyj)

Hannu Lepomäki (BMH Technology Oy)

Jarmo Saaranen (VNT Management Oy)

Jouni Pylvänäinen (Elenia Oy)

Sari Siitonen (Gasum Oy)

Markus Lehtonen (Helen Oy)

Heli Antila (Fortum Oyj)

Dick Kronman (ABB Oy)

Board meetings 01/2014

04.02.

CLEEN (MMEA gate IV, Cleantech Innovation Institute

Letter of Intent (LOI))

02/2014

13.03.

CLEEN (financial statement 2013)

03/2014

28.04.

CLEEN (Board of Director’s organizing meeting,

EFEU gate IV, FCEP gate V)

04/2014

11.06.

CLEEN (University of Turku as a new shareholder)

05/2014

03.09.

CLEEN (strategic cooperation between CLEEN Oy and FIBIC Oy)

06/2014

27.10.

CLEEN (FLEXe gate III, BEST gate IV)

07/2014

01.12.

CLEEN (strategy day of CLEEN board)

8/2014

19.12.

Helsingin Suomalainen Klubi

(CCSP gate IV, Åland energy system demo)

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Corporate

16


Governa nce

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Cleen operation principles

FIG.1

FLEXe

SUSTAINABLE FUTURE ENERGY SYSTEM

SAB

SAB

DESY

SGEM

SAB

SAB

MMEA

CCSP SCIENCE COUNCIL

RESEARCH EFEU

R&D COUNCIL

ARVI

SAB

SAB

BEST

WORK GROUP 1 SRA

FCEP

SAB

SAB

COMMUNICATIONS

FINANCE

BACK OFFICE

* SAB = Scientific Advisory Board

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LEGAL

ADMINISTRATION

WORK GROUP 2 FUNDING


Cleen processes

FIG.2

PROCESS

PPSG

PPSG

WORKING GROUP

MANAGER

PLANNING TEAM

PLANNING TEAM LEADER

DECISION MAKER

OWNER

PORTFOLIO MANAGEMENT

FUNDING

CEO LEGAL COUNSEL

AGREEMENTS & IPR PC/WC

CONTROLLER/ FUNDING DEVELOPER

FUNDING & FINANCE

PSG

BOARD COMMUNICATIONS

COMMS TEAM

PROGRAM MANAGEMENT

PC/WC

COMMS MANAGER

PROGRAM MANAGER SCIENCE COUNCIL

SCIENTIFIC EXCELLENCE

R&D COUNCIL

SHAREHOLDERS’ GUIDANCE

R&D COUNCIL WORKING GROUP /SRA/

CHAIR OF R&D COUNCIL

PPSG

PUBLIC FUNDING SOURCES

PLANNING TEAM

PLANNING TEAM LEADER

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

SAB

* PPSG = Portfolio Program Steering Group * PC = Program Committee * WC = Working Committee

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CTO


Co r p o rat e G ove rn an ce

R&D Council The R&D Council is the most important forum for information distribution in CLEEN. The Council acts as a channel for shareholders to influence the R&D activities in CLEEN, and it plays a central role in implementing CLEEN’s strategy. The R&D Council supports the management and the Board of Directors of CLEEN in updating the Strategic Research Agenda (SRA) and in developing the activities in CLEEN. The objective of the Council is also to initiate discussion on new research programs and to follow up the implementation of the Strategic Research Agenda by giving feedback to ongoing research programs.

weak signals from the operating environment and, based on that work, to identify possible new SRA Themes or new inputs to the earlier confirmed themes and research programs. The SRA update group identified several signals, which were utilized to formulate feedback comments to the ongoing programs and to new program preparations. No new SRA themes were suggested. The SRA update process is presented in figure 3.

The operational processes of CLEEN and the roles of the various organizational bodies in them are clarified in figures 1 and 2. In 2014, the R&D Council’s two general assemblies were held in June and December (June 5, 2014 and December 10, 2014). Professor Kaarle Hämeri from the University of Helsinki acted as Chairman at both general assemblies. Vice President Satu Helynen from VTT acted as Deputy Chair of the Council in 2014. DIRECTION FROM WORKING GROUPS TO DEVELOP THE ACTIVITY The R&D Council incorporates annually confirmed working groups, which support CLEEN’s development targets. In 2014, two working groups were active in pursuing their tasks, namely:

In addition to the signal assessment work carried out by the SRA update group, CLEEN organized the 1st SinoIndo-Finnish Cleantech Roundtable in May 2014 to get feedback from experts invited from China and India to the SRA Themes of CLEEN. The event was a great success. The valuable inputs given by the invited experts were incorporated in each of the four Theme-specific Strategic Research Agendas:

1. SRA update, Chair: Dr Mikko Laakso (Vaisala)

1. Architecture of the Future Energy System

2. New funding models, Chair: Mrs Marja Englund (Fortum)

2. Sustainable Production, Handling and Use of Gases for Energy Production

CONTINUOUS ANALYSIS OF SRA UPDATE NEEDS In December 2014, the SRA update group presented the outputs and conclusions from its work in 2014 for the SRA update process to the R&D Council. According to this process, the objective for 2014 was to observe and assess

3. Healthy Urban Living 4. Sustainable Use of Natural Resources in Local, Regional and Global Scale

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Corporat e Governa nce

FUNDING MODELS TO BOOST THE IMPLEMENTATION OF THE RESEARCH STRATEGY During 2014, work of the Funding Models working group concentrated on supporting the formation of the SRA Portfolios and the instrumentation of individual projects in them. Responsible persons were chosen to follow the work of each SRA Portfolio. In addition, the working group analyzed income models for CLEEN for a variety of funding instruments that would best suit for the SRA Portfolios. Since most of the limited resources in the PPSGs and CLEEN were engaged in the preparation work of two new research programs, the work towards broader project portfolios was delayed and, hence, the strategic support from the Funding Models working group for building the Portfolio was limited. However, it was recognized to be the most important task in the next year.

The invited experts were as follows: DELEGATES OF CHINA Mr Eddie Lai, Vice President INSIGMA GROUP CO., LTD Prof. Hongjun Mao Senior Advisor of P.R. China in Air quality issues Nankai University Mr Bao Yu, Founder, Green China Lab Visiting research fellow of Chinese Academy of Governance DELEGATES OF INDIA Mr Suresh Yadav, Officer on Special Duty to the President President’s Secretariat, India

STRUCTURED CONCLUSIONS FOR DECISION MAKING The Chairs of the working groups, together with the Chair and Vice Chair of the R&D Council, the Chair of the Science Council and the CTO of CLEEN, formed the core team of the R&D Council, the task of which is to prepare, on the basis of the working groups’ work, the Council’s proposals to the Board of Directors and the management of CLEEN.

Dr Ronita Bardhan, Assistant Professor Centre for Urban Science and Engineering, Indian Institute of Technology (IIT), Bombay, India Dr Arnab Jana, Assistant Professor Centre for Urban Science and Engineering, Indian Institute of Technology (IIT), Bombay, India PREPARATION OF CLEEN 2.0 PROJECT PORTFOLIOS LAUNCHED To implement the whole Strategic Research Agenda of CLEEN, preparation of new kinds of project portfolios was launched in 2014 for each of the confirmed SRA Themes. For this purpose, Project Portfolio Steering Groups (PPSGs) were established for the SRA Themes. In their first meetings, the PPSGs assessed the kinds of projects or program preparations that should be started, and their schedule and partners. As a consequence: • Preparation of two new research programs was launched • Several project proposals were prepared for the calls opened by the Academy of Finland • CLEEN joined a European consortium to prepare a proposal for the Support Project for ERA-Net SmartGrid+ • Preparation of two transnational projects for the ERA-Net SG+ call was launched • MoU was signed with Technology centre of Åland (Ålands Teknologicentrum, ÅTC) to assess the opportunities to establish a large-scale energy system demonstration in Åland

Jatta Jussila-Suokas CTO

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Co r p o rat e G ove rn an ce

CLEEN R&D Council members 2014

Company representatives ABB Oy. . . . . . . . . . . . . . . . . . . . . . . . . . . Heikki Uusitalo

Outotec Oyj. . . . . . . . . . . . . . . . . . . . . . Satu Jyrkönen

Andritz Oy. . . . . . . . . . . . . . . . . . . . . . . . Seppo Hulkkonen

Pohjolan Voima Oy . . . . . . . . . . . . . . . Jorma Isotalo

Ekokem Oy Ab. . . . . . . . . . . . . . . . . . . . Toni Andersson

SSAB Ab. . . . . . . . . . . . . . . . . . . . . . . . . . Harri Leppänen

Elenia Oy. . . . . . . . . . . . . . . . . . . . . . . . . Jouni Pylvänäinen

Stora Enso Oyj. . . . . . . . . . . . . . . . . . . . Mikael Hannus

FCG Planeko Oy . . . . . . . . . . . . . . . . . . Yrjö Halttunen

The Switch . . . . . . . . . . . . . . . . . . . . . . . Jari Kemppi

Fortum Oyj. . . . . . . . . . . . . . . . . . . . . . . Marja Englund

UPM-Kymmene Oyj. . . . . . . . . . . . . . . Antti Raukola

Foster Wheeler Energia Oy. . . . . . . . Reijo Kuivalainen

Vaisala Oyj. . . . . . . . . . . . . . . . . . . . . . . . Mikko Laakso

Gasum Oy. . . . . . . . . . . . . . . . . . . . . . . . Mari Tuomaala

Valmet Oyj. . . . . . . . . . . . . . . . . . . . . . . . Matti Rautanen

Helen Oy. . . . . . . . . . . . . . . . . . . . . . . . . Timo Arponen

Vantaan Energia Oy. . . . . . . . . . . . . . . Pertti Sahi

Hollming Oy. . . . . . . . . . . . . . . . . . . . . . Hannu Lepomäki

Vapo Oy. . . . . . . . . . . . . . . . . . . . . . . . . . -

Kemira Oyj. . . . . . . . . . . . . . . . . . . . . . . -

Wärtsilä Finland Oy. . . . . . . . . . . . . . . Tero Hottinen

Kumera Oy. . . . . . . . . . . . . . . . . . . . . . . Carl-Gustav Berg

ÅF-Consult Oy. . . . . . . . . . . . . . . . . . . . Pekka Järvinen

Kuusakoski Oy. . . . . . . . . . . . . . . . . . . . Jyri Talja Lassila & Tikanoja Oyj. . . . . . . . . . . . . Mikko Talola Neste Oil Oyj . . . . . . . . . . . . . . . . . . . . . Jukka-Pekka Nieminen Outokumpu Oyj . . . . . . . . . . . . . . . . . . Juha Ylimaunu

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Corporat e Governa nce

Research institute representatives

Invited members

Aalto University. . . . . . . . . . . . . . . . . . . Risto Lahdelma

Finnish Energy Industries. . . . . . . . . Kati Takala

University of Helsinki . . . . . . . . . . . . . Kaarle Hämeri, chair

Chemical Industry Federation of Finland. . . . . . . . . . . . . . . . . . . . . . . . Sami Nikander

Geological Survey of Finland. . . . . . Jarmo Kallio

Finnish Forest Industries. . . . . . . . . . Alina Ruonala-Lindgren

Finnish Meteorological Institute. . . Jouni Pulliainen

The Federation of Finnish Technology Industries . . . . . . . . . . . . Mervi Karikorpi

Finnish Geodetic Institute 1). . . . . . . Tiina Sarjakoski University of Eastern Finland. . . . . . Jukka Jurvelin

