Presented by: Hawaii Pacific Energy Group (PI), LLC (Philippine Agent for Nordic Windpower USA) Warren Lim mobile +1 (808) 216-2210 [email protected]
Utility scale. Community focus.
Page 1 All rights reserved 2009 Wind Power Sector - Benefits
Wind Power is clean, indigenous, fast to deploy, creates many jobs, uses virtually no water and is economically competitive.
During this past year, over 27,000 MW was installed and the milestone for 120 GW of installed capacity reached.
Page 2 Wind Power Sector – Cost of Energy
On par with fossil – better when CO2 considered
20 18 18 16 14 14 12
10 9 8.5 7 cents/kWh 8 6.7 6.5 6 5.6 6 4.5 4.2 4 2 0
Source: CERA / Massachusetts Institute of Technology 2007 Notes: Numbers include State and Federal Tax Credits and all other Subsidies. Wind based on 30% capacity factor, Solar – PV is utility scale, Solar-Thermal is trough, utility scale and Fuel Cell is molten carbonate, Geothermal utility scale from steam. Natural Gas @ $6-8 mmbtu. Coal does not Include carbon costs. Page 3 Our Vision & Mission
Leading provider of reliable, affordable, utility-scale wind turbines by harnessing the power of unique load shedding, weight saving two bladed turbine technology...
…in order to generate the lowest cost of clean energy
Page 4 Community Wind Power Market Attributes
• Typically Projects <20 MW North American Community • Development and majority ownership by local private and public Wind Market entities – Munis, Co-ops, Schools, Military Bases, small investor- owned independent power projects, on-site industrial/commercial • Funded by regional investors, local lenders and institutions • Supported by state and federal incentives
• ~600MW expected to be installed in U.S. community wind in Large and growing market 2009 plus Canada and other opportunitic markets. • Represents ~$800M of turbines • Adjacent distributed utility (> 20 MW) market also growing
Project Characteristics & • Many 1 to 5 wind turbine project opportunities Challenges • Long-term wind resource data not always available • Proper wind turbine siting is critical (setbacks, etc.) • Fragmentation in breath of scope and capability among contruction and service providers in this project size range.
Reliability, customer service • Community wind buyers require more upfront attention more critical than cost • Project reliablity and predictability prime concern. • Build partnerships with wind assessors, BoP and O&M providers to pre-qualify scope, quality and cost metrics. Page 5 Who is Buying Community Wind?
Ontario CAN • Feed-in tariff 11 cent/kWh California, ID, Pac NW for project < 10MW • Strong RPS support • EcoEnergy Incentive • Supportive state • Moderate winds incentives • Cold winter temperatures • Co-ops, PUDs, and munis • Small experienced developers NY, New England • Strong RPS support • Small project focus • Cold winter temperatures
Upper Mid-West • Strong RPS support • Huge distributed and Project & Customer community wind Qualification Criteria opportunities • Cold winter temperatures IEC Class III Wind Resource Texas, New Mex., Colorado States with Renewable Portfolio • Strong RPS support Standards and Other Incentives • Constrained transmission supports distributed projects • Shorter development cycles Firm and Awarded N1000 Turbines
Project Opportunities Uruguay Page 6 Turbine Technology Three blades or two blades – there is more to it
The Danish Topology The Nordic Design Rigid Flexible Complex Simpler Massive Lighter Page 7 Differentiated Technology Proprietary Load Shedding Technology Makes This Possible
Patented method for eliminating harmonic loads Teeter avoids passing most bending loads to the gearbox • Control and design of the teeter restraint system vital • Use of smart blades, analysis, controls, feedback is key Based on acquired Swedish technology that took over $75M of R&D to develop Game-changing technology has a strong future on multi-MW wind
turbines and offshore installations View of nacelle internals with proprietary dampened teeter-hub mechanism
By passing fewer problematic forces into the drive-train & structural components, Nordic’s teeter enables lighter, more reliable turbine designs
Page 8 Differentiated Technology Two Blades plus Dampened Teeter – Lower loads, less weight, less cost
Variable Pitch, Fixed Pitch-Stall Regulated, Rigidly Mounted Hub, Dampened Teeter Hub, Separate Shaft & Integrated Gearbox Bearings, And Main Bearing, Bed Frame Integral G/B-Generator Frame Structure
Variable Speed, Fixed Speed, Heavy Tower Anti-Vibration Mount System, Softer Tower
