1. Energy R&D in Norway Funding, Priority Setting and Implementation Opening session Eurogia+ Oslo 25 May2011 Executive Director Fridtjof Unander Division for Energy, Resources and the Environment

2. The Research Council Roles and Instruments 2

3. The Research Council’s roles  Adviser to the government  Covers all scientific and technology fields  Research funding  Support basic research  Implement national thematic priorities  Support private R&D  Networking and dissemination  International collaboration

4. The Research Policy System 16 Ministries The Research Council is a strategic body Research institutions Industry InstitutesUniversities

5. 5 Several funding schemes Tax deduction scheme SkatteFUNN Centres for Research- based Innovation Centers of Excellence CEER Independent projects User-directed innovation programmes Basic research programmes National priorities Large-scale programmes Innovation programmes Applied research programmes

6. 6 RCN’s main instruments for energy R&D  RENERGI  CLIMIT  PETROMAKS  DEMO2000  GASSMAKS  Centres for Environmentally friendly Energy Research Interaction with other funding agencies:  Enova  Gassnova  Innovation Norway

7. Focus on Global Challenges and Innovation 7

8. Better health and health services Public services and research based professional practices Knowledge based industry in all regions A well-functioning research system High quality research Efficient use of results and funding Internationalisation of research Global challenges Industrial research in strategic areas White Paper April 2009 Future goals for Norwegian research

9. Better health and healt services Public services and research based professional practices Knowledge based industry in all regions A well-functioning research system High quality research Efficient use of results and funding Internationalisation of research Global challenges Industrial research in strategic areas White Paper April 2009 Future goals for Norwegian research Energy and climate Industrial innovation

10.  10 The Global Energy Challenges  Strong growth in demand and increased dependence on imports  2/3 of the growth in demand from developing countries  Still 1,2 billion without access to electricity in 2030  2,8 billion people rely on traditional biomass for cooking  For many poor countries energy imports remain a heavy financial burden  Coal often the next step in the energy development IEA World Energy Outlook 2009 Global energy demand Mtoe Other renewables 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 198019902000201020202030 Biomass Hydro Nuclear Gas Oil Coal

11. The Global Climate Challenge 0 5 10 15 20 25 30 35 40 45 198019902000201020202030 Gigatonnes International marine bunkers and aviation Non-OECD - gas Non-OECD - oil Non-OECD - coal OECD - gas OECD - oil OECD - coal IEA World Energy Outlook 2009 Energy related CO2 Emissions

12. The need for an Energy Revolution IEA Energy Technology Perspectives

13. The Revolution will require heavy investments But gives large market opportunities Gt CO 2 /år  $45 000 billion increased investment cost to 2050  $1100 billion on average each year  Shift from energy expenditures to investments  Opens enormous markets for new technology!

14. Scaling up R&D efforts essential  Without a successful R&D effort the cost of the transition will be much higher  R&D constitutes a small share of the investment costs  R&D efforts must be scaled up early and will require significant involvement by governments

15. 15 Climate agreement 2008 Increases R&D investment in Norway  A broad-based political agreement in the Parliament  Almost threefold increase in budgets for environmentally friendly energy R&D 2008- 2010  Enabled establishment of a strategic and structuring long-term effort

16. Strategy and Priority Setting 16

17. 17 Energy & Climate R&D Norwegian strategic model  Strategic, long-term, involving key players and politically rooted  National strategies designed and developed by industry, government and research institutes  OG21 - technology strategy for the Norwegian Continental Shelf and the Norwegian supply industry  Energi21 - R&D strategy for the energy sector  Climate21 – Strategy for climate research

18. 18 Energi21 Recommendations 2008 Call for rapid stepping up of R&D funding Affirm Norway's qualifications as a leading nation in environmentally friendly energy: – From national energy balance to green export Renewable power to Europe Technologies in a global market – Home of some of the world's leading energy and technology companies

19.  19 A significantly increased energy R&D portfolio 2008 Petroleum CCS Renewable production Energy- system, efficiency Etc. Coal, Nuclear Etc. Mill €

20.  20 A significantly increased energy R&D portfolio 2008 + Climate agreement 2009 Petroleum CCS Renewable production Energy- system, efficiency Etc. Coal, Nuclear Etc. Mill €

21.  21 A significantly increased energy R&D portfolio 2008 + Climate agreement 2009 + Climate agreement 2010 Petroleum CCS Renewable production Energy- system, efficiency Etc. Coal, Nuclear Etc. Mill € Total:115 mill € per year

22. Implementation 22

23.  23 Priority Setting for Implementation  Priorities - topic  Energi21 recommendations  Areas important for national energy and climate policy  Areas with potential international markets where Norway has advantages  Priorities – instruments  New Research centres  Programs – Basic Science – Innovation  Infrastructure  Test/pilot projects  International collaboration

24. 24 Climate Agreement Growth 2008-2010 – by Instruments

25. 25 Climate Agreement Growth 2008-2010 – by Sector

26. Research Centers as a driving force  Concentration of the best Norwegian competence in a long-term and concentrated effort  Provide a platform for taking R&D results to the market  Innovation through clustering the country’s leading companies, research institutes and universities  Increase the visibility of the research efforts  Attractive for government and industry  Visible spear heads for international R&D collaboration  Leading actors unified under one umbrella  Clear targets for international collaboration

27. 27 Eight Centres for Environment-friendly Energy Research CO 2 storage Zero emission buildings Solar cell technology Offshore wind technology Offshore wind energy Bioenergy Renewable energy systems CO 2 capture and storage

28. New centres within socioeconomic energy research in 2011 Strategic Challenges in International Climate and Energy Policy (CICEP). Centre for Sustainable Energy Studies (CenSES) Oslo Center for Research on Environmentally friendly Energy (CREE)

29. CEERs – so far  All eight centres are active and visible spearheads within their topic areas  Strong clusters formed between researchers and industrial partners  Nearly 100 user partners, mainly industrial  About 400 researchers are connected to the centres, a large number of new PhDs has been engaged  The interplay with R&D programs is important  New centres within socioeconomic energy research

30. 30 Norwegian R&D Revolution – A more attractive partner for international collaboration  Increase of nearly 3x R&D volume in less than 3 years  Allowed for a structured effort to strengthen Norway in areas where we have advantages  International collaboration a high priority  Strengthen research quality  Develop knowledge for solving global challenges  Value creation for industry  Increased budgets for key energy R&D programs offer more opportunities to support projects with international collaboration