World Future Energy Summit

Keynote Address of H.E. Frank Heemskerk, Minister for Foreign Trade at the World Future Energy Summit, 22 January 2008

Keynote Address of H.E. Frank Heemskerk , Minister for Foreign Trade at the World Future Energy Summit, 22 January 2008

Introductory words:
Your Highness, Your Excellencies, ladies and gentlemen. I am very honoured to have the opportunity to address this conference. During my last visit to Abu Dhabi in May 2007 I was already impressed by the vision and ambition of Abu Dhabi to become a world leader in sustainable development, especially marked by the Masdar initiative. The presentation of the carbon free city was impressive. When I got home I told my wife and children that this is a city where I would actually like to live.

And today I can see that you have lived up to the expectation: this World Future Energy Summit certainly places Abu Dhabi in the center of developments related to sustainable energy.

My presentation will highlight Dutch policies on sustainable energy, and then focus on practical initiatives, both by my government as well as by the private sector.

Energy in classical Holland
Let me first show you a picture of the country I'm coming from. Windenergy is already very well known to us for many centuries…
Actually, I am also responsible for Tourism, so If this picture gives you an appetite to visit my beautiful country, you are more than welcome!

Energy in modern Holland
And let me also show you some of modern, present day Holland.

About the Netherlands
Let me also give you some information on the situation in my country. This slide shows the strategic position of the Netherlands in Europe. There is a market of 350 million consumers within only 800 miles. With Rotterdam as the biggest Port of Europe, and Amsterdam Schiphol as a major hub for international passenger and freight transport by air, the Netherlands is the Gateway to Europe.

Another gateway: Gas Hub
This strategic position shows itself in yet another important aspect of economic life: the energy supply.
The Port of Rotterdam is one of the biggest in the world regarding transshipment of oil. But on this slide you can see that the Netherlands is also in an excellent position to play a significant role in gas transport in north-western Europe.

We sit on the crossroads of the north-western European market, and a number of major transport routes pass through the Netherlands. We believe that we can retain our current position in the gas market by developing the Netherlands into the 'gas roundabout' of Europe, a strategy that we intend to pursue.

To further strengthen our position, we are seeking additional pipeline connections, we will be installing a number of LNG terminals and create more underground storage. Obviously, this will be carried out by private parties and according to commercial conditions.

Fossil fuels remain dominant
It is clear that fossil fuels will remain dominant for decades to come. But we need a gradual and innovative transition to other energy sources and more efficient use of fossil fuels. [Like Dr Al Jabber called it a bold….]

I believe there are three steps to be followed in this transition process:
- Short term options, which are most cost-efficient: such as biomass and onshore wind power
- Medium term options such as offshore wind and biogas
- Long-term options such as solar PV

The Dutch government supports financially the market introduction of thementioned short term options with a gradually decreasing subsidy. For mid term options we have a development and market introduction budget and long term options we support by R&D programmes.

Holland ready for this transition
So Holland did start the this transition process already. We have a commited government, we have an innovative-friendly environment and we have excellent companies.

Did you know that at the recent International Picnic Green Challenge, a competion for innovative companies in the field of sustainable energy, with a jury chaired by Sir Richard Branson, 4 out of 5 of the finalists were Dutch? Out of a field of 440 contestants from 50 different countries! I'll get back to you with the winner in a while…

Examples of Dutch Transition Proces
For this process of transition it is crucial that Government and Industry work together hand in hand.

Let me now give you some you some examples how we in the Netherlands deal with this transitionproces:
• The share of Green gas in gas-distribution networks will increase to 10% of total energy consumption by 2020, with a huge potential for further growth
• Within my city The Hague we will built a 'sustainable town district' which obtains heating and cooling from seawater, and electricity from wind
• And the Port of Rotterdam wants to become an important global player in the handling of new energy cargo flows, such as solid biomass, liquid biofuels and hydrogen.

As I said, fossil fuels will remain dominant. We have to use our fossil fuels more efficiently, and at the same time develop other ways of producing energy with smart solutions.

Smart solutions
Wind: The Netherlands is a relatively small country, meaning that space for on-shore wind generators is limited. However, we have a lot of wind. Therefore, we intend to double the amount of on-shore wind energy in the next four years (an extra 2000 Megawatts). Wind on- shore is now on the verge of becoming price competitive. In addition to merely building more windmills, each new state-of-the-art windmill now produces more power than previous models.
And they are getting huge.

Greenhouses: We have achieved significant progress in the field of greenhouse farming. Greenhouses have always been very power-hungry.

However, in addition to having become more efficient, greenhouses have even become energy generators, through the intelligent application of 'combined heat and power', heat converters and underground energy storage. This form of energy storage has proven to be particularly successful.

Energy from water
The first offshore trial wind park is in operation - an example of blue energy Dutch style. There are plans to achieve 6000 MW by 2020, which will mean 2000 large sea windmills. The Dutch firm Econtent provides high quality consultancy and turnkey projects in wind energy.

Another example of Blue Energy is the technology to generate electricity by mixing sweet water with salt water. This technology, developed in close cooperation between a government agency and private parties is now in its testing phase. The initiators are aiming at building a 200 Mega watt power plant near a big dike in the north of the Netherlands.

Solar energy
This is a picture of the main building of the World Fameous Floriade Horticulture Fair. This is the largest site of solar panels in the Netherlands: 28,000 square meters, and very nicely integrated into the building's design.
The Netherlands has a moderate climate with quite a limited number of sun-hours, but we are becoming more and more well-known for our advanced solar PV technology.
In terms of public expenditure per capita, in solar research and development we are currently number two in Europe. Despite the persistent high cost, solar PV energy shows great potential and our aim is to achieve a reduction in costs through an increase in scale and further R&D.
Very promising new technologies in solar energy are being developed by Dutch companies which will build a 250 MW solar power plant in 2009.

As I told you earlier, in Holland we have many excellent companies, and some of them are present at Holland Pavilion on the exhibition. As a minister for foreign trade, I believe that the private sector is actually the most important part of the solution.

Dutch innovative companies with me here today
One of the companies joining me here at the summit is Qurrent, that has won the prize I earlier refferd to! They have developped the so called 'Qbox':
An intelligent tool which allows optimal spread of available energy within a local energy network. This saves between 10 to 40% energy.

Another company joining me at this event is Home Energy International. It has developed a revolutionary windmill:
- The unique Energy Ball swings itself into the wind, producing optimal performance
- The Energy Ball operates at very low wind speeds
- Small and easy to install, no maintenance, low noise level

Another company here is Lemnis Lighting. This company has developed the Pharox LED lamp, which:
- Uses 90% less energy than traditional bulbs
- Lasts 50 times longer
- And has been successfully introduced in the Netherlands

Let me conclude.
In the Netherlands, both the government and the private sector are commitet to innovative energy solutions and are keen to cooperate with other countries for the further development and implementation of these new solutions.

Thank you very much for your attention.