Fundraising and investor relations in social enterprise: Marketing your way out of the pioneer gap in African off-grid renewable energy

Social enterprises apply the best of business for the pursuit of social or environmental mission while also generating revenues. Globally, nearly 1,3 billion people lack access to electricity, as well as another billion having access to only low quality and infrequent electricity. Off-grid renewable energy, like solar, will increasingly have a key role in the solution of the energy access issue. The pioneer gap in off-grid renewable energy consists of financing (or funding) gaps and capacity gaps, to do with both the early stage of the enterprises in question, as well as the early stage of the whole industry. The gaps are emphasised by specific characteristics of off-grid renewable energy business models and the requirements of operating in bottom-of-the-pyramid markets. The marketing perspective to fundraising is chosen to uncover the possible role enterprises themselves have in bridging the pioneer gap. The purpose of this thesis is to study how social enterprises operating in off-grid renewable energy in Africa utilise marketing activities in their investor relations in bridging the pioneer gap. This main research question is divided into the following sub-questions:  How does the pioneer gap affect fundraising for these enterprises?  How are the funding needs for these enterprises characterised?  How do these enterprises build trust in their investor relations? The theoretic framework is built on relationship marketing and investor relations, with an emphasis on creation of trust. The research is conducted as a thematical case study. Primary data is gathered via semi-structured interviews with six solar energy companies and two accelerators. According to the findings, the main components affecting trust-creation are diminished information asymmetry and perceived risk, mission alignment as well as a personal fit or relationship with the investor. Therefore, an enterprise can utilise e.g. the following marketing activities in their investor relations to bridge the pioneer gap: ensuring investor material, the enterprise story and presenting of them is clear, concise and complete to “package” the enterprise as an investment; taking investor needs and motivations into account as well as utilising existing investors as ambassadors.

Integrated energy storage tank for large scale power-to-gas applications

The global interest towards renewable energy production such as wind and solar energy is increasing, which in turn calls for new energy storage concepts due to the larger share of intermittent energy production. Power-to-gas solutions can be utilized to convert surplus electricity to chemical energy which can be stored for extended periods of time. The energy storage concept explored in this thesis is an integrated energy storage tank connected to an oxy-fuel combustion plant. Using this approach, flue gases from the plant could be fed directly into the storage tank and later converted into synthetic natural gas by utilizing electrolysis-methanation route. This work utilizes computational fluid dynamics to model the desublimation of carbon dioxide inside a storage tank containing cryogenic liquid, such as liquefied natural gas. Numerical modelling enables the evaluation of the transient flow patterns caused by the desublimation, as well as general fluid behaviour inside the tank. Based on simulations the stability of the cryogenic storage and the magnitude of the key parameters can be evaluated.

Economic and environmental evaluation of renewable energy systems

The main objective of this thesis is to evaluate the economic and environmental effectiveness of three different renewable energy systems: solar PV, wind energy and biomass energy systems. Financial methods such as Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR) were used to evaluate economic competitiveness. Seasonal variability in power generation capability of different renewable systems were also taken into consideration. In order to evaluate the environmental effectiveness of different energy systems, default values in GaBi software were taken by defining the functional unit as 1kWh. The results show that solar PV systems are difficult to justify both in economic as well as environmental grounds. Wind energy performs better in both economic and environmental grounds and has the capability to compete with conventional energy systems. Biomass energy systems exhibit environmental and economic performance at the middle level. In each of these systems, results vary.

Sähköauto osana älykästä sähköverkkoa – Ohjaus ja toiminnallisuudet

Tulevaisuudessa sähköverkko kohtaa monia haasteita, kun sähköautot yleistyvät, vaatien suuren tehotarpeen. Uusiutuvan energiantuotannon epävarma huipputehon tuotanto ei välttämättä pysty kattamaan sähköautoista johtuvaa suurta tehopiikkiä, jos suuret määrät ajoneuvoista kytketään yhtä aikaa lataukseen. Jos sähköajoneuvot voidaan ladata ohjatusti, ei välttämättä tarvita lisäenergian tuotantoa kattamaan kasvanutta huipputehon tarvetta. Lisäksi sähköajoneuvojen akut toimivat koko sähköverkolle energiavarastoina, jollaista ei ole ennen ollut. Älykkäällä sähköverkolla voidaan ohjata sähköajoneuvon latausta, mikäli ajoneuvossa on ohjausjärjestelmä ja akkujen varaustilan mittaus. Tässä kandidaatin työssä ohjelmoidaan mittaus- ja ohjauskortti plug-in hybridiautoa varten, jossa on V2G-ominaisuus. Ohjainkortista toteutetaan toimintakuvaus, jonka mukaan se myös ohjelmoidaan. Ohjainkortti mittaa akkujen jännitettä ja virtaa, joista voidaan määrittää akkujen varaustilat. Ohjainkortti lähettää tiedot eteenpäin PC:lle, jolta ohjainkortti saa käskyn toimintatilasta. Mittaustietojen perusteella voidaan seurata mahdollisia vikatilanteita. Kandidaatintyön aikana ohjainkorttia ei ehditty asentamaan ajoneuvoon, mutta laboratoriotestien mukaan voidaan todeta, että ohjainkortti on ohjelmallisesti toimiva. Mittauksissa selvisi, että ohjainkortin mittaustulot eivät olleet tarpeeksi tarkkoja käyttökohteeseen. Todettiin, että ohjainkortti vaatii rakenteellisia muutoksia mittaustuloksien parantamista varten, ennen ohjainkortin käyttöönottoa, mutta kandidaatintyön tavoitteet saavutettiin.

