Deep Green Island Mode

Project Information

DG Island Mode

Grant agreement ID: 827525

DOI

10.3030/827525

Project closed

EC signature date 17 July 2018

Start date 1 August 2018

End date 30 November 2018

Funded under

• INDUSTRIAL LEADERSHIP - Innovation In SMEs

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

MINESTO AB
Sweden

Periodic Reporting for period 1 - DG Island Mode (Deep Green Island Mode)

Reporting period: 2018-08-01 to 2018-11-30

Summary of the context and overall objectives of the project

Dirty Diesel
Globally, the search for alternative energy supply is intensifying. However, for off-grid island and isolated coastal communities, this need is particularly acute. As described by the Clean Energy for EU Islands Initiative, energy in these communities is expensive, polluted, inefficient and dependent on external supply.
This not only has an impact on the competitiveness of these economies, but also pollutes the environment. We estimate that European islands produce 17.5 million tonnes of CO2 every year.
These microsystems are almost entirely reliant on diesel. Smaller island nations for example, spend a considerable percentage of the total gross domestic product (GDP) on importing diesel fuel, with carbon emissions from both the transport and usage of diesel resulting in a substantial carbon footprint. A typical diesel generator emits between 2.4-2.8 kg CO2 per litre of diesel consumed and many islands consume millions of litres every year. Currently, there are 12 gigawatts (GW) of diesel capacity in operation in off-grid, island locations.
Current renewables are not always appropriate
Clean energy alternatives, such as those provided by wind and solar, are often not viable due to the lack of wind, sunlight or space. They also cannot guarantee the predictable and reliable energy supply which these off grid locations require. Tidal energy technologies are focused on generating power from ocean flows that are greater than 2.4m/s which significantly reduces the potential sites and total energy that can be harvested from the seas.
What is our innovation?
Generating electricity from low flows
Deep Green (DG) Island Mode is a modular 100kW power plant, with the possibility of modifying the subsystems for the specific needs of a site or customer.
DG Island Mode (DGIM) generates renewable electricity from low-flow tidal and ocean streams for use by off-grid communities and industrial actors. The patented Deep Green technology is an underwater kite that converts kinetic energy in ocean currents to electricity. The kite system is equipped with a turbine and generator and when steered in an 8-shaped trajectory, a speed of up to 10 times the speed of the actual current is reached. As a result, electricity can be generated by Deep Green Island Mode in ocean streams with current speeds as low as 1.2 m/s.
The DG Island Mode is designed as a modular unit, which allows for modification of each DGIM to meet the needs conditions of a particular site or customer.
Phase 1 Objectives
The overall aim of the DG Island Mode SME instrument project is for the DG Island Mode technology to be manufactured under commercial conditions and demonstrated to stakeholders in the field.
The objective of this feasibility study is to confirm the technical feasibility and business opportunity presented to Minesto by Deep Green Island Mode. In particular, we aim to identify the needs and demands of utility clients and other stakeholders, and to identify the best business model to exploit the technology.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The aim for this SME instrument phase 1 has been to improve our understanding of the potential market for DG Island Mode. We have done this by undertaking the following activities:
1. Engaging with future users and stakeholders along the value chain
2. Securing a demonstration site for the first DGIM installation in the Faroe Islands
3. Quantifying the total available market and identifying the first “beachhead” markets
4. Analysing how the technology must be adapted to meet the needs of DGIM
5. Specifying the deployment setup and plotting the technology roadmap
6. Revising our financial projections
Specifically, we held detailed conversations with several stakeholders, representing future opportunities in the Faroe Islands, France, Chile, Taiwan, Italy, Florida, Canada, Ireland, Wales and Singapore. These conversations led us to identify an opportunity with the Faroe Islands, from which we have signed a collaboration agreement and identified a demonstrator site.
These conversations have also allowed us to identify the different use cases and requirements of different utilities and the communities they serve. They have also allowed us to understand the different regulatory and institutional environments that exist in these markets. In almost all cases, DGIM has been seen as a commercial opportunity in itself, and as a necessary prerequisite for future roll out of the larger DG utility mode.
Based on this understanding, and recruiting the support and data of a third party, we have performed resource assessments to estimate the total potential market size, as well as identify the most attractive “beachhead” markets where we plan to concentrate our initial commercialisation efforts. The third party estimates the total global available resource for DGIM to be equivalent to over 290,000 GWh annually.
We have then carried out internal analysis of the existing technology and identified the specific changes that must be made to develop a market ready DGIM, suitable for the specific needs of off-grid island communities. From this we have been able to define the deployment setup and plot the development and commercialisation roadmap.
Finally, based on the fact that our investigations demonstrated the potential for creating a successful product and business, we developed a four-year business plan, with associated revenue model and financial projections.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

DGIM is a customisable product which offers to go beyond the state-of-the art by offering sustainable, low cost, base energy generation from low tidal flows and ocean currents. It offers significant environmental benefits in comparison to diesel but also cost benefits in comparison to solar, wind and tidal energy.
Furthermore, DGIM will act as a catalyst to market take-up of the larger DG array technology, in two ways. Firstly, DGIM will offer potential clients the ability to see the technology functioning at a fraction of the cost of installing the DG utility mode. This will allow utilities to test the technology at a marginal cost, and see the potential for Deep Green technology as a solution to their energy needs. Secondly, DGIM will act as a commercialised development platform, allowing us to quickly develop and test new solutions on a small scale before scaling it up to the larger, more complex and more costly array scale which will follow.
The project in itself has not advanced the technology beyond the state of the art. But it has allowed us to establish important links with stakeholders, the value chain and crucially, develop links with potential lead users, in particular SEV, the Faroe Island’s utility, where we have taken important steps towards bring DGIM to market readiness.

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