Organisation: Bluerise B.V.
Cycle: 2018 International
Type: Climate mitigation
Sector: Renewable energy
Stage: In action
Requested input: Access to a local network in Jakarta is necessary as most potential partners are investors and they are located on sight. A second visit to Manado, Indonesia will be needed to further validate the preliminary feasibility study, including the business case. Experience is required with permits and legislative assistance is needed. Moreover, funding would enable more elaborate meetings with the local government and identified stakeholders to further clarify the project benefits and risks and identify other deep seawater development possibilities based on the SDC infrastructure. Lastly, funding can be spent on education of a local young expert, for example through the Young Expert Programme.
The current demand for cooling is increasing. According to the Netherlands Environmental Assessment Agency, the energy demand for cooling will overtake the energy demand for heating in 2060. At the same time, cooling of buildings is the largest energy consumer in tropical regions. In a typical building around the equator, 50% of the energy consumption is used for cooling where most of this energy comes from fossil fuels. A sustainable alternative can be found in deeper layers of the sea, where at depths of around 500-1000 meters, the water reaches temperatures of 5-7 °C. Using offshore pipes, this water is pumped to shore and cools down a freshwater loop via a heat exchanger to provide Seawater Air-Conditioning (SWAC). SWAC can be combined with district cooling, known as Seawater District Cooling (SDC), to cut the cooling costs for large consumers with central air-conditioning. SDC is already used in moderate climates, such as in Stockholm, Sweden and Amsterdam. Where significant cooling capacities ranging from 60 to 250 megawatt provide positive returns. However, the deeper seawater potential is not yet widely known in countries like Indonesia, although this technology would have great impact here.
In Manado, Indonesia, Bluerise B.V. conducted temperature measurements in Manado Bay that revealed potentially one of the best locations for deep seawater accessibility. In combination with the many hotels and malls located in an area of 3 km along the city boulevard with separate central air-conditioning systems, developing a project here would reduce the cooling costs of these buildings. Moreover, the government in Manado is still coping with power blackouts on a regular basis. Applying seawater district cooling would cut the energy usage by a factor 10. This provides a more stable grid and reduces the consumption of fossil fuels by 52.000 MWh each year, which is equal to 17.500 Manadonese households.
First contact with potential customers was achieved during a preliminary feasibility study in Manado last year. Eleven potential buildings have been identified as potential customers to be connected to the system. Additionally, a future large real-estate project to be developed in Manado could be connected, including nine new skyscrapers and a huge mall by Lippo. This is a major business and upscaling opportunity for the new centralised seawater district cooling. Bluerise, as a lead developer, will participate in the project through a Special Purpose Vehicle along with our partners once the project development phase starts. This project participation will be of source of future income with the ultimate sale of their participation after commissioning which will yield a very high return on investment. Additional revenue streams are the professional services we provide to the customers.
Bluerise has the technical capabilities and the necessary project partners to execute the project. Bluerise is already in the process of developing similar projects in the Caribbean.
Anticipated customers in Manado are the hotels and malls that are currently dependent on energy intensive conventional chillers. With a deep seawater district cooling system in place these customers will benefit from substantially lower electricity usage and reduced maintenance. They gain reliability in cooling and stability in future cooling costs by using a free/inexpensive energy sources that is always available: deep seawater. And benefit from the elimination of on-site chiller maintenance and operation. The SDC system eliminates the need for chillers, cooling towers, pumps and other individual systems.