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PRESENTATION OVERVIEW

1.THE MARKET2.PRINCIPLE POWER3.WHY OFFSHORE WIND?4.CHALLENGES IN OFFSHORE WIND5.THE WINDFLOAT6.MARKET DEVELOPMENT PROJECTS7.REVIEW/PREDICTIONS

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1970: 3.7 BILLION PEOPLE

Source: NASA

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2010: 7 BILLION PEOPLE

Source: NASA

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THE MARKET

UNADDRESSED MARKETS• Coastal areas with high renewable energy demand• Best resource is deep-water offshore wind

TARGET LOCATIONS• Coasts of Portugal, France, Spain, the UK and Japan• United States

• West Coast• Maine• Great Lakes

• North Sea

MARKET POTENTIAL• > 1,000 GW

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PRINCIPLE POWER INC.

ESTABLISHED IN OCTOBER 2007• 10 employees• Locations in US and Europe

MISSION• Develop and commercialize the WindFloat

TECHNOLOGY• Core IP patented, WindFloat system patent pending

MARKET• Intermediate and deep-water wind sites - Presently

untapped • Natural evolution of offshore wind development

Deep-water offshore wind is inevitable

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WHY OFFSHORE WIND?

WHY OFFSHORE WIND?• Higher wind resource and less

turbulence• Large ocean areas available• Onshore sites are scarce• Capacity of offshore wind is

theoretically unlimited

WHY FLOATING OFFSHORE WIND?• Limited shallow water sites• Majority of resource in deep water• Large ocean areas available• Less restrictions for offshore

deployment and reduced visual impact

• >2 TW resource potential in primary markets

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OFFSHORE WIND RESOURCE

Source: Willet Kempton, U of DE

Delaware

20 miles

Offshore

Nearshore

Onshore

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OFFSHORE WIND – PRIMARY MARKET POTENTIAL AND RESOURCE

Source: Risø National Laboratory, Roskilde, Denmark

Source: US National Renewable Energy Lab

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OFFSHORE WIND – CURRENT DEVELOPMENT

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Semi-Sub

Monopile0-30m, 1-2

MW

Jacket/Tripod25-50m, 2-5

MW

Floating Structures

>50m, 5-10MW

Spar

TLP

Floating Structures>120m, 5-

10MWWater Depth

WATER DEPTH ECONOMICS

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OFFSHORE WIND CHALLENGES

FIXED FOUNDATIONS• Water depth

• Overturning of moment of wind turbines to be mitigated by the foundation

• Installation of wind turbines offshore • Requires large installation vessels • Acceptable weather window (sea state limitations)

FLOATING FOUNDATIONS• Pitch motion

• pitch acceleration lead to structural fatigue (gyroscopic moment induced yaw)

• Installation and Commissioning scenarios• Need to “keep it simple” influences design significantly

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THE WINDFLOAT

TURBINE AGNOSTIC• Conventional (3-blade, upwind)• No major redesign

HIGH STABILITY PERFORMANCE• Static Stability - Water Ballast• Dynamic Stability - Heave

Plates• Efficiency – Closed-loop Active

Ballast System

DEPTH FLEXIBILITY (>50M)ASSEMBLY & INSTALLATION

• Port assembly• No specialized vessels

required, conventional tugs• Industry standard mooring

equipment

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WINDFLOAT – DEVELOPMENT HISTORY

EDP and Principle Power sign MOA for phased development of WindFloat technology and commercial deployment of a wind farm up to 150MW

Wave tank testing of 1:80th scale Minifloat III concept at Oceanic

MI&T performs Minifloat proof of concept model tests

Wave tank testing of Minifloat I & II concept

MI&T files Minifloat patent 1

Wave tank testing of 1:96th scale Minifloat IV concept at University of California, Berkeley tow tank

Minifloat patent 1 issued US7086809, Minifloat patent 2 filed

Wave tank testing of 1:67th scale WindFloat model at University of California, Berkeley tow tank

Principle Power exclusively licenses WindFloat intellectual property from MI&T

Minifloat patent 2 isssued US7281881

EDP initiates the WindFloat Project with Phase-0, a full-scale WindFloat unit with a non-grid connected sub-megawatt wind turbine in the Algarve region

Wave tank testing of 1:96th scale WindFloat model at University of California, Berkeley tow tank

Principle Power purchases outright all intellectual property for WindFloat from MI&T

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Product & Track Record Development Plan

Product/size (MW)

Drive type#

offshore installed

2008 2009 2010 2011

Siemens

S90 - 3.6 Multi stage gearbox 83 Serial

S90 - 3.6 Direct drive Prototype 0-series

6 Direct drive Prototype 0-series

10 Direct drive Prototype

VestasV90 – 3 Multi stage gearbox 332 Serial

5+ Multi stage gearbox Prototype

REpower5M – 5 Multi stage gearbox 2 Serial

6 Multi stage gearbox Prototype 0-series

Multibrid M5000- 5 Single stage gearbox 0-series Serial

BARD 5 Multi stage gearbox Prototype 0-series Serial

Clipper 7 - 10 Planetary gearbox Prototype

XEMC Darwind

DD115 – 5

Direct drive Prototype

GE (ScanWind)

4 Direct drive

LARGE OFFSHORE TURBINE SUPPLIERS

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FLOATING OFFSHORE WIND CONCEPTS

DEVELOPMENT TIMELINE2007

• Statoil Hydro and Siemens sign agreement for Hywind project

• Sway raises €16.5M in private placement

2008• Blue H half-scale

prototype installation• EDP and Principle Power

partner to deploy WindFloat technology

2009• Hywind full-scale

prototype installation with 2.3MW turbine

2011• Principle Power to deploy

full scale WindFloat off Western Portuguese coast.

Trade name WindFloat Hywind Blue H Sway

DeveloperPrinciple Power

(US)Statoil Hydro

(NO)Blue H (NL)

Norwegian consortium (NO)

Foundation type

Semi-submersible (moored 4-6

lines)

Spar (moored 3 lines)

Tension Leg Platform

Hybrid Spar/TLP (single tendon)

Water Depths > 40 m >100 m > 40 m 100 m - 400 m

Turbine3-10MWExisting

technology!

2.3 MW Siemens

2 bladed “Omega” under

development

Multibrid Downwind

under development

InstallationTow out fully

commissioned

Dedicated vessel- tow out and upending

Tow out on buoyancy

modules until connection

Dedicated vessel- tow out and upending

Turbine installation

Onshore Offshore Onshore Offshore

Strengths

Dynamic motions,

installation, overall

simplicity of design

Existing turbine and hull

technology, well funded

First sub-scale demo deployed

Low steel weight

Challenges Steel costDynamic motions,

installation

Mooring cost, turbine design, turbine coupling

with tendons

Installation and maintenance, downwind 3-blade turbine

Stage of Development

Ready for prototype

testing

Full-scale prototype installed in

2009

Half-scale prototype installed in

2008

Development of the concept

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SYNERGIES WITH OIL & GAS

Beatrice

Blue H

WindFloat Hywind An industry of Experience…• Floating structures date back to 1977• New technology developments have traditionally been based on new needs, coming from resources identification

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PATH TO COMERICIALISATION

WINDFLOAT SPECIFIC COST• Reduction in steel weight –

application of wind industry safety factors and weather criteria

• Optimization of platform to turbine aspect ratio (more motion)

• Tow vessels on long term contract• Fabrication methods – reducing

manual welding• Engineering and project management

≈ 40%Cost

Reduction

Beatrice Alpha Ventus

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MARKET DEVELOPMENT PROJECTS

PORTUGAL – 150 MW• WINDPLUS, SA – JV between EDP, PPI & A.

Silva Matos• Pilot installation funding – EDP &

Portuguese Government• Three phase build-out to 150MW – Pilot,

pre-commercial, commercial

TILLAMOOK, OR, USA – 150 MW• Initial permitting activities• MOA with TIDE• MOA with Tillamook PUD• Identifying project developer

MAINE, USA – 150 MW• Selecting site / project developer

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IN SUMMARY - WINDFLOAT OFFERS:

LOWER DESIGN & DATA COLLECTION COSTS• Farm design rather than individual unit• Area wide data, rather than unit specific

MINIMIZED OCEAN FLOOR & ENVIRONMENTAL IMPACTS• Use of conventional anchors• Due to reduced bio activity in >50 m depth

LOWER INSTALLATION & INSURANCE COSTS• Complete unit shore assembly, No need for heavy lift vessels

(Jones Act)• Reduced weather related dependency

ECONOMIC BENEFITS• Local employment and economic growth in coastal

communities

FUTURE PREDICTIONS• Industry will continue to chase three variables: higher capacity

resource, proximity to load centers and efficiency of production• Ultimate goal of project economic efficiency

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THANK YOUTHANK YOU

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WINDFLOAT MODEL TEST OBJECTIVES

• Verify numerical model and platform motion response • Determine clearance between extreme wave crest and

platform deck• Measure interactions between wave-induced dynamics and

tower vibrations• Measure hydrodynamic loading on the heave plate• Confirm numerical predictions of mooring line tension• Determine platform damping in pitch/roll