Sink Float Solutions

Christophe STEVENS April 27th 2016

Ocean Gravity Energy Storage

(OGRES)

OGRES Assumptions Simple

Low cost

Demonstration Cost structure

Technical questions

Sink Float Solutions IP

Prototype Partnership Market

OGRES video

How the energy storage system works

https://www.youtube.com/watch?v=EzdQAnDJjfg

Christophe Stevens – April 27th 2016

100 Tesla

Batteries

1 MWh

Theory « Low cost energy storage »

320 k€

Reality « Other components are necessary … »

« … all of them are proven technology at an industrial scale»

Standard components Barge, ballasts, pulleys, gearbox, brake, motor/generator, transfo, converter, control, cables (lifting, anchoring), floats, lanyards, hooks, ROV’s, compressor, heave compensators, etc

Cost structure « 50 €/kWh? … we need to present some figures ! »

0

50

100

150

200

250

300

350

Seuil de compétitivité Très dévaforable Exemple détaillé Favorable

Opérations (10 ans)

Câble électrique (HVDC ou AC)

Barge et son câble ascenseur

Système d'ancrage

Flotteurs des lests

Lests

(€/kWh)

Favorable Competitor Average (Example)

Unfavorable

Operations (10 years) Electric cable Barge and lifting cable Anchoring cables Floats Weights

0

20

40

60

80

100

120

WEIGHTS

FLOATS

ANCHORING

ELECTRIC CABLE

BARGE

OPERATIONS 600 k€/year during 10 years, 50 MW, MWh/MW=12h

Hypothesis

Power 50 MW Distance 100 km

Cable + installation + converters = 3 k€/km/MW

Trenching 90 k€/km

Included Barge Mechanics (pulleys, cable, gear reducer) Electricity (motor/generator, transfo. converter, etc.) Other (propulsion, steering, other …) See details on next page

Anchors (concrete block), edge floats, etc. Wire rope (breaking strength 2000 N/mm2 - coef séc 5 - 2,5 €/kg)

equivalent 20 €/kg PVC …

Lower floats + ….

Upper floats + …

Reinforced concrete: 200 €/m3, density 2,3 Design: cylinders H/D = 4, v 20 km/h, drag. losses <15%

Other …

De

pth

: 4

00

0 m

eters

Storage capacity investment (€/kWh)

0

5

10

15

20

25

30

35

40

46 €/kW

€/kWh €/kW (x12h)

Converter DC/AC (option)

Transformer

Motor/generator

Gearbox (reducer, 3 speed)

Brake Pulleys

Lifting cable (+l, hooks, lanyards, etc.)

Other …

Barge (Float capacity)

Ballasts (option) Propulsion, etc

Dead time

46 k€/MW

Hypothesis

33 k€/MW

32 k€/MW

96 k€/MW

12 k€/MW

The best existing machine for the OGRES purpose are wind turbines electromechanical components (gearbox ratio and generator with variable speed: torque/speed variation). The référence for cost structure, is a 2 MWC DFIG machine with 15 rpm (650 kN.m/MW).

18 k€/MW

0,15 €/N.m

150 €/ton(CMU)/pulley (ratio D/d = 85)

Continuous cycle => 1 cable (length = 2x4000 mètres) Wire rope breaking point 2000 N/mm2 - coef sécu 5 - 2,5 €/kg

650 €/ton Total capacity = 3,3 x weight

Hypothesis: cost + 10%. Several options can solve the « dead time » during the hanging/dropping phases: Several barges (N+1) can operate together + speed increase, ancilliary storage systems: flywheels, super capacitors, batteries, unique weight OGRES, etc.

