The Business of Clean Energy in Alaska

“Marine Power from New York to Alaska”

Building Sustainable Communities Begins with Nexus

Trey Taylor Co-founder

April 19-20, 2012

The Energy-Water Nexus

!  Energy uses water

!  Water uses energy

!  Energy (electricity) demand to increase by 150% in next 15 years "  1.3 billion people do not have electricity "  1.1 billion people do not have clean water

!  Reliable water & clean energy supply not keeping up with demand

!  To meet water & energy needs, a new approach is needed

Marine & Hydrokinetic (MHK) Power Energy from Water Currents & Waves

!  No dams or impoundments required

!  Tidal energy - more predictable than solar power (e.g., NY’s East River)

!  River energy - more reliable than wind power (e.g., ON’s St. Lawrence River)

!  Potential for utility-scale & village-scale power; baseload & distributed generation

Tides - New York Rivers - Ontario

In-field Technology Experience, Since 2000

!  Built & Field-tested Three Different Prototypes "  Ducted Axial-flow Turbines

Ontario (OPG) "  Unducted Axial-flow Turbines

New York (NYSERDA/NYPA) "  Cross-axis Turbine System

Massachusetts (MTC)

!  Installed 17 Turbines

!  Building Standard Commercial System

!  Two Projects Underway: NY & ON

New York: East River Roosevelt Island Tidal Energy (RITE) Project

New York: East River Roosevelt Island Tidal Energy (RITE) Project

Partners & Support

RITE Project: Phase 1 (25 kW) Gen3 System - Dec. 2002

RITE Project: Phase 2 (175 kW) Gen4 System - Dec. 2006

!  Three-blade, Axial-flow Turbine

!  Down-stream, Fixed-pitch Rotor

!  Passive Yaw System

!  5m Rotor / 35 kW Generator

!  Array of Six Turbine Units "  One Dynamometer Unit "  Five Generator Units (175 kW)

!  Grid Connected – World’s First Array

RITE Project: Phase 2 “Six-Pack” Array Schematic Overview

Phase 2: Environmental Monitoring To Determine Safe Fish Passage

Limited Numbers of Fish Observed in Operating Turbine Zones

Fish Observed in Inshore & Median Zones

Phase 2: Operational Tests Water-to-Wire Efficiency > 40%

Accomplishments Two Years of Array Operations & Service

!  Environmental Monitoring "  Empirical Evidence - Safe Fish Passage "  Source for Global Reports

!  Operational Tests "  Generated Power 77% of Time "  Capacity Factor: > 30% "  Water-to-Wire Efficiency: > 40%

!  Logged 9,000 Turbine-hours

!  Generated 80 MWh to Grid

!  Filed Commercial License (2010)

RITE Project: Phase 3 (1 MW) Gen5 System - Dec. 2013

!RITE Project: Phase 3 First U.S. Tidal Power Commercial License

RITE (FERC) Pilot Project East River / East Channel (1 MW)

Final License Application Filed December 29, 2010

FERC No. P-12611 www.theriteproject.com

Issued January 23, 2012 Gen5 System on Triframe (2013)

Technology Advancement Gen4 to Gen5 System!

Verdant Power Gen4 KHPS Turbine Verdant Power Gen5 KHPS Turbine

Deeper Water = Larger Rotor Diameter (m) Faster Water (m/s) = Larger Generator (kW)

Rotor Size & Current Speed

Rotor (m) 2 m/s 3m/s 4m/s

5m Class 28 kW 95 224

7 55 190 450

10m Class 115 385 920

11 138 470 1,110 kW

Gen 5: Commercial Standard System

Anchoring Triframe

RITE Project: Phase 3 1 MW (10, 5m Class Triframes)

“Six-Pack” Demo: 6, 5m/35kW Systems ~ 1.8 Acres

Commercial Pilot: 30, 5m/35kW Systems (10 Triframes) ~ 20 Acres (2013) Federal Energy Regulatory Commission (FERC) Pilot Commercial License

Generic Tidal Project: Gen5 System 15 MW (10, 10m Class Triframes)

Junction Box

Trunk Cable

Interconnection

Control Room Equipment*

Shore Landing Cable Cable Vault

Triframes & Installation

Service Cable(s)

Gen5 Turbines

Not to scale

19

Generic Tidal Energy Project Project Capital Costs / Expenditures (CapEx) !

