South Kent Wind

Harvesting the Wind for Ontario

August 2012

Agenda

• Introductions

• Partnership with Ontario

• South Kent Wind Project Overview

• Community, Economic and Environmental Benefits

• Wind Project Construction

Introductions

Pattern Energy

Financially strong, long-term developer, owner and operator of energy assets

• One of the most experienced and best-capitalized development companies in the U.S. renewable energy and transmission industry

• 120-person team of dedicated professionals with proven track record of developing, constructing, financing, and placing into operation 2,500 MW of wind power

• Expertise & experience at all project stages: resource analysis, site development, finance, construction and operation

• Dedicated to delivering the highest values for our partners and the communities where we work

• Strong commitment to promoting environmental stewardship and corporate responsibility

Samsung C&T Overview

• Samsung Group is South Korea’s largest conglomerate

• Founded in 1938, Samsung C&T is the mother company of the Samsung Group

• Samsung C&T is divided into 2 business groups:

• Trading and Investment with focus on energy, the environment, natural resources and industrial materials, especially wind, solar and bioenergy

• Engineering and Construction with an extensive portfolio of building, civil, plant and housing works

Partnership with Ontario

Province of Ontario Energy Targets

Green Energy Act – Energy Targets• 10,000 MW of new installed renewable energy by

2015, over and above 2003 levels

• 25,000 MW of new installed renewable energy by 2025, over and above 2003 levels

• 2025 generation mix of 40% Renewables, 35% Nuclear, 25% Natural Gas and Oil

Increasing Wind Energy – Eliminating Coal

• Nanticoke and Lambton unit shutdowns in 2010 eliminated 2,000 MW of coal-fired generation

Benefits of Wind Energy

Wind Energy… Is an inexhaustible resource,

Reduces reliance on imported fuel,

Benefits the environment and helps fight climate change,

Is compatible with mixed land use: grazing, agriculture, and hunting,

Creates job opportunities in local areas,

Provides a steady income to farmers and property-owners,

Strengthens the local tax base, helping to improve town services, including schools, police and fire departments,

Provides more direct economic impacts than new fossil fuel plants,

Produces energy with stable production costs, offering a hedge against other energy sources with volatile fuel markets.

Creating Ontario Employment Opportunities

Intent of Green Energy Investment Act is to support the Green Energy Act • 16,000 total direct and indirect jobs created by the Green Energy Investment Agreement

• 95% domestic content requirement

• Manufacturing

– Four manufacturing facilities for wind turbine and solar panel components

– Ontario steel used for wind turbine towers

• Construction

– Job opportunities for local residents

– Subcontractors experienced in civil and electrical work

– Construction managers, electricians, heavy equipment operators and general labourers for assembly & civil work

• Operation

– Maintenance personnel proficient in mechanics or electrical/electronic technicians

South Kent Wind Project Overview

South Kent Wind Project Overview

• 270 MW wind energy generation project

• Power equivalent: approx. 73,000 Ontario homes

• Estimated $16 million in property taxes generated over 20 year contract period

• 12 – 18 month construction period

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Wind Energy Turbines

• Turbine Manufacturer: Siemens

• Number of Turbines: 124

• Turbine model: SWT-2.3-101

• Rotor speed: 6 – 16 rpm

• Hub height: 99.5 m

• Blade length: 49 m

• Tower base diameter: 4.5 m

• Turbine blades manufactured in Tillsonburg

• Turbine towers manufactured in Windsor

REA Areas of Consideration

• Vegetation

• Wildlife, threatened & endangered species (animal or plant)

• Migratory Birds

• Important Bird Areas

• Cultural Resources

• First Nations Communities

• Noxious Weeds/Invasive Non Native Species

• Wetlands

• Floodplains

• Socioeconomic

• Sound Impacts

• Environmental Justice

• Air Quality

• Geology and Soil

• Recreation

• Transportation

• Visual Resources

• Water Resource Assessment

• Vegetation Restoration Plan

The permit process analyzed any potential impacts from the project. Examples of resources considered include:

Community, Economic and Environmental Benefits

Economic Benefits from 270 MW Wind Project

• Creates local jobs:

– Up to 300 positions during construction period

– Up to 20 permanent positions during operations, in addition to work for local contractors

• Supports local economy by:

– Purchasing goods and services during construction and operation

– Increasing revenue for service businesses, i.e. local restaurants and hotels during construction and operation

• Contributes to tax base with estimated $800,000 annually benefiting:

– Municipality of Chatham-Kent

– Lambton-Kent School District Board

• Support for the Chatham-Kent Municipal Airport

• Community benefits program with commitments for the life of the project

Examples of Types of Local Contractors Used for Wind Project Construction

• Road building and turbine site grading• Substation and Switchyard grading• Foundation excavation and backfill• Road maintenance and asphalt paving• Concrete supplier• Aggregate supplier• Electricians • O&M Facilities

– Foundations and site concrete

– Rebar fabrication

– Steel Erection and Procurement

– Building Construction (framing, carpentry, drywall, flooring, plumbing, electricians, communications, masonry, HVAC, etc.)

