Revolutionary energy recovery and storage

ENERGY STORAGE HAS NEVER BEEN SUCH A ‘BIG DEAL’…UNTIL NOW

BLOOMBERG NEW ENERGY FINANCE 2016

*SOURCE: THE CARBON TRUST, FEBRUARY 2016

With renewable energy taking centre stage in the coming years, there will no doubt be an increasing

demand for the storing of energy in efficient and cost effective ways. In fact, it has already been predicted

that by 2030, the UK could save up to £7billion annually, thanks to various energy storage strategies.*

INSTEAD OF CONSUMING IT DIRECTLY FROM THE GRID, WILL BE STANDARD BY

2030STORING ENERGY

Recovering the hidden energy of movement and storing it for later use in flywheels is increasingly becoming a popular way to generate clean electricity. We only have to look at Formula 1 racing to see how far the technology has come along.

CRESS Systems are now taking it one step further, and bringing the overwhelming benefits of flywheel technology to the industrial sector.

PART OF THE MOVEMENT:Introducing a revolutionary energy recovery & storage system for industrial use

HOW COULD THIS TECHNOLOGY WORK FOR INDUSTRY?

MOVING (OR KINETIC) ENERGY IS HARVESTED FROM EXISTING INDUSTRIAL MACHINERY

THIS ENERGY IS TRANSFERRED TO A FLYWHEEL, CAUSING IT TO SPIN

THIS ENERGY IS THEN STORED IN THE FLYWHEEL AS IT CONTINUES TO SPIN

THE FASTER IT SPINS, THE MORE ENERGY IT STORES

WHEN ELECTRICITY IS REQUIRED TO RUN INDUSTRIAL MACHINERY, THE ENERGY FROM THE SPINNING FLYWHEEL IS USED TO GENERATE POWER WITHOUT HAVING TO BURN EXTRA FUEL

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5

THERE COULDN’T BE A BETTER TIME FOR OUR TECHNOLOGY

Original research and development of flywheel technology

£275k government-backed grant awarded

Prototype successfully tested and validated

€535k funding awarded (in partnership with MSC Ltd. and NOATUM Ports S.L.U.)

Exclusive license granted CRESS

Springboard regional winner - £40K award

Research continued by Dr. Rayner Mayer

£100k investment received

Headquarters moved to Redcar, Teeside

New global supply chain partnerships established

£100k grant awarded

First major relationship with the shipping industry

Confirmed the container crane industry as a business opportunity

£500k government-backed grant awarded

First full-size flywheel unit produced

Product commercially available

PRE-2009 20162014201220102009 2011 2015 2017 & BEYOND2013

Since its inception, the technology developed by CRESS Systems has hit numerous important milestones - including crucial breakthroughs, industry-recognised awards and the backing of leading organisations. Here is a brief glimpse of just how far we’ve come:

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WHAT GOES UP,MUST COME DOWNCRESS’ revolutionary technology is set to change many industrial sectors, but initially it is the shipping industry that will find the benefits of flywheel technology the most compelling. Simply because, it is an industry that is very sensitive to cost and always looking for new ways to improve its efficiency.

The shipping industry uses cranes to load container ships and move containers around the shipyard. These cranes run on electric motors either powered by diesel-burning generators or directly from the national grid.

The technology developed by CRESS is perfectly placed to take advantage of the effects of gravity when a crane lowers its cargo. Harvesting this ‘free and hidden’ source of energy can be used to replace the cost of burning expensive fuel or tapping into the power grid.

HOW CAN CRESS TECHNOLOGY HELP CUT COSTS?

INSTEAD OF LETTING THIS HEAT GO TO WASTE, IT IS USED TO SPIN THE THE FLYWHEEL ATTACHED TO THE CRANE

A

B C

THROUGH A COMBINATION OF GRAVITY AND FRICTION, THE BRAKES USED TO CONTROL THE CRANE’S DESCENT GENERATE HEAT

WHEN THE CRANE LIFTS A CONTAINER, THE ENERGY STORED IN THE ALREADY-SPINNING FLYWHEEL IS USED TO POWER THE ELECTRIC MOTOR WITHOUT BURNING FUEL.

LOWERING AND RAISING THE CRANE TWICE PRODUCES ENOUGH FREE ENERGY TO RAISE IT FOR A THIRD TIME CUTTING ENERGY COSTS BY AT LEAST

Aside from the positive environmental impact, there is a large gap in the market for cost-effective energy saving solutions within the industry. The financial benefits are huge.

WHY CONTAINER CRANES?

EACH CRANE USES AT LEAST

OF DIESEL EACH YEAR

CRANES

CRANES

CRESS TECHNOLOGY CAN REDUCE THIS COST BY£85k

THAT’S A SAVING OF

PER PORT EACH YEAR£1-3m

30%

A SMALLER PORT OPERATES UP TO

A LARGER PORT OPERATES

20+100

TOTAL LIFESPAN CHARGING & DISCHARGING TIME EASY DISPOSAL

PERFORMANCE DETERIORATION

OVER TIMECOST

CRESS FLYWHEEL TECHNOLOGY 5-10 YEARS NONE IMMEDIATE YES £75K

TRADITIONAL CHEMICAL BATTERIES 1-3 YEARS YES UP TO 8 HOURS NO £250K

Much like those used by household devices, industry also uses chemical-based batteries to store energy (but on a much larger scale). So how do the benefits of flywheel technology compare to traditional batteries?

