energy storage solutions for an intelligent future, garth bryans, aquamarine power & oyster

• Aquamarine Power & Oyster • How does it happen?

– Stages of development, funding & types of funding – How and when to present a case for funding – Managing change and maintaining funding

• Aquamarine Power & Technology development – Examples of technology development

• How this has worked for us?

Contents

Aquamarine Power

How Oyster works

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Near shore Advantages

Lower total energy in the near shore… But greater assessable proportion Fixed reaction point, as the sea bed

Oyster 1 • 315kW demonstration device • Grid-connected 2009 • >6000 operating hours • 100kW generation, Peak power close

to 300kW.

Oyster 800 • 800kW demonstration device • Installed Sept 2011 • First electrical power June 2012 • Improved power generation • Simplified marine installation

Oysters

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Idea / concept research High level design Component and scale testing Detailed design Build and full scale testing

Stages of development & funding

Very valuable (don’t rush this) • Wide scope • Wide range of solutions & options • Low cash requirements

Funding • This is normally funded through

limited but flexible R&D budgets • Universities, research councils, R&D

departments etc.

Outputs • Concept business plan • KPIs to support this • Concept design

Idea / concept research High level design Component and scale testing Detailed design Build and full scale testing

Stages of development & funding

Risk reduction • Identify the areas of greatest risk • Further research to reduce risk Funding • Seed funding for a specific scope • Normally from early stage investors,

or those who could benefit from the business plan e.g. suppliers

Outputs • Revised, lower risk business plan • KPIs of design • High level design • Detailed testing and design plan

Idea / concept research High level design Component and scale testing Detailed design Build and full scale testing

Stages of development & funding

Design • Narrow scope • Use component / scale testing to

reduce uncertainty in the design • Design against the KPIs. E.g. cost,

performance etc. Funding • Requires a larger amount of

investment • Normally from large players in the

sector, customers and suppliers • Can attract grant aid Outputs • Revised, lower risk business plan • KPIs of design • Design and build plan

Idea / concept research High level design Component and scale testing Detailed design Build and full scale testing

Stages of development & funding

Purpose is to verify design and cost estimates. This should justify the business plan. Funding • Often the same as before but

suppliers sometimes consider this to be an exit point at which they expect an order

Outputs • Verification of business plan & KPIs • Demonstration of product to

customers

What should you know: • Development plan? • Equity requirements? • Forecast returns? • Risks? • Investment gates • KPIs? • What are you prepared to offer for investment? IP,

shares, sales contracts, other?

Presenting the case

What happens when things don’t go to plan? • Change management is key! • Change requests

– Set tolerances on the KPIs for the project – Assess change requests against the KPIs – Report exceptions accordingly

• Meet with the funders regularly to talk through all the small changes as they happen. This prevents any surprises at the end

• Maintain an up to date plan demonstrating the effect of any changes on the funding requirements and expectations

Keeping funding

Example 1 - Oyster

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Queen’s University Belfast

concept research Initial design

Component and scale testing

Detailed design

Build and full scale testing

Example 2 – Oyster Flap

Cost

✗ Concrete ✗ Plastic ✗ Fabric ✗ Rubber

Steel Construction

Other Material

FRP Construction

Starting point

Target

Mass production

• Flap – Material - Steel FRP

• 393 tonnes 100 tonnes

– Shape – 18m 26m wide • 250% the energy production

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Example 2 – Oyster Flap

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DR Garth Bryans Head of New Tech & Eng. Forecasting AQUAMARINE POWER ELDER HOUSE, 24 ELDER STREET EDINBURGH EH1 3DX UNITED KINGDOM Tel: +44 131 524 1436 Mobile: +44 7503881503 Email: garth.bryans@aquamarinepower.com Web: www.aquamarinepower.com