Tekes - The Finnish Funding Agency for Innovation. . . . . . . . . . . . Teija Lahti-Nuuttila, Kari Herlevi

University of Jyväskylä. . . . . . . . . . . . Jouko Korppi-Tommola Lappeenranta University of Technology. . . . . . . . . . . . . . . . . . . . . . . Timo Hyppänen Agrifood Research Finland 2) . . . . . . Markku Järvenpää Finnish Forest Research Institute 3). . . . . . . . . . . . . . . . . . . . . . . . . Leena Paavilainen Centre for Metrology and Accreditation 4) . . . . . . . . . . . . . . . . . . . Heikki Isotalo University of Oulu . . . . . . . . . . . . . . . . Riitta Keiski Finnish Environment Institute . . . . Harri Juvonen Tampere University of Technology. . . . . . . . . . . . . . . . . . . . Seppo Valkealahti University of Turku. . . . . . . . . . . . . . . . Kalle-Antti Suominen University of Vaasa. . . . . . . . . . . . . . . . Erkki Antila VTT Technical Research Centre of Finland Oy. . . . . . . . . . . . . . Satu Helynen, vice chair Åbo Akademi University. . . . . . . . . . Mikko Hupa

as of January 2015 1) Maanmittauslaitos MML 2) Natural Resources Institute Finland (Luke) 3) Natural Resources Institute Finland (Luke) 4) merged with VTT

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Co r p o rat e G ove rn an ce

CLEEN management

CLEEN Administration and Back-Office Chief Executive Officer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tommy Jacobson, D.Sc. (Tech.) Chief Technology Officer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jatta Jussila-Suokas, D.Sc. (Tech.) Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Teija Laitinen, Lic.Sci. (Tech.) Communications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Karoliina Peippo, M.Sc. (Econ.) Finance and Funding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sanna Laaksonen, M.Sc. (Econ.) until 20.12.2014 Legal and IPR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Essi Heinänen, Master of Laws

Program Management Material Value Chains (ARVI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pirjo Kaivos, M.Sc. (Tech.) Sustainable Bioenergy Solutions for Tomorrow (BEST) . . . . . . . . . . . . . . . . . . . . Kaisu Leppänen, M.Sc. (Chem.) Carbon Capture and Storage Program (CCSP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sebastian Teir, D.Sc. (Tech.) Distributed Energy Systems (DESY) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kari Sipilä L. Sc. (Tech) Efficient Energy Use (EFEU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Juha Leppävuori, M.Sc. (Phys.) Future Combustion Engine Power Plants (FCEP). . . . . . . . . . . . . . . . . . . . . . . . . . . Matti Kytö, L.Sc. (Tech.) Meas., Mon. and Environmental Assessment (MMEA). . . . . . . . . . . . . . . . . . . . . . Tero Eklin, Ph.D. (Chem.) Smart Grids and Energy Markets (SGEM). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jani Valtari, M.Sc. (Tech.)

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CLEEN SRA development process

FIG.3

INPUT COLLECTED

BOUNDARY CONDITIONS CLARIFIED

STAKEHOLDERS INFORMED

INPUT COLLECTION

PROGRAM/ PROJECT INITIATIVES HANDED OVER

SRA UPDATED

COMMUNICATION AND HAND-OVER

SRA THEMES

PROGRAM/ PROJECT INITIATIVES IDENTIFIED

DESCRIPTION OF THEMES, CONFIRMATION OF SRA

* SRA = Strategic Research Agenda

25

INPUT ANALYZED

THEMES SELECTED

EVALUATION AND SELECTION OF THEMES


Co r p o rat e G ove rn an ce

Science council & scientific advisory boards We also found scope for improvement in the following areas:

The Science Council plays a central role in helping CLEEN’s management and programs to secure a high quality and standard at all levels of work, ranging from strategy to operations. Members of the Science Council represent multidisciplinary, broad-spectrum and high-level Finnish expertise.

1. International cooperation and international visibility are modest compared with the opportunities available; 2. Stronger focus is needed, in particular on ‘beyond the state-of-the-art’ themes and on strengthening spearhead research, also emphasizing better coordination of efforts among research providers; 3. More attention should be paid to the cost-effectiveness of research, while it seems that more outcomes could be expected from the input in an international comparison; 4. The communication of outcomes and collaborative value added is not always clear enough.

The key task of the Council is to assess and develop the quality and scientific excellence of CLEEN and its programs. The Science Council is assisted by the Scientific Advisory Boards, SABs, designated for the individual programs. The SABs, which possess high-caliber expertise on specific science and technology areas, are responsible for the actual assessment of the scientific contents of programs. Both the Science Council and the SABs are outside advisory bodies and are not involved in actual decision-making. These ’external observer’ roles are important for impartial judgement free of vested interest.

These findings were channeled to the update of CLEEN’s Strategic Research Agenda (SRA) in 2014 and to the preparation work of the new research programs. The Council stresses the need for focusing, increased internationalization, and more challenging research questions beyond the state-of-the-art. CLEEN programs should also more clearly demonstrate and signal leadership, which sometimes remains hidden or is too modestly elaborated.

All processes used for assessing the quality of CLEEN are well-established and a natural part of CLEEN’s operations. The processes for running the assessment are clear and cost-effective. The key activities of the Science Council in 2014 included commenting on CLEEN’s Strategic Research Agenda (SRA) and analyzing several program evaluations.

The Science Council’s agenda in 2015 includes formulating processes to better capture ‘beyond the state-ofthe-art’ R&D and innovations, as well as improving internationalization and communication of research. These should further strengthen CLEEN, which already stands at an excellent level.

The SABs have provided valuable recommendations over the years. The Science Council took a more thorough look into these and found a number of similar and frequently appearing observations or recommendations in spite of the differences in the technology areas. These indicate some systematic strengths and weaknesses in the Finnish innovation system. CLEEN’s strengths clearly include the following: 1. CLEEN industry-research collaboration is excellent, the level of work in general is good; 2. Clear, though narrow, R&D and business spearheads can be identified; 3. Establishing significant research infrastructures enables research and innovation on international level; 4. CLEEN and its programs are dynamic, demonstrating improvement over time;

Professor Peter Lund, Chairman of the Science Council

26


Corporat e Governa nce

Science Council members

Prof. William Mitch Yale School of Engineering and Applied Sciences

Prof. Peter Lund, chair

Dr. E.J. (Ben) Anthony, Emeritus Scientist Natural Resources Canada

Prof. Lassi Linnanen

EFFICIENT ENERGY USE (EFEU)

Prof. em. Jouko Korppi-Tommola

Prof. Ernst Worrell, , Utrecht University

Adjunct prof. Markku Karlsson

Prof. Simon Harvey, Chalmers University

Prof. Minna Halme

Prof. Truls Gundersen, NTNU

Prof. em. Liisa Viikari

Prof. Peter Karnøe, Aalborg University

Prof. Erkki Antila

FUTURE COMBUSTION ENGINE POWER PLANTS (FCEP)

Prof. em. Hans Söderlund

Prof. Marcus Alden (Combustion Physics and Diagnostics), Lund University

Dr. Mikko Laakso

Prof. Konstantinos Boulouchos (Modelling, Simulation and Energy Systems), ETH Zürich

Scientific Advisory Board (SAB) members

Prof. Nikolaos Kyrtatos (Engine Emissions), National Technical University of Athens

MATERIAL VALUE CHAINS (ARVI)

MEASUREMENT, MONITORING AND ENVIRONMENTAL EFFICIENCY ASSESSMENT (MMEA)

Prof. em. Alok Chakrabarti (Management of Innovation, Technology Strategy), New Jersey Institute of Technology

Dr. Andreas Ciroth (Environmental engineering, LCA error calculation, sustainability consulting), GreenDeltaTC GmbH

Prof. Thomas Hatfield (Environmental and Occupational Health), California State University, Northridge

Prof. Hongjun Mao (Environmental science), Nankai University

Prof. Clemens Holzer (Polymer Processing), Montanuniversitaet Leoben

Prof. Kostas Karatzas (Informatics Systems & Applications), Aristotle University of Thessaloniki

Prof. Li Xiaodong (Technologies for waste incineration and waste recycling), Zhejian University

Dr. Michel Matti Maricq (Impact of biofuels and “designer” fuels on engine emissions, PM measurements), Ford Motor Company

Prof. Helmut Rechberger (Waste and Resource Management), Vienna University of Technology SUSTAINABLE BIOENERGY SOLUTIONS FOR TOMORROW (BEST)

Prof. H.W.J. Russchenberg (Environmental Remote Sensing, Mathematics and Computer Science), Delft University of Technology

Prof. André Faaij (Energy System Analysis), University of Groningen

SMART GRIDS AND ENERGY MARKETS (SGEM)

Assoc. prof. Ola Lindroos (Forest Biomaterials and Technology), Swedish University of Agricultural Sciences

Prof. Ronnie Belmans (Power Systems Research) Katholieke Universiteit Leuven

Assoc. prof. Göran Berndes (Energy and Environment), Chalmers University of Technology

Prof. Antonello Monti (Power Utility Aspects) E.ON / RWTH Aachen University

CARBON CAPTURE AND STORAGE PROGRAM (CCSP)

Prof. Lennart Söder (Integration and Interfacing Research) Kungliga Tekniska Högskola

Prof. Mohammad Abu Zahra Masdar Institute, Chemical Engineering

27


Co r p o rat e G ove rn an ce

Research programs During 2014, eight research programs were ongoing in CLEEN, the total volume of which was €28.3 million: • • • • • • • •

Smart Grids and Energy Markets (SGEM), 7.3 M€ Future Combustion Engine Power Plant (FCEP), 1.1 M€ Measurement, Monitoring and Environmental Efficiency Assessment (MMEA), 7.6 M€ Carbon Capture and Storage Program (CCSP), 3.0 M€ Energy Efficient Use (EFEU), 2.6 M€ Distributed Energy System (DESY), 0.5 M€ Sustainable Bioenergy Solutions for Tomorrow (BEST), 3.9 M€ Material Value Chains (ARVI)

In SRA Theme 3 for Healthy Urban Living, the Project Portfolio Steering Group (PPSG) decided to launch preparation of a major joint research program between CLEEN, DIGILE and RYM SHOK companies. The objective is to have the program plan ready for submitting in September 2015.

2.4 M€ During 2014, CLEEN managed eight collaborative research programs. Altogether 93 companies and 25 research institutes participated in these programs; 42% of these companies are SMEs. The companies financed the research programs with a total of €10.1 million in 2014. The research institutes’ share of the financing was €3.1 million. A detailed breakdown of the financing provided by companies and research institutes can be found in the diagrams on pages 32 and 33. During 2014, CLEEN’s programs received public financing totaling €15.1 million from Tekes, the Finnish Funding Agency for Innovation.

In SRA Theme 2 for Sustainable Production, Handling and Use of Gases for Energy Production, the PPSG decided not to launch preparation of a major collaborative research program. Instead, the PPSG identified two topics for possible joint projects between smaller groups of companies and research institutes, and launched a process for investigating the interests of companies to formulate such projects.

The latest research program, ARVI, which was launched in spring 2014, addresses recycling of different material streams mainly by focusing on municipal solid waste, plastics, ashes and waste electronics and metals. The program implements the strategy of SRA Theme 4 for Sustainable Use of Natural Resources in Local, Regional and Global Scale. In addition, CLEEN has participated in building a Finnish LIFE IP proposal coordinated by the Ministry of the Environment under SRA Theme 4.

