1800 SE 14th Street - Newton, Kansas

Dale Jones

Enertech HistoryEnertech History

Incorporated in 1975 in Incorporated in 1975 in VermontVermont

Quickly became the Quickly became the premier manufacturer premier manufacturer of home systems of home systems (1.5kw to 4 kw)(1.5kw to 4 kw)

Enertech 1500 tested atop Mt. Washington in mid 1970’s

Increased size to 40kwIncreased size to 40kw Installation in many California Installation in many California

wind farms in the 1980’swind farms in the 1980’s Kansas installations included Kansas installations included

St. Mary’s Of The Plains in St. Mary’s Of The Plains in Dodge City, and at Lake Wilson Dodge City, and at Lake Wilson for Corps of Engineersfor Corps of Engineers

There are still 200 Enertech 44 series There are still 200 Enertech 44 series turbines operating in California wind farms turbines operating in California wind farms

over 25 years laterover 25 years later

Who’s the young guy?

Dale Jones with turbine blades in 1982

Today’s SituationToday’s Situation

Privately-held corporation (Kansas HQ)Privately-held corporation (Kansas HQ) We produce We produce newnew wind turbines from 5kw to 600kw wind turbines from 5kw to 600kw Dealers in USA, Canada, Mexico, England, Turkey, Dealers in USA, Canada, Mexico, England, Turkey,

Vietnam, Chile, Italy, Egypt, Jordan, Vietnam, Chile, Italy, Egypt, Jordan,

Team MembersTeam Members

Dale Jones, PresidentDale Jones, President Tom Kaufman, EngineeringTom Kaufman, Engineering Henry Knappen, EngineeringHenry Knappen, Engineering Scott Poor, Project DevelopmentScott Poor, Project Development Mark Wadsworth, Composite Blade DesignMark Wadsworth, Composite Blade Design Dylan Jones, SalesDylan Jones, Sales Carina Shields, AdministrationCarina Shields, Administration Matt Alison, Shop ForemanMatt Alison, Shop Foreman

1 5 10 30 100 250 400 600 750 900 1000 1500 2000 5000

Small Mid Size MW Size

New, mid-size turbines

This is the area Enertech is focused onTurbines offered:•E6 (5kw rated output)•E10 (25kw rated output)•44/40 (40kw rated output)•E48 (600kw rated output)

BergeyJacobsSW Windpower

VestasSuzlonGE

Enertech Market Area

MarketsMarkets Shopping CentersShopping Centers HospitalsHospitals Schools & UniversitiesSchools & Universities FactoriesFactories Governmental Facilities including MilitaryGovernmental Facilities including Military Office BuildingsOffice Buildings Irrigation WellsIrrigation Wells Oil RefineriesOil Refineries Chemical PlantsChemical Plants Agri-Business including livestock feeding operationsAgri-Business including livestock feeding operations Ethanol and Bio-Diesel plantsEthanol and Bio-Diesel plants DairiesDairies Packing PlantsPacking Plants Community Wind Projects, including Municipal UtilitiesCommunity Wind Projects, including Municipal Utilities Wind farms under 30mW in sizeWind farms under 30mW in size

Refurbished TurbinesRefurbished Turbines

Remanufactured turbine near Liberal, KS

We offer remanufactured turbines from 40kw to 250kw on a limited basis

New Enertech Turbines:New Enertech Turbines: E6E6 (5kw) (5kw)

– 6.4m rotor diameter (21 ft)6.4m rotor diameter (21 ft)

– Single phase outputSingle phase output E10E10 (25kw) (25kw)

– 10m rotor diameter (34 ft)10m rotor diameter (34 ft)

– Single phase outputSingle phase output E12E12 (40kw) (40kw)

– 12m rotor diameter (40 ft)12m rotor diameter (40 ft)

– Three phase outputThree phase outputAbove: experimental blade spoilerdeveloped in partnership with Wichitaarea aircraft companies.

Small Turbine Keys to SuccessSmall Turbine Keys to Success(100kw or less)(100kw or less)

Good wind resourceGood wind resource Relaxed zoning Relaxed zoning

requirementsrequirements Rising electrical rates Rising electrical rates

(or even gas/propane)(or even gas/propane) Equitable net-meteringEquitable net-metering Tax incentives (Federal Tax incentives (Federal

and/or State levels)and/or State levels)

New E10 Wind TurbineNew E10 Wind Turbine

25kw rated output25kw rated output 10 meter rotor diameter10 meter rotor diameter Single phase outputSingle phase output Motorized upwind yawMotorized upwind yaw Ideal for large Ideal for large

residential, or farm useresidential, or farm use

Enertech®

Cyclodial Drive™ Technology

Used on smaller Enertech models

•Patented epicycloidal design•Only 3 moving parts•Gearless transmission•Exceptional life•Low maintenance•Extremely quiet operation•All contact points operate in compression rather than shear

Blades built using Resin Transfer Molding Process

Enertech E48Enertech E48

600kw rating600kw rating– Same size as Gray Co. wind farmSame size as Gray Co. wind farm

