biofuels - systems integrator perspective lockheed martin helping shape our energy future stephen...
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Biofuels - Systems Integrator
Perspective
Lockheed Martin Helping shape our energy future
Stephen Klotz, PhD April 21, 2011
Copyright © 2011 by Lockheed Martin Corporation as an unpublished work. All rights reserved.
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State of the Commercial Market Renewable Fuels/Energy have a higher initial cost then
fossil fuels– Incentives / enabling legislation required initially
US Federal Investment Tax Credit (ITC) and grant in lieu Feed-In Tariffs used in Canada, Spain, Germany, Israel,
India Pending Federal Renewable Portfolio Standard (RPS)
– Renewable market dominated by Special Purpose Vehicles (SPVs)
Limited System Engineering in the market– Need broad, long-term view and sustainability
Project financing slow to start – Global capital market slow down has not helped – Banks have not taken many technology risks
Bankable company required to wrap project– Long term PPA/FPA required for bank
financing
Incentives and Enabling Legislation Requiredfor Renewable Energy Market Growth
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Leadership is Key to Making Market a Reality
Why Lockheed Martin inEnergy Generation?Two Perspectives
Experience ManagingLarge Projects
LM Corporate Alignment
Perspective #1
Utility / Bank Market Alignment
Perspective #2
Energy Security
Green Initiatives
Carbon Tax/Trade
New Political Alignment
RPS Mandates
National Imperatives
Systems EngineeringRigor
Supply Chain Management
Value-Added Technology Discriminators
Financeable
U.S. Based Company
Faith of Execution
National Security Imperative
LM Brand RecognitionProvides Growth Opportunity
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Energy Generation Systems Integration Needs
Technology R&D Systems Engineering &Program Management
Modeling & Simulation
Sourcing / Procurement Information Systems Process Optimization
Tools to Partner with Industry to Deliver Affordable Energy
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Concept and inventions
Bench-scale R&D
Feasibility Evaluations
Scale-up to Pilot
Pilot EPCCommercial
Project Feasibility
Scale-up to Commercial
Commercial EPC
Start-up & Commissioning
New Technology Path to Commercialization
Requires “Technology Developer - Integrator - EPC” Team
Concept Pilot DeployValue Chain Analysis• Value Chain Model
Complete feasibility analysis • Technology evaluation
• Process models• Performance analysis• Technical feasibility• Process data package
development• Economic evaluation
• Capital investment• O&M• Engineering economic analysis
• Commercial evaluation• Supply, demand, and price• Competition• Sustainability (policy, social,
environmental)
Technology Development• Technical (TRL) advancement• Pilot development and testing• Scale-up technology vetting
System Integration• Project management &
controls plans• Requirements development• Requirements validation and
verification• Trade studies• Process optimization• Process Hazard Analysis• Reliability analysis
Engineering• Conceptual Design• Preliminary Design• Detailed Design
Procurement• Subcontractor management• Supply chain management
Construction Management• Cost & schedule management• Quality management• Safety management
Commissioning •Testing & documentation
O&M• Spare parts• Operator training• Operations modeling
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Department of Defense Critical Need for Biofuels
DoD is the Largest Single Purchaser of Fuel in the World– $16B+, Purchased through the
Defense Energy Support Center
Navy – “Sail the Green Fleet”– Demonstrate a Green Strike
Group by 2012, Sail it by 2016
Air Force– 2011, test and certify all aircraft
and systems for 50/50 fuel blend
– By 2016, acquire 50% of domestic aviation fuel via alternative fuel blends
“More Fight Less Fuel”
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Summary
Energy and fuel supply are national security issues Renewable energy is here to stay Biofuels solutions provide clean, renewable power, jobs and
economic growth Lockheed Martin brings
– Systems engineering rigor– Proven lean production techniques– Program management– Technology agnostic approaches– Affordability– Financeability
Making Renewable Energy a Reality ……Reliable Energy Affordable and Efficient and …
Safer than Ever!