In SRA Theme 1 for Architecture of the Future Energy System, the PPSG decided to launch preparation of a major collaborative research program with a focus on the flexibility needs and options of future energy systems. The objective is to launch this new program, FLEXe, at the

28


Corporat e Governa nce

3. RESPONSE - Improved modeling of electric loads for enabling demand response by applying physical and data-driven models, Tampere University of Technology, University of Eastern Finland, VTT

beginning of 2015. Further, preparation of two transnational projects was launched for the first call of ERA-Net SmartGrid+ in SRA Theme 1. In addition, CLEEN joined a European consortium to prepare a proposal for the Support Project for ERA-Net SmartGrid+. Furthermore, as part of the portfolio building for SRA Theme 1, a Memorandum of Understanding (MoU) was signed with Technology centre of Åland (Ålands Teknologicentrum, ÅTC) with the objective of assessing the opportunities to establish a large-scale energy system demonstration in Åland. Moreover, CLEEN signed MoUs in SRA Theme 1 with several projects, which applied funding from the Academy of Finland. Three of these projects received positive funding decisions at the end of 2014, and close collaboration will start in 2015:

In addition to the activities in CLEEN’s ongoing research programs and the new SRA Portfolios, CLEEN participated in the ‘Innovatiivisuutta julkisiin investointeihin’ project coordinated by GreenNet Finland during 2012–2014. The project supported the development of sustainable innovation and service concepts and their interlinkage with public procurement. The objective of the subproject of CLEEN was to enhance the commercialization of the research results produced in CLEEN’s programs. The project was funded by EAKR and carried out with GreenNet Finland, Culminatum Innovation Oy Ltd, the Häme University of Applied Sciences (HAMK), Lahti Region Development LADEC Ltd, and the Lappeenranta University of Technology (LUT).

1. VaGe - Improving the value of variable and uncertain power generation in energy systems, 2015–2018, VTT Technical Research Centre of Finland Oy 2. Flexible customer - Harnessing consumer for a flexible energy system architecture, Aalto University

Jatta Jussila-Suokas CTO

Teija Laitinen Development manager

29


CLEEN program portfolio status Q1/2015

FIG.4 FUTURE ENERGY SYSTEM

FLEXe

AGREEMENTS

G III

ARVI

EXECUTION PLANNING

RESEARCH BEST

EFEU

G II

G IV

CONSORTIUM MEMBERS CCSP

TARGET SETTING

CITYh

MMEA

HEALTHY URBAN LIVING

DESY

GI

SGEM

REPORTING

GV

FCEP

FINAL ASSESSMENT

SRA THEMES

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

CCSP EFEU DESY BEST ARVI

30

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


SRA implementation model – example SRA Theme 1

FIG.5

GLOBAL ECOSYSTEMS SYSTEMIC SOLUTIONS

ÅLAND DEMO ERA-NET COORDINATION

EPC FEASIBILITY STUDY

DIGILE'S CYBER TRUST

FLEXe SHOK PROGRAM INDUSTRIAL INTERNAL R&D

CURIOSITY RESEARCH

COMMERCIALIZATION

PRODUCTS & SERVICES SCIENTIFIC NEW KNOWLEDGE

* EPC = Engineering, procurement and construction

31


CLEEN research

FIG.6

FIG.7

FIG.6 Allocated resources by industry to CLEEN’s programs in 2014 ABB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,1 % Ab Stormossen. . . . . . . . . . . . . . . . . . 0,2 % AGCO Sisu . . . . . . . . . . . . . . . . . . . . . . 1,5 % Agnico Eagle Finland. . . . . . . . . . . . 0,1 % Aidon. . . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % A-Lab . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,4 % AMPPC Finland. . . . . . . . . . . . . . . . . . 0,1 % Andritz . . . . . . . . . . . . . . . . . . . . . . . . . 0,9 % Arbonaut. . . . . . . . . . . . . . . . . . . . . . . . 0,6 % BMH Technology. . . . . . . . . . . . . . . . 0,2 % Borealis. . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Caruna. . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Cybersoft. . . . . . . . . . . . . . . . . . . . . . . . 0,7 % Dekati. . . . . . . . . . . . . . . . . . . . . . . . . . . 0,6 % Ecocat. . . . . . . . . . . . . . . . . . . . . . . . . . . 0,1 % Eigenor . . . . . . . . . . . . . . . . . . . . . . . . . 1,8 % Ekogen. . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Ekokem. . . . . . . . . . . . . . . . . . . . . . . . . 1,0 % Elektrobit. . . . . . . . . . . . . . . . . . . . . . . . 2,7 % Elenia. . . . . . . . . . . . . . . . . . . . . . . . . . . 0,2 % Empower. . . . . . . . . . . . . . . . . . . . . . . 5,3 % Empower IM. . . . . . . . . . . . . . . . . . . . 7,5 % Emtele. . . . . . . . . . . . . . . . . . . . . . . . . . 0,9 % Envor Group . . . . . . . . . . . . . . . . . . . . 0,0 % Fatman. . . . . . . . . . . . . . . . . . . . . . . . . . 0,6 % Fingrid. . . . . . . . . . . . . . . . . . . . . . . . . . 0,3 % Fortum Power and Heat. . . . . . . . . 0,9 % Fortum. . . . . . . . . . . . . . . . . . . . . . . . . . 5,3 % Foster Wheeler Energia . . . . . . . . . 0,8 % Gasek . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Gasum . . . . . . . . . . . . . . . . . . . . . . . . . . 1,7 % Harp Technologies . . . . . . . . . . . . . . 1,1 %

City of Helsinki. . . . . . . . . . . . . . . . . . 0,1 % Helen . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,3 % Helen Sähköverkko. . . . . . . . . . . . . . 0,7 % HiQ Finland. . . . . . . . . . . . . . . . . . . . . 0,8 % Helsinki Region Environmental Services Authority (HSY). . . . . . . . 0,6 % HT Enerco. . . . . . . . . . . . . . . . . . . . . . . 0,0 % Indmeas. . . . . . . . . . . . . . . . . . . . . . . . .1,3 % Indufor. . . . . . . . . . . . . . . . . . . . . . . . . . 0,4 % Inno-W. . . . . . . . . . . . . . . . . . . . . . . . . . 1,6 % Inray . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,1 % Jyväskylän Energia . . . . . . . . . . . . . . 0,0 % Kemira . . . . . . . . . . . . . . . . . . . . . . . . . . 0,3 % Kumera . . . . . . . . . . . . . . . . . . . . . . . . . 0,2 % Kuusakoski . . . . . . . . . . . . . . . . . . . . . 3,1 % Kymenlaakson Jäte . . . . . . . . . . . . . 0,1 % Loimi-Hämeen Jätehuolto. . . . . . 0,2 % Lentokuva Vallas . . . . . . . . . . . . . . . . 0,7 % Luode Consulting . . . . . . . . . . . . . . 0,4 % Mantsinen Group. . . . . . . . . . . . . . . 0,1 % Measurepolis Development . . . . 1,3 % Metso. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,0 % Metsähallitus. . . . . . . . . . . . . . . . . . . . 0,3 % Metsäliitto Cooperative. . . . . . . . . 0,9 % Modulight. . . . . . . . . . . . . . . . . . . . . . .0,8 % MX Electrics. . . . . . . . . . . . . . . . . . . . . 0,9 % Neste Jacobs . . . . . . . . . . . . . . . . . . . 0,4 % Neste Oil . . . . . . . . . . . . . . . . . . . . . . . . 0,5 % Nordkalk . . . . . . . . . . . . . . . . . . . . . . . . 0,4 % Numerola . . . . . . . . . . . . . . . . . . . . . . . 0,4 % Oil and Natural Gas Corporation Limited ONGC. . . . . 1,6 %

32

Oulun Energia. . . . . . . . . . . . . . . . . . . 0,2 % Outotec . . . . . . . . . . . . . . . . . . . . . . . . 0,9 % Paperra. . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Pegasor. . . . . . . . . . . . . . . . . . . . . . . . . 3,0 % Pohjolan Voima. . . . . . . . . . . . . . . . . 0,5 % Profium. . . . . . . . . . . . . . . . . . . . . . . . . 1,1 % Ramboll Finland . . . . . . . . . . . . . . . . 1,4 % Rouskis. . . . . . . . . . . . . . . . . . . . . . . . . . 0,1 % SSAB. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Savosolar. . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Senfit. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,8 % SKF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,1 % Space Systems. . . . . . . . . . . . . . . . . . 0,5 % St1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Stena Technoworld . . . . . . . . . . . . . 0,2 % Sulzer Pumps Finland. . . . . . . . . . . 0,6 % Suur-Savon Sähkö. . . . . . . . . . . . . . . 0,2 % Stora Enso. . . . . . . . . . . . . . . . . . . . . . . 1,3 % Tapojärvi . . . . . . . . . . . . . . . . . . . . . . . . 0,1 % Tekla. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,5 % There Corporation . . . . . . . . . . . . . . 4,6 % Turun seudun jätehuolto. . . . . . . . 0,3 % UPM-Kymmene. . . . . . . . . . . . . . . . . 1,1 % Vaisala. . . . . . . . . . . . . . . . . . . . . . . . . . . 7,5 % Valmet. . . . . . . . . . . . . . . . . . . . . . . . . . 4,6 % Vantaan Energia. . . . . . . . . . . . . . . . . 0,4 % Wapice. . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 % Wellquip. . . . . . . . . . . . . . . . . . . . . . . . 0,3 % Vibrometric . . . . . . . . . . . . . . . . . . . . . 1,3 % Wärtsilä. . . . . . . . . . . . . . . . . . . . . . . . . 3,0 % ÅF-Consult . . . . . . . . . . . . . . . . . . . . . 1,2 % Total. . . . . . . . . . . . . . . . . . . . . . . . . . 100 %


FIG.8

FIG.9

FIG.7 Allocated resources by research institutes to CLEEN’s programs in 2014 MTT Agrifood Research Finland. . . . . . . . . . . . . . . . . . . . . . . . 2,0 % University of Oulu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,7 % Finnish Environment Institute (SYKE). . . . . . . . . . . . . . . . . . . 3,1 % University of Tampere. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,3 % Stiftelsen Arcada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,1 % Tampere University of Technology. . . . . . . . . . . . . . . . . . . . 18,1 % Turku University of Applied Sciences . . . . . . . . . . . . . . . . . . 0,2 % University of Eastern Finland. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,8 % University of Vaasa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,3 % VTT Technical Research Centre of Finland. . . . . . . . . . . . . 23,6 % University of Turku. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,1 % Åbo Akademi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,2 % Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,0 %

Aalto University. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,9 % European Forest Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,2 % Finnish Forest Research Institute. . . . . . . . . . . . . . . . . . . . . . . 1,7 % Finnish Geodetic Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,4 % Finnish Institute of Occupational Health. . . . . . . . . . . . . . . 0,5 % Finnish Meteorological Institute . . . . . . . . . . . . . . . . . . . . . . . 4,1 % Geological Survey of Finland (GTK). . . . . . . . . . . . . . . . . . . . . 0,6 % University of Helsinki. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,7 % Jyväskylän Ammattikorkeakoulu. . . . . . . . . . . . . . . . . . . . . . . 0,4 % University of Jyväskylä. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,0 % Lappeenranta University of Technology. . . . . . . . . . . . . . . 11,6 % Helsinki Metropolia University of Applied Sciences. . . . . 0,7 % Centre for Metrology and Accreditation (MIKES) . . . . . . . 1,8 %

FIG.8 SME contribution in CLEEN programs in 2014 SME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,1 % LargeCAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,1 % Research Institutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,9 % Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,0 %

FIG.9 Funding Tekes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,4 % Companies (incl DIF). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,6 % Research organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,0 % Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,0 %

33


Resea rch

34


A c tiviti es

35


Re s e a rc h A c t i v i t i e s

arvi

40

42

best

ccsp

MATERIAL VALUE CHAINS

SUSTAINABLE BIOENERGY SOLUTIONS FOR TOMORROW

CARBON CAPTURE & STORAGE PROGRAM

38

50

52

mmea

sgem

MEASUREMENT, MONITORING & ENVIRONMENTAL EFFICIENCY ASSESSMENT

SMART GRIDS & ENERGY MARKETS

36


Resea rch Ac t ivit ies

44

46

desy

efeu

fcep

DISTRIBUTED ENERGY SYSTEMS

EFFICIENT ENERGY USE

FUTURE COMBUSTION ENGINE POWER PLANTS

flexe FLEXIBLE ENERGY SYSTEM

37

48


Re s e a rc h A c t i v i t i e s

The ARVI (Material Value Chains) program creates data, assessment tools and concepts for the value chain management and processing of materials to enable Finnish companies to expand and deepen their know-how. ARVI aims to discover new technologies, process solutions and services, as well as new ways to combine them in order to meet the requirements of future markets.