Uusiutuvan energian käytön edistäminen syöttötariffijärjestelmällä

Tässä opinnäytetyössä käsitellään syöttötariffeja, jotka ovat yksi valtion tukikeino uusiutuvalle energialle. Työn tarkoituksena on käsitellä uusiutuvien energialähteiden käytön edistämistä syöttötariffijärjestelmällä. Työssä esitellään lainsäädännön edellytykset kullekin tuotantomuodolle, jotta ne hyväksytään syöttötariffijärjestelmään. Lisäksi käsitellään syöttötariffien piirissä olevien eri tuotantomuotojen kohtaamia ongelmia. Työssä tutkitaan myös syöttötariffien vaikutusta sähkön hintaan tulevaisuudessa. Lopuksi esitellään lyhyesti muualla Euroopassa käytössä olevia tukimuotoja ja niiden määritys perusteita.

Akkuvarastot omakotitaloissa

Energian varastointi on noussut keskeiseksi energia-alan teemaksi viime vuosina. Erityi-sesti uusiutuvan tuotannon lisääntyminen ja energian käytön tehostaminen ovat edesautta-neet energiavarastoratkaisuiden mukaantuloa. Työssä tarkastellaan litiumrautafosfaattiak-kujen käytön kannattavuutta omakotitaloissa. Tavoitteena on selvittää, millä reunaehdoilla näiden akkujen käyttö energiavarastoina tulee kannattavaksi Lappeenrannan olosuhteissa. Kannattavuutta selvitetään litiumrautafosfaattiakkujen markkina-analyysin ja teknistalou-dellisen analyysin sekä Matlab-simulaation avulla.

Tulevaisuuden energiatehokas teollisuuspuisto

Tutkimuksessa selvitetään uusiutuvien energiateknologioiden soveltumista valmistavan teknologiateollisuuden toimintaan ja teollisuuspuistossa toimimisen tuottamia mahdollisia etuja yritysten energiankäytön osalta. Toimimalla teollisuuspuistossa yritykset voivat hyötyä alueen vahvasta infrastruktuurista ja vastata tulevaisuuden kiristyviin tehokkuus- tai vähähiilisyysvaatimuksiin. Teollisuuspuistot mahdollistavat teollisten symbioosien syntymisen sekä energianhankinnan ja -käytön huomattavat mittakaavahyödyt. Useissa teknologiayrityksissä energian kustannukset ovat olleet vähällä huomiolla, sillä ne eivät ole yritysten ydinliiketoimintaa tai vaikuta merkittävästi tuotantoprosessiin. Oikein mitoitettuna paikalliset energian tuotantotavat ja energiatehokkuustoimet voivat olla kannattavia investointeja jo tänään. Tulevaisuudessa teollisuuspuistot voivat osoittautua kiinnostaviksi sijaintikohteiksi energiavarastoille. Tuloksissa esitetään näkemys erilaisten paikallisten uusiutuvien energiantuotantomuotojen ja synteettisten polttoaineiden tuotannon soveltumisesta valmistavan teollisuuden keskittymään. Teollisuuspuiston yritykset voivat hyödyntää monia synteettisten polttoaineiden tuotannon sivuvirtoja vähentäen samalla nykyisiä kustannuksia sekä päästöjä. Uuden teollisuuspuiston ratkaisuja suunniteltaessa tulee ottaa huomioon tulevaisuuden vaatimukset ja uudenlaisten ratkaisujen kuten teollisuuden ylijäämälämpöjen hyödyntämisen mahdollisuudet.

