ENERCON Innovations for Sustainable Mining

Bernard Moulins – Commercial Analyst ENERCON Canada Inc.

Company Overview Technology Market Overview Remote Project Experience Wind Power in Mining Product Overview Copyright AltasGas Bear Mountain  British Columbia

Gries  Switzerland

Privately owned, multinational, vertically integrated manufacturing, state-of- the-art wind turbine manufacturer

1984 Founded by Dr. Aloys Wobben

1993 Launch of Direct-Drive technology with the E-40

Direct-Drive Generator

2001 Installation of first turbine in Canada in Lundbreck, Aloys Wobben Alberta

Lundbreck  Alberta

2007 Launch of E-126

Montreal, Quebec 2009 Inauguration of Canadian headquarters in Montreal, Quebec E-126 Construction

2011 Inauguration of Canadian 2012 manufacturing facilities in Matane, Inauguration of Canadian manufacturing Quebec facilities in Beamsville, Ontario

WEC Tours Inc.

Niagara Electric Inc.

INTERNATIONAL 2015 CANADA 37 181 MW installed 1 755 MW installed 23 181 WECs 795 WECs 16 000 employees 650 employees

2014 Installed Capacity

Source: BTM Consult Source: CanWEA

Global Canada 3rd Position 3rd Position

E-Ship – Wind Powered Cargo Vessel

Direct Drive Generator Cold Climate

Rotor Blade Design

Rotor Blade Heating

Grid Integration

Storm Control

Cast Components Advanced Logistics

Direct Drive Generator Cold Climate

Rotor Blade Design

Rotor Blade Heating

Grid Integration

Storm Control

Cast Components Advanced Logistics

Direct Drive Generator

Reliable power generation at variable rpm Low & stable operating temperatures Fewer vibrations and less noise Low cut-in speed (2.0-2.5 m/s)

Direct Drive Generator

Reliable technology Fewer revolutions  20 years revolutions by ENERCON turbine = 3 months by geared turbine Near 50% reduction in failures

Stoppage Due to Failures (in hours)*

Sensors and Others Yaw System and Rotor Air Brake Not Applicable to ENERCON Gearbox Pitch Adjustment Basis for service-production synergy Generator Applicable to ENERCON *Hours of stoppage due to failures during the third quarter of 2008 (Statistical basis: 4,737 WECs in Germany with 16,988 accumulated hours) [Source: Windstats Newsletter 2008. Vol. 21] Hydraulics Electrical System Main Shaft/Bearing Mechanical Brake

Cold Climate Package

100% power output down to -30°C 25% power output at -40°C Linear reduction with restart at -35°C

Cold Climate Package

Cast Parts Unique alloy, notch tested Yaw and Pitch Systems High viscosity gear oil Bearings Low temperature capacity Rotor Blades Certified to -50°C Tower and Foundation Site-specific structural calculations

Rotor Blade Heating System

Accurate ice detection system based on power curve operating maps Energy self-sufficient hot air recirculation Pre-emptive de-icing eliminating standstill energy losses Case studies in Sweden, Czech Republic, and Canada reveal 83% icing loss recovery rate

Rotor Blade Heating System Yield per month between heated and unheated WEC E-82 2MW at a location in Czech Republic Systems in Canada: 700000  1 x E-53, 800kW (2011) Heated 600000 Unheated  28 x E-82, 2.3MW (2011) 500000  60 x E-70, 2.3MW (2012) 400000 300000 200000

Energy Yield [kWh] Yield Energy 100000 Reduction in standstill due to icing: 0 OCT 09 NOV 09 DEC 09 JAN 10 FEB 10 MAR 10

Czech Republic 82% Europe Sweden 93% Quebec 84% Canada Nova Scotia 80%

Storm Control

Linear reduction of rated speed Resumes energy production instantaneously Avoids hysteresis losses

Without Storm Control With Storm Control

= 25 m/s (3 min)  30 m/s (15s) = 34 m/s (10 min)

Storm Control

Operational at 36 m/s

Storm Control

Operational at 36 m/s

 High Operational Capacity  No Cut-In / Cut-Out Standstill  Reduced Energy Losses

Increase in Power Output

Grid Integration

High tolerance to grid electrical disturbances  Wide voltage and frequency operating range with continuous operation through frequency deviations of ± 7Hz  Under and overvoltage in events up to 5 seconds

Grid stability enhancement options including inertial frequency support Wide reactive power range and availability in absence of wind  Replaces external capacitor banks or other sources of VAR

Advanced wind farm controller available for fast voltage and power control

Grid Integration

Grid stability enhancement options including inertial frequency support Wide reactive power range and availability in absence of wind  Replaces external capacitor banks or other sources of VAR  Support for power system stability during disturbances

Advanced wind farm controller available for fast voltage and power control  Control of small scale distribution to large scale wind power plants

Ross Island - Antarctica

2003 Bonaire, Caribbean Utsira, Norway 1 x E-33, 330 kW 1 x E-33, 330 kW 2004  st 1 full-scale stand-alone wind-hydrogen Mawson Station, Antarctica project in the world  Autonomous wind-hydrogen system with 2 x E-33, 330 kW flywheel and battery storage  70 % diesel displacement

