The Arabian Desert Solar Energy Consortium Proposal

Feasibility Study Part 1 1 GW/h Power Plant

Desert Energy Project

August 2011

2 Contents Emerging solar energy market Primary goal of the Consortium Political and Social Benefactions Location Cost of the Project Detailed Costs Shareholders Duration of the Project !echnical "utfit Solar !hermal Po$er Plants and %SCC &ydrogen Production to Store Electricity !he !rans(ort Ca)le *unding and Coo(eration of the Euro(ean +o,ernments Summary Conclusion of Part . 0nne1 .2 *rom Electricity to &ydrogen # # ' ' ./ .. 2 3 3 4 5 5

Emerging solar energy market

!he a$areness of climate change created an emerging energy market3 !he Euro(ean 4nion (lans to use 2/ (er cent of its total energy from rene$a)le sources5 and ./ (er cent of fuel for trans(ortation $ill )e co,ered )y )io fuel3 Solar energy may thus )ecome highly a((reciated )y industrial countries a,oiding Car)on !rade (ayment3 6ith the (roduction of electricity the 0ra)ian Countries o(en a ne$ energy market segment3 !his may secure their dominance in the future energy economy3 Solar energy does not com(ete $ith oil economy )ecause electricity in $estern countries is mainly $on from nuclear (o$er or from )ro$n coal5 or $ind tur)ines $hich are generating a)out .' (er cent of electricity of the grid in Denmark and are (laned to )e increased u( to 5/ (er cent3 Solar energy is the greatest $ealth of the %slamic $orld $hich has not )een e1(loited yet and is an emerging energy e1(ort article3 !he 0ra)ian deserts ha,e )oth im(ortant 7ualities needed for the (roject2 . 8 Sufficient area $hich does not com(ete $ith agriculture or other uses3 2 8 &igh solar incidence during all seasons3

Primary goal of the Consortium

De,elo( the solar energy of the 0ra)ian deserts3 !he Consortium $ants to secure the rene$a)le energy market for the 0ra)ian Countries adding electrical energy to their energy (ortfolio3 Euro(e is e1tremely de(endent on electricity3 %m(orting solar energy from the deserts $ill im(ro,e climate conditions and is a secure economy for centuries to come3 Electricity in Euro(e is mainly (roduced )y nuclear (o$er (lants and )urning )ro$n coal3 Both are seen as e1tremely unfriendly to nature3 Solar electricity is )eing su((orted )y the Euro(ean go,ernments )ut $ill ne,er (roduce the )ulk amounts demanded )y the gro$ing Euro(ean market3 Solar incidence is to lo$ and there is not sufficient area a,aila)le3 !he 0ra)ian countries may o(en a ne$ )usiness e1(orting green electricity and hydrogen to the Euro(ean 4nion3 Starting the hydrogen economy 0ra)ian countries $ill secure leadershi( in a ne$ emerging technology ahead of other energy glo)al (layers3

Political and social benefactions

Profita)le )usiness is the )est $ay to )ring (olitical harmony )et$een nations3 !he (ossi)le shareholder 9ingdom of Saudi 0ra)ia5 the State of 9u$ait5 the Emirate of 0)u Dha)i5 the :e(u)lic of Syria5 the State of Egy(t $ill )e tighter united )y economic relations o(erating and (rofiting from the (roject3 Poor countries are struggling to sur,i,e in urgent need of food and energy to (re(are their meals5 to (um( $ater for (eo(le5 cattle as $ell as irrigation3 !his situation desta)ili;es large regions of 0frica and 0sia3 <aking energy a,aila)le at no charge at regions of e1treme (o,erty $ill hel( to reduce human distress3

4 The Sahara cover an enormous part of North Africa. Together with extensive desert areas of the Middle East it is the part of the world with optimal conditions for the installation of photovoltaic arrays and solar thermal parabolic trough power plants. There are two locations seen as favourable to start the Project. Algeria The Algerian Desert near the Tinduf region could be promising while accounting a wide area which is eligible for a very large scale photovoltaic power plant system. The proximity to Europe and a commercial connections resulting from the Algerian gas pipeline have initiated a feasibility study for a photovoltaic project by the European Union. It is not impossible, but it will turn out to be extreme expensive to built a conducting cable through the Mediterranean Sea. Political instability of the Region and recent terror acts, together with a growing friendship of France with Libya brings a disharmony in the European ability to act on energy matters. The Arabian Peninsula start The Arabian Peninsula presents the best conditions to start a very large photovoltaic project. The Start in Saudi Arabia bears the advantage to have the PV/heat convection power plants near the development/control centre. This is very helpful in the initial phase of the project to respond rapidly during the development phase.

