S TAR VI UNDERVATTENSDRAKEN TILL MARKNADEN 2016-05-20 Charlotta - PowerPoint PPT Presentation

SÅ TAR VI UNDERVATTENSDRAKEN TILL MARKNADEN 2016-05-20 Charlotta Ekman COO

The Deep Green Tidal Power Plant 2

Deep Green – How it works 75% of tidal current Specifications energy is in the upper 50% of the water column Wing Span 12 Meters Rotor Diameter 1m Tether Length 65m or more Rated Power 500kw @ 1.6m/s Desired Velocity 1,4 m/s or more The figure-of-8 flight path is controlled by a Installation Depth 50 m or more A tether attaches the turbine rudder attached to the to the seabed and delivers plant Devices/km2 18-26 electricity to the grid Weight 7 tons Illustration of Deep Green in action 3

Deep Green – competitive advantages • Unlocks new tidal market Only known technology that operates cost-efficiently using low velocity tidal streams (1.2-2.4 m/s) • High efficiency Kite motion accelerates water flow through the turbine , significantly increasing energy production • Small size and weight Each unit weighs 7 tonnes, 10-25 times less per MW than competing technologies • Low-cost offshore operations Able to use smaller and cheaper vessels for O&M and installation than competing technologies • Utilisationof ocean currents We Weight Co Cost of Energy Ca Capital Co Cost Minesto Competition Minesto Competition Minesto Competition 4

Minesto Group • Dedicated staff and offices in Gothenburg, Northern Ireland & in Wales • Patented tidal power plant – Deep Green • Unique in its ability to cost effectively produce electricity from low flow currents • Unique access to global tidal stream and ocean current resources • Market driven development – Global traction • Listed on First North NASDAQ since 2015 Who we work with 5

Commercialisation roadmap Deep Green Array 2018-2019 - 1:1 scale - Integrate in infrastructure SeaKiteII 2011 - 1:10 scale ocean trials - Marine, Netherlands - Consistent power production - Environmental impact assessed Deep Green 500 2017 QuappenKite2006 - 1:1 scale installation - Prototype tests Survivability analysis - Prove principal - FMEA and HAZOP testing - SIMLOX used to simulate O&M SeaKiteI 2009 Deep Green Ocean 2013-2019 - Tank tests at SSPA and tests at - 1:4 scale ocean tests in Strangford Lough Marine, Netherlands - Power performance proven to 69%. 100% by November 2014 - Proved electricity production - Use of components from proven manufacturers (DSM, LIROS) - R&D Platform

Northern Ireland: ¼ scale demonstration 7

2015 – Year of the Dragon €13m €5m €15.5m €5m 2 June 2016

2015 – Year of the Dragon €13m €5m à Launch of full scale project à Initiate next planning stage €15.5m €5m 2 June 2016

Wales: Holyhead Deep 10MW in 2019 Offshore operations Subsea cables On-shore service and maintenance 10MW Deep Green array Grid connection

Global Market Minesto’s ability to produce cost-efficient electricity at low velocity sites significantly expands the market potential, the market is valued to €250 250 bi billion n in annual electricity sales “The Deep Green technology is able to operate economically at sites where no other renowned technology has been identified” Ti Tidal Current Market Ocean Current Market Oc - Florida Current: 27GW (54.000 units) Minesto’s products have a global market - AustralianCurrent: 18GW (36.000 units) potential to generate electricity for £135 - Kuroshio Current Japan: 8GW (16.000 units) billion-pa in annual yield. - Kuroshio Current Taiwan: 19GW (38.000 units)

Cost of Energy Modelling Input data In CapEx Ca CAPEX CA Electricity production El 0% 5% Pre project development Rated power: 0.5MW Wing and nacelle structure Power performance: 1,69 Tether GWh/yr 15% 31% Anchoring point Foundation, Capacity factor: 38,5% 9% Power transmission device Cable efficiency: 94% Power transmission to shore 9% Availability: 98%* 9% Control system 16% 1% Deployment Pr Project ct speci cifica cation 5% Decomissioning Co Cost of Energy Rated power: 30MW & & Quotes & Industry Experience No of power plants: 60 Invest In stment No of spare units: 3 Gr Graph for Location: UK Future Pr Fu Projects Project life: 20 yrs OpEx Op OPEX OP Construction time: 2 yrs 2% 7% Project Costs Fi Financial Kite: Routine O&M Electricity support: €180/ 15% Kite: Non-Routine O&M MWh for 15 yrs (CfD) 17% 59% Post support electricity Cable: Routine O&M payment: €90/MWh Quotes & Industry Experience Cable: Non-Routine O&M Discount rate: 8%/12%/15% Inflation: 2% Quotes & Industry Experience *Post certification

Cost drivers 1 CapEx 2 OpEx

Cost drivers Minesto Other 1 CapEx Material needed Small vessel decreases cost • to produce 500Kw Smaller devices enhance • @1.5m/s 2 the mobilization and OpEx service speed Most service conducted on • • 14 14 tonnes/MW vs land vs 300 300 tonnes/MW • Ac Accelerated learning curves • Si Simple, low cost transportation

Cost drivers Si Site Accessibility, year around 1 Accessible CapEx Co Cost efficient O&M 2 OpEx €5.000/day €150.000/day

Cost of Energy Forecast Deep Green COE Low/Med/High DR 450 Offshore Wind UK Price 2014 400 UK Tidal 2035 350 Open Cycle Gas Turbine Price 2030 Onshore Wind Price 2014 300 Combined Cycle Gas Turbine Price 2030 250 COE €/MWh 200 150 100 50 0 1 10 100 1000 10000 Cumulative Installed Capacity (MW) Ge Generation (cum. power 1 1 (4) 4) 7 7 (250) 250) 10 10 (2000) 2000) plant pl nts) Project size 20MW 30MW 128MW COE NA €96-128/MWh €56-77/MWh IRR NA 26% 55% NPV NA € 66 252 173 € 223 430 280 Payback time NA 6 years 5 years Product cost € 1 549 297 € 497 095 € 280 137

PART OF THE NEW ENERGY MIX ”Det är väl talat, men låt oss nu odla vår trädgård” Voltaire 2 June 2016 CONFIDENTIAL

”Det är väl talat, men låt oss nu odla vår PART OF THE NEW ENERGY MIX trädgård” ”Det är väl talat, men låt oss nu odla vår trädgård” Voltaire Voltaire 2 June 2016 CONFIDENTIAL

The end. Thank you! POWER TO CHANGE THE FUTURE Charlotta Ekman @MinestoAB COO Charlotta.ekman@minesto.com Minesto +46 762 065 080