Evaluation of methods for estimating energy performance of biogas production

This study focused on identifying various system boundaries and evaluating methods of estimating energy performance of biogas production. First, the output-input ratio method used for evaluating energy performance from the system boundaries was reviewed. Secondly, ways to assess the efficiency of biogas use and parasitic energy demand were investigated. Thirdly, an approach for comparing biogas production to other energy production methods was evaluated. Data from an existing biogas plant, located in Finland, was used for the evaluation of the methods. The results indicate that calculating and comparing the output-input ratios (Rpr1, Rpr2, Rut, Rpl and Rsy) can be used in evaluating the performance of biogas production system. In addition, the parasitic energy demand calculations (w) and the efficiency of utilizing produced biogas (η) provide detailed information on energy performance of the biogas plant. Furthermore, Rf and energy output in relation to total solid mass of feedstock (FO/TS) are useful in comparing biogas production with other energy recovery technologies. As a conclusion it is essential for the comparability of biogas plants that their energy performance would be calculated in a more consistent manner in the future.

Strategic choices and performance – an empirical analysis of largest European and North American energy companies

Energy industry has gone through major changes globally in past two decades. Liberalization of energy markets has led companies to integrate both vertically and horizontally. Growing concern on sustainable development and aims to decrease greenhouse gases in future will increase the portion of renewable energy in total energy production. Purpose of this study was to analyze using statistical methods, what impacts different strategic choices has on biggest European and North American energy companies’ performance. Results show that vertical integration, horizontal integration and use of renewable energy in production had the most impact on profitability. Increase in level of vertical integration decreased companies’ profitability, while increase in horizontal integration improved companies’ profitability. Companies that used renewable energy in production were less profitable than companies not using renewable energy.

Effect of forest-based biofuels production on carbon footprint, Case: Integrated LWC paper mill

International energy and climate strategies also set Finland’s commitments to increasing the use of renewable energy sources and reducing greenhouse gas emissions. The target can be achieved by, for example, increasing the use of energy wood. Finland’s forest biomass potential is significant compared with current use. Increased use will change forest management and wood harvesting methods however. The thesis examined the potential for integrated pulp and paper mills to increase bioenergy production. The effects of two bioenergy production technologies on the carbon footprint of an integrated LWC mill were studied at mill level and from the cradle-to-customer approach. The LignoBoost process and FT diesel production were chosen as bioenergy cases. The data for the LignoBoost process were obtained from Metso and for the FT diesel process from Neste Oil. The rest of the information is based on the literature and databases of the KCL-ECO life-cycle computer program and Ecoinvent. In both case studies, the carbon footprint was reduced. From the results, it can be concluded that it is possible to achieve a fossil-fuel-free pulp mill with the LignoBoost process. By using steam from the FT diesel process, the amount of auxiliary fuel can be reduced considerably and the bark boiler can be replaced. With a choice of auxiliary fuels for use in heat production in the paper mill and the production methods for purchased electricity, it is possible to affect the carbon footprints even more in both cases.

Forest Biomass Resources and Technological Prospects for the Production of Second-generation Biofuels in Finland by 2020

Introduction of second-generation biofuels is an essential factor for meeting the EU’s 2020 targets for renewable energy in the transport sector and enabling the more ambitious targets for 2030. Finland’s forest industry is strongly involved in the development and commercialising of second-generation biofuel production technologies. The goal of this paper is to provide a quantified insight into Finnish prospects for reaching the 2020 national renewable energy targets and concurrently becoming a large-scale producer of forest biomass based second-generation biofuels feeding the increasing demand in European markets. The focus of the paper is on assessing the potential for utilising forest biomass for liquid biofuels up to 2020. In addition, technological issues related to the production of second-generation biofuels were reviewed. Finland has good opportunities to realise a scenario to meet 2020 renewable energy targets and for large-scale production of wood based biofuels. In 2020, biofuel production from domestic forest biomass in Finland may reach nearly a million ton (40 PJ). With the existing biofuel production capacity (20 PJ/yr) and national biofuel consumption target (25 PJ) taken into account, the potential net export of biofuels from Finland in 2020 would be 35 PJ, corresponding to 2–3% of European demand. Commercialisation of second-generation biofuel production technologies, high utilisation of the sustainable harvesting potential of Finnish forest biomass, and allocation of a significant proportion of the pulpwood harvesting potential for energy purposes are prerequisites for this scenario. Large-scale import of raw biomass would enable remarkably greater biofuel production than is described in this paper.