KEY RESEARCH AREAS ARE: 1. 2. 3. 4.

Systemic evolution of business and its local environments Improved knowledge of material flows – analyses and foresight Systemic resource efficiency – concept building, modeling and optimization Case studies providing material and waste flow specific data for the development of sustainable resource-efficient recycling concepts

38


Resea rch Ac t ivit ies

A study on the mechanical separation of municipal solid waste (MSW) was started. An updating and testing classification method for mixed waste composition studies was researched for a Master’s thesis. Greenhouse gas emissions in decision-making for MSW management procurements were modeled in a test region in Finland, and a scientific article was written on the basis of the study.

Launched in spring 2014, the ARVI program is the latest addition to the CLEEN program portfolio. The objective of the ARVI program is to build a strong mutual understanding of future business opportunities related to recycling of materials, as well as the required know-how and abilities for their utilization. The program consortium consists of 29 organizations, 18 of which are companies and 11 are research organizations. The companies represent five different industrial sectors, and the research partners come from 13 different scientific disciplines. The planned duration of the program is four years (2014–2017) with a total budget of approximately ₏16 million.

Research on the utilization of MSW and industrial waste flows was launched, and different end-use possibilities were mapped according to the cost-efficiency and end-user demands. Various low-cost applications emerged, and the ones with the most potential were selected for more detailed analysis. In this area, a thesis work was going on. A review of the elemental recovery potential of ashes has revealed that knowledge and information of valuables in waste-to-energy ashes are very limited. Better knowledge of the elemental composition of ash is a prerequisite for the exploitation of the potential added value of these materials in ashes and the selection of further ash processing and recovery concepts and technologies. Novel online methods for ash characterization were explored in order to enhance ash recycling and elemental recovery. Thermodynamic modeling was used in order to deepen the understanding of the behavior of critical elements during combustion. This information is important in the evaluation of the effect on ash chemistry and, furthermore, on the separation of critical elements.

This is the first time for such a large group of companies to formulate a common, long-term vision and research roadmap to find out solutions to efficiently capture the value and business potential of various material flows. In the program, management and recycling of material flows and the related new business models are approached from the systemic viewpoint. The waste streams studied are plastics, WEEE (Waste Electrical and Electronic Equipment), MSW (Municipal Solid Waste), and ashes. The first results have already started to emerge, but most of the results from the first funding period of 1.5 years are targeted for 2015. The key issues studied in 2014 are summarized in the following. In the first funding period, the research investigating the evolution of ecosystems in the local waste treatment business focused on Brazil, specifically the Sao Paulo area. Research collaboration and research visits were started with the University of Sao Paulo and the local industry. Research collaboration concerning the institutional environment of the Brazilian waste management business was also started with Columbia University (NY, USA). The close collaboration with local experts has already produced the first descriptive analyses of the local material flows and business ecosystems. Data on the quantity and quality of plastic waste streams was gathered in order to focus on the work within the theme. Samples of plastic wastes originating from postconsumer packaging waste and electronic equipment waste were pre-treated, analyzed, tested and characterized to generate knowledge of their technical properties. Air emissions were measured during the various steps of the characterization chain in order to estimate the health and safety aspects.

Pirjo Kaivos ARVI Program Manager

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

KEY RESEARCH AREAS ARE: 1. 2. 3. 4. 5. 6.

Future bioenergy scenarios and strategies Sustainability (incl. health & safety issues) Flexible and cost-efficient solutions for multi-fuel biomass supply chains Understanding new markets Biomass availability, price and quality Analysis and design of bioenergy systems and concepts

STATISTICS OF PUBLICATIONS Journal Articles 12 | Conference papers 13 | MSc Thesis 6 | Ph.D. Thesis 1 | Technical Reports 51 | Other 15 | Total 98

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Work Package (WP) 4 has created a systematic framework for managing bioenergy sustainability challenges. The identified actions aim at either optimizing operations or creating added value. The framework also includes strategies and tools for proactive and reactive sustainability approaches. The work related to health and safety concluded that biological contaminants and ash are the key occupational health topics in bioenergy chains. The working model that combined the know-how of health science experts and technology experts proved to be very effective, also promoting awareness and helping to create new best practices.

The BEST program is planned to run from early 2013 until the end of 2016. BEST is a joint research effort between CLEEN and the Finnish Bioeconomy Cluster FIBIC, with an annual budget of roughly €4 million. The program combines the strengths of the forest and energy sectors, technology and consulting companies, and key research organizations. The consortium includes 22 industrial and 12 research partners whose work is further complemented by international partners (e.g. the IEA Bioenergy network). In 2014, one of the major research efforts concentrated on understanding the changes in the business environment and securing the competitiveness of the Finnish bioenergy community in the changing world. In the core of the work was the creation of a set of bioenergy scenarios, which were analyzed qualitatively, and a few of them also quantitatively. From the analysis, recommendations were drawn for actions needed in each scenario and also irrespective of the future development path. In addition, one research task assessed scenarios for the demand and supply of bioenergy in the EU region and made suggestions on how to bridge the expected gap between them.

In addition to carrying out the research work, in 2014 the research plan for 2015–2016 was refined and some areas refocused, based on the learnings from 2013–2014. The role of bioenergy a) as a part of the future sustainable energy system and b) as a part of bioeconomy was raised as a new key topic to be investigated. An analysis of city bioenergy opportunities in Finland, Germany and India has suggested that linking energy applications with material flows and recycling, including biorefineries as a special case, will become more significant. Ensuring the cost-efficiency and quality of the biomass supply continues to be a central task.

Multidisciplinary methods were used in analyzing the Indian bioenergy sector, and it was concluded that both the challenges and the opportunities are numerous. The challenges include scattered biomass resources and poor realization of political decisions; however, there is a vast agribiomass potential to be mobilized and wastelands that can be afforested. Finnish technology is also a competitive option for new power plants. As a part of the research on India, an extensive Finnish-Indian network of both public and private sector partners has been built, enabling effective collaboration in the future. The main result in the supply chain theme has been the creation of a simulation tool for assessing radical improvements in the bioenergy supply chains. The tool enables the evaluation of costs and benefits created in various bioenergy use cases. Also, 3–4 biomass terminal types were identified and their supply chains and internal processes were analyzed. It was shown that large-scale terminals can promote supply security and price stability, as well as level the gap between regional demand and supply. On the other hand, an alternative operating model to terminals is the so-called precision supply based on steering storages forward, based on their quality. This method enables producing up to 20–30% more energy in plants during peak demand. Also, an MWh roadmap was created, summarizing the measurement needs and methods in the management of bioenergy raw material chains.

Kaisu Leppänen BEST Program Manager

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

KEY RESEARCH AREAS ARE: 1. 2. 3. 4. 5. 6.

CCS in Combined Heat and Power (CHP) systems CCS related to multi-fuel technologies and Bio-CCS Monitoring methods & technologies related to CCS Acceptability of CCS Solid looping technologies Mineral carbonation

STATISTICS OF PUBLICATIONS Journal articles 22 | Conference papers/posters 54 | MSc and BSc thesis 27 | PhD thesis 5 | Technical reports 85 | Other 10 | Total 203

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current approach, which is based on biomass utilization typical in northern regions, towards a more global view through extensive communication and a search of global partners in the subject, with the proposed new task to the IEA bioenergy agreement being one of the concrete actions.

The CCSP consortium consists of 18 companies and nine research partners. The research program started in 2011 and is scheduled to run for five years. The annual budget for the program is â‚Ź3 million so far. Active international research collaboration is carried out together with the Swedish CCS project, NORDICCS, and with IEA GHG. In addition, national participation in various international networks related to CCS is organized via the program.

A methodology for estimating CO2 transport costs has been created and used in assessing the transport costs in four North Europe-wide infrastructure scenarios for year 2050. The scenarios clearly indicate that a shared CO2 transport infrastructure is, in general, superior compared with independent transport projects by single CO2 emitters. In addition, the possibility of using underground storage technologies for intermediate storage of CO2 instead of steel tanks has been investigated. Underground storage caverns show a significantly lower investment cost per storage volume compared with that of steel tanks.

In 2014, a pilot test rig at the Aalto University was completed in order to demonstrate the new concept of producing precipitated calcium carbonate (PCC) from steel slag and CO2. The research has focused on improving product quality, which has resulted in the successful production of high-quality PCC in lab-scale batches. This PCC production concept requires no CO2 emitting lime kiln, which turns the PCC unit process into a CO2 sink. An additional benefit of the new concept is that no virgin minerals are needed for the production of PCC. The overall environmental effect, however, depends on how the process is integrated into existing systems.

In order to understand and develop better CO2 capture processes, various phenomena in oxy-fuel combustion and post-combustion capture processes have been modeled, leading to new scientific results and PhD theses in the field. Among these, detailed new models for the heat transfer and behavior of limestone in oxy-fuel combusted Circulating Fluidized Bed (CFB) boilers are being developed. Recent results from CFD modeling of the gas flow field in a post-combustion CO2 absorber show that column geometry has an impact on capture efficiency. In addition, models for the formation of heat stable salts in CO2 capture processes and their effect upon CO2 solubility have been developed.

International collaboration in CCSP has been active and productive. The second joint seminar & workshop together with the NORDICCS project was held in Oslo in October. The assessment of the CO2 storage potential of the Baltic Sea in collaboration with the Swedish CCS project (Bastor2) has been completed. A theoretical storage capacity of a total of 16 Gt CO2 was estimated, but the practical capacity is expected to be significantly lower. Since Russia is likely to have a very large potential for CO2 storage that has not yet been systematically assessed, a memorandum of understanding between CLEEN and VNIGRI (the Russian Oil and Gas Institute, St. Petersburg) has been signed to facilitate future R&D collaboration in this field. A seminar on business opportunities using algae, including its use for CO2 capture, was held in collaboration with the ALGIND project, Cleen, Team Finland, and ONGC in New Delhi in March.