Technology developed in EuropeTechnology developed in Europe In operation for ten yearsIn operation for ten years Approx. 150+ units installedApprox. 150+ units installed Large 48 meter diameter rotor for Large 48 meter diameter rotor for

productionproduction

E48 Component Layout

The E48 features full blade pitch control for optimum performance and safety

Controls are contained inside the lower tower section

Escalating Costs

•2007: $ 800,000•2008: $1,200,000

•Steel/Copper Prices•Freight Costs•Vendor Backlog•Dollar vs. Euro exchange

New E50 TurbineNew E50 Turbine

Total Enertech designTotal Enertech design 50 meter rotor diameter50 meter rotor diameter Dual 200kw/750kw ratingDual 200kw/750kw rating Assembled in USAAssembled in USA No market limitation: Large export marketNo market limitation: Large export market

Blades built here…..

•Eliminates ocean freight cost•Lowers overall cost of turbine•Eliminates import duties•Enertech has more control on delivery•Creates Kansas jobs

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Task Name

Concept Phase

Define output goals

Define general specifications, costs and pricing

Component Pricing/Availability Phase

Find key component vendors, determine availablility and pricing

Long lead times from component vendors

Blades

Hub

Main Frame

Yaw Drive

Pitch Mechanism

Hydraulic System

Gearbox

Generator

Brake

Electrical

Controls

Tower/Foundation Design

Manuals

Quotations

Quote prototype machine to end users based on estimated costs.

Advance Sale of Prototype

Sale of machine to help finance project

Advance sale of prototype

Sales of stock to finance

Engineering

Tom Kaufman full time with staff

Purchase "Bladed" software from GH

Look at T600 or Z50 in detail

Consult with outside engineering firms

Consult with Germanister Lloyd

Tooling

Days

108

22

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346

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15

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49

49

385

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382

559

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72

Start

2/8/08

2/8/08

7/8/08

7/14/08

7/14/08

7/15/08

10/30/08

1/28/09

1/29/09

1/29/09

1/26/09

4/23/09

11/5/08

11/3/08

4/9/09

7/31/08

10/30/08

4/16/09

11/9/09

8/1/08

8/1/08

9/30/08

9/30/08

10/1/08

10/3/08

11/3/08

1/21/09

11/3/08

11/3/08

11/3/08

11/3/08

3/2/09

Finish

7/8/08

3/10/08

7/8/08

11/9/09

7/14/08

7/15/08

10/30/08

1/28/09

2/6/09

1/29/09

2/2/09

4/23/09

11/5/08

11/3/08

4/9/09

7/31/08

10/30/08

5/6/09

11/9/09

10/8/08

10/8/08

3/22/10

10/7/08

10/29/08

3/22/10

12/23/10

1/21/09

11/3/08

11/3/08

11/3/08

12/23/10

6/9/09

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1

E50

9/22/2008 3 of 6

E50 Development Steps

The new E50 will have full GL certification when development is complete

The E50 is ideal for small, Community Wind Projects

Markets

Future Expansion & GrowthFuture Expansion & Growth

Present facility is not large enough. Present facility is not large enough. Choices include:Choices include:

– Expand present buildingExpand present building

– Use multiple locationsUse multiple locations

– Use more outside vendorsUse more outside vendors

– Relocate everything to another Relocate everything to another locationlocation

Need for talented peopleNeed for talented people Enertech’s growth will Enertech’s growth will

require additional staff & require additional staff & jobs:jobs:– EngineersEngineers– TechniciansTechnicians– AssemblersAssemblers– ManufacturingManufacturing– AdministrationAdministration– Marketing/SalesMarketing/Sales

Everyone loves wind…..Everyone loves wind….. Aggressive recruitment from other statesAggressive recruitment from other states

– Wind manufacturing sought out for economic developmentWind manufacturing sought out for economic development TurbinesTurbines TowersTowers BladesBlades CastingsCastings Machine ShopsMachine Shops ElectronicsElectronics

Many state incentives for wind manufacturersMany state incentives for wind manufacturers Tax incentivesTax incentives Worker trainingWorker training

Incentives, taxes, location and people are keyIncentives, taxes, location and people are key

SummarySummary Enertech name associated with wind energy for 30 yearsEnertech name associated with wind energy for 30 years Enertech is focused on a specific size range, with specific target Enertech is focused on a specific size range, with specific target

marketsmarkets Presently refurbishing 250kw turbines in Newton, KSPresently refurbishing 250kw turbines in Newton, KS Introducing new 5kw, 25kw and 40kw turbinesIntroducing new 5kw, 25kw and 40kw turbines Plan to replace current 600kw turbine with new 750kw turbine in Plan to replace current 600kw turbine with new 750kw turbine in

20092009 Large Large globalglobal demand for sub-mW turbines in Community Wind demand for sub-mW turbines in Community Wind

projectsprojects Growth will require expanded, additional or other new facilitiesGrowth will require expanded, additional or other new facilities Growth will require expansion of labor including assembly, blade Growth will require expansion of labor including assembly, blade

fabrication, technical support, engineering and administrationfabrication, technical support, engineering and administration