Wave Hub Update All Energy 21/22 May 2014 Stuart Herbert Commercial Director
Deployment Site
EMEC, Orkney NaREC/EMEC Refined Prototype Testing Market penetration NaREC, Northumberland Market entry with commercial product Initial Prototype Demonstration Wave Hub, Cornwall Pre-Commercial Device Demonstration
Wave Hub World s largest offshore test site for wave arrays 25 km subsea cable and onshore substation Consented and grid connected site One of the best wave climates in Europe Open sea testing and monitoring 20 MW capacity with 50 MW upgrade potential
Why Invest in Marine Energy in South West England?
Huge growth potential - globally Excellent natural resources Maritime and industrial heritage Innovative businesses in the region
The Drivers Test Sites Early array returns negative (any site) Test facilities reduce early cost & risk System cost reduction & performance improvement Early stage public support Infrastructure (grid) availability
Planned Deployments 1 st deployment will be Seatricity Limited s Oceanus Buoy imminently Other reserved berths: Fortum Possibly Penquin Carnegie Wave Energy Energy Technologies Institute (Glosten-Alstom)
Planned Deployments Fortum/ Wello Penquin
Wello has proven technology for offshore wave energy Results from full scale device build confidence Utility engagement with most active company in wave energy Pilot planning progressing
Our Innovation How it works DIRECTLY FROM MOTION TO ELECTRICITY (a) One floating element - everything inside (a) (b) (c) (b) (c) a floating asymmetric vessel housing mass that rotates with passing waves converts the motion to electricity in a generator on the same axis with the mass Re-purposing existing technology Motion energy is directly captured by generator Direct conversion, no hydraulics, no joints, no gears Proven industry components Simple and patented Reliable and durable for the ocean environment Electricity at a lower cost than offshore wind power plants
Where are we now Challenge 1 Construction 2 Installation 3 Operations 4 Performance 5 Reliability Wello s status Prototype was built in 2011 with Off-the-shelf components Ship yard manufacturing Efficient installation in 2012/2013 All operations with cost efficient Multicat vessel available locally Maintenance access with small boat All parts inside hull Service and replacement on site Results available In line with scale model tests Optimization ongoing Two test seasons Survived storm with 12 meter waves All components inside fully working after that
Next steps Challenge 1 Construction 2 Installation 3 Operations 4 Performance 5 Reliability Wello s plan Planning for 5-10MW (2014-2016) Scalable supply chain with high volumes and short lead times Develop for scalability Optimize as part of pilot Repeat good practises Rehearse Support/Maintenance Service and replacement on site Remote management Data collection and analysis Software control adjustment Optimize performance Continuous power production Longer term testing Multiple sea states
This is Wave Energy Today
Planned Deployments Carnegie Wave Energy
CETO Development Update May 2014 Copyright Carnegie Wave Energy Limited 2014 17
Disclaimer The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or to participate in any trading strategy or to enter into any transaction. If any offer of securities is made, it shall be made pursuant to a definitive offering memorandum prepared by or on behalf of any fund or other issuer which would contain material information not contained herein and which would supersede this information in its entirety. Copyright Carnegie Wave Energy Limited 2014 18
Perth Wave Energy Project, Western Australia World first multiple wave unit array 3 x 240kW CETO 5 units Onshore power plant and grid connection Onshore reverse osmosis desalination pilot plant Component manufacturing nearing completion Onshore construction activities underway Commissioning on track for Q2, 2014 Copyright Carnegie Wave Energy Limited 2014 19
Perth Wave Energy Project global supply chain Copyright Carnegie Wave Energy Limited 2014 20