Work on the economic analysis of flexible CO2 capture processes in CHP production has advanced to a stage where preliminary economic optimization models have been built and a review of relevant flexibility parameters has been conducted.

The research topic of solid looping technologies for CO2 capture has reached the pilot level of maturity and is thus gaining global interest. In CCSP, a laboratory-scale chemical looping combustion (CLC) apparatus for testing the chemical endurance of oxygen carriers has been completed, and testing is currently starting up. A cold model of a CLC reactor system has shown that the CLC-CCS concept is feasible from the hydrodynamics point of view. Various CLC process concepts have been analyzed, and a fluidized bed model capable of predicting the operation of a CLC fuel reactor has been developed and applied in case simulations. The calcium looping (CaL) process has been modeled, integrated with the Solvo process model, and it has been studied for power plants of two different sizes. In the final funding period, the focus will be on the construction and testing of a ~50 kWth laboratory test rig for CLC. The techno-political potential of Bio-CCS has been reflected in the global perspective and disseminated on several international forums to estimate a realistic development potential for this solution. Efforts are made to expand the

Sebastian Teir CCSP Program Manager

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The Distributed Energy Systems (DESY) program consists of DESY Research and DESY Demonstrations. The program brings together energy users and producers as well as technology providers and researchers with an ambition of tackling the present and foreseen challenges of distributed energy systems and laying the groundwork for their real market penetration. The program volume is ₏1.0 million for 2012–2014. The DESY consortium consists of 12 industrial partners and six research partners with a total number of 25 researchers.

KEY RESEARCH AREAS ARE: 1. 2. 3.

Hybrid energy solutions and energy storing Business concept analysis Local sustainable energy and self-sufficiency

STATISTICS OF PUBLICATIONS Scientific articles 6 | Conference papers 12 | Internal deliverables 7 | BSc thesis 6 | PhD Thesis 1 | Technical reports 12 | Total 44

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plant and in a zero-energy building. The environmental sustainability study of the Eco-CHP case showed that it is possible to significantly reduce local GHG emissions by replacing even a part of the natural-gas heat production with biomass. The net zero-energy building resulted in lower environmental impacts (building and operation) than the district heating and electricity heating cases in all other environmental impact categories except for the eutrophication impacts. The high eutrophication impacts are caused by the high phosphorus emissions resulting from solar panel production. The other emissions caused by the net-zero energy house totalled about 50% or less than those in the other two cases.

The DESY program analyzed, compared and recommended the best and most efficient business model alternatives among the many renewable energy paths available for business opportunities in today’s technological platforms. Methods were developed for designing and sizing hybrid energy components and optimizing the whole system. The goal was to optimize hybrid energy systems using the best available components with optimal dimensioning to fulfil the environmental criteria set for energy systems in the future. The final model could be used as a design and operation model for hybrid energy systems using renewable energy sources. The research topics of DESY are local energy sources, technical hybrid solutions, energy storing, business concept, sustainability, and energy self-sufficiency.

Four demonstrations of the 64 original candidates are now in use and in the measurement phase, and the four demos are in the planning phase. The active demonstration cases are as follows:

THE DESY PROGRAM HAS THREE MAIN THEMES: 1. Hybrid solutions and energy storing; towards efficient sizing, optimization and simulation tools of hybrid energy systems 2. Business concept; analysis, service, financing, market analyses, risks, potential, scenarios, energy policy, law enacting and trends of a sustainable society 3. Local sustainable energy and self-sufficiency; energy efficiency, environmental impacts, life-cycle, recycling, town planning, and infrastructure

1. Bio-refinery plant connected to bio-ethanol plant, Envor Group Oy (under plan) 2. Geoenergy, Vaasa, Vaasa UN (under plan, measurement started) 3. Eco-Energy Centre, Karjalohja, Akrieer Oy (in use) 4. Eco-CHP demonstration plant, Ekogen Oy (in use ) 5. Energy Village – Creating regional energy selfsufficiency, Ostrobothnia, Sevon Inst./Vaasa UN (several villages planned, not yet realized) 6. Drop in the Sea – Integrated hybrid renewable energy solutions for island operation, Island Ostrobothnia, Sevon Inst./Vaasa UN (planned, not realized) 7. Self-sufficient farm, Jyväskylä, Jyväskylä UN (planned, not realized) 8. Zero-energy building, Hyvinkää, Fortum Oyj (in use) The program has also taken part in international cooperation in the project IEA DHC-CHP Annex X/TS1 “Low Temperature District Heating for Future Energy Systems”.

The DESY model has been developed in cooperation with research partners. The model simulates energy systems in buildings and in district area heating networks. The energy sources can include ground heat, solar heat and electricity, small-scale wind power, as well as biofuels, waste, process heat, and natural water resources. Heat and electricity storage can be connected to systems in buildings and district areas. Distributed energy production is economical if you can use all the energy yourself, and the payback time of the investment is less than 10 years. If you sell energy to the local network and pay taxes and transfer cost, it is not an economical investment at that cost level. The annual energy consumption of the space heating and ventilation of a single-family house in the climate of South Finland is approximately 50 kWh/m2 calculated per floor area. With an extremely well insulated envelope and effective heat recovery from exhaust air, it is possible to achieve a passive house level of 15 kWh/m2. However, this is an expensive way to save energy because improvements in HVAC systems are usually more cost-effective than improving the thermal insulation of the envelope from the Finnish reference values of the year 2012. A ground heat pump system offers a possibility of reducing the electricity consumption of heating, also including the heating of hot water, to 30–40 kWh/m2 in a new single-family house. With an exterior air heat pump and solar water heating, the corresponding energy consumption is 35–60 kWh/m2. Process analyses and carbon foot print calculations have been carried out at a bio-ethanol plant, a micro-CHP

Kari Sipilä DESY Program Manager

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The Efficient Energy Use (EFEU) research program (2011–2016) develops system-level energy-efficiency solutions and services for fluid handling systems and regional energy systems. The EFEU consortium consists of 11 industrial partners and five research organizations. The budget of the program is over ₏12 million.

KEY RESEARCH AREAS ARE: 1. 2. 3. 4.

Understanding, measuring and optimizing energy efficiency Energy-efficient fluid handling and heat recovery systems Regional energy-efficiency solutions and services Scenarios and implications for future business opportunities in energy efficiency

STATISTICS OF PUBLICATIONS Scientific Articles 22 | Conference papers 12 | Internal Deliverables 3 | BSc Theses 4 | MSc Thesis 10 | PhD Thesis 3 | Lic Thesis 1 | Total 55

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Research in regional energy systems focuses on the development of optimization methods, control strategies and business models for regional energy efficiency. A regional heat supply system model was used for demonstrating how an optimal district heating network can be designed and operated considering seasonally varying demand, multiple suppliers and consumers, and short-term heat storage. A new research task that focuses on improving the energy efficiency of regional energy systems by utilizing advanced control and energy management principles was started at the beginning of the third funding period. Also, energy consumption prediction and optimization methods for energy systems on ships are being developed and tested.

The goal of the EFEU program is to build knowledge and competence to enable future economic growth in new product and service innovations in energy efficiency. Methods and tools will be developed to measure, model, analyze and optimize energy efficiency at the system level instead of optimizing individual system components. The EFEU program will establish an energy-efficiency competence platform through scientific research, collaboration between industries and academia, and international networking. The EFEU program was launched in 2011 and is scheduled to run until 2016. The program is divided into four funding periods. The third funding period was launched in July 2014. The scope of the program was further focused in order to match the strengths of the current consortium; the focus areas of the third funding period are fluid handling systems and regional energy systems. High priority has been given to collaboration with foreign research groups. It was also observed that close collaboration between individual work packages and research groups plays a key role in achieving system-level efficiency. Thus, the task structure of the program was modified for the third funding period.

A foresight study on future business opportunities in energy efficiency was started in 2014. Three future scenarios have been defined, and implications on future business opportunities in energy efficiency for different actors have been analyzed. The results of the study will be published in 2015, and they will also be used in the planning of the final period of the program.

Methods for analyzing and optimizing the energy-efficiency of energy chains have been further developed. The novel energy-efficiency analysis method called primary exergy method has been published and is being further developed in order to assess CO2 emissions and non-energy products. The optimization method for the LNG (liquefied natural gas) supply chain has been extended to two-dimensional cases. The model has been applied in determining optimal locations of the LNG terminals on the Finnish coast under different boundary conditions, which has provided valuable understanding of the possibilities of LNG distribution in Finland. Research on fluid handling systems has focused on developing energy-efficient devices and control strategies. Computational fluid dynamics models have been used in the development of efficient new designs for centrifugal pumps and in the optimization of jet pump technology for oil-liquid-gas fluids. Energy efficiency-based speed control of parallel connected pumps has provided new information on system-level possibilities to improve energy efficiency in pumping. An easy-to-use tool for estimating the energy-saving potential of pump and fan systems has been developed.

Juha Lepp채vuori EFEU Program Manager

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The Future Combustion Engine Power Plants (FCEP) research program (2010 – 2014 with four Funding Periods) was focused on reciprocating engine and related power plant technologies.

KEY RESEARCH AREAS WERE: 1. 2. 3. 4. 5.

Combustion process Energy efficiency of the engine and auxiliaries, such as heat recovery systems and power conversion technologies Emission control Fuel flexibility Automation and control for optimized power plant usage

STATISTICS OF PUBLICATIONS Scientific Articles 63 | Internal Deliverables 59 | BSc Thesis 6 | MSc Thesis 26 | PhD Thesis 4 | Lic Thesis 2 | Patent Applications 4 | Notifications of inventions 6 | Total 170

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removal study provided information required for choosing fitfor-purpose and cost-effective designs for biogas applications in Finland. In the area of fuel flexibility, new pre-treatment methods for difficult fuels were developed to enable their use in engines. Combustion properties of new fuels were also studied with a special ignition test unit and with engine tests using a medium-speed and a high-speed engine. Data from the engine tests gives valuable information about the behavior of various fuels and about the engine components.

In addition, there was an important national objective to establish unique, world-class research facilities in Finland for energy-producing combustion engines and their auxiliary systems. The duration of the FCEP program was January 2010 – February 2014 with a total program volume of €37.8 million. The Future Combustion Engine Power Plant program gathered Finland’s most important industrial players and research organizations in the engine sector to develop their research facilities, know-how, technologies and products in order to meet the future market requirements.

Development of intelligent and adaptive systems for optimizing combustion engine operation, operability and reliability produced practical features for handling grid code requirements from an engine management point of view and increased the understanding of future grids and their requirements. In addition, hardware and software that will allow data acquisition, process control and condition monitoring of all engines, including after treatment units (SCR, energy recovery), generators, grid control, power distribution networks, and other related energy-production and environmental monitoring units were developed. A new sensor prototype for in-cylinder pressure and temperature measurement using MEMS (micro-electromechanical systems) and DWTS (Direct Write Thermal Spray) technologies has interesting advantages compared with the current technology.