Developing markets of energy biomass – local and global perspectives

The thesis explores global and national-level issues related to the development of markets for biomass for energy. The thesis consists of five separate papers and provides insights on selected issues. The aim of Paper I was to identify methodological and statistical challenges in assessing international solid and liquid biofuels trade and provide an overview of the Finnish situation with respect to the status of international solid and liquid biofuels trade. We found that, for the Finnish case, it is possible to qualify direct and indirect trade volumes of biofuels. The study showed that indirect trade of biofuels has a highly significant role in Finland and may be a significant sector also in global biofuels trade. The purpose of Paper II was to provide a quantified insight into Finnish prospects for meeting the national 2020 renewable energy targets and concurrently becoming a largescale producer of forest-biomass-based second-generation biofuels for feeding increasing demand in European markets. We found that Finland has good opportunities to realise a scenario to meet 2020 renewable energy targets and for large-scale production of wood-based biofuels. The potential net export of transport biofuels from Finland in 2020 would correspond to 2–3% of European demand. Paper III summarises the global status of international solid and liquid biofuels trade as illuminated by several separate sources. International trade of biofuels was estimated at nearly 1 EJ for 2006. Indirect trade of biofuels through trading of industrial roundwood and material by-products comprises the largest proportion of the trading, with a share of about two thirds. The purpose of Paper IV was to outline a comprehensive picture of the coverage of various certification schemes and sustainability principles relating to the entire value-added chain of biomass and bioenergy. Regardless of the intensive work that has been done in the field of sustainability schemes and principles concerning use of biomass for energy, weaknesses still exist. The objective of Paper V was to clarify the alternative scenarios for the international biomass market until 2020 and identify the underlying steps needed toward a wellfunctioning and sustainable market for biomass for energy purposes. An overall conclusion drawn from this analysis concerns the enormous opportunities related to the utilisation of biomass for energy in the coming decades.

Development of a measuring-control system for energy monitoring in low power

In this thesis a control system for an intelligent low voltage energy grid is presented, focusing on the control system created by using a multi-agent approach which makes it versatile and easy to expand according to the future needs. The control system is capable of forecasting the future energy consumption and decisions making on its own without human interaction when countering problems. The control system is a part of the St. Petersburg State Polytechnic University’s smart grid project that aims to create a smart grid for the university’s own use. The concept of the smart grid is interesting also for the consumers as it brings new possibilities to control own energy consumption and to save money. Smart grids makes it possible to monitor the energy consumption in real-time and to change own habits to save money. The intelligent grid also brings possibilities to integrate the renewable energy sources to the global or the local energy production much better than the current systems. Consumers can also sell their extra power to the global grid if they want.

Greenhouse gas emissions from peat and biomass-derived fuels, electricity and heat — Estimation of various production chains by using LCA methodology

More discussion is required on how and which types of biomass should be used to achieve a significant reduction in the carbon load released into the atmosphere in the short term. The energy sector is one of the largest greenhouse gas (GHG) emitters and thus its role in climate change mitigation is important. Replacing fossil fuels with biomass has been a simple way to reduce carbon emissions because the carbon bonded to biomass is considered as carbon neutral. With this in mind, this thesis has the following objectives: (1) to study the significance of the different GHG emission sources related to energy production from peat and biomass, (2) to explore opportunities to develop more climate friendly biomass energy options and (3) to discuss the importance of biogenic emissions of biomass systems. The discussion on biogenic carbon and other GHG emissions comprises four case studies of which two consider peat utilization, one forest biomass and one cultivated biomasses. Various different biomass types (peat, pine logs and forest residues, palm oil, rapeseed oil and jatropha oil) are used as examples to demonstrate the importance of biogenic carbon to life cycle GHG emissions. The biogenic carbon emissions of biomass are defined as the difference in the carbon stock between the utilization and the non-utilization scenarios of biomass. Forestry-drained peatlands were studied by using the high emission values of the peatland types in question to discuss the emission reduction potential of the peatlands. The results are presented in terms of global warming potential (GWP) values. Based on the results, the climate impact of the peat production can be reduced by selecting high-emission-level peatlands for peat production. The comparison of the two different types of forest biomass in integrated ethanol production in pulp mill shows that the type of forest biomass impacts the biogenic carbon emissions of biofuel production. The assessment of cultivated biomasses demonstrates that several selections made in the production chain significantly affect the GHG emissions of biofuels. The emissions caused by biofuel can exceed the emissions from fossil-based fuels in the short term if biomass is in part consumed in the process itself and does not end up in the final product. Including biogenic carbon and other land use carbon emissions into the carbon footprint calculations of biofuel reveals the importance of the time frame and of the efficiency of biomass carbon content utilization. As regards the climate impact of biomass energy use, the net impact on carbon stocks (in organic matter of soils and biomass), compared to the impact of the replaced energy source, is the key issue. Promoting renewable biomass regardless of biogenic GHG emissions can increase GHG emissions in the short term and also possibly in the long term.