CETO 6 next generation design 1MW (1000kW) capacity unit ~50% increase in diameter over CETO 5 => 4 x increase in rated capacity First commercial production unit Cost competitive in large projects Copyright Carnegie Wave Energy Limited 2014 21
UK CETO 6 Wave Hub, Cornwall Award of final wave energy berth at Wave Hub 3MW grid connected demonstration Option to expand to 10MW project Due diligence carried out by DNV GL on the CETO technology Copyright Carnegie Wave Energy Limited 2014 22
Australian CETO 6 - expansion of Perth Project off Garden Island Copyright Carnegie Wave Energy Limited 2014 23
CETO Wave Energy Technology development timeline Copyright Carnegie Wave Energy Limited 2014 24
ETI Demonstration Project Wave Hub September 2013
PelaStar Floating Tension Leg Platform Superior Stability for Turbine Heave, Pitch, Roll Low Wave Excitation Long Surge Period Low Steel Weight Shoreside Assembly Efficient Installation Low Cost of Energy
ETI Demonstration Project Full Scale PelaStar Prototype 6 MW Alstom turbine UK Cornwall site at Wave Hub 55 m depth, Hs = 10.2 m Avg wind speed 9.6 m/sec Begin Operation 2015 goal 10-year Commercial Operation
Energy Technologies Institute
ETI Demonstration Project Team The Glosten Associates, Prime Contractor (Seattle, WA) PelaStar System Engineering and Overall Project Management Alstom Wind, Haliade 150-6MW Wind Turbine (Barcelona, Spain) Harland and Wolff, Platform (Belfast, N. Ireland) Dockwise, Platform Installation (Netherlands) KML/LDD, Anchor Installation (Cornwall, UK) NREL, Instrumentation and Data (Golden, CO) MARIN, Scale Model Testing (Netherlands) DNV, System Certification / Approvals (Norway) Wave Hub, Demonstration Site (Cornwall, UK)
Further Information Stuart Herbert, Commercial Director 01736 800294 stuart.herbert@wavehub.co.uk www.wavehub.co.uk
Why Hayle? Possible to connect into the grid: Sufficient grid capacity Not too expensive Energetic wave climate at the right depth A site that could be consented Legacy of Hayle s industrial past
Array Development Comparison Typical Deployment at Wave Hub Year 2014 2015 2016 2017 2018 2019 2020 Design Marine Licence Financial Close Start Build Initial Installation and Commissioning Deployment at a Virgin Site Year 2014 2015 2016 2017 2018 2019 2020 Time to develop virgin site to match Wave Hub offer Feasibility - Stakeholder Engagement Initial Resource Studies Grid Review ADCP Deployment Financial Modelling Application for Lease Site Surveys/ Environmental Data Collection Award of Lease Negotiate Grid FEED Complete EIA Marine License Application Marine License Secured Financial Close Start Build Initial Installation and Commissioning
Economic Enhancements Costs Development, Capex, O&M (EIA/Consenting/Capex) Infrastructure support Existing test sites (immediately) Project terms 2-20 years (10 Year term at current site) Transmission Grid connection availability/cost (immediately available reduced cost) Funding Equity/Debt/Capital Grant (grant assistance) Revenue streams ROCs/Strike Price (PPA Guidance) Generation Capacity Factor/Availability (Repair connection agreements)
Additional Roles Array Performance Modelling and Layout Design Software tool verification - wave arrays Type Certification Support vessel and ROV trials at the Wave Hub site Sea trial of communications/ electronics Sea trial/ test of coatings corrosion/ biofouling Assessment of operational procedures
The Wave Hub Infrastructure and Construction Programme
Wave Hub Substation
Wave Hub Substation
Wave Hub Cable Thermoplastic Outer Sheath 2 Layers 5mm Armour wires Water blocking filler material OD = 175mm Conductor Cores, 6 x 300mm2, 33kV, XLPE insulation, Copper Screened & Sheathed Fibre Optic cable Central Filler Core Mass in Air = 62.5 kg/m Weight in water = 380 N/m
The Beach Pull
Cable on the Beach
Cable Protection
The Rolling Stone
Hub Loading
In the Water
The Eagle has Landed!
Wave Hub Office
Cost and Funding Wave Hub Cost: Design and development 5m Construction 30m Operating cost per annum 1.2m Wave Hub Funders: South West RDA BIS / DECC Grant ERDF Convergence Programme 12.26m 9.51m 19.95m
FUNDING
Further Information Stuart Herbert, Commercial Director 01736 800294 stuart.herbert@wavehub.co.uk www.wavehub.co.uk