Lighter weight, affordable, reliable & simple – Meets all requirements of IEC IIIb
Page 9 Differentiated Technology Lower load + longer life + higher reliability = Lower Cost of Energy
Turbulence
All loads down on Gearbox shaft
Cyclic loads down on Main frame Yaw Bearing Tower top Blades Tower Shadow
Page 10 10 1 MW Turbine Specifications the Community Wind Turbine
N1000 Evolution Wind Regime: IEC Class IIIb - Moderate Market Applications: Community Wind Distributed Energy Rating: 1,000 kW Rotor: 59 m Tip Speed and Ratio: 70 m/s @ ~ 5x Sound: 104.5 dB Mechanical: Gear – Shaft –Generator Fixed Pitch, Stall Regulated Constant Speed Passive Teeter, Active Yaw Electrical: Induction Generator 1500 -1800 RPM Slip
~ 10% LCoE Advantage
Page 11 Construction and Installation Packaged Offerings with Wind Assessors and BoP Providers
Wind Measurement, Project Developers Assessment & Owners & Monitoring BoP Coordination & Turbine Scope by Turbine Supplier Transport & Logistics
Objectives Civil & • Pre-qualified providers & scope of Electrical work. • Pre-determined cost metrics • Project volume commitments • Lower the cost of Projects, especially Erection & 1 – 3 unit projects Mechanical • Regional coordination of project installation timing to further contain costs. • Joint project management • Bankable wind study Page 12 Construction and Installation Return to simple… lighter, affordable, reliable and ease of installation
Product Value Proposition:
Blades fewer and lighter Nacelle lighter Tower lighter Foundation smaller Shipping costs lower
Provides Community Wind Customers with:
Lower equipment cost Lower installation cost 10 - 25% 10 - 25% 10 - 15% Lower Lower Lower Lower operating cost Upfront + Annual = Cost of Higher reliability Costs Costs Energy
Larger IPP Project Economics in Community Scale Projects
Page 13 Operations & Maintenance Choices - tailored service options to suit O&M strategies
Project Developers Total Care Local & Owners Parts & Labor Warranty O&M Perf. Guarantees Contractor Maintenance/Service Support
Turbine Full Care Supplier National Parts Only Warranty O&M Perf. Guarantees Contractor Maintenance/Service Service Support Operations
Support Basic Care From Maintenance/Service Other Sites
Self Serve Selectable Service Options Pay as you go
Page 14 Operations & Maintenance High reliability & low maintenance – long service life
8-12 130,000 years hours
4 Nordic N1000 turbines have Trouble-free been running operation reliably in Sweden
97.7% 0 availability (zero)
Drive Historic train performance failures
Page 15 Operations & Maintenance High reliability & low maintenance – long service life
• The above graph outlines the CF performance of the 4 Nordic N1000 units relative to the 775 unit Swedish fleet of Turbines. • The Nordic Prototype product has shown consistently above average CF performance against the commercial units from Vestas, Enercon, NEG Micon, Siemens, et.al.
Page 16 Bottom Line – Lowest Cost of Energy Economically the most efficient wind turbine available
20 MW Community Wind Project Comparisons Wind Power Project7.2 ¢/kWh of 20 +MWs REC, at 7.5 20 m/s Year with - AllEnergy Equity at 7.2 Returns and RECs at 1.5 cents/kWh Cost of Energy, Production and After-Tax All-Equity Returns 100.0 12.00%
90.0 $35.2 M $47.7 M $52.2 M Total Investment Total Investment Total Investment 10.00% 80.0
70.0 8.00% 60.0 $/MWh 50.0 6.00% - All Equity and 40.0 4.00% 30.0 GWh/year Pct. Return 20.0 2.00% 10.0
- 0.00%
GWh per Year 1.5 MW
SLE Vestas V82 Cost of Energy ($/MWh) GE 1.5 SLE V82 1.65 MW NordicN1000 NW100059 1 MW All-Equity 20-Year After- Tax Returns Turbine Make & Model Page 17 In Summary
Turbine Technology
o Solutions that are simple and reliable for Community Projects
o Lower the cost of energy Installation and Construction
o Build efficient project delivery partnerships coordinated by turbine supplier
o Coordinate timing of installation of smaller projects within a region
Operations and Maintenance
o Not all Customers are alike – selectable service options
o Safe and predictable operational results (availability, annual costs)
o Involve local and national O&M providers when more cost effective.
o Promote customer user groups to share experience and improve the collective performance.
Page 18 Let’s talk!
Nordic Windpower
125 University Avenue, Berkeley CA 94710, USA tel: +1 510 665 9463 toll-free: 888 322 2080 fax: +1 510 665 9466 [email protected] www.nordicwindpower.com
Utility scale. Community focus.
