SEAFORTHENERGY

Bigger isn’t always BetterHow small scale wind is helping communities in Nova Scotia

Mike MorrisPresident & CEO

Seaforth Energy Inc.Dartmouth, Nova Scotia

Full Disclosure:

Seaforth Energy Inc.Nova Scotia’s only manufacturer of Wind Turbines

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Our FlagshipThe AOC 15/50 Wind Turbine

A simple design simplifies maintenance:• Proven - Many installations

have operated for more than 20 years.

• Hardy and adaptable• Safe - Four braking systems,

ensures safe operation

InstallationsWorld-wide

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From St. Thomas, USVI to Sachs Harbour, NT

and from Wales, AK to Pokur, Siberia

Opportunity in Nova Scotia

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NS has a great wind resource

COMFIT re-cap

• The NS COMFIT program identifies the following eligible entities:– Municipalities– First Nations– Not-for-profit groups– Co-Operatives– Community Economic Development Investment Funds– Universities

“Community Scale Wind”

• Larger than residential => 50kW turbines• Generally 1-5 turbines– Sometimes small turbines– Sometimes very large turbines

• Connected to Utility owned Distribution networks• Diverse ownership or stakeholder-ship• Key players usually not energy sector professionals

Why “Community Wind”?The benefits

• Drives community engagement• Benefits as a community:– Reduced greenhouse gas emissions– Local jobs and local suppliers Local cash flow and

local expertise– Tourism opportunities– Lease payments for land use

Why “Community Wind”?The benefits

• Benefits as an owner:– Revenue from sale of electricity– Reduced utility bills– Tax incentives– Renewable energy credits / offsets

• Favourable Wind Tariff rates:– Wind turbines <=50kWh = $0.499/kWh– Wind turbines >=50kWh = $0.131/kWh

Reward!!AOC 15/50 Deal Economics

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The AOC 15/50

Installed cost $333,460

20 Year service cost $90,000

Component replacements $40,000

Interest (50% debt financed at @8%) $80,000

Total projected life cycle cost $543,460

20 Year output (kWh) at 23% capacity factor 2,020,000 kWh

COMFIT Small Wind Rate $0.499/kWh

Total projected revenue $1,007,980

EBIT $464,040

Invest ~$400K and receive ~$40-50K/year

for 20 years

Seaforth Energy Confidential

Who’s doing it?

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Completed Installations

In Planning or Approved

Cherubini MetalworksMaritime Demolition

Guysborough

Guysborough

Eskasoni

NewGlasgow#1

CountyPictou

Town of Amherst

Amherst RCMP

Joggins

Valley Waste Mgmt

U Ste. Anne #2

U Ste. Anne #1

Muni Shelburne

Northumberland WF

CCWF

Under Construction

Cumberland

Waycobah

NewGlasgow#2

Bear River

Antigonish Mulgrave

Yarmouth

Celtic/Port Hood

Why do this?

Social, Environmental & Efficiency Benefits …. … but …

Most “Community Operators” are interested in the annuity cash flow

… therefore …You’re running a business to generate cash … and probably profit!

Some people love the idea of RECEIVING a cheque from Nova Scotia Power Inc.

Advice to Communities

• Get on board and do a project• Create excitement about your project• Explain how your organization works and the

various roles played by each stakeholder, …. And how each benefits

• There will be Detractors and Objectors– Have a plan to address these key players

SEAFORTHENERGY

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