Location

Another advantage is that the superconducting grid connected to the European Grid has to bridgeover only short distances of water. Using the Bosphorus Bridge no deep water cable is necessary. Sunshine is 2 hours ahead of the main part of the EU. The peak electricity demand at the early part of the day may thus be ensured. Source: Wikipedia map The Consortium can produce energy beginning right from the start. selling for the home market and exporting electricity to countries on the way to the European Grid. Conclusion: !he (resent feasi)ility study strongly su((orts the start of the Project in the northern region of Saudi 0ra)ia and 9u$ait3 !he go,ernment of the im(licated countries must determine the (recise location ant the transit $ay of the grid3

Costs of the Project

%nitial (lan to )uilt a (lant of . +iga$att Photo,oltaic array in 4 construction (hases2 Construction Phase 1 Phase 2 Phase 3 Phase 4 Total Capacity 100 MW 300 MW 300 MW 300 MW 1 GW Modules 570 000 1.710 000 1.710 000 1.710 000 5.700 000 Area km 2,6 7,8 7,8 7,8 26 Completion 2012 2013 2013 2014 2014 Cost M Euros 895 910 910 910 3,63

%t is recommended to install the mentioned four grou(s of arrays in the north of Saudi 0ra)ia=9u$ait co,ering a total area of 2 km>5 for a )est location3

Detailed Costs
First Phase: 100 MW P? modules .-/5///5/// E4: Planing5 su(er,ision5 geologic tests 254//5/// E4: Construction and su((lements '/5///5/// E4: @.A Buildings 255//5/// E4: %n,erters 4/5///5/// E4: Electrolysers 3/5///5/// E4: !ransmission and ca)le to Euro(e 55/5///5/// E4: '-45-//5/// E4: Phase ! " and #: "00 MW each P? modules . #./5///5/// E4: Construction and su((lements #2/5///5/// E4: Buildings 2.5///5/// E4: %n,erters -5///5/// E4: Electrolysers 2#/5.//5/// E4: 25#3/5.//5/// E4: $otal Cost of 1 %igaWatt Plant Pay off Pay off in the Sun)elt "(erating life guarantee of !he actual (rice of . k6=h in Euro(e is !he first 3/ !erra 6att $ill cost !he net e1(ort (rice to Euro(e $ill then )e Total production in 25 years 75 TW 0,19 Euro Total Cost Phase 1 to 4 Nett gain 75 TerraWatt/h 14.25 Billion Euro 3.7 Billion Euro 10.55 Billion Euro ./ years 25 years B5 C /3.- E4:=k6h /3.- E4:=k6h /3/# E4:=k6h
@2A

"!& '!000!000 E()

@.A <aterial for 3/D tilt mounting Esuch as Solar <ounting System from Schletter P,<a128S htt(2==$$$3dahlmann8solar3de=)efestigungssysteme3(h(FlnGen H htt(2==$$$3dahlmann8solar3de=daten)latt8en=SchletterBrochure2// systems3(df [2] 1 Year = 300 days with 10 hours of sunshine

Fixed Mounting: 6 Fast mounting, low price, avoids damages to the terrain, simple renaturation without any disposal costs are the main advantages of the combination of the system PvMax2 with special screw foundations. The screw foundations are places on site with appropriate mounting devices and replace the conventional concrete foundations.

Phase 1: 6ith ./ hours sun irradiation an e1(ort ,olumina of #35 !erra 6att=h $ill )e achie,ed in 25 years3 Phase to #: 6ith ./ hours sun irradiation an e1(ort ,olume of #35 !erra 6att=h3 !ogether $ith (hase . it amounts of <illion Euro as re,enues from e1(ort and 3 /24 <illion Euros su)sidies from Euro(ean states3 0fter # years no su)sidies $ill )e needed any more3 @.A !he initial in,estment $ill therefore )e (ay )ack in # years3
@.A 0 Su),ention of /3.2 Euro=k6=h for 3/ !erra6att=h to stimulate rene$a)le energy in Euro(e is concei,a)ly5 and $ill turn solar electricity and hydrogen (ricing ,ery attracti,e at and consumer (rice of /5/# Euro k6=h and resulting in a (rice of /3.- Euro to (ay to the 0ra)ian Consortium at E4 )order3

Additional 1 GW/h Plants

Investment in additional 1 GW/h plants 6ill (roduce electricity and hydrogen in 25 years 3,075 Billion Euro .45#55 Billion Euro

!hese figures considered the $orst8case scenario3 %ncreasing demand of energy $ill let future (rices of electricity soar u( and conse7uently the re,enues of the 0ra)ian Desert Solar Energy Consortium3

*hareholders
!he follo$ing Shareholders and their shares are )eing suggested as follo$2 !he 9ingdom of Saudi 0ra)ia 45C !he State of 9u$ait 2/C !he Emirate of 0)u Dha)i .5C !he :e(u)lic of Syria ./C !he State of Egy(t 5C "ther States 5C 0 small (artici(ation of Euro(ean countries $ould easy (olitical and economic e1(ort agreements $ith Euro(ean countries $hich fear to get de(endent of <iddle East energy su((ly3