The FCEP program marked a culmination point in the modeling of several important engine-related flow situations. The results are advantageous when developing new, less polluting engines. Especially, a novel technique, large eddy simulation (LES), was used for the modeling of turbulence. This method allows accurate description of physics in turbulent flow situations. Thereby, a high level of accuracy was reached in the modeling of engine flow fields, gas jets, fuel sprays, and combustion. Accurate simulation methods together with high-class experimental research are essential when developing engines for the future market. Development of new technologies for next-generation diesel and gas engines together with related power conversion, power transfer and end use applications were the key areas of energy efficiency research. Some new engine components were studied and designed. Organic Rankine Cycle (ORC) research produced basic information of heat recovery from low temperature heat steams, and converters based on a new type of thermoelectric material were developed and manufactured by utilizing plasma-assisted thermal sprays. Conceptual studies and tests of a new composite permanent magnet pole structure for generators were carried out, and the first of this kind of permanent magnet generator for a variable speed diesel genset was delivered for tests. An adaptive mass damper for diesel generator sets was designed, built (patent pending) and tested in real conditions.

Gaps in the research environment discovered by the consortium were closed in the most important areas. Link to FCEP final report: http://issuu.com/cleenltd/docs/ cleen_fcep_loppuraportti_final_2014

The results of the development of emission control technologies include vanadium-free SCR (Selective Catalytic Reduction) catalyst materials, a prototype for a new type of hybrid scrubber, a new pre-turbine oxidation catalyst, and catalyst material with improved sulfur toleration. Research has also produced valuable information about the level of technology needed in order to have a cost-effective, userfriendly and fuel-effective emission control solution for future non-road engines. Liquefied Natural Gas (LNG) is one answer to the new environmental requirements in shipping. A general conception and knowledge of the implementation requirements for LNG logistics were achieved. Alternative biogas upgrading technologies providing sufficient gas quality for supplying to the natural gas grid were explored. The upgrading study together with the experimental siloxane

Matti Kytö FCEP Program Manager

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The aim of the Measurement, Monitoring and Environmental Efficiency Assessment (MMEA) research program is to develop new technologies, methods, tools and services for environmental observation systems both in industrial processes and in the surrounding environment. The program started in May 2010 and is planned for five years until the end of 2015.

KEY RESEARCH AREAS ARE: 1. 2. 3. 4.

Interoperable environmental measurement systems Environmental efficiency management system New online and remote sensing technologies Business applications

STATISTICS OF PUBLICATIONS Journal Articles 81 | Conference papers 99 | MSc Thesis 15 | PhD Thesis 10 | Technical Reports 60 | Individual Disclosure Notifications 3 | Patent applications 6 | Other 12 | Total 286

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The work between data fusion and the work packages of environmental efficiency assessment was merged earlier in order to generate a development platform for an environmental management system at the end of the program. An online data reconciliation and rectification application was successfully installed in the test power plant site. A model-based NOx emission monitoring application was prepared for a natural gas heating plant. A calculation tool was developed for the assessment of the environmental impacts of liquefied natural gas. Additionally, an assessment of environmental impacts was made for wood pellet cocombustion at a power plant test site.

The MMEA consortium is truly cross-sectional and multidisciplinary; the consortium consists of 40 partners, 27 of which are companies including 18 small and medium-sized enterprises. The research contribution of the SMEs represents about a quarter of the total research volume. For the fifth funding period (FP5), one new partner (Valmet Power Oy) joined and strengthened the consortium in the area of industrial measurements. For FP5, the Tekes eligible research budget is €10.2 million. The total Tekes eligible budget for the period 2010–2015 is estimated to be €54 million. For the last funding period, the MMEA program was further focused, and spearhead areas were identified. During the period 2010–2014, the MMEA research network has been steadily increasing. Cooperation has also been established with an enterprise group project and several national and EU research projects. MMEA’s own website was launched in June 2014 in order to enhance both internal and external communication. The website contains information about the whole MMEA value chain, i.e. data sources, sensors and measurement networks, ICT systems, processing, and actual end-user applications. Selected highlights are also presented in the news section.

The main achievements of the remote sensing work package are related to the portable multiband radar, advanced lidar systems and new algorithms for weather and environmental radars. LIDAR demonstrator prototypes have been developed for humidity and boundary layer detection applications. New UAV remote imaging concepts, such as thermal mapping, hyperspectral imaging and watershed management, have been developed. Novel radar algorithms have also been developed. In the particles and emissions research area, new particulated measurement instruments with new measurement have been developed. A new online measurement system was developed to forecast and manage corrosion in high temperature furnaces.

A scientific advisory board (SAB) was invited to conduct an evaluation in October 2014. The members of the board come from Germany, Greece, Netherlands, United States, and China. SAB’s main task was to critically evaluate the scientific quality and implementation of the program. As a general outcome, the scientific quality of the program was evaluated very high. SAB also concluded that MMEA has continued to improve its performance in many areas through focusing and dissemination, as well as in external and internal cooperation.

The China Testbed urban air pilot system with Enviobserver and Pegasor’s PPS-M sensor was continued at Shenzhen University until June. A mobile air-quality participatory sensing pilot with students was also conducted. An agreement (MoU) was drawn up with the Chinese Academy of Building Research (CABR), and practical cooperation in the area of measurement quality was established with the National Institute of Metrology (NIM) in Beijing. An urban air demonstration was initiated with CRAES in Beijing; this work, which will continue in 2015, includes setting up a measurement network and utilization of novel algorithms from the Finnish Meteorological Institute. An indoor air demonstration was also initiated in Beijing at the residence building of the Finnish Embassy. In this demonstration, which also continues, the fundamental factors of clean indoor air are being investigated in a demanding environment.

Utilization of research result looks very promising. Two spin-off initiatives are under development. Several MMEA research results have already been utilized in the internal product development and commercialization projects of its partners. Several patent applications are also in progress and, additionally, at least three innovation disclosure notifications have been reported. Two enterprise groups have been initiated and several are known to be in the preparation phase. Totally new business cases have been generated for the global markets. The work package of interoperable measurement systems has continued to open up the data sources and the development of platform technology tools for the data processing of environmental monitoring, as well as the concept of environmental information market place, the dataoperator. The platform technology provides tools that facilitate data processing chain development. The Testbed is a system that connects selected data sources to the Testbed website and to selected applications, and the dataoperator enables data sharing on a commercial basis. The vision is to enable the development of an environmental monitoring service that creates new solutions to various end-user problems. During 2014, several new data sources were connected to the platform, and an MMEA testbed website was launched (www.mmea.fi). A key demonstration was initiated in order to demonstrate the power and opportunities of open data and measurements. The selected application areas include semantic service, agricultural case and smart grid optimization.

Tero Eklin MMEA Program Manager

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

KEY RESEARCH AREAS ARE: 1. 2. 3. 4. 5.

Smart grid drivers and scenarios; market integration and new business models Future infrastructure of power systems Active resources of the smart grid Customer interface for the smart grid Intelligent management and operation of smart grids

STATISTICS OF PUBLICATIONS Journal Articles 78 | Conference papers 249 | MSc & BSc Thesis 110 | PhD Thesis 14 | Technical Reports 254 | Other 64 | Total 769

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a Kalman-filter based predictor, and artificial neural networks) based on smart metering data. The effects of DR and own production of small-scale customers on load profiling has also been studied.

The SGEM consortium consists of 19 industrial and eight research partners. Industrial partners consist of five companies operating in the energy technology area, five local Distribution System Operators (DSOs), two energy retailers, the Finnish national Transmission System Operator (TSO) Fingrid, and six companies operating in the ICT sector. The program is scheduled to run for five years with a total budget of €52 million.

WP5 continued the research on the effect of distributed generation on distribution networks. The research has resulted in improved simulation models for analyzing wind generator control models, short-term wind generation forecasting, and rules for the grid connection process for microgeneration. During 5FP, research on wind generation forecasting resulted in a forecasting tool, which is currently in test use by the national TSO Fingrid. Participants of WP5 have initiated an international cooperation with IEA WIND Task 25 and the Nordisk Toppforskning TFI program. In the research of electric vehicle charging, work continued in the implementation of an ISO/IEC-15118 communication protocol, and the first pilot case has been in operation since July 2013: a parking hall with tens of charging poles and communication using a centralized SECC server.

During the last fifth funding period (5FP), the SGEM program focused on finalizing the planned research activities. The structure of the program remained unchanged, with seven work packages (WP), each led by a dedicated manager. This coordination structure was established during the second funding period and has proven to be successful. WP1 concentrated on international relations, defining future research directions after the SGEM program, and benchmarking the SGEM results. Additionally, work around an overall smart grid roadmap continued. Questions such as drivers affecting grid development, security of supply, and incentives and implications of DG were investigated.

WP6 continued demonstrating Proof-of-Concepts for self-healing networks. It consisted of the calculation of automatic fault location at the substation, combined with the utilization of public wireless networks and first tests with a low-cost fault indicator, developed by VTT. During 5FP, further successful field testing was carried out in the substation of Pusula, where the main new research challenge was the network type with a compensated neutral point. The accuracy of fault distance calculation has been estimated to be around 1–2 km, which makes it possible to detect temporary faults and predict emerging problems in the networks.

In WP2, the Lappeenranta University of Technology (LUT) and Suur-Savon Sähkö continued to demonstrate real-life operation of a low-voltage direct current (LVDC) network. The Proof-of-Concept of an LV network with four households has been in operation for more than two years without any hiccups. The customers have been satisfied with the reduction of short interruptions and improved power quality. Another successful LVDC pilot was established by ABB Oy and Elenia Oy. It was proven that it is technically possible to replace MV branch lines with LVDC in rural areas (for example, almost 20% of the MV network length of the Elenia distribution company). The main takeaway from the field demonstrations was that LVDC distribution is a highly potent technology for a cost-effective reliability improvement of a rural MV network.

WP7 developed methodologies for the optimization of the usage of flexible resources (i.e. DER and DR) from the viewpoint of different market players (customer, DSO, TSO, retailer, aggregator), including business and pricing models. Highlights of the outcomes include developing and demonstrating novel network tariff structures and a DER value assessment. WP7 also investigated consumers’ attitudes, motives and prerequisites regarding small-scale electricity production.

In WP3, a very important question has been to analyze the potential of Demand Response (DR) in mitigating the HV network reserve requirements. A comprehensive approach was taken, also including the effects of reserves in MV and even LV levels. According to the results, the potential of DR is very high for short-term reserve mitigation, but reduces strongly when the time exceeds one or two hours. The important result of WP3 is that a combination of DR and MV network automation can provide huge savings in HV network reserves.

