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www.dongenergy.

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DONG Energy Generation


March 2007

DONG ENERGY Business Model


PRODUCTION OPTIMISATION SALES AND DISTRIBUTION

NATURAL GAS

PRIVATE CLIENTS

OIL PUBLIC CLIENTS

RENEWABLE ENERGY

BUSINESS CLIENTS

COAL

WHOLESALE

BIOMASS

ENERGY EXCHANGES

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DONG ENERGY Past and future


DONG Energy was established on 1 July 2006 as a result of the merger of six Danish power companies DONG Elsam ENERGI E2 Nesa The electrical department of Kbenhavns Energi Frederiksberg Forsyning

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DONG ENERGY Past and future


After the merger, DONG Energy is active in every link of the energy chain Exploration and production of oil and natural gas Generation of power at conventional power plants and renewable energy plants Distribution of electricity and gas 112,000 natural gas consumers in Denmark 900,000 Danish electricity consumer in the greater Copenhagen area

Sales of electricity and gas to end consumers including energy saving consultancy services

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ORGANISATION DONG Energy Generation

CEO, Generation Niels Bergh-Hansen

Finance Mikael Geday

HR Development Karen Hvid

IT

HR Management

Accounting

Controlling

Modellering, analyse og strategi Christina Grumstrup Srensen

Management Services Jesper Engsig Christensen


Model development Market research

Production Jens Erik Pedersen

Project development and Engineering Bent Christensen

Production planning & optimisation Leif Winum

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GENERATION Key activities


Production and trading of electricity and heat
Purchase of fuels Operation and maintenance of existing power plants

Refurbishment of existing plants to meet market demands


Engineering and construction of new production facilities Development and demonstration of new technologies Research and development

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GENERATION Production facilities


Frederikshavn

ELECTRICITY DISTRICT HEAT

GWh 22.995 TJ 47.638


(2006)

Central power plants Small-scale CHP plants Waste-to-energy plants

Mbjerg

Grenaa Studstrup power plant

Herning

DTU Horsens Kyndby power plant Asns power plant Esbjerg power plant Vejen Skrbk power plant Odense Haderslev Slagelse Ringsted Haslev Stigsns power plant Masned Svanemlle power plant

H.C. rsted Avedre power plant power plant

Kge

Ensted power plant

Maribo-Sakskbing
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Production capacity
Frederikshavn

Large power plants

MW
net capacity

Central power plants Small-scale CHP plants Waste-to-energy plants

Asns Power Plant Avedre Power Plant Kyndby Power Plant Studstrup Power Plant Ensted Power Plant Stigsns Power Plant Skrbk Power Plant Esbjerg Power Plant H.C.rsted Power Plant Svanemlle Power Plant

1,057 810 734 700 626 409 392 378 185 131

Mbjerg

Grenaa Studstrup power plant

Herning

DTU Horsens

Small-scale CHP plants Waste-to-energy plants

216,3 96,5
Esbjerg power plant Skrbk power plant Odense Slagelse

Kyndby power plant Asns power plant Vejen

Svanemlle power plant

H.C. rsted Avedre power plant power plant

Ringsted Haslev Stigsns power plant Masned

Kge

Total installed net capacity 5.734,8


(1. January 2007)

Haderslev

Ensted power plant

Maribo-Sakskbing
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Heat production
Frederikshavn

Central power plants

TJ 12.172 9,090 3,951 3.546 3,495 2,545 931 926

Avedre Power Plant Studstrup Power Plant Svanemlle Power Plant H.C.rsted Power Plant Skrbk Power Plant Esbjerg Power Plant Asns Power Plant Ensted Power Plant

Mbjerg Herning

Grenaa Studstrup power plant

DTU

Waste-to-energy plants Small-scale CHP plants Total heat production

5.355 5.628
Esbjerg power plant

Horsens

Svanemlle power plant


H.C. rsted power plant Avedre power plant

Skrbk power plant Vejen Odense

Asns power plant Slagelse Ringsted

47.638
(2006)

Kge
Haslev

Haderslev Ensted power plant Masned Maribo-Sakskbing

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Renewable energy production in Europe


Offshore wind turbines Onshore wind turbines Hydro power Power plant under construction
Barrow 45 MW

Nygrdsfjellet 3,5 MW

Narvik SKS 131 MW

Indalslven 205 MW

Bergen

Horns Rev 64 MW

Nysted 132,5 MW

Ploudalmezeau 9,1 MW

188 MW

Evira, Karistos and Tourla 18,6 MW

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CRISA Mini Hydro 6 MW

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GENERATION
Fuel mix
4,5% 12,8%
Coal Oil Natural gas