Sources BARGE

* … and certified connectable to the grid

200 €/m3

(concrete)

30 m3

(180 €/m3)

2 to 5 MW

> >100 kgf (thruster)

Barge < 650 €/ton (load capacity)

(230 k€/MW)

Standard components for 5 MW barge

1 MWh weights (20 km/h)

16 barge modules

Cable = 5 cm Pulley = 2 m Ratio = 40

ROV with simple tool (no need articulated arm)

Each weight includes 2 lanyards with 1 hook and 1 float each and each side of the lifting cable includes 1 lanyard with 1 hook

Swell impact on hooks movement

Container ship (capacity 200 kT)

OGRES 500 MW barge (total capacity 30 kT)

Standard components for 500 MW barge

100 MWh weights (20 km/h)

Autonomous weights (no anchoring)

10 kT D 13 m H 45 m

Height 150 m

Upper float (barge) = 5% total capacity

10 kt = 200 x 50 m3

= Leak hazard resilience 100 t = 3 x 30 m3 = capex destruction if leak

16 barge modules

Cable lifting systems don’t have « max load » limitations

Capacity = 10 kT (500 MW) Diam. pulley = 4 m diam. cable = 5 cm Ratio D/d= 80

Sea bed

290

150

35

Investment (€/kWh)

Scale economies Physical law Electricity Hydrodynamics

Industrial Large series quotation Electricity transport cost

Engineering, optimization Solutions and spec. choice (best combinations) Automation Reinforced concrete calculation (ref 200 €/m3…)

Levelized cost (LCOE)

For more information about LCOE and sensitivity study, a tool is available on our website www.sinkfloatsolutions.com cost = f (RE+SE combination, power, location)

Batteries OGRES

1

0

Life time Dismantling cost

Batteries < 10 years Yes OGRES Barge >> 30 ans

Transport >> 60 ans Other ±20 ans

Negative (barge steel price =

150 €/ton)

Technical questions « Heavy swell is patent friendly »

Not exhaustive list (2 years of challenges with experts in different sectors)

Swell movements impact the hooks and lanyards - Hanging operations (death time) - Dropping operations (shock with seabed) - Torque fluctuation - Resonance frequency and cable strength - Sea state percentage vs operation rate (best economical choice). Eg Bay of Biscay different from Mediterranean Sea Kinetic energy impact on cable strength Temperature (and volume) variation due to compression/expansion Cable elasticity, power/speed/torque control, etc. Constant power (death time, acceleration, deceleration, kinetic energy impact on cable strength, PV=constant, …) Animals curiosity, HVDC power cable weight (4000 m), operation cost, heavy lanyards, heavy hooks, 4000 m depth seabed hook accuracy. Freeboard, certification, etc

Main solutions 7 patent solutions necessary for economical viability (all of them Sink Float perimeter, 3 patents including 2 with 100% A category research report)

Secondary solutions Different solutions can be developed for each problem, and might improve slightly the economical performance (Sink Float > 40 claims) Other solutions (free)

Solutions Frequent comments and asked questions

More information is available in appendix

A B C D

E F G

H, I ?

Sink Float Solutions

Energy storage (Sink Float) Délivrance

Technologies Other Gravity 3 patents deliveries are guaranteed for Sink Float (until 2032) Inventor Christophe Autre

Patents G F D E H? I? 7 main solutions Each main solution can be developed independently of one

to an other and could be « sold » as different licenses (even inside the same patent). Each one of the main solutions (used as unique) is necessary to develop a competitive storage solution.

Solution 1 v Solution 2 v Solution 3 v Solution 4 v Solution 5 v Solution 6 v Solution 7 v v

Secondary solutions In different situations, secondary solutions can be combined (independantly of the patent), they do not solve the same technical problems. None of these secondary solutions is absolutely indispensable for the financial viability of OGRES. However they allow to improve the economical performance in many situations.

Solution 21 v Solution 22 v v Solution 23 v v Solution 24 v Solution 25 v Solution 26 v Solution 27 v Solution 28 v … v … v Solution 31 v Solution 32 v Solution 33 v …

Prototype scenarios « Improving the perceived value with proofs »

PROTOTYPE SCENARIOS DEMONSTRATION CONSEQUENCES

Budget Size OGRES availability

(meteo)

Economics Validation level

1 million €

Barge = 1 ton/weight (max for crowd funding budget)

/ 50% of cost structure

assumption validation*

40% Increase the value of the project**

5 millions € Barge = 500 to 1 MW (20 tons/weight) + anchoring system resistance trials

50 to 90% (Mediterranean

Sea)

Cost <

competitor*

80% First customers

x millions € ***

Barge = 5 MW Grid connection

> 75% Cost RE + ES < market price

95% Market 10 Mds €

Optimisation (autonomous weights, > 50 MW units, etc.