Duration of the Project

Planing! contract +hase Duration month Com(letion Iune 2/.2 Construction solar +lants and grid Duration 2 years Com(letion 2/.4 Jote that in this (eriod electrical energy $ill )e a,aila)le at the regions already co,ered )y the gro$ing grid in its $ay through Iordan5Syria and !urkey5 resulting in re,enues3

$echnical outfit
P, arrays ! static system: !he (resent feasi)ility study recommends single8crystalline silicon Emono8crystallineHmodules5 and the static P? array system for an initial construction3 Static system reduces installation costs5 a,oids system failures and further maintenance ser,ice costs3 !he modules should face south $ith an inclination of 2/D3 -ne.a/is tracking system: 0 one8a1is East86est sun8tracking $ould increase energy out(ut of the P? array around 2 C3 %nitial cost5 ho$e,er5 $ould increase )y ./ C E total .5/ <io EuroH3 <aintenance of mo,ing (arts $ill account for a continuous )udgeting of ./ men (o$er3 %nitial construction should therefore refrain from using tracking systems3 9uroka$a $rites that a tracking system turns the $hole installation e1treme ,ulnera)le to failures3 &e strongly recommends a static system3 @.A
@.A 9uroka$a5 9osuke2 Energy from the Desert 3 *easi)ility of ?ery Large Scale Photo,oltaic Po$ert +eneration E?LS8 P?H Systems3 Iames K Iames 2//33

*olar thermal +o0er +lant: Para)olic trough (o$er (lant concentrate the sunlight onto an a)sor)er tu)e that runs along a caustic line3 !he solar radiation concentrated in the a)sor)er tu)es heats $ater ,ia a heat e1changer to tem(eratures of around 4// DC3 !he resulting $ater ,a(our dri,es a generator5 as $ith con,entional steam or gas tur)ine (o$er (lants3 Para)olic trough (o$er (lants5 as the currently least e1(ensi,e ,ariant of solar electricity generation3 !his system needs a ,a(our dri,en generator5 similar to con,entional (o$er (lants3 0)rasion of sand storm can easily damage the reflector surface5 $hich need a s(ecial (rotection of all reflectors3 &igh technical maintenance and o(eration of the system are re7uired3 Solar thermal (o$er (lants should )e included in the system only after consolidation of the first (hase of the P? system3 %t may then )e considered to storage solar thermal energy in melted salts for night o(eration3 !he solar thermal (o$er (ara)olic trough and also the %SCC technology must )e e7ui((ed $ith a steam dri,en tur)ine to generate electricity3 !he system re7uires continuous maintenance5 it handles high tem(eratures $hich may lead to accidents3 Construction cannot )e handled in a modular $ay3 %t starts to $ork after all the installation is com(lete3 !he installations and (i(elines are ,ulnera)le to e1ternal influences like aircraft accidents5 terrorist attacks3 !he (hoto,oltaic arrays (roduce direct current $hich may )e e1(orted and used for electrolysis of $ater $ithout any change3 !he system (roduces re,enues right from the start3 %t may )e modified 5 enlarged or reduced according to the amount of energy demanded )y the market3 !he (roduction of hydrogen may )e (erformed at any (lace $hich is connected to the grid3 %n case of e1ternal damage5 remaining arrays may )e immediately reconnected $ith ca)les and the function of the system restart3 !hese security features $ill )e highly a((reciated )y in,estors3

'

Com+aring the s+ecific in1estment of +o0er +lants @.A

Photovoltaic Nuclearpower Wind power CSP Oil Hydropower Coal Natural gas Billion Euro/kW 3.66 2.66 2.00 2.00 2.00 1.20 7.73 0.33 Remarks No primary energy needed High primary energy cost No primary energy needed Natural gas or oil as fuel Oil as primary energy No primary energy needed Coal as primary energy Natural gas as primary energy

Photovoltaic has the highest investment cost, however, it may be easily installated. The Size of the plant may be changed according to the demands of the market. The system does not need special operators to look after. No operator is necessary. It delivers DC current, directly used in electrolyser to generate hydrogen as fuel for cars and stabilises the grid.
[1] German Aerospace Center DLR: Study: Trans-Mediterranean Interconnection for Concentrating Solar Power (TRANS-CSP), 2006. http://www.dlr.de/Portaldata/1/Resources/portal_news/newsarchiv2008_1/algerien_trans_csp.pdf