Page 19 A New Company with 35 years of Heritage A heritage of innovation & commitment to wind power
N1000’s 110,000 One Maglard turbine hours trouble free prototype dismantled Nassuden 3-MW operation JV for US 19 total of the rebuilt (Now world manufacturing N1000 on record holder in Government & sale order accumulated power funded R&D 5th N1000 sold & production) program in installed by Two 3-MW two Sweden repeat customer bladed R&D wind 1st Nordic Vattenfall utility turbines were at 3rd N1000 400 erected Maglarp Nasudden sold and at Lysekil, installed 1st US 1st US installs Sweden orders July ’09
1975 1980 1985 1990 1995 2000 2005 2010 4th N1000 sold and installed Manufacturing open Pocatello, ID 2nd N1000 sold and installed 1st N1000 1-MW prototype sold to the Major funding Swedish utility secured for Vattenfall at Gotland acquisition and manufacturing expansion; Goldman Sachs, et. al.
Source: Nordic 20 Page 20 Management Team Highly experienced with demonstrated performance in energy sector
Thomas Carbone, CEO Former CEO of Vestas Americas and President of Wartsila North America. 26 years of OEM power generation equipment sales, engineering, manufacturing and service. Drove market penetration with new product introductions; gained new customers by creating focused quality and commitment; increased annual revenues 400% to in excess of US$ 1 billion from US and Canadian wind turbine contracts. Prakash Ramachandran, CFO 20+ years in various senior financial roles in the U.S. and Hong Kong. Former CFO of Novariant, a venture funded US$60 million GPS company in Silicon Valley. Former CFO of a $300 million business group in Hong Kong. Sloan fellow from Stanford. Jeffrey Brown, COO Former top operations executive at GE Energy, including full responsibility for the Frame 9H program. 30 years experience managing manufacturing and engineering operations. Six sigma black belt. Dr. Charles Gamble, CTO 15+ years experience in the wind energy industry, including five years at Garrad Hassan & Partners. Pioneered early wind turbine design work at WEG. Dennis Schultz, Dir. of Quality 20 years experience in quality management in wind power and other industries. Amanda Maghari, Dir. of HR 20 years of leading human resource administration and development for globally acting engineering and manufacturing companies.
Page 21 Non-Executive Directors and Investors Professionals with renewable energy sector leadership
Patricia Bellinger Former CEO of BP’s Leadership Development & Diversity Group Acting Chairman Pauline Zaanen Goldman Sachs International - London
Dr. James Lyons Former Director of Research GE Energy; former CTO of GE Wind; currently CTO of Novus Energy Partners
Dr. Hansjörg Müller Former COO of Nordex Wind Energy
Tony Amor Senior Partner – Pulsar Energy Capital Steve Taber Co-Founder and former CEO of Nordic; 25 years in renewable energy; Chairman of Princeton Energy Group
Dr. James Walker Co-Founder of Nordic; 20+ years experience in the wind industry; President of American Wind Energy Association; Vice Chairman & former CEO of enXco (EDFEN)
(NBT AS)
Page 22 Developing World Class Supply Chain Reputable global suppliers, efficient capital utilization
Efficient working capital utilization Quality driven source selections Diversify by country, two suppliers for each component Source Substantiation approval required on all critical components – collaboration with certification body Quality plan drives focus on critical processes and components Partner with supply base to drive value and quality
Page 23 Idaho Manufacturing Facility Local support, skilled labor force, excellent logistics
Skilled, lower cost, available labor pool Excellent logistics – interstates and rail Proximity to universities/colleges and good quality of life Good site infrastructure with multiple cranes and internal rail system
Nordic has leased 43,000 sq. ft. from Peterson Inc. (a large steel producer) Capacity to exceed 150MW per annum by 2010
Source: Nordic Page 24 Competitive Comparison Economically the most efficient wind turbine available
Megawatt Class Offerings V52 E44, 48, 53 MWT1000 N1000 Rated Output Each 850 kW 800 kW 1,000 kW 1,000 kW Number of Turbines for 20 MW 24 25 20 20 Rotor Diam. (m) 52 44, 48, 53 57, 61 54, 59 Rotor Speed 14-31 rpm 16-30 rpm 19-21 rpm 20-22 rpm Wind Classes I and II I, II, III I and II II and III Generation Geared, Gearless Geared, Geared, Asynchronous Synchronous Asynchronous Asynchronous
Weight (70 m HH) ~ 100 Tonnes ~ 115 Tonnes ~ 140 Tonnes ~ 110 Tonnes Tonnes/kW Installed 0.12 T/kW 0.14 T/kW 0.14 T/kW 0.11 T/kW
Equipment Pricing ($/kW) $1,450 $1,600 $1,400 $1,200
Est. Annual Operating Cost $20,000 >$17,500 $20,000 <$15,000
Cost of Energy (CoE) $/kW > 0.090 /kWh > 0.090 /kWh > 0.090 /kWh < $0.080 /kWh -10% to -15%
Page 25 Modern Turbine Controls Robust and reliable – like the N1000
Bachmann M1 Controller
Page 26 26 Supervisory Control and Data Acquisition - SCADA Industry leading technology from Garrad Hassan
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