Everything ABB does amounts to meeting customers’ needs in new ways that deliver better performance while using less energy, less raw materials and creating less waste. Continuous improvement in these areas is necessary to raise the living standards of people throughout the world while protecting the environment. Much of ABB’s research and development focuses on new technologies that reduce environmental impact – particularly those that help curb CO2 emissions. Equally important is continuous improvement to raise the environmental performance of existing products. However, making products that deliver more from each unit of input with less environmental impact is not enough. The products must also offer high economic performance over their complete life cycles. Only if they save time, labor and capital will they replace traditional, less eco-efficient products. Each working day, ABB manufactures nearly one million products, ranging from simple switches to sophisticated industrial robots. All are closely linked to the extraction of primary energy and the generation, transmission, distribution and use of electricity. Eco-efficiency affects the entire industrial process from product design and material selection through manufacturing and distribution to waste management. The greatest environmental impact - often 99 percent or more - usually occurs from energy consumption during the useful life of the product. Therefore, continuously increasing the electrical efficiency of our products - delivering more to society from each unit of energy - is a principal aim for ABB. The following examples illustrate how new ABB technology contributes to reducing environmental impact. Wind power comes of age Once dismissed as a fringe technology, wind power is becoming a commercially viable, middle-of-the-road source of electricity. Fifty years from now, as much as 50 percent of all electrical power may come from renewable sources such as biomass, solar energy and wind power. The European Union has committed to generating more than 20 percent of its electricity from these sources by 2010. Wind power is by far the most mature of these sources. Denmark already gets almost 15 percent of its electricity from wind, with a goal of 50 percent by 2020. In the U.S., wind generates less than one percent of the nation’s electricity. However, in 2001, nearly 1,700 MW of new wind power capacity was installed. This included more new wind capacity, 915 MW, in a single state, Texas, than had ever been installed in the entire country in a single year. The technology has improved dramatically during the past few years. Electricity is already being produced for as little as four to five cents per kWh. By comparison, electricity from coal costs three tofour cents per kWh, five to six cents per kWh from oil and three to five cents per kWh from natural gas. Increasingly, megawatt-class wind turbines are erected in offshore, utility-scale wind farms. Since the output of such farms considerably exceeds the local power demand, their impact on the quality of the grid is becoming a major issue for utilities as well as consumers of electricity. To maximize return on investment, wind power will have to be built for a service life of at least 40 years. Components that are subject to high fatigue and wear have to be replaced or refurbished after a predicted service life. However, major parts can be built for a service life that exceeds 40 years. A fast-growing business For the past 20 years, ABB has been a leader in developing the new technologies that make wind power increasingly competitive with conventional power. Much of the research and development is conducted in close cooperation with major suppliers of wind turbines. This has made ABB by far the world’s largest supplier of components for wind technology, with a product range that includes all electrical equipment required. Wind Center, ABB’s center of excellence for wind power, is located in Denmark, the leading nation in the development and use of wind power. About 50 percent of all wind turbines are manufactured in Denmark. Wind Center supports and coordinates research and development in other ABB countries. Twenty-seven ABB plants throughout the world supply customers with, among other things, generators, transformers, control systems, cables and substations. Advanced power electronics for conversion of the electricity to the required voltage and frequency is an ABB specialty, and the new HVDC Light technology transmits power to the grid with low losses. Over the past few years, ABB’s wind power business has been growing on average by 25 percent per year and the growth rate is accelerating.