2ydrogen +roduction to store energy

%t is recommended to (lan early installation of an hydrogen facility to store energy during daytime3 this may then )e recon,erted into electricity at night3 &ydrogen (roduction and storage has no limits3 and (resents ad,antage in com(arison $ith solar thermal storage $hich are limited to the ca(acity of the salt storage containers3 !he hydrogen may )e used to generate electricity at night3 !he sur(lus of hydrogen is a (recious fuel for trans(ortation on land and at sea for +erman su)marine5 or as fuel for s(ace shuttles3 0n early installation of hydrogen facility is strongly recommended to secure the emerging electricity and clean fuel market3

$he trans+ort cable

",erhead line using &igh8?oltage Direct Current light technology E &?DC light H for a grid of 235// km3 DC=0C con,erter can e1tract small amounts of energy from this grid3 Su((lying electricity to local (o(ulation is thus (ossi)le3 4nderground ca)le transmission can )e used in en,ironmental sensi)le areas instead of o,erhead lines3

Funding and coo+erations of Euro+ean %o1ernment 3nternational Feed.in Coo+eration @.A

!he %nternational *eed8in Coo(eration $as initiated )y the go,ernments of S(ain and +ermany at the %nternational Conference for :ene$a)le Energies in Bonn in Iune 2//4 Erene$a)les2//4H in order to (romote the e1change of e1(eriences so as to im(ro,e the feed8in system design in each country3 !hereafter5 a joint declaration )et$een )oth go,ernments $as signed on "cto)er 5 2//5 in <adrid3 Slo,enia joined the coo(eration on Ianuary 2-5 2//#3 Since feed8in systems ha,e (ro,en to )e the most effecti,e and efficient o(tion to (romote rene$a)le energies5 the %nternational *eed8 in Coo(eration aims at demonstrating the ad,antages of a feed8in system3 %n this conte1t5 the mem)er countries intend to stimulate the enhancement of feed8in tariffs $orld$ide )y including other countries into their information e1change (rocess3 *or instance5 e1isting kno$ledge and e1(eriences gained in the three countries can ser,e as ,alua)le information for other countries (lanning the introduction or further de,elo(ment of feed8in tariffs3

$he %erman Electricity Fedd.in 4ct @2A

4nder the ne$ electricity *eed8in 0ct EEE+H5 feed8in (rices are no longer linked to electricity retail (rices5 )ut fi1ed for 2/ years3 !he +erman go,ernmentr su)sidies (hotoi,oltaic electricity $ith 32 and 4# cents=.k6 de(ending on the ty(e of installation3 @3A
@.A Documents on *eed8in Coo(eration htt(2==$$$3erneuer)are8energien3de=inhalt=3 35 = @2A !he Electricity *edd8in 0ct2 *eed8in systems in +ermany5 S(ain and Slo,enia L 4(dated com(arison http://www.feed-in-cooperation.org/images/files/ific_comparison_of_fit-systems_de_es_sl.pdf @3A &andels)latt2 Gabriel bevorzugt Windkraft auf See. 11.11.07 http://www.handelsblatt.com/News/Politik/Deutschland/_pv/doc_page/2/_p/200050/_t/ft/_b/1335634/default.aspx/gabri el-bevorzugt-windkraft-auf-see.html

*ummary
!he ne$ addiction of the Euro(ean 4nion and other industrial countries to the (rotection of en,ironment $ill o(en ne$ fields of energy su((ly3 !o make lo$ cost electrical energy a,aila)le $orld$ide $ill significantly increase li,ing conditions in many countries5 $ill eliminate hunger and o)solete $ars and $ill hel( to sto( further desertification3 Starting a (hoto,oltaic solar energy array in the 0ra)ian Peninsula !he 0ra) Consortium may enter the glo)al electricity market3 &ydrogen (roduced from solar electricity from the grid may )e used for trans(ortation in cro$ded areas3 !he common internal com)ustion engine5 usually fueled $ith (etrol or diesel li7uids5 can )e con,erted to run on gaseous hydrogen3 &o$e,er5 the more energy efficient use of hydrogen in,ol,es the use of fuel cells and electric motors3 :esearches on hydrogen storage )uilt on metal hydrides and com(ression are 3

./ !he Project $ill )e self financing through the (roceeds of selling electricity and hydrogen3 !he e1(ort re,enues may finance follo$ (rojects to com(lete the glo)al grid3

Conclusion of Part 1
Solar energy from desert regions is (redicted to )ecome a strong ne$ market3 %t may fill the ga( of fade out of nuclear (o$er (lants3 Belgium5 +ermany5 Jetherlands5 S(ain and S$eden decided not to )uild ne$ (lants or intend to (hase out nuclear (o$er5 although still mostly relying on nuclear energy3 E1(orting solar energy to Euro(e $ill o(en the market of electricity for 0ra) countries adding a ne$ item to their energy e1(ort (ortfolio3 !he start of the (roject should consider 2/.2 for (lanning contracting and early constructions and modular increase3 !he feasi)ility study of the (roject fa,ours s(ecifically the main array location at the 0ra)ian Peninsula3 !he (hoto,oltaic array ,ersion is easy to install5 the (roject is may )e changed during construction3 %t does not de(end on $ater in desert area3 %t $orks $ith a minimum of maintenance3

Annex 2 From electricity to hydrogen

11

More informations at $$$3desertenergy(roject3net=+lo)alM%nitiati,e

The Arabian Desert Solar Energy Consortium Proposal

Feasibility Study Part !ydrogen Produ"tion

Desert Energy Pro#e"t

August

$1$

2 Contents Executive summary The market for hydrogen onclusion of the Hydrogen !arket Technology and %afety Hydrogen Production and Payoff Total (evenues after 2& )ears 2 3 4 & ' * The Hydrogen Economy 8 Location of Hydrogen Plants 9 Hydrogen Production in Egy"t #$ onclusion ontact ## ##

The demands for energy are continuously increasing. Prices for crude oil and natural gas are soaring. Increasing traffic on road, rail, sea and air rise deep concerns about pollution. Political and public awareness of climate change in Europe , Australia and partially in the United States spur the development of new green technologies to reduce the emission of greenhouse gases. These are basic approaches of a new generation of energy breakthrough into a new market with incredibly high potentials on green fuel and storage of energy. Using hydrogen fuel cell vehicles i n heavy traffic density regions will improve quality of air of cities. Countries committed to a nuclear energy phase-out, such as Germany, may profit from a cooperation with Arabian countries to establish a solar/hydrogen economy energy politic. Natural gas from UK off-shore fields are exhausted. Therefore in 2008, UK gets involved with France to share nuclear energy to compensate the outage. The market for solar Energy, and absolutely for hydrogen, will cause a run to these new markets located in the Arabian deserts. The winner of this run will be the owners of the deserts. Hydrogen is also the best suited air independent fuel for use in closed compartments, like submarines, mining, warehouse or underground facilities. [1] Hydrogen from water hydrolysis, using solar energy from the deserts will be the alter native fuel for the next decades in cars equipped with fuel-cells or with direct hydrogen fuel injection. [2]

Part 2 Executive Summary Hydrogen economy

[1] Siemens AG: Fuel Cell Propulsion of Submarines. Dr. Albert E. Hammerschmidt, Siemens AG, Erlangen. Paper presented at: Advanced Naval Propulsion Symposium 2006, October 30-31, 2006, Arlington, VA, USA Dr. Albert E. Hammerschmidt 21.08.2006 Siemens AG. I&S OGM MAS FC. Guenther-Scharowsky-Str. 1 91058 Erlangen / Germany. Tel: ++49 9131 722342 [2]Siemens AG: USC, Siemens, XRDi announce partnership for developing hydrogen-powered engines. By Christina E. Johnson Mechanical Engineering. University of South Carolina. October 17, 2005 http://www.me.sc.edu/PDF/Hydrogen-PoweredEngine.pdf

The Market for Hydrogen

Hydrogen is stored energy. Excess wind hydro or solar energy may be used for electrolysis of water producing hydrogen for storage, transportation and chemical industry, such as hydrogen peroxide, ammonia, and oxygen for industrial uses and a variety of applications. Invalid statement of the World Nuclear Association The World Nuclear Association states that "Sun, wind, tides and waves cannot be controlled to provide directly either continuous base-load power, or peak-load power when it is needed. In practical terms they are therefore limited to some 10-20% of the capacity of an electricity grid, and cannot directly be applied as economic substitutes for coal or nuclear power, however important they may become in particular areas with favourable conditions." " There must be reliable duplicate sources of electricity, or some means of electricity storage on a large scale. Apart from pumpedstorage hydro systems, no such means exist at present and nor are any in sight." "Relatively few places have scope for pumped storage dams close to where the power is needed, and overall efficiency is low. Means of storing large amounts of electricity as such in giant batteries or by other means have not been developed. [1] This is not valid any more. The statement does not consider actual developments in solar energy focused on the sun belt of the deserts. To store energy hydrogen produced by electrolysers make batteries obsolete. Hydrogen cars will be the future fuel for clean transportation. The statement of the World Nuclear Association is a clear fight to protect their economic interests. UK and France, as nuclear potentates are joining their shortsight nuclear energy politics building an alliance on nuclear energy, isolating Germany from this deal. [2]

The chance of Germany to quit the Bad Boys Club [3]

Getting out of an energy isolation induced by the recent UK/France nuclear energy alliance, Germany could utilise the enormous economic chance of the Middle East. Germany would get rid of nuclear power plants and also avoid further development of the coal lobby. Germany is still an honoured member of the Bad Boys Club which promotes nuclear power, coal, fossil energy, and increasing petrol based transportation on ground and supporting further development of air traffic. Sources of Electricity in Germany 2001 2006 Brown coal 29% 23% Hard coal 22% 21% Nuclear power 23% 27% Natural gas 7% 12% Hydro + renewables 7% 12% Oil + others 2% 5% The CO2 capture story Germany sticks to a mix of small solutions, coal, combined with CO2 capture is a core element of it. However, CO2 capture technology is nothing but eyewash: According to the Office of Technology Assessment at the German Parliament (TAB), CO2 capture will become available for large scale use in 2020 at the earliest and increase the actual price from two or three cents up to seven cents per Kilowatt.

4 Spiegel Online cites Jrgen Metzger, from the University of Oldenburg, underground storage is unsafe because of earthquakes. The technology has never been tested on a large scale. The researcher stressed that capturing greenhouse gas takes 20 percent of the produced energy , reducing the efficiency of the power plant. Germanys way to join sustainable energy business Joining an Arabian Consortium to exploit the solar energy of the Arabian Deserts could free Germany from the suffocating oppression of the energy lobby. Electricity from Photovoltaic and parabolic technology together with hydrogen as fuel and as storage element as described in this feasibility could add a new direction to a headless German energy politic. The egg or the hen? According to Dr. Robert W. Shaw Jr. of Aret Corporation, hydrogen prepared by electolysis of water with sunlight, is clearly the energy carrier of the future. The most frequent concern related to the installation of a hydrogen economy are the timing of technology readiness; cost of the infrastructure; build-out strategy. [4] The question is what comes first, the egg or the hen? The Desert Energy Project meets all these points. The project begins with the installation on photovoltaic module. which may be fed into the local electrical grid. Revenues start at the very beginning, as soon the first group of solar cell is installed. Further construction may proceed without interfering in the operation of already realised groups. Production of hydrogen may start as soon enough energy is provided by the plant. This hydrogen can be used as fuel for power plants for night and peak loads operation. Hydrogen for cars may be offered at specific petrol stations in rechargeable containers, or later from the electrical grid.

Conclusion of the Hydrogen Market Strategy

Hydrogen is an ideal energy storage and a promising fuel for emission free transportation. Solar energy and hydrogen round out the portfolio of companies dealing with energy sources. Timing of the technological readiness of electricity/hydrogen/ hydrogen car/energy storage for power plants is managed turning all basic points interchangeable in one hand. [1]Wikipedia: Economics of new nuclear power plants. http://en.wikipedia.org/wiki/Economics_of_new_nuclear_power_plants [2] Spiegel Online: Blackout-Alarm und Nuklear-Allianz. Briten und Franzosen bereiten groes Atom-Comeback vor - Deutschland planlos. 23.03.2008 http://www.spiegel.de/wirtschaft/0,1518,542933,00.html [3] Spiegel Online: Making dirty Power Green. Is Carbon Capture a False Hope for Coal Power? 20.03.2008. http://www.spiegel.de/international/business/0,1518,542508,00.html [4] Arete Corporation: 2002 http://www.arete-microgen.com/GlobePres3.15.02F.pdf

Technology
Electrolyser: In this feasibility study the electrolysers 485 of StatoilHydro were considered as core element of the hydrogen production electrolysing water using solar generated electricity.

Car Refuelling: StatoilHydro Fast-Filling Hydrogen Dispenser 40 kg Hydrogen in 5 minutes The refuelling station has improved safety, fault detection features All components are CE marked and explosion-proof. The station has easily readable display showing hydrogen amount and percentage filled. The convenience of the petroleum-based fuel distribution system is a key factor in the continuing dominance of vehicles running on liquid fossil fuels. It explains in large part why gasoline hybrid electric vehicles have been successful in penetrating the consumer market, while grid-connected electric vehicles (including grid-connected hybrid electric vehicles) have not. Positioning small hydrogen tanks and fast-filling hydrogen dispensers may overcome initial problems to introduce hydrogen in the market. These small tanks can easily be replaced and refilled at central distribution centres.

Hydrogen Handling Safety Issues Hydrogen has a high diffusivity, it has extremely low density as a gas and liquid, and has a broad flammability range relative to hydrocarbons and low-molecular-weight alcohols. The technology or storage, transportation and use of hydrogen is safe. The TV SD, Industrial Services controls and certifies safety of all installations of hydrogen systems. [1] [1] TV Industry Services GmbH. Westendstrasse 199 80686 Munich Fon (+49) 89 5791 3313 Contact: Ralf Szamer Email: ralf.szamer@tuev-sued.de http://www.tuev-sued.de/uploads/images/1178632913057724530634/Anwendung_WasserBrennstoffzelle.pdf

Hydrogen Production and Payoff Equipment necessary for converting half of the electricity of the the system (500.000KW/h) in hydrogem Hydrogen Plant
Ammount of units Price Euro [1] Electrolyser Electrolyser StatoilHydro Nr485 765 000 000 Extras for full interconnecting 70 000 000 Building 25 000 000 Protection from Sandstorm 500 Km cable between power plants and main grid 110 000 000 [2] Certification of safety of installations, hydrogen plant, storage and use of hydrogen at 4 power stations at Middle-East 400 000 [3] Certification of the transport 250 000 cable Saudi Arabia-Europe Certification of transportation, installation and car refilling at fuel stations in Middle East and in Europe 200 units 350 000 971 000 000 Total cost of plant

450 450

Building ABB cable TV-SD safety certification [1] TV-SD safety certification TV-SD safety certification

[1] Price according Email Iain Alexander Russell 11.02.2008 13:37 Subject: Prices of electrolysers [2] ABB Ltd Affolternstrasse 44. P.O. Box 8131. CH-8050 Zurich. Switzerland Tel. +41 (0)43 317 7111 Fax +41 (0)43 317 4420 ABB Ltd Al Ahsa Main Street. 11491 Riyadh Saudi Arabia. Phone +966 1 476 2644 Fax +966 1 476 9622 @3A !N? %ndustry Ser,ices +m)&3 6estendstrasse .-- '/ ' Contact2 :alf S;amer Email2 ralf.szamer@tuev-sued.de <unich *on EB4-H '- 5#-. 33.3

Hydrogen Production Costs

Electricity price ( cent/kWh)
7 6 5

Production costs ( cent/Nm3H) [1]

42 37 32

Production costs vary according the costs of electricity+ ,n the "resent feasi-ility study a 7 cent/Nm3H has -een calculated for the .orst scenario+ As the system grows, electricity cost will

drop and hydrogen becomes increasingly attractive.

Comparing Hydrogen /gasoline Prices

Gasoline Price 1 Litre Price Hydrogen Comparable to 1 litre gasoline Europe USA For export to Europe

[2]

1.30 -1.40 EURO (including all taxes) 0.56 0.64 EURO (including all taxes) 1.06 EURO (free of taxes) [*]

[*]Note: To introduce a fuel free of emission Europe should make hydrogen free of all taxes. Adding Transport and retail cost the price of hydrogen will be competitive with fossil fuel.
[1] StatoilHydro: Hydrogen Technology. December 2007. Presentation [2] Energy Information Administration: US Retail Gasoline prices incl. all taxes 03.27.08 http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html

Hydrogen Production Capacity [1] 4,3kWh 1 N- m3 hydrogen 500 MWh produces 25 Years Total revenues 25 Years [2] Cost equipment Cost electricity Nett income of H2 Production 1 N-m hydrogen 0.396 Litre gasoline 116 279 Litres gasoline /hour 8 .721 B Litres gasoline/h 9. 244 B Eur 0. 971 B Euro 7. 125 B Euro 1. 148 B Euro [3]

@.A . Oear G 3// days $ith ./ hours of sunshine @2A E7ui,alent of . Litre gasoline G .3/ Euro

[3] Electricity with a price of 0.19 Euro from the PV plant will be used.

Total Revenues after 25 Years

Net revenues of electricity plant Net revenues of hydrogen plant 3. 425 B Euro 1. 148 B Euro 4. 573 B Euro

The Hydrogen Economy

The investment will payoff in 25 years and leaves 4.573 B Euro revenues. The second plant builds on existent installations of the foregoing plant. The electricity will be sold at 0.07 Euro/ kW7h. Together with hydrogen production Combining photovoltaic electricity export and hydrogen production enables to change between the both energy forms without delay. This turns the whole compound very versatile, as changes from one to another operation can be performed without delay. A perfect adjustment to the demands of the market are thus always possible. It is being suggested to start exporting the main electricity to Europe. Production of hydrogen may begin using one 485 Nm/hr electrolyser producing 1224 litres gasoline per hour. Building and number of electrolysers may be added continuously as the demand for hydrogen grows.

Location of Hydrogen Plants

Production of hydrogen should be located near or at existing conventional power plants. The best position will be an additional hydrogen section at the local power plant. Transportation and use of hydrogen would be unnecessary and maintenance and operation can be handled by the staff of the power plant. [See position #1 of Figure 1]

Figure 1 Location of Production and Storage of Hydrogen [1]

9 As the hydrogen project develops, electrolysis may take place at petrol stations using solar electricity from the grid. [See position # 7 of Figure 1] The final location should be determined by competent local authority to meet the requirements of the country.

