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The Archimedes Screw– the history, principles behind the technology, environmental impacts, business case, opportunities, and challenges as a Micro Hydro technology te: Feb 11 th , 2014Presented by: Tony Bouk – CEO Probus Club of Simcoe

Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

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The Archimedes Screw– the history, principles behind the technology, environmental impacts, business case, opportunities, and challenges as a Micro Hydro technology

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Page 1: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

The Archimedes Screw– the history, principles behind the technology, environmental impacts, business case, opportunities, and challenges as a Micro Hydro technology

Date: Feb 11th, 2014Presented by: Tony Bouk – CEO

Probus Club of Simcoe

Page 2: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Greenbug Energy – About Us

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

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GreenBug Energy designs, engineers, manufactures, installs and maintains Archimedes screw generators for low head micro hydro sites and related industrial energy recovery applications. Applications are typically between 1 and 200kW in size.

Making low head micro hydro electric projects financially viable while reducing greenhouse gases and improving fish passage

Page 3: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Greenbug Energy – WHY?

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

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GreenBug Energy exists to make global energy production and use sustainable… now.

We believe these opportunities have to be profitable to make if change is to be adopted on a global scale.

Because of a concern for the environment, and frustration with the slow pace of change.

Our MissionReduce global carbon production by 75%. Make energy production sustainable. Save the planet.

Page 4: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Greenbug Energy – the problem

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

4

Use of non renewables

Page 5: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

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Page 6: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Micro Hydro – The RationaleWeirs exist for power generation purposes, flood management, drinking water reservoirs, navigation, irrigation, and pure recreational purposes.

For whatever reason society has already decided that the benefits of building a weir outweigh the costs, the weir already exists, and we believe that we should maximize the benefits of the structure to generate green energy because it results in no new negative effects and increases the benefits.

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

River Dart Country Park is home to 90 acres of woodland and wildlife, and we are passionate about preserving our spectacular surroundings. One of the way’s we are doing this is by using a hydro scheme to produce our own electricity from the flow of water on the River Dart.

Page 7: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Technology OverviewOur Form of Hydro

Type of Turbine – Archimedes Screw

KW Size – 1 to 200 kW (1kW continuous is enough for small home)

Heads – Head Levels of 1-10 Meters, very low but still very useful.

Flows – 200 liters/ sec – 10,000 liters/sec (1000 lps = 1 cubic meter/sec)

Run of River – water flows are not managed, naturally occurring flows are maintained. Ie there is no storage of water for generation when power is required like Hoover dam and other big hydro.

Application for use on, natural water falls, industrial falls, and small water control structures already in existence – old mills sites, reservoirs, etc. Thousands across Canada. (10,000+)

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 8: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Archimedes Screw

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

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The weight of water falling through the screw turns the screw which turns the gear box and generator and produces electricity as it turns.

The diameter of the screw increases as the design flow increases.

The length of the screw increases as the “head” or vertical drop increases.

How it works

Page 9: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Archimedes Screw

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

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Generator type? – Asynchronous Induction Generator – can’t create it’s own frequency and voltage, has to be “induced” by the grid to excite the stator, to produce electricity in a parent-child arrangement, we can’t generate without the grid unlike synchronous generators (for systems designed to be grid tied)

How is synchronization of Frequency and Voltage achieved? – grid supplies frequency and voltage and forces synchronization as soon as we start to generate, this happens at low power and then the automated sluice gate opens.

What determines RPM? – We Do, RPM’s range from about low 20’s for big systems to about 70 for very small systems. – we base the RPM mainly on a desired blade tip speed that won’t harm fish.

Can the generator be “overpowered”? - No, there is only so much power in the water, and we calculate what that is, and based on the appropriate de-rating for either single or three phase systems, we size the motor appropriately.

How it works – for those that are a bit more technical

Page 10: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Archimedes Screw

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

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Size Examples

Head (meters)

Flow (lps)

Size (kilowatt)

Diameter (inches)

RPM

1 72 0.5 24 72

1.7 536 7.2 55 41

1.9 2000 40 100 34

Page 11: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

The Archimedes ScrewThen

imageimage

Invented in 200 AD --- by --- Archimedes, one of the greatest mathematicians of all time

Used to pump water up and irrigate land

Used to claim land below sea level in the Netherlands

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 12: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

The Archimedes Screw

imageimage

Still used to pump water up

Used extensively in sewage treatment plants due to robust design and ability to deal with debris

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Now

Now

Page 13: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

The Archimedes Screw

imageimage

Europe installed their first one about 10 years ago and are being installed with increased frequency

Our Fletcher Horse Farm site is first in North America

imageimage

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

To generate electricity

Page 14: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

The Archimedes ScrewFIT Rates – 3.75 to 39 cents/kWh in U.K. , 50 cents/kWh in Japan, etc

High FIT rates are driven by Government set Green energy targets to address global warming concerns and health costs associated with polluted air.

To lead the development of new high growