DONG Energy Generation

March 2007
www.dongenergy.com
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PRODUCTION OPTIMISATION SALES AND DISTRIBUTION
NATURAL
GAS




OIL





RENEWABLE
ENERGY







COAL






BIOMASS
PRIVATE
CLIENTS






PUBLIC
CLIENTS




BUSINESS
CLIENTS






WHOLE-
SALE




ENERGY
EXCHANGES
DONG ENERGY Business Model
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DONG Energy was established on 1 July 2006
as a result of the merger of six Danish power
companies

DONG ENERGY Past and future
DONG
Elsam
ENERGI E2
Nesa
The electrical department of
Kbenhavns Energi
Frederiksberg Forsyning





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After the merger, DONG Energy is active in every link of
the energy chain

DONG ENERGY Past and future
Exploration and production of oil and
natural gas

Generation of power at conventional
power plants and renewable energy
plants

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



Distribution of electricity and gas

112,000 natural gas consumers
in Denmark

900,000 Danish electricity consumer
in the greater Copenhagen area

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ORGANISATION DONG Energy Generation
Production
Jens Erik Pedersen
Production planning & optimisation
Leif Winum
Market research
HR Development
Karen Hvid
Management Services
Jesper Engsig Christensen
CEO, Generation
Niels Bergh-Hansen
Finance
Mikael Geday
Modellering, analyse og strategi
Christina Grumstrup Srensen
HR Management Accounting Controlling IT
Project development and Engineering
Bent Christensen
Model development
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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

ELECTRICITY


DISTRICT HEAT

GWh 22.995

TJ 47.638

(2006)
Skrbk
power plant
Ensted power plant
Asns power plant
Stigsns power plant

Kyndby power plant
Avedre
power plant
Herning
DTU
Kge
Maribo-Sakskbing
Masned
Haslev
Ringsted
Slagelse
Frederikshavn
Mbjerg
Grenaa
Odense
Haderslev
Svanemlle
power plant
H.C. rsted
power plant
Horsens
Studstrup power plant
Esbjerg
power plant
Vejen
Central
power plants

Small-scale
CHP plants

Waste-to-energy
plants
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Production capacity
Large power plants


Asns Power Plant 1,057
Avedre Power Plant 810
Kyndby Power Plant 734
Studstrup Power Plant 700
Ensted Power Plant 626
Stigsns Power Plant 409
Skrbk Power Plant 392
Esbjerg Power Plant 378
H.C.rsted Power Plant 185
Svanemlle Power Plant 131




MW
net capacity
Small-scale CHP plants 216,3

Waste-to-energy plants 96,5



Total installed net capacity 5.734,8

(1. January 2007)

Skrbk
power plant
Ensted power plant
Asns power plant
Stigsns power plant

Kyndby power plant
Avedre
power plant
Herning
DTU
Kge
Maribo-Sakskbing
Masned
Haslev
Ringsted
Slagelse
Frederikshavn
Mbjerg
Grenaa
Odense
Haderslev
Svanemlle
power plant
H.C. rsted
power plant
Horsens
Studstrup power plant
Esbjerg
power plant
Vejen
Central
power plants

Small-scale
CHP plants

Waste-to-energy
plants
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Heat production
Central power plants TJ

Avedre Power Plant 12.172
Studstrup Power Plant 9,090
Svanemlle Power Plant 3,951
H.C.rsted Power Plant 3.546
Skrbk Power Plant 3,495
Esbjerg Power Plant 2,545
Asns Power Plant 931
Ensted Power Plant 926



Studstrup power plant
Esbjerg power plant
Skrbk power plant
Ensted power plant
Asns power plant
Svanemlle
power plant
H.C. rsted
power plant
Avedre power plant
Waste-to-energy plants 5.355

Small-scale CHP plants 5.628

Total heat production 47.638

(2006)


DTU
Kge
Maribo-Sakskbing
Masned
Haslev
Ringsted
Slagelse
Frederikshavn
Mbjerg
Horsens
Vejen
Grenaa
Odense
Haderslev
Herning
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Renewable energy production
in Europe
Nygrdsfjellet
3,5 MW
Barrow
45 MW
Ploudalmezeau
9,1 MW
188 MW
Evira, Karistos and Tourla
18,6 MW
Narvik SKS
131 MW
Indalslven
205 MW
CRISA Mini Hydro
6 MW
Offshore wind turbines

Onshore wind turbines

Hydro power

Power plant under
construction





Horns Rev
64 MW
Bergen
Nysted
132,5 MW
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GENERATION
Fuel mix

4,5%
12,8%
10,3%
7,8%
64,6%
Installed capacity MW

Power production GWh
Heat production TJ

Coal
Oil
Natural gas
Biomass
Waste
DONG Energy Denmark
DONG Energy Denmark DONG Energy Denmark
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Statkraft
11
Vattenfall
33
Fortum
11
British Energy
12
Scottish&Southern
10
Scottish Power
6
Drax
4
EDP
11
Union Fenosa
7
Endesa
32
Iberdrola
23
EDF
114
PPC
12
Edision
10
Enel
45
E.ON
45
Axpo
9
Verbund
8
SE
7
CEZ
12
RWE
44
EnBW
14
Electrabel
28
Nuon
4
Essent
5
DONG Energy
6
Power production
capacity

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

DONG Energy in Europe
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

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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.
The Danish power market consists of
two zones: Western Denmark (DK1)
and Eastern Denmark (DK2)

HOW WE TRADE
1700 MW
1300 MW
620 MW
520 MW
950 MW 1000 MW
950 MW 1500 MW
550 MW 550 MW
NORWAY
SWEDEN
SWEDEN
GERMANY
GERMANY
DK1
DK2
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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 AND ENGINEERING
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.

R&D
Plant-
Construc-
tion
O&M
Services
Added
value
Project
develop-
ment
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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
PROJECT DEVELOPMENT AND ENGINEERING
Coal
Wind power
W-t-E
Gas
Biomass
REtrol
Hydro
Bio ethanol CO
2
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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:


RESEARCH, DEVELOPMENT AND DEMONSTRATION

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 CO
2
emissions.

CASTOR CO
2
from Capture to Storage
The objective of the project is to separate CO
2
from
the power plant flue gases and to investigate the
possibilities of re-using the carbon dioxide for
enhanced oil production in oil fields.



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.

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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.

Policies for quality, working environment and the environment in general

In DONG Energy we:

ENVIRONMENTAL POLICIES


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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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.

ENVIRONMENT
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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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.

ENVIRONMENT
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.