!  One (1) row of ten (10), Gen5, 10m Class Triframes = 15 MW "  30 systems ~ CapEx: $2.4M per MW

!  Three (3) rows of ten (10), Gen5, 10m Class Triframes = 50 MW "  90 systems ~ CapEx: $2.2M per MW

!  Five (5) rows of ten (10), Gen5, 10m Class Triframes = 75 MW "  150 systems ~ CapEx: $2M per MW

!  Seven (7) rows of ten (10), Gen5, 10m Class Triframes = 100 MW "  210 systems ~ CapEx: $1.8M per MW

!  Ten (10) rows of ten (10), Gen5, 10m Class Triframes = 150 MW "  300 systems ~ CapEx: $1.5M per MW

Ontario: St. Lawrence River Cornwall Ontario River Energy (CORE) Project

CORE Project: Phase 1 (110 kW) Gen5 System - June 2014

!  Ontario’s Political Will (e.g., Feed-in-Tariffs, Forgivable Loans, Grants) !  Compare Deployment Methods (i.e., single bottom-mounted vs. triframe) !  Possible Use as Incremental or Augmented Hydropower !  River CF Better Than Tides & Wind – 24/7 – Baseload, Dispatchable Power !  Site & Resource Assessments

CORE Project: Phase 2 (3-5 MW) Gen5 System - Buildout TBD

!  Three-phased Approach to Site & Resource Assessments !  Tides, Rivers & Manmade Channels

"  Velocity Conditions "  Bathymetry "  Candidate Site Area (includes, navigation, ice, debris, wildlife, transmission)

Alaska Center for Energy and Power Report for AEA - Nov. 2010

Well positioned to use hydrokinetic turbines to help replace the use of fossil fuels Over 90% of total U.S. tidal hydrokinetic resource and 40% of U.S. river hydrokinetic resource

ACEP Report Conclusion: Hydrokinetic Turbines

Viable Method of Generating Power in Alaska

Mechanical & Electrical Power

Energy-Water Nexus & Integrated Systems

!  Virtual Power Plants (clean energy combo)

!  Reverse Osmosis (clean water)

!  Pumping (irrigation, hydraulic fluids)

!  Energy Storage (HCES batteries, EV’s)

!  Electrolysis (hydrogen production)

!  Catalytic Conversion (ammonia production)

Alaska Challenges

!  Where are the Sites? "  Accessible, technically & economically

exploitable natural resources !  Are There Economic Incentives and/or

Funding Support? "  Government grants, favorable FITs,

production tax credits, private capital !  Who are the Partners?

"  Joint project developers, strategic partners, supply chain vendors, assembly / mfg., customers

!  Are There Local Engineering & Support Capabilities? "  Deployable & retrievable systems

!  What Permits are Needed?

Alaska Opportunity

Exports

!  Tidal Currents !  Ocean Currents !  Wave Power !  Offshore Wind Power !  Tidal Barrages !  Thermal Energy !  Salinity Gradient !  Solar Power !  Hydrogen Production !  Ammonia Production

Global Offshore Clean Energy Potential 400,000,000 MW

25X World’s Current Energy Consumption

To Help Build Sustainable Communities

Trey Taylor

Verdant Power Canada Verdant Power, Inc.

The Octagon 888 Main Street

New York, NY 10044

www.verdantpower.com ttaylor@verdantpower.com

Tel: (212) 888-8887 x602

The Octagon