The Carnegie Wave Energy CETO Wave Energy Project

Transcription

1 The Carnegie Wave Energy CETO Wave Energy Project -Progress towards Commercialisation Dr Laurence Mann Research and IP Manager Carnegie Wave Energy Limited. October Carnegie Wave Energy Limited

2 Carnegie Wave Energy Ltd who we are Australian-based CETO wave energy developer ASX-listed (CWE) $100m Market Cap 20 staff Headquarters in West Perth, Western Australia Wave Energy Research Facility in Fremantle, WA

3 Carnegie what we do Develop & commercialise proprietary CETO wave technology Build, own & operate CETO wave power stations Licence CETO wave technology to third parties Sell services and equipment to CETO wave power stations (in future)

4 CETO technology overview

5 CETO zero-emission power & freshwater

6 Wave Energy abundant, high capacity, predictable Energy in the ocean swell generated by large offshore storms (not tidal energy which originates from gravity between the Earth & Moon) Located near load centres no costly transmission (60% of the world s population lives within 60km of the coast) Abundant global wave resource is 2TW (2 million MW) or twice the world s power consumption (World Energy Council) High availability of resource at best sites globally - less intermittent and more predictable than wind or solar

7 Wave Resource and Market Drivers Australia o o o o 500,000 MW of wave resource CETO considered pre-eminent wave technology Government Funding: $500m for renewable energy & $1bn desalination 20% by 2020 Renewable Energy Target & Emission Trading by 2011

8 Wave Energy a global resource Power consumption grows Wave Energy Resource average annual MW/km of wave front (this is not tidal energy)

9 Wave Energy global & untapped

10 Southern Wave Energy Engine

11 Wave Energy January 2008

12 Wave Energy July 2007

13 Wave Energy major energy companies involved The enormous potential of wave energy is now increasingly recognized by governments, corporations and investors worldwide Shell take stake in wave energy company Iberdrola Renovables begins tests on wave energy plant Scotland aiming to become "Saudi Arabia of marine energy (Scottish 1st Minister) GE Invests in Wave Energy EDF Energies Nouvelles signs wave energy agreement Chevron buys into wave energy There is no doubt that marine power will be an important pillar of future energy portfolios. Helge Daebel, Emerald Technology Ventures Aquamarine and Airtricity to develop 1 GW of wave and tidal Portugal Opens Pioneer Wave Power Plant Investec funds $250m for Carnegie wave power project

14 Wave Energy Technology Overview

15 Wave heights and the location of Australian wave sites suitable for base-load power generation (Class A wave regimes)

16 Australia s Baseload Wave Energy Resource

17 CETO how it is different Simple no power generation equipment offshore No visual impact fully submerged Enhanced storm survivability fully submerged and storm relief Zero-emission freshwater co- production possible Minimal environmental impact Offshore: Single moving part low maintenance Onshore: Off the shelf power and Onshore: Off the shelf power and water production components

18 CETO technology overview BA proprietary design and core knowledge with respect to dynamic response and energy release Tether provides flexible link between BA and pump. Tension member engineering group providing specialist input. Pump Custom engineered in conjunction with specialist hydraulic cylinder manufacturers. Attachment Designed and manufactured by advanced manufacturing and production engineering group Foundation designed, based on site specific sea-bed substrate composition, by subsea engineering and deployment experts.

19 CETO technology development timeline Concept Development Scale models & wave tank testing Proof of Concept Prototype t producing zero-emission i power and desalinated water Pilot Plant Multiple, commercial design units generating power Commercial scale Commercial demonstration Demonstration starts in November 2009

20 R&D Facility - Fremantle, Western Australia Perth city Fremantle CETO offshore test area CETO onshore facility

21 R&D Facility - Fremantle, Western Australia CETO offshore test area CETO onshore facility

22 2004 CETO I Deployment (underwater laboratory)

23 CETO I Schematics Location Pipeline to shore

24 2007 Design Validation

25 2006/2007 Virtual Ocean & Computational Design

26 2007 Wave Rider Buoy for Design Validation

27 2006 Power Production

28 2008 CETO 2 Deployment

29 Business Model - license fees plus project returns Projects undertaken on build, own and operate basis via special purpose company Projects will pay a license fee to Carnegie plus a dividend in line with any equity stake Licensee projects in non-core markets or where other parties benefit from a lower cost of capital e.g. utilities

