"Life cycle routines and costs are often far more important than the device itself"
For any renewable energy technology company, there always comes a critical stage when it has to prove its worth to investors after years of planning and development. It is a phase, in which such companies seek investors' vote of confidence as they march towards the commercial roll-out of their technology.
So what is critical in ensuring the idea or technology reaches this stage and sets the company for optimal results?
From Aquascientific Ltd.'s perspective, a research and development company, which specialises in the field of ocean and tidal energy extraction, in the initial stages of product design, it is easy to get swallowed up in proving the efficiency of the device itself.
"Cost and survivability of infrastructure, life cycle routines and costs are often far more important than the device itself as these aspects consume much of the total cost of implementation. The fundamental design must be considered with the aim of minimising infrastructure and the ease of deployment," Alexei Janssen, director, Aquascientific Ltd told tidaltoday.com.
Janssen, who is scheduled to speak during the 2nd Annual Tidal Energy Summit 2008, to be held in London on 11-12 November this year, pointed out that those building a project from scratch are able to learn from the mistakes and findings from devices that are being tested at the moment.
"Energy companies are now evaluating these devices are often able to point out the pro and cons of each device from an end user point of view and consultation with them is essential before going ahead with any fundamental design," he said.
Janssen also spoke about the status of the tidal energy sector, support from the government and regulatory body, and other issues. Excerpts from the interview:
tidaltoday.com: There are numerous embryonic device developers and companies that have reached a critical stage in progressing their technology to market. How do you assess the current status of tidal energy at this juncture?
Alexei Janssen: In terms of tidal energy, many of the ideas are based on tried and tested technology i.e. propellor based designs. Investors currently seem to favour such designs as they are in many ways low risk (ventures). We are convinced that propellors, although suitable for low energy density environments (wind) in the long-term, water will require a device which has a larger surface area in order to produce a better energy extraction to infrastructure cost ratio.
We are also convinced that the market will require devices that have a variable aspect ratio, in other words, be able to make the device tall and thin or short and wide; these devices of which there are a number will be able to be designed to fit the context. As tidal extraction is a unique challenge, it will be a while before developers can prove the efficiency and survivability of these novel designs.
Many developers are worried that the designs that are further ahead in the development timeline will divert investment from budding technologies. They worry that designs with advantages that will not be ready for some years will not be able to attract money.
We feel that a device that demonstrates a lower overall operating cost per MW/Hour will always attract funding simply due to the vast amount of possible extraction sites in the world.
tidaltoday.com: Aquascientific has been granted provisional permission to test its first MRev Estuarine Turbine in the River Exe later this year. Can you provide info on this?
Alexei Janssen: Our permissions are relatively easy as the device is not a permanent fixture. As it is moored and lowered in and out of the water during test periods, we have been able bypass many of the problems associated with creating a fixed structure on the sea bed.
tidaltoday.com: When it comes to seeking support from the government and regulatory body be it any stage of the project/ technology development of the company, how do you think tidal energy companies should go about this?
Alexei Janssen: There are many initiatives running with government backing. ETI, TSB and Carbon Trust to name a few. It would seem that you are far more likely to get support if you can assemble a consortium that involved established engineering or design companies as well as a university.
In terms of proposing novel designs, it is far harder to convince panels that your idea is worth backing, as there may not be any historical data or evidence to support your concept. It is critical in these cases that you have at least one prototype running with certification from university that your design is in principle possible. In contrast, propellor designs are a proven concept but you will have to demonstrate that you design has significant benefits in what is already a crowded market. Technology incubators such as the one run by Imperial College London are also great for start-ups but they usually require an equity stake in return for there initial support in getting you grants.
tidaltoday.com: In the past, Aquascientific and IT Power have been awarded £250,000 DTI research grant. Can you provide an insight what is critical when it comes to gaining such grant – be it viability of the project to necessary document/ data submission?
Alexei Janssen: In our case, the efficiency figures published in the application were in their words suspiciously high. It took a lot of convincing that these results were possible again because the panel were mostly used to evaluating propellor designs. As we didn't have a "Tip Speed Ratio" for instance, they found it very difficult to compare our device with others they had considered. It is worth using a partner who has made applications before to assist you in making applications are is seems to be a bit of an art.
tidaltoday.com: Can you provide info on how to share issues surrounding project development without infringing on Intellectual Property Rights to help the industry progress collectively?
Alexei Janssen: It is a difficult question…most of the issues that could be tackled collectively are surrounding permissions, grid connection and environmental effects. These are common issues that should not infringe on any IP of the designs. As far as we are aware, there is no body that is gathering us all together on these issues but it is sorely needed.
2nd Annual Tidal Energy Summit 2008
Alexei Janssen, director, Aquascientific Ltd is scheduled to speak during the 2nd Annual Tidal Energy Summit 2008, to be held in London on 11-12 November this year.
For more information, click here: http://www.tidaltoday.com/tidal08/info.shtml
Or contact Abbie Badcock by email abbie@tidaltoday.com/ +44-207-375-7581