Power production GWh

10,3%

Biomass Waste

64,6%

7,8%
DONG Energy Denmark

Installed capacity MW

Heat production TJ

DONG Energy
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Denmark

DONG Energy

Denmark

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DONG Energy in Europe


Power production capacity

Statkraft 11

Fortum 11

GW 114 45 45 44 33 32 28 23 14 12 12 12 11 11 11 10 10 9 8 7 7 6 6 5 4 4

EDF E.ON Enel RWE Vattenfall Endesa Electrabel Iberdrola EnBW PPC CEZ British Energy Statkraft Fortum EDP Scottish&Southern Edision Axpo Verbund SE Union Fenosa Scottish Power DONG Energy Essent Nuon Drax
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Vattenfall 33 Scottish Power 6 Scottish&Southern 10 Drax 4 British Energy 12

DONG Energy
6 Nuon 4 Essent 5 EnBW 14 Electrabel 28 RWE 44 E.ON 45

CEZ 12

SE 7

EDF 114 Iberdrola 23

Axpo 9

Verbund 8

Enel 45

EDP 11

PPC 12
Endesa 32 Union Fenosa 7 Edision 10

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HOW WE TRADE
The Danish power market consists of two zones: Western Denmark (DK1) and Eastern Denmark (DK2)
DONG Energy Generation sells electricity to the wholesale markets of North European power exchanges such as Nord Pool and the German EEX European Energy Exchange. The price of electricity is determined on the basis of supply and demand. The price is highly dependent on the water reservoirs in Norway and Sweden and on the general supply and demand situation in Northern Europe. Large quantities of precipitation in Scandinavia increase power production at Scandinavian hydropower plants which leads to lower electricity prices whereas limited precipitation results in reduced power production and therefore increased prices.
950 MW 1500 MW

NORWAY
950 MW 1000 MW

SWEDEN
620 MW 520 MW

DK1

SWEDEN
1700 MW 1300 MW

DK2

GERMANY
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550 MW

550 MW

GERMANY
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PROJECT DEVELOPMENT AND ENGINEERING


Project development and Engineering is DONG Energy's joint project management and technical knowledge centre within the fields of power and heat production.
Key activities:
Project development development of new power plants in Denmark and abroad. Plant construction construction of new power and heat production facilities. Rebuilding and refurbishment of existing production facilities to make them up-to-date in terms of latest technology and compliance with environmental requirements. Operation and maintenance services operation and maintenance services to existing production facilities. Research and development.
Project development PlantConstruction

Added value R&D O&M Services

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PROJECT DEVELOPMENT AND ENGINEERING


Core Competencies:
Ability to complete complex energy projects in the multi million USD class with many contractors (split package) within frames of time, cost and performance. Ability to handle alle phases of a power plant project from feasibility studies over design and procurement to construction supervision and commisssioning
Coal

Wind power

Gas

W-t-E

Biomass

Hydro Bio ethanol CO2

REtrol

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RESEARCH, DEVELOPMENT AND DEMONSTRATION


Within research and development our most important focal points are the development of highly efficient power plants, renewable energy sources and technologies to reduce the impacts on the environment of our power plants. The three main projects right now are:
AD700 Advanced steam data, 700 degrees Celsius steam temperature
The objective of the project is to develop new materials which will allow an increase of the boiler steam temperature to 700 C to ensure a higher output rate and lower CO2 emissions.

IBUS Integrated Biomass Utilisation System


The objective of the project is to process biomass like straw into ethanol (alcohol) for use as an additive to gasoline. The process is energy-heavy and there are good synergies to be obtained in the production of ethanol in connection with power plants.

CASTOR CO2 from Capture to Storage


The objective of the project is to separate CO2 from the power plant flue gases and to investigate the possibilities of re-using the carbon dioxide for enhanced oil production in oil fields.

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ENVIRONMENTAL POLICIES
Policies for quality, working environment and the environment in general In DONG Energy we:
are committed to making our clients content and to give advice on the optimum way to use our products. will motivate, train and involve our employees in tasks concerning quality, working environment and the environment in general. will work hard to obtain a healthy and safe working environment. commit ourselves to constantly reducing our consumption of resources and impacts on the environment. will choose to work with suppliers and partners who have and act according to policies for quality, working environment and the environment in general. will identify objectives, evaluate results and currently improve these and be the best in the business. make sure that we work in accordance with the legislation in force and current standards and requirements.

will communicate openly about things related to our objectives for quality, working environment and the environment in general and about our results in these fields.

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ENVIRONMENT
In DONG Energy we work hard to reduce the impacts on the environment of our power and heat production.
As a consequence hereof we have built in environmental plants at several of our power plants.
Desulphurisation plants remove 90-98 % of the sulphur compounds in the flue gas. DeNOx plants break down more than 80 % of the nitric oxides in the flue gas. Fly ash separators remove up to 99.9 % of the fly ash in the flue gas particles.

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ENVIRONMENT
When coal, oil, biomass and waste are used as fuels, a number of minerals and residues are produced such as fly ash, bottom ash, gypsum and slag.
Fly ash is used in concrete and cement. Bottom ash is used in building blocks and insulation materials. Gypsum is used in panels and cement. Bottom ash from biomass-fired boilers is used in agricultural fertilizers. Slag is used as sand and gravel replacement in many types of construction projects.

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