open hydro presentation workshop 20100507

| © OpenHydro Group Limited 2010

OpenHydroMarine Energy and Smart Grid Workshop | 10th May 2010

© OpenHydro Group Limited 2010 | Confidential | James Ives


Agenda

1. Tidal Energy

2. Technology Development

Open-Centre Turbine

Turbine Testing

Subsea Installation

3. Commercial Developments

4. OpenHydro

5. Financials


Tidal Energy


Agenda

1. Tidal Energy


Open-Centre Turbine

Turbine Testing

Subsea Installation


4. OpenHydro

5. Financials


Open-Centre Turbine

Open-Centre Turbine

The key to the Open-Centre Turbine

lies in the simplicity of design.

If a turbine is to survive in the

marine environment it is essential

that it be both simple and robust.

OpenHydro owns the worldwide

rights to the technology; portfolio of

over 30 secured or pending patents.


Open-Centre Turbine

Technology

2. Permanent magnet generator, no gearbox.

3. Scalable design, currently at 10m [1MW rated].

Environmental

1. Large open centre provides an exit route for marine life.

2. Design avoids the need for oils, greases or other lubricating fluids.

3. Retention of rotor blades within the outer housing.

1. Simple construction with only one

moving part and no seals.


Agenda

1. Tidal Energy


Open-Centre Turbine

Turbine Testing

Subsea Installation


4. OpenHydro

5. Financials


Turbine Testing

Turbine Testing

Testing performed at the publicly financed

European Marine Energy Centre1 (EMEC) in

Orkney off the coast of northern Scotland.

No ‘soft option’ with some of Europe's

strongest tides (8.5 knots) and extreme

weather climate.

OpenHydro is the only tidal developer to

have installed and tested a device at EMEC.1 Reference: www.emec.org.uk OpenHydro’s Turbine Research Structure


Turbine Testing

Installation Work (2006)


Turbine Testing


Turbine Testing

Grid Operation

First company to

connect and generate

onto UK national grid

(2008).


Turbine Exchange

Since 2006, OpenHydro have tested five 6m

Open-Centre Turbines at the EMEC facility.

Turbine Testing


Turbine Testing

Lessons Learnt

The installation at EMEC provides

OpenHydro with an invaluable platform for

tidal turbine research and development.

OpenHydro’s team have unique

knowledge and experience of operating in

strong tidal sites and with grid connection.

For commercial deployments, OpenHydro

do not regard piled structures as viable.


Agenda

1. Tidal Energy


Open-Centre Turbine

Turbine Testing

Subsea Installation


4. OpenHydro

5. Financials


Subsea Installation

Subsea Deployment

Commercial design is for

turbines mounted directly

on the seabed.

During 2008, OpenHydro

built and deployed its

first seabed mounted

turbine at EMEC.


Subsea Installation


Subsea Installation

Lessons Learnt

Our experience has shown us that the appropriate equipment for installing tidal

turbines does not exist in the general marine market.

This new deployment method turns a difficult and lengthy project of many months

into a quick and cost-efficient single day operation.

A cost effective deployment method is essential for developing commercial farms.


Agenda

1. Tidal Energy


Open-Centre Turbine

Turbine Testing

Subsea Installation


4. OpenHydro

5. Financials


Commercial Developments

Nova Scotia Power Inc (NSPI)

Installation of 10m (1MW rated) turbine in Bay of Fundy for Nova Scotia Power.



10m Open-Centre Turbine (1MW Rated)



Turbine Deployment (Bay of Fundy)

The installation was completed on first attempt on

the 12th November to a high degree of accuracy.



Électricité De France (EDF)

Installation of four large Open-Centre Turbines for EDF in Brittany site (2011/12).



16m Turbine Design

The project will feature

an array of 4 x 16m

diameter turbines.

These large turbines

are designed to

maximise the energy

generation at the

project site.



Turbine Technology

OpenHydro and EDF are working collaboratively

on the optimisation of the turbine.



Alderney Renewable Energy (ARE)

OpenHydro holds 20% investment in ARE; site with potential to develop 3GW.



SSE Renewables (Airtricity)

Awarded license in UK for 200MW joint venture with SSE Renewables (Airtricity).



SnoPUD

OpenHydro selected by SnoPUD for showcase tidal project in the US.



Global Resource

An industry estimated to be worth €128bn in equipment sales.

Tidal Resource Assessment

OECD ScaleCanada Tier 1UK Tier 1US Tier 1Japan Tier 1France Tier 1New Zealand Tier 2Australia Tier 2Falklands Tier 3Korea Tier 3Singapore Tier 3Ireland Tier 3

TRANSITIONChina Tier 1India Tier 2Indonesia Tier 2Philippines Tier 2Brazil Tier 2Russia Tier 3

DEVELOPINGGuyana Tier 2

Bangladesh Tier 2New Guinea Tier 2Burma Tier 2Tanzania Tier 2


Agenda

1. Tidal Energy


Open-Centre Turbine

Turbine Testing

Subsea Installation


4. OpenHydro

5. Financials


OpenHydro

Company Background

OpenHydro was formed in 2004 following the

acquisition of the world technology rights to the

Open-Centre Turbine.

40 employees across two main locations:

Greenore Technical Centre & Dublin Office.

Project offices in Scotland and Canada.

Experienced Board and Management with

relevant engineering and commercial experience.


OpenHydro

Turbine Manufacture

Dedicated research and

development technology centre.

Capacity to manufacture 6m,

10m and 16m turbines.


OpenHydro


OpenHydro

OpenHydro Team

OpenHydro has targeted the recruitment of exceptional individuals from

international organisations with transferable skills.


Agenda

1. Tidal Energy


Open-Centre Turbine

Turbine Testing

Subsea Installation


4. OpenHydro

5. Financials


2006 2007 2008 2009 2013

EMEC Research Structure

Capi

tal C

ost P

er M

W

EMEC Subsea Deployment

Nova Scotia Deployment

First 100MW Installation

€24m /MW

€3m/MW

€7m /MW

€1.6m/MW

Tidal Farm Economics

Significant reduction in capital cost already achieved.

Primary driver is low cost of turbine and installation method.

Further significant cost reductions identified and underway.

Financials


Financials

OpenHydro Tidal Turbine Economics

$- $50 $100 $150 $200 $250 $300 $350 $400

Coal Fired

Natural Gas CCGT

Geothermal - Flash Plant

Geothermal - Binary Plant

Municipal Solid Waste

Landfill Gas

Wind - Onshore

Biomass - Incineration

Biomass - Gasification

Biomass - Anaerobic Digestion

Wind - Offshore

STEG - Parabolic Trough

STEG - Parabolic Trough + Storage

PV - Thin Film

PV - Crystalline

Marine - Tidal

Marine - Wave

LCOE Carbon: 15 EUR Carbon: NEF Estimates Central Scenario

OpenHydro predict a cost per

MWh of €117 (ex financing).

Primary drivers are low cost

of manufacture & installation.