When it comes to using the allocated funding, the program stayed within the budget of the program: 84% of the planned resources for 5FP were used on the status by 31 December 2014. Calculated cumulatively from the beginning of the program, 95% of the total budget has been spent. The start of 5FP activities was delayed due to a late funding decision by TEKES. However, the majority of the results are targeted to be completed at the end of 5FP (28 February 2015). Link to SGEM final report: http://issuu.com/cleenltd/docs/cleen_ sgem_loppuraportti_digipublis/1

The main focus in WP4 has been on the Demand Response theme, the main outcome of which is “a novel implementable holistic DR approach for fully liberalized electricity markets, including market (day-ahead, intra-day, regulating, balancing, ancillary services, etc.) and grid level measures, novel technological solutions for Automatic Meter Reading (AMR) and home energy management systems, and modeling of customer loads and behavior. Demand response relates here to controllable loads, own production of small-scale customers and the use of energy storages such as electric vehicles.” In addition to about ten journal articles, dozens of international conference publications and several dissertation works and Master’s Theses, this work also resulted in several Proof-of-Concepts. Oulu Energy, Helen Supply, Vantaa Energy Networks and Empower IM created Proofof-Concepts where Smart Metering-based Demand Response was showcased. It was also explored together with There Corporation how Home Energy Management Systems can further extend the Demand Response functionality. In international research, participation in IEA DSM activities has provided SGEM with an international overview and experience in DR and Energy Efficiency. Implementation and demonstration of the interactive customer gateway and microgrid concept and applications are studied in the Green Campus in LUT and in an AC microgrid laboratory environment in TUT. Development and analysis of load estimation methods have comprised different approaches (e.g. load profiling,

Jani Valtari SGEM Program Manager

53


Network

54


A c tiviti es

55


Ne t wo r k A c t i v i t i es

Cleen selected activities in 2014

JAN

7.1. SRA working group meeting 13.1. EFEU Program Steering Group meeting

10.2. Life IP coordination group meeting

28.3. CLEEN Annual General meeting

25.2. CLEEN CEO speech at Green Growth & CleanTech Summit II

28.3.-1.4. EFEU delegation visiting ONGC/India

21.1. SRA Theme Future Energy System kick-off 23.1. MMEA Program Steering Group meeting 29.1. FCEP Program Steering Group meeting 31.1. Funding models working group

MAR

APR JUN

11.3. SGEM Program Steering Group (PSG) meeting

1.4. Science Council meeting

11.3. DESY Program Steering Group meeting

3.4. EFEU Program Steering Goup (PSG) meeting

12.3. SRA Theme City kick-off

4.4. Core Team meeting 25.4. Meeting of the SRA Portfolio management group for the Resilient city

13.3. SRA working group meeting 13.3. CLEEN Board meeting

28.4. CLEEN Board meeting

17.3. Meeting Chinese partners in China

FEB 4.2. Meeting of the SRA Portfolio management group for the Future Energy System 4.2. CLEEN Board meeting 5.2. BEST Program Steering Group (PSG) meeting

14.5. SHOK summit 20.5. ARVI Program Steering Group (PSG) meeting

20.1. Science Council meeting 20.1. SRA theme Gas kick-off

7.5. SGEM and MMEA partner presentations for Cleantech Roundtable seminar guests

20.3. Funding models working group Life IP coordination group meeting

MAY

27.3. International seminar on “Sustainable industrial algae production and related business opportunities”, New Delhi, India (jointly organised by CLEEN/ CCSP, ONGC and ALGIND-project)

2.6. Life IP coordination group meeting 3.6. Science Council meeting 3.6. Funding models working group 5.6. CLEEN R&D Council meeting 9.6. SGEM Program Steering Group (PSG) meeting 9.6. Final seminari for Innovatiivisuutta Julkisiin Investointeihin project 10.6. CCSP Program Steering Group meeting

5.5. SGEM Program Steering Group (PSG) meeting 6.5. CLEEN Indo-SinoFinnish Cleantech Roundtable

25.3. SHOKing city seminar

56

11.6. CLEEN Board meeting 25. – 27.6. Seminar on managing national R&D programs, Astana, Kazakhstan (CLEEN case study)


Net work Ac t ivit ies

JUL

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

OCT

18.9. Meeting on cooperation possibilities with Indian ship dismantling

18.11. BEST bioenergy scenarios 2033 seminar 1. – 3.10. MMEA Scientific Advisory Board (SAB) visit

18.9. IEA Bioenergy seminar (BEST)

AUG

18.-19.9. TFI BIO Nordic meeting in Finland

2.10. MMEA Seminar trends in environmental monitoring

19.9. R&D Council core team meeting 27.8. Life IP coordination group meeting

9.10. Funding models working group

25.9. SGEM Program Steering Group (PSG) meeting

15.10. Cleantech Finland partners’ network meeting

26.9. Meeting of the SRA theme group for Gas theme

SEPT

3.9. SRA working group meeting

27.9. EFEU Program Steering Group (PSG) meeting 27.9. Meeting of the SRA theme group for Sustainable city

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

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

10.9. Science Council meeting

29.9. MMEA seminar on indoor air quality in China

11.9. CLEEN Board meeting 12.9. Meeting of the SRA theme group for Gas theme 16.9. Meeting of the SRA theme group for Sustainable city

15.10. Signing of MoU between CLEEN Ltd and IISER Bhopal in conjuction with the visit of the delegation of the Honorable President of India

26.9. FCEP Program Steering Group (PSG) meeting

4.9. ARVI meeting in Tekes

12.11. Visit of the delegation of Korea Environmental Industry and Technology Institute (KEITI) to CLEEN

27.10. CLEEN Board meeting

20.11. SGEM results seminar 24.11. ARVI Program Steering Group (PSG) meeting 24.-26.11. MMEA Clean Day seminar in Beijing 25.11. SGEM Scientific Advisory Board (SAB) visit 26.11. CLEEN presentation to a delegation of the Royal Swedish Academy of Engineering Sciences led by Carl XVI Gustav, the king of Sweden 28.11. Science Council meeting

30.10. SRA Working group meeting 31.10. ARVI Program Steering Group (PSG) meeting

30.9. – 1.10. CCSP SAB meeting

NOV

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

DEC 1.12. CLEEN Board meeting 10.12. CLEEN R&D Council meeting 18.12. DESY Program Steering Group meeting

11.11. Core Team meeting

57

19.12. CLEEN Board meeting


Ne t wo r k A c t i v i t i es

Stakeholders Partners:

Non-governmental organizations:

SHOK companies: DIGILE Oy (former TIVIT Oy), FIBIC Oy, FIMECC Oy, RYM Oy, SalWe Oy

Confederation of Finnish Industries (EK) Embassy of India in Helsinki, Finland

Cleantech Finland

The Federation of Finnish Technology Industries

China Academy of Building Research (CABR), Memorandum of Understanding (MoU) signed 2014

Finnish Energy Industries

China Institute of Building Standard Design & Research (CIBSDR)

Finnish Forest Industries

Chemical Industry Federation of Finland

The British Embassy in Helsinki, Finland

Chinese Research Academy of Environmental Sciences (CRAES), China - Memorandum of Understanding (MoU) signed 2013

Embassy of the United States in Helsinki, Finland

Danish Technological Institute (DTI), Denmark

Embassy of the People’s Republic of China in Helsinki, Finland

Energy Technology Cluster Program, Teknologiakeskus Oy Merinova Ab

Embassy of the Russian Federation in Helsinki, Finland Embassy of Israel in Helsinki, Finland

EERA

Nordic Energy Forskning (TFI)

Finnish Cleantech Cluster – LADEC Ltd

Finnfacts (part of TAT Group)

Finnish Environmental Cluster for China, FECC

Research Institute of the Finnish Economy

Green China Lab

Finnish Water Forum

Indian Institute of Science Education and Research Bhopal (IISER), Memorandum of Understanding (MoU) signed 2014

Finnfund German-Finnish Chamber of Commerce

Insigma Group Co Ltd – Memorandum of Understanding (MoU) signed 2013

Finnish-Russian Chamber of Commerce

Nankai University, Tianjin, China National Institute of Metrology (NIM), China - Memorandum of Understanding (MoU) signed 2013

Service providers:

National Institute of Technology Delhi (NITD), Memorandum of Understanding (MoU) signed 2014

Audipek Translation Agency. . . . . .

TRANSLATION SERVICES

Dazzle Oy . . . . . . . . . . . . . . . . . . . . . . . .

NETWORK AND MANAGEMENT

Oil and Natural Gas Corporation Ltd (ONGC), India – Memorandum of Understanding (MoU) signed 2013

CONSULTING

Technology Centre of Åland, Memorandum of Understanding (MoU) signed 2014

TOOLS

All Russia Petroleum Research Exploration Institute (VNIGRI), Memorandum of Understanding (MoU) signed 2014

PORTAL

Dream Broker Oy. . . . . . . . . . . . . . . . . Inno-W Oy. . . . . . . . . . . . . . . . . . . . . . . . Kuudes Kerros Helsinki Oy. . . . . . . .

ONLINE COMMUNICATIONS

WEB PAGES AND RESEARCH

STRATEGIC BRAND DESIGN

CONSULTANCY

Governmental organizations:

Tmi Marianna Salin . . . . . . . . . . . . . . .

COMMUNICATIONS

Meltwater Group. . . . . . . . . . . . . . . . .

MEDIA RELATIONS

Surveypal Oy. . . . . . . . . . . . . . . . . . . . .

SURVEY AND DATA COLLECTION

Academy of Finland

Visma Solutions Oy. . . . . . . . . . . . . . .

ACCOUNTING AND FINANCE

Ministry of Employment and the Economy

Teonsana Communications. . . . . . .

COMMUNICATIONS

Wulff Entre Oy. . . . . . . . . . . . . . . . . . . .

EXHIBITION AND EVENT

Tekes – The Finnish Funding Agency for Technology and Innovation

Ministry of the Environment

MARKETING

Motiva Finpro Technology Academy Finland (TAF)

58


Net work Ac t ivit ies

Other forums

Cooperation with SHOKs

“User-driven Service Innovation and Co-creation Management (NOMAD)”-project, 01/2012 – 12/2014, Consortium led by University of Vaasa

The companies having the SHOK status (CLEEN OY, DIGILE Oy, FIBIC Oy, FIMECC Oy, RYM Oy, SalWe Oy) have arranged several meetings in various compositions in order to share and review best practices, to explore cooperation opportunities and to coordinate research efforts. Frequent meetings have been arranged with

“Service and social innovations - policy needs and potential impacts (SOPPI)”-project, 2012 – 2014, Consortium led by VTT Norden, Top-level Research Initiative, Sustainable bio-fuels, member of program committee, 2010 –

• Chairmen of boards and CEOs, • CEOs and CTOs • CTOs • Communications personnel

Työ- ja elinkeinoministeriön Ympäristöliiketoiminnan strategisen ohjelman neuvottelukunta, 2012 – (Strategic Program for the Cleantech Business) Ympäristöministeriön Ympäristöinnovaatiopaneeli (2009 – 2010)

The intensive cooperation has realized in the form of joint marketing efforts (e.g. SHOK-summit, marketing material and common SHOK web pages) and shared resources (e.g. legal counsel).

Expert panel – Nordic Top-level Research Initiative on Climate, Energy and the Environment (TRI): Collaboration projects ”Green Growth in an Era of Climate Change”

An example of a concrete cooperation with SHOKs is a joint program with FIBIC Ltd on bioenergy focused research program. The Sustainable Bioenergy Solutions for Tomorrow (BEST) program aims to create a comprehensive vision of the future bioenergy ecosystem including identification of various sustainability measures and the most sustainable value chains.

Advisory board – ETLA’s FiDiPro-project “Towards Sustainable Positioning for Value Capture and Investability – A roadmap for Finnish CleanTech” The Finnish Environment Institute´s advisory board, 1.2.2010 – 31.3.2014 International Environmental Engineering program of Helsinki Metropolia University of Applied Sciences Doctoral Program in Energy Efficiency and Systems (EES), coordinated by Aalto University ‘Innovatiivisuutta julkisiin investointeihin (IJI)’, project coordination group Ympäristöministeriön Alueellinen resurssitehokkuus Life IP -hankkeen ohjausryhmä 2013 – ProCom – the Finnish Association of Communications Professionals Member of Teknillisten Tieteiden Akatemia (TTA) Health relevant and energy efficient regulation of exhaust particle emissions (HERE) - TUT Three openings to new value added: platforms for pure technology, health services and marketing communications in digital era (puhdas teknologia, terveyspalvelut ja markkinointiviestintä digiajassa (E-arvonluonti)) - TTL Roadmap for Beautiful Beijing - HY China-Finland Strategic ICT Alliance - DIGILE

59


60


Com m u nicati ons

61


Co m m u n i c at i o n s

Communications

Two of CLEEN’s research programs have now been finalized (February 2015): Future Combustion Engine Power Plants (FCEP) and Smart Grids and Energy Markets (SGEM). Each CLEEN research program will have a printed final report brochure and a more detailed web version of the final report once they are finalized. The SGEM final report can be found here: http://issuu.com/cleenltd/docs/cleen_sgem_ loppuraportti_digipublis/1 and FCEP final report here: http://issuu.com/cleenltd/docs/cleen_fcep_loppuraportti_ final_2014/1.