[1] Desert Energy Project: PRESENTATION International Climate Protection Proposal (ICPP), Slide 30. http://www.desertenergyproject.net/Proposal

Centralized production of Hydrogen Starting the hydrogen economy a centralized production is recommended. The stationary equipment of StatoilHydro described before, can provide sufficient hydrogen for peak loads of conventional power plants at night or periods with reduced sun incidence. These centralized hydrogen manufacturing stations may include large central station plants or midsize plants for regional markets . They should be located near or at local electrical power plants as surplus is intended to be consumed as fuel by the power plants during night operation. An advantage of this location is that daily operation may be executed by the power plant staff. As fuel for the power plant the hydrogen may be stored in 2000 litre containers at 33 PSI provided by the electrolyser. From these containers surplus hydrogen may be compressed at 8000 PSI in 500 litres containers to be used as fuel for cars should. These containers must be suitable for transportation to the car refilling stations where it replaces empty containers. Thus no specific storage facilities are needed at the car refilling stations. The centralized manufacture of hydrogen requires transportation conventional sea containers which permit a distribution as well as intermediate storage capabilities, while distributed manufacture will likely require only storage at the vehicle filling facility. Distributed manufacturing of hydrogen Later, as the hydrogen economy turn out to become more popular, distributed manufacturing may take place at the conventional European power plants for use as fuel for night operation and as fuel for transportation. A last stage of the hydrogen economy will be the production of hydrogen at the refilling stations using the electricity of the grid.

10

Hydrogen Production in Egypt

The location of the hydrogen plant in the proximities of the Nile River provides water for the plant, and transport by container ship over the Mediterranean to Europe will be practical. It is being suggested to start the project with photovoltaic arrays, because of the simple technical compound easy to manage and does not need highly skilled personal (-install and forget system-). Later on Parabolic Trough systems, CSP and even ISCC may be added to the evolving system without problem. The German Aerospace Center DLR in its study in 2006 /#0 did not considered the production of hydrogen for the use as fuel for car because at that time conditions in Europe were not propitious for such use. The energy politics, however, evolves rapidly in this direction. Photovoltaic is capable be installed immediately without any delay, before other international corporations take the leadership. The region has the best requirements to produce both - electricity and hydrogen- for the European market which is despairingly seeking solutions to present at the UN Conference in Copenhagen in 2009 where root of the Kyoto-Protocol will be settled. Germany backs on its plans to increase alcohol in car fuel because of heavy problems. Supporting the Arabian project of hydrogen will be extremely welcome for Germany to find an alternative to alcohol. The Arabian countries have the best position to lead the new hydrogen business. Tightening the business bonds between the European nations and the Arabian countries will incr5ease friendship peace and understanding between the cooperating state.
[1] German Aerospace Center DLR: Study: Trans-Mediterranean Interconnection for Concentrating Solar Power (TRANS-CSP), 2006. http://www.dlr.de/Portaldata/1/Resources/portal_news/newsarchiv2008_1/algerien_trans_csp.pdf

Conclusion

11

Considering the actual efforts of the European Union and other industrial countries to tackle the climate an environmental problems an initial subsidise of photovoltaic electricity and an exemption of all taxes on hydrogen as fuel for hydrogen cars is conceivable. Hydrogen from solar energy may become an important tool the achieve the commitments of the Kyoto-Protocol. These targets will be fixed at the conference in Copenhagen in 2009. As seen in the present feasibility study, hydrogen as fuel is a very attractive new field of energy economy and presents an extraordinary investment environment. With the revenues of the first Giga plant, a next plant may be installed and a dividend payout 4.2 billion Euro is possible. All calculations were made considering the worst scenario, and a 300 days/year of sunshine were considered. Due to the flexibility in responding to the demands of the grid, changing between electricity and hydrogen operation, the project adds a powerful tool to compensate peak day loads of Europe. The most important achievement of the project, however is the introduction on hydrogen as fuel for transportation. This new economy will be the basis of future energy politics.

Conversion factors

Annex 1

1 Euro 1.500 US Dollar (March 2008) 1 US Dollar 0,6667 EURO (March 2008) 1 liter 0.2642 gallons U.S. 1 kg Hydrogen 11.13 N-m3 (0 degrees Celsius and 1 atmosphere) 1 N-m3 hydrogen 12.7 MJ (HHV) 1 gallon gasoline 121.3 MJ (LHV) 1 pound of hydrogen 64.4 MJ (HHV) 1 kg hydrogen 415.6 scf (Standard Cubic Feet) 3 1 cubic meter (m ) 35.31 cubic feet 4.3 kWh 1 N-m hydrogen 1 Liter gasoline 32.1 MJ [LHV) 3 1 N- m hydrogen 0.396 Litre gasoline 1 US Gallon 3.785 411 784 Litre 1 kWh 0.092 litre gasoline 1 Litre gasoline 10.858 hWh 0,9 litre demin. water 1 Nm hydrogen Contact 5arl 2ein6 Wilm Muelen0eg ' &#17 *chortens %ermany Email: wilm@desertenergyproject.net Coordinator of Desert Energy Project

Fon 8#7 90: ##&1 ;0##0 Fa/ 8#7 90: ##&1 7&<&1 *ite: 000=desertenergy+roject=net