– Landscaping

• Security, fencing, water, power, sanitation facilities, etc.

Examples of Types of Local Contractors Used for Wind Project Operations

• Communications maintenance• HVAC contractor• Hardware supplier• Collection system and substation repairs• Waste control and removal• Solid waste disposal• Weed control and abatement• O&M building maintenance• Road maintenance • High voltage equipment testing• Substation maintenance• Electrical Supply• Truck fleet leasing and maintenance• Crane services and rentals• Janitorial services

Environmental Benefits of 270 MW Wind Energy Compared to Coal-Fired Generation

Carbon Dioxide Emissions Reduced877,077 tonnes/year157,172 car equivalent

Sulfur Dioxide3,940 tonnes/yearNitrogen Oxides1,331 tonnes/year

Sources: Based on information from the Energy Information Administration, National Energy Technology Laboratory, and U.S. Geological Survey. Annual emission offsets and coal preserved based off 270 MW wind project offsetting coal-fired generation, using capacity factor for Chatham-Kent area and accounting for regular turbine maintenance. Water conserved compared to coal-fired generation (541 gallon/MWh), source American Wind Energy Association. People supplied figure based on USGS estimation of 80-100 gallons/day per capita water consumption, US Geological Survey, "Water Q&A: Water use at home,“ http://ga.water.usgs.gov/edu/qahome.html.

Water Conserved1,840,610,359 liters/year5,042,768 liters/day14,800 people each day

Support for Wind Energy in Ontario

Support for Wind Energy

“Ontario doctors, nurses, and other health professionals support energy conservation combined with wind and solar power – to help us move away from coal.”

– Ontario College of Family Physicians, Registered Nurses Association of Ontario, Canadian Association of Physicians for the Environment, Physicians for Global Survival, Asthma Society of Canada, Lung Association

“My conclusion was the same as 16 other reviews that have been done around the world. They all concluded noise from wind turbines is at most an annoyance of small proportions to people and there are no direct health effects.”

– Dr. David Colby, Chatham-Kent Acting Medical Officer of Health

“Renewable energy is an important new source of power generation which will help to reduce CO2 emissions, stabilize energy costs and support long term prosperity for Canadian businesses.”

– RBC Royal Bank

“Annual income from the wind development has allowed this municipality to achieve sustainability and to reduce property taxes.”

– Jim Vandenhoek, former mayor of Frontenac Islands

“There is no end to the potential of alternative, non-polluting energy sources.”– Prime Minister Stephen Harper

Support for Wind Energy

“With a full review of available data, including that referenced by wind opposition groups, Sierra Club Canada adds its voice to the overwhelming majority of governmental, non-governmental, scientific and environmental groups in saying that a link between wind turbines and health concerns is unfounded.”

– Sierra Club Canada

“This report aims to correct the main myths of the anti-wind activists, using credible scientific, mainstream sources to counter the collection of unfounded and unproven opinions promoted by those with only one agenda, to stop wind power…

Reality: Repeated studies around the world have found no scientific evidence of health impacts from wind power projects. Reality: Wind power has been successfully used for decades and the world is rapidly scaling up its use because it works, particularly in light of climate change. Reality: Wind power is creating thousands of jobs across Ontario and letting us reduce the use of harmful fossil fuels.”

– Environmental Defence and the Ontario Sustainable Energy Association

Additional supporters of wind energy in Ontario include the Canadian Association of Physicians for the Environment, Pembina Institute, Bullfrog, The David Suzuki Foundation, Clean Air Alliance, Canada Auto Workers, County Sustainability Group, and Friends of Wind Ontario.

Wind Project Construction

Construction Images from Pattern’s Gulf Wind Project

Wind Project Components

Road Construction

Road Clearing Road Cleared, Gradedand Sub-base Prepared

Completed Road

Foundation Construction

Bolt Cage and Rebar Installation Completed Rebar

Completed Foundation Backfilled Foundation

Substation and Control Room

Operations & Maintenance Building

Turbine Installation

Rigging Rotor for Lift Rigging Nacelle for Lift

Lifting Rotor Erection Complete

South Kent WindEnergy for Generations