During 2014, CLEEN research program communications teams continued their active productive work and held 29 joint meetings (14 in 2013) in order to communicate more efficiently about the results of the programs. One new communications team was established for the Material Value Chains (ARVI) research program. Communications cooperation with other SHOK companies and Tekes has continued from 2013 through regular communication meetings (eight meetings in 2014). The SHOK summit, a seminar organized by all the six SHOK companies, was successfully held at the Millennium Pavilion in Helsinki on May 14, 2014. The program consisted of international keynote speakers and over 70 results from the SHOK research programs.

During 2014, CLEEN has actively continued our international operations, especially in China and India. Last March, CLEEN’s Carbon Capture and Storage Program (CCSP) organized a seminar in New Delhi on the topic of business opportunities using algae in collaboration with the ALGIND project, Team Finland, and Oil and Natural Gas Corporation Limited (ONGC). The purpose of the seminar was to assess to future opportunities of algal process concepts for CO2 capture. The aim was also to share knowledge and to discuss how to overcome techno-economic barriers for the implementation of algal concepts for CO2 capture. The seminar was inaugurated by Mr Aapo Pölhö, Ambassador of Finland.

The channels for CLEEN’s communication with our stakeholders have been our website, research program public sites and internal portals, social media channels, and various other brochures and publications. We have continued producing marketing materials, including research program factsheets and success cases. In social media, CLEEN has a professional LinkedIn conversation group with 800 members. The channel is open for interactive information sharing. The group also acts as a platform for CLEEN stakeholders to provide and share relevant information. A Twitter account was established for the Sustainable Bioenergy Solutions for Tomorrow (BEST) research program (@BESTbioenergy). CLEEN-related conversation from Twitter can be found under #cleen. All of the above-mentioned marketing material can be found through the links at the end of this section.

In May, CLEEN organized the first Indo-Sino-Finnish Cleantech Roundtable in Helsinki. Participants included high delegations of China and India, and CLEEN shareholders. H.E. Ambassador of India to Finland, Mr. Aladiyan Manickam, Embassy of India, gave a keynote speech at the seminar. The purpose of the event was to discuss and further develop CLEEN’s SRA themes: Architecture of a Sustainable Future Energy System, Sustainable Production, Handling and Use of Gases, Sustainable City and Sustainable Use of Natural Resources on Local, Regional and Global Scale. The aim of the roundtable was also to strengthen our cooperation and create synergy between innovation partners in China, India and Finland, and to plan and promote R&D and innovation cooperation on a global scale.

The free online service tool offering local weather information within the Measurement, Monitoring and Environmental Efficiency Assessment (MMEA) program is constantly being upgraded with new applications. You can track weather radar images, the water level of lakes, algae and pollen spread online, even when staying at a summer cabin using a mobile phone. The MMEA online service tool offers weather and environment observations from all over the country. It gathers information from several operators and organizes them into one convenient place http://mmea.fi/

In November, Team Finland, the Embassy of Finland in China, Finpro, Cleantech Finland and Tekes – co-hosted the Pure Finland - Clean Day Event in Beijing focusing on air quality. In addition, CLEEN’s MMEA program took part in the

62


Communicat ions

seminar focusing on air quality issues and solutions, with about 400 delegates attending the event, including Finnish and Chinese companies, as well as political, industrial and business media. Future collaboration between China and Finland in energy and environment was also highlighted at the ministerial level in discussions. Mrs. Sanni GrahnLaasonen, Minister of the Environment of Finland, gave the opening speech of the seminar.

Related links:

Also in November, CLEEN Ltd, together with other SHOK companies, presented its operational model and result highlights to a delegation of the Royal Swedish Academy of Engineering Sciences led by Carl XVI Gustaf, the King of Sweden. The delegation included Swedish business, industry and science professionals.

Follow CLEEN on SlideShare: http://www.slideshare.net/CLEEN_Ltd

CLEEN homepage: http://www.cleen.fi CLEEN Linkedin group: https://www.linkedin.com/groups/CLEEN-2889884/about CLEEN intranet (requires login): https://intra.cleen.fi Follow CLEEN on Linkedin: https://www.linkedin.com/company/cleen-ltd

Follow CLEEN on issuu.com: http://issuu.com/cleenltd Follow CLEEN on Youtube: https://www.youtube.com/ channel/UChJULMyP-ufHDCk0g0TG9OA SHOK web pages: https://www.shok.fi

To find out more about CLEEN and its research programs, please see the links below.

Links to internal research program portals: ARVI portal (requires login): https://portal.cleen.fi/arvi BEST portal (requires login): https://portal.cleen.fi/best CCSP portal (requires login): https://portal.cleen.fi/ccsp DESY portal (requires login): https://portal.cleen.fi/desy EFEU portal (requires login): https://portal.cleen.fi/efeu FCEP portal (requires login): https://portal.cleen.fi/fcep MMEA portal (requires login): https://portal.cleen.fi/mmea Karoliina Peippo Communications Manager

SGEM portal (requires login): https://portal.cleen.fi/sgem

63


64


Fin an ci a l s

65


Fi n a n c i a l s

Income statement Currency EUR

1.1.2014 – 31.12.2014

1.1.2013 – 31.12.2013

NET TURNOVER Other operating income Raw materials and services

2 202 232,01 140 664,00 -1 701 098,15

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

GROSS PROFIT (LOSS) Staff expenses Other operating expenses

641 797,86 -538 839,87 -261 210,11

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

OPERATING PROFIT (LOSS) Financial income and expenses Other interest and financial income Reduction of current assets Interest and other financial expenses

-158 252,12 30 652,88 48 527,26 -17 560,00 -314,38

-42 190,38 47 047,94 47 868,32 0,00 -820,38

PROFIT (LOSS) BEFORE EXTRAORDINARY ITEMS

-127 599,24

4 857,56

PROFIT (LOSS) BEFORE TAX AND APPROPRIATIONS Income taxes

-127 599,24 0

4 857,56 -2 262,43

PROFIT (LOSS) FOR THE FINANCIAL YEAR

-127 599,24

2 595,13

entered as income is based on the final payments in 2014 and Q1/2015.

“NET TURNOVER” includes CLEEN Commission (€534,751.92), Program Management Cost (€790,209.10), Direct Industrial Funding (€863,729.24) and other income (€12,507.21). CLEEN Commission is entered as income based on the stage of completion of the programs. For Program Management Cost and Direct Industrial Funding, CLEEN Ltd has exactly the same amount of liabilities towards Program Parties to cover the budgeted program management costs and Industrial Partners’ direct funding to Research Partners. CLEEN Commission, Program Management Cost and Direct Industrial Funding are charged in advance and entered as “Advances received” in the balance sheet from where they are entered as income based on the realized costs and therefore do not have any effect on “OPERATING PROFIT”. The one third decrease of CLEEN Commission compared to 2013 is due to the completion of the FCEP program and unexpected decrease of public funding for the final funding period of the SGEM program. The decrease was somewhat compensated by the launch of the “Material Value Chains (ARVI)” program in H2/2014.

“Staff expenses” comprises the staff expenses and social security expenses of the permanent personnel, as well as the remuneration paid to the members of the Board of Directors, the Science Council and the Scientific Advisory Boards. The increase in “Staff expenses” compared to 2013 is primary due to one additional full time employee for program development. From the income point of view, the financial position of CLEEN Ltd has weakened but is still satisfactory due to strong equity balance, though is subject to changes in CLEEN Commissions. During 2014 CLEEN Ltd has been preparing two CLEEN 2.0 Project Portfolios in SRA Themes, namely, “Future Flexible Energy Systems” and “Healthy Urban Living”. Both Program Portfolios include a SHOK program, which if successfully developed and funded, will increase the annual research volume of CLEEN Ltd by 18 M€ in the end of 2015. The increase in research volume will have direct effect on “NET TURNOVER” and further on CLEEN Commission. In addition, CLEEN Ltd has been selected as subcontractor for a five years ERA-Net SG+ coordination project which will increase “NET TURNOVER” 57 000€ during 2015 – 2019.

“Other operating income” (€140,664.00) consists of public funding by Tekes (€92,856.00€) and European Regional Development Fund (€47,808.00€) for two internal development projects of CLEEN Ltd, namely “CLEENDEVEP” and “IJI”. Both projects ended 2014; hence, the amount

66


Fina ncia ls

Balance sheet Currency EUR

1.1.2014 – 31.12.2014

1.1.2013 – 31.12.2013

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

5 373 671,53 442 879,22 275 157,48 53 796,43 113 925,31 600 000,00 4 330 792,31

5 517 849,15 459 412,89 184 361,48 0,00 275 051,41 0,00 5 058 436,26

ASSETS TOTAL

5 373 671,53

5 517 849,15

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

2 864 329,83 1 002 500,00 1 625 500,00 1 625 500,00 280 329,83 -127 599,24

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

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

2 592 940,94 2 592 940,94 1 914 655,67 418 175,81 154 788,46 105 321,00

2 653 519,32 2 653 519,32 2 054 287,08 426 307,89 55 854,05 117 070,30

5 373 671,53

5 517 849,15

LIABILITIES TOTAL

minor prepayments and accrued income. “Investments” comprises corporate bonds of six (6) Finnish Large Cap companies.

“Advances received” comprises CLEEN Commission (€188,528.76), Program Manager Cost (€479,617.46) and Direct Industrial Funding (€1,246,509.45) invoiced by CLEEN in advance. The same applies to “Trade creditors”, which mainly consists of Direct Industrial Funding invoices filed, but not paid in 2014.

The increase of 44 000€ in “Free invested equity reserve” is due to successfully realized directed share issue to University of Turku in 2014. The high “Free invested equity reserve” ensures flexibility to adjust and develop the company’s operations due to possible unexpected or sudden changes in its environment.

“Prepayments and accrued income” (€113,925.31) consist of transferred interest (€7,024.05), the Tekes grant for CLEENDEVEP (€93,100.00) paid in Q1/2015 and some other

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Contact information

arvi Material Value Chains

Tommy Jacobson CEO +358 40 828 2711 tommy.jacobson@cleen.fi

Pirjo Kaivos ARVI Program Manager +358 40 825 6500 pirjo.kaivos@cleen.fi

Essi Heinänen, Legal Counsel for SHOKs +358 400 469 905 essi.heinanen@cleen.fi Jatta Jussila-Suokas, CTO +358 40 825 6500 jatta.jussila@cleen.fi Sanna Laaksonen Controller (until 20.12.2014) +358 44 016 3235 sanna.laaksonen@cleen.fi Teija Laitinen Development Manager +358 40 529 5886 teija.laitinen@cleen.fi Karoliina Peippo Communications Manager +358 40 542 3399 karoliina.peippo@cleen.fi

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

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

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

68

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

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

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

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


Cont a c t Informat ion




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


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