> 90%

Market > 100 Mds €

* Transport and operation are not taken into account (since theoretical validation is acceptable) ** For new fund raising and/or first IP licensing

*** It depends on site location

A

B

C

Possible contributions

If Sink Float If …the industrial partner…

Prototype financing Via crowd funding (only scenario A), and/or private and/or industrial partnership (suppliers). Several options identified, co investment possible

Scenario A possible, but it would make sense to go directly to scenario B or C in order to create value faster

Prototype assembly and trials

Project management by SFS possible if scenario A (can be fast) and B. Scenario B, C => subcontracting experts. Possible partnership for PV grid project

Project management for proto > 1 MW with grid connection

Additional engineering Subcontracting all Electromechanics and transport (+ marine energy?)

Suppliers We got quotation from at least one supplier for each component. Several suppliers want to invest (apport en industrie)

It would make sense in order to reduce the prototype cost (supplier base) and "make or buy" strategy integration

Market Product could be IP licenses or storage system (both can be sold by project or by geographic perimeter)

Global strategy, energy mix strategy (renewable + storage combo)

Possible partnerships We can manage all but it would make sense to be associated soon with a major of energy sector. Several partnership combinations seem possible.

Market

2 MARKET DYNAMICS

MINI GRIDS MACRO GRIDS New PV or wind farm will be developed together with OGRES, for a particular customer (industry, municipality)

A progressive deployment of OGRES will follow the progressive replacement of conventional power plants by renewable energy facilities.

MWh/MW ratio 12h to 48 h 3h to 18h Power 5 to 100 MW > 20 MW Electricity market > 10 c€/kWh < 15 c€/kWh Customer location Close to the sea Far from the sea Additional backup capacity factor = 0 to 30% /

PRODUCT STRATEGY

Patent licenses (royalties €/kWh a/o €/kW)

By project By geographic perimeter

Storage systems Industrial (make) Business (buy)

Turnover = benefit* 2017 – 2020 > 1 bn € 2021 – 2030 > 100 bn €

* Patent licensing scenario

Christophe STEVENS Sink Float Solutions Email: christophe.stevens@sinkfloatsolutions.com Tél: +33.6.74.12.96.75 Web: www.sinkfloatsolutions.com

Thank you for your attention

APPENDIX

Solution 1 Solution 2 Solution 3 Solution 4 Solution 5 Solution 6 Solution 7

Main solutions (Sink Float Solutions IP)

presented in the video

Inventor C Stevens

Capex + 15%, energy losses + 2%, operation ratio 100%

Cost constant in all locations (for a given depth) : eg Mexico Gulf cost = Mediterranean cost Possible to build a prototype with only very standard additional components (by comparison to solution 1, 2)

100% A (research report)

Synergies with the 2 main challenges: More difficult the technical challenges (state of the sea) = more value of the IP solutions

Anchoring cable concrete

Upstream reservoir dam: 600 kg/kWh Tunnel excavation volume, turbine/pump infrastructure are not included

PVC 1 kg/kWh

Reinforcement (for concrete) Concrete 75 liters

Barge Mechanics Lifting cable

Barge

Anchoring

Weights

steel 20 kg/kWh

Lead 35 kg/kWh

Lead 35 kg

Lead 35 kg

Lead 35 kg

Lead 35 kg

Lithium 10 kg Lithium 10 kg

Downstream reservoir dam: 130 kg/kWh

150 x 5 = 750 €/kWh

320 x 2 = 640 €/kWh

How much raw material for 1 kWh of storage capacity?

With pumped storage hydro (eg Bath County)

With batteries (for 20 years lifetime)

With OGRES

Copper (submarine electric cable HVDC 100 km, 50 MW)

91 €/kWh (prototype maturity)

Barge 1 Barge 2 Barge 3

20 MW 20 MW 20 MW

HVDC Cable (60 MW)

Mothership (crew: ROV, maintenance, etc)

ROV ombilical

Etc.

Switch on the number of barge as function of the power need (optimal speed for better energy efficiency)

Why OGRES solutions was not economically viable earlier?

Market evolution: Intermittent energies cost reduction Technology improvement: Submarine HVDC ROV Power electronics (generator) Dynamic positioning (GPS) Offshore engineering (oil, gas, RE)