2007 Falkland Islands 6 x E-33, 330 kW  40 % diesel displacement

Ross Island, Antarctica 3 x E-33, 330 kW 2009  Annual savings of 463k litres diesel

 Annual reduction of 1.2k tons CO2 Ascension Island 5 x E-33, 330 kW  Annual savings of $700k

 Annual reduction of 4.5k tons CO2

2010 Griess, Switzerland Bonaire, Caribbean 1 x E-53, 800 kW 2011 12 x E-44, 900 kW  Highest turbine in the world at 2465 m above  40 % island’s energy supply generated by sea level wind  Custom designed millipede transporter used on steep ascents 2012 Northwest Territories, Canada Canary Islands 2013 4 x E-70, 2 300 kW 3 x E-44, 900 kW  Installed at Diavik Diamond Mine 2 x E-48, 800 kW  Annual savings of 4.3M litres diesel 1 x E-70, 2 300 kW  Repowering of existing wind farms Faroe Islands  Created grid stability for pre-existing turbines 5 x E-44, 900 kW

Quebec, Canada 1 x E-82 E4, 3 000 kW 2014  Installed at Raglan Mine  Hybrid wind-diesel system with hydrogen, battery, flywheel storage

Faroe Islands 18x E-44, 900 kW  60% renewable penetration using pumped- storage hydroelectricity

Hybrid Systems

Diesel Solar Photovoltaic Flywheel Including in-house R&D experience Battery Hydrogen Pumped-Storage Hydroelectricity

Diavik Mine – Northwest Territories

Opportunities

Reliable technology, proven in extreme climates Low OPEX with no fuel cost Low cost of energy, levelized for 25-30 years Reduction in greenhouse gas emission

Challenges

Fossil fuel precedence well-suited to micro-grid stability High CAPEX, Return on investment > 4 years Wind resource variability Inertia

Opportunities

Reliable technology, proven in extreme climates Low OPEX with no fuel cost Low cost of energy, levelized for 25-30 years Reduction in greenhouse gas emission

Tipping the Balance Challenges  Historical trend in fossil fuel prices  Increasing energy costs Fossil fuel precedence well-suited to micro-grid stability  Third party owner (IPP) Avoids high CAPEX and ROI period (PPA) High CAPEX, Return on investment > 4 years  Storage technology  Energy integration capacity Wind resource variability  Project Champion + corporate and operator buy-in Conquer learning curve & build confidence Inertia  Incentives  Grants, R&D funding, tax incentives  Integration complexity  Reduced with penetration below 15-20%

Challenges

Fossil fuel precedence well-suited to micro-grid stability High CAPEX, Return on investment > 4 years Wind resource variability Inertia

Tipping the Balance  Historical trend in fossil fuel prices  Increasing energy costs  Third party owner (IPP) Avoids high CAPEX and ROI period (PPA)  Storage technology  Energy integration capacity  Project Champion + corporate and operator buy-in Conquer learning curve & build confidence  Incentives  Grants, R&D funding, tax incentives  Integration complexity  Reduced with penetration below 15-20%

Context

Rio Tinto Diamond Mine – Northwest Territories, Canada 1 500 kg/yr production capacity, 1 165 workforce Operational since 2003, 16-22 year lifespan 100% diesel energy production  approx. 70 million liters diesel Energy costs > 25% OPEX Average wind speed: 6.3 m/s

Project

4 x E-70 2.3MW installed in 2012 Transportation: via ice roads (6 week access period) Installation: team effort between ENERCON and Rio Tinto O&M: Mine workforce training + Alberta service team deployment

Result

CAPEX: $33M Return on investment < 8 yrs Average availability: 95% in 2013-2014 Penetration : average 9%, max 52% Offset 2.3M liters/yr diesel  Reduced risk exposure Strong cold climate performance  1.3MW output at -36°C

Context

Glencore Raglan Nickle Mine – Nunavik, Northern Quebec 1.1 Mt ore/yr production capacity, 950 workforce Operational since 1997, 30-40 year lifespan 100% diesel energy production  approx. 60 million liters diesel Average wind speed: 8.8 m/s

Project

1 x E-82 E4 / 3.0MW installed in 2014 using innovative foundation design Hybrid System (COD 2015):  Li-ion batteries 200 kw  Hydrogen Storage 200 kw  Flywheel 250kw Transportation: shipping (no roads to site) Installation: team effort between ENERCON and Tugliq O&M: Tugliq workforce training + Quebec service team deployment

Result

IPP: Tugliq Energy Co. NRCan & MNR incentives : $13M Average availability: 96% since installation Penetration : forecast 35-55% Offset 2.4M liters/yr diesel  5% diesel consumption Phase II : 9-12 MW turbine power (COD 2016-2017)

Robust Technologies Extensive Experience Sustainable Solutions Long Term Reliability

Seigneurie de Beaupré  Québec

ENERCON CANADA INC.

700 De La Gauchetière Street West, Suite 1200 ▪ Montreal ▪ QC ▪ H3B 5M2 ▪ Canada Phone: (514) 363-7266 ▪ [email protected] www.enercon.de

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