FLYWHEEL VS. BATTERY

Since its inception, the technology developed by CRESS Systems has hit numerous important milestones - including crucial breakthroughs and industry-recognised awards. Here is a brief glimpse of just how far we’ve come:

FEW COMPETITORS = HUGE OPPORTUNITY

DESIGNED FOR CONTAINER CRANES

LOW COST (EQUIVALENT TO 3 YEARS’ OF ENERGY SAVINGS)

EASY TO INSTALL

HIGH POWER & ENERGY DELIVERY

DESIGNED FOR INDUSTRIAL EFFICIENCY

CRESS SYSTEMSVYCON WILLIAMS F1BEACON POWER TOROTRAKWATTSUP

CONSUMER AUTOMOTIVE

GRID STABILISATION - INDUSTRIAL EFFICIENCY

GRID LONG TERM - BACKUP POWER

OUR BUSINESS

MODEL

The main thrust of business strategy relies on direct sales to major port operators, including the top four names in the industry:

We also aim to sell directly to large OEMs and manufacturers looking to integrate our composite flywheel technology into their own products.

Each unit can easily be integrated into newly-built cranes and retrofitted to existing equipment.

COLLECTIVELY THEY REPRESENT

INSTALLATION COST AT

PAID BACKOVER

(per unit) (in equivalent energy savings)

OF THE MARKET

£57k 3YRS

50%}FROM PROOF OF CONCEPT,

TO FOUNDING CUSTOMER

a valued development partner and

CRESS Systems’ FIRST official client.

As you’ve probably realised, we have a truly compelling

product. Not only does it slot perfectly into a wider, global

desire for cleaner energy; it is also a product with several

buyers waiting in the pipeline.

WHY INVEST IN CRESS

SYSTEMS?

HOW THE NUMBERS STACK UP GLOBALLY:

AROUND THE GLOBE

IN POTENTIAL SALES

CURRENTLY IN USE

1,000+

£1.4bn

25,000+PORTS

CRANES

WE ALSO HAVE A VERY AMBITIOUSFUTURE AHEAD OF USCurrently, the global container crane market is our immediate focus. However, other markets have been identified as an opportunity for CRESS’ flywheel energy storage technology.

CARBON TRUST, MARCH 2016

“Energy storage could save £2.4 billion a year system wide by 2030; if regulatory hurdles are overcome this could rise to £7 billion a year.”

INDUSTRIAL ENERGY MANAGEMENT (HIGH CONSUMPTION)

THE KIND OF INDUSTRIES WE AIM TO TARGET INCLUDE:

ENERGYRECYCLING FOR INDUSTRIALS:

– MINING– DRILLING– CONSTRUCTION

– POWER GENERATORS– ELECTRICITY DISTRIBUTORS

ENERGY QUALITY IN THE GRID:

Q1 Q3Q2 Q4 Q1 Q3Q2 Q4Q1 Q3Q2 Q4 Q1 Q3Q2 Q4 Q1

2015INDUSTRY/SECTOR

2016 2017 2018 2019

PORTS & SHIPPING

ADJACENT MARKETS

NATIONALPOWER GRID

THE ROADMAP TO MAKING CRESS SYSTEMS A COMMERCIAL REALITYOur main focus for the immediate future is the manufacturing and sale of product, specifically to ports and the shipping industry. The good news is, we on track to beginning a small run of products, with guaranteed buyers already waiting the wings. Once we have have established ourselves in this market, our aim is to investigate potential applications in other markets (see page 11).

DEVELOPMENT

SECURE STRONG ROUTE TO MARKET

POSITION CRESS IN MARKET

PROOF-OF-CONCEPTAT PORT

FINALISE PRODUCT

TRY-BUY DEPLOYMENT TO PORTS

SMALL PRODUCT RUN

INDEPENDENTLY VALIDATED RESULTS - NPL

SALES

SALES

Together with some very important partners - like the University of Reading - we have assembled a dedicated team with extensive experience.

BEVERLEY GOWER-JONES - Chairman RICHARD BRADSHAW - CEOCATHERINE SPENCE - University of Reading DR SIMON CROOK - Clean-Tech IncubationDR RAYNER MAYER - CRESS Founder & Energy Storage Expert

HIGH EFFICIENCY MOTOR MANUFACTURERS

ENERGY MANAGEMENT SYSTEMS RESEARCH

SUPPLY CHAIN

INDUSTRIAL AUTOMATION TECHNOLOGY PROVIDER

MEET THE TEAM

THE BOARD

INDUSTRIAL PRODUCT DESIGN AND DEVELOPMENT EXPERTISE ENERGY AND CLEAN TECHNOLOGY INCU

BATIO

N SP

ECIA

LIST.

CARL BENNETT, PRODUCT DIRECTOR BEVERLEY GOWER JONES, CHA

IRMA

N

RICH

ARD BRADSHAW, CEO DR PHIL MEDLICOTT, CTO

PORT

SPEC

IALIST

WITH MIT STARTUP EXPERIENCE ENERGY STORAGE EXPERTISE WITH FLYWHEEL PATENTS

www.cress-systems.com

HEADQUARTERS: WILTON CENTRE, REDCAR, CLEVELAND, TS10 4RF, UNITED KINGDOM.

DEVELOPMENT: UNIT 5, WELLINGTON INDUSTRIAL ESTATE, SPENCERS WOOD, READING, RG7 1AW, UNITED KINGDOM.

For more information, please contact:

Richard Bradshaw, Chief ExecutiveCRESS Systems

+44 (0)7706 911811richard.bradshaw@cress-systems.com