30 EDF EN - CETO licensee & JV partner Northern Hemisphere licensee of CETO Pays Carnegie capex license fee/project Carnegie retains right to participate in Northern Hemisphere projects EDF EN has over 2,200 MW of installed renewable capacity in operation and another 1,000 MW under construction generated A$130 million earnings on A$1.8 billion revenue in % owned subsidiary of the EDF Group - one of the largest power generation companies in the world EDF has over 120,000 MW, 38 million customers and 160,000 staff & generated A$9 billion earnings on over A$120 billion revenue in 2008

31 Investec Australian Financing Partner Heads of Agreement to fund up to $250 million of first large scale project with Investec Australia - subject to certain conditions Investec has pre-emptive investment rights on subsequent Australian grid connected projects for 3 years Carnegie retains equity participation rights Projects to be developed in Special Purpose Company Projects will pay Carnegie a license fee/project plus dividend Investec Australia is subsidiary of Investec International - $4.4 billion market capitalisation listed on LSE & JSE Investec is rated Baa1 by Moody s Investors

32 CETO project development timeline Site Identification WA & Victorian wave research licenses WA, SA & VIC project sites awarded d Project Pre- Development $12.5 million WA Govt grant for 5MW project MoU with Dept of Defence for Garden Island $250 million Investec HoA for 50MW project French & Canadian Govt grants ($7million) Australian Govt grant application for 50MW project Small Scale Commercial Demo 5MW Power Offtake 5MW in WA Large Scale Project 50MW Australian project 10-20MW international

33 50MW Commercial Project

34 Vancouver Island Pacific Coastal Wave Energy Corporation a joint venture between Renewable Energy Holding Plc, EDF EN and local company Global Energy Horizons (GEH) investigating the potential for CETO wave energy off the west coast of Vancouver Island in British Columbia, Canada Granted an Investigative Permit November 2008 by British Columbia s Ministry of Agriculture and Lands to conduct a wave energy investigation over an area of approximately 475 hectares off Ucluelet, Vancouver Island. In April 2009, awarded CAD$2m through British Columbia s Innovative Clean Energy (ICE) fund to develop a wave energy project off Ucluelet.

35 Reunion Island La Réunion, an overseas department of France in the Indian Ocean, has announced the funding of a research and development project with EDF EN to investigate the potential for Ceto wave energy, Includes adaptation and optimisation of the technology in La Réunion. The feasibility of a pilot plant will also be studied. Final contractual arrangements for 3M of funding are currently being negotiated.

36 Republic of Ireland The potential for commercial scale demonstration of the CETO technology is being investigated at Sustainable Energy Ireland s (SEI) wave energy test t sites located off Spiddal in Country Galway and Belmullet in County Galway. Ocean energy initiative funding of 26m is available for research and facilities, and establishes a feed-in tariff of 220/MWh for wave and tidal power. Ireland has a renewable energy target of 33% by 2020, with an aim of 500MW of installed ocean energy by 2020 with an interim target of 75MW by To facilitate this development, ocean energy is currently given priority for grid access.

37 Bermuda Renewable Energy Bermuda (REB), a joint venture between REH, EDF EN and Bermudan based Triton Renewable Energy, have completed preliminary site investigation studies for a wave energy facility off the east coast of Bermuda. REB plan to build and operate wave farms in Bermuda using CETO wave power technology with an initial test site of 2MW to be developed and subsequently a grid connected 20MW installation. September 2008 the Bermuda Electric Light Company Limited (Belco), as the main supplier and sole distributor of electricity in Bermuda, issued a Solicitation for interested parties to provide the island with renewable power supply. REB submitted a statement of intent (SOI) for a demonstration site of 2MW to be developed and subsequently a grid connected 20MW installation. REB were subsequently notified by Belco in February 2009 that its joint SoI with Triton has been successful and it expects to move forwards with development of the 2MW CETO test site in 2010.

38 CETO technology development timeline Commercial Demonstration Commercial scale unit deployment Single autonomous unit and associated energy dissipation and instrumentation infrastructure Verify energy delivery performance of a single CETO unit Foundation scheduled for deployment in November 2009 Stakeholder consultation and permitting underway CETO unit and associated infrastructure deployment in Sepia Depression to the West of Garden Island following on from mooring deployment

39 Summary CETO Carnegie Advantages compared with competing wave technologies Expected to be cost competitive with fossil fuels when deployed at scale Global owner of CETO IP Target first revenue generation 2011 Strong technical team focused on commercialisation Upcoming Milestones Deployment of commercial scale unit begins in Nov 2009

40 Further Information Contact: Dr Laurence Mann Research and IP Manager Carnegie Wave Energy Ltd Level 1, 16 Ord Street West Perth WA 6005 AUSTRALIA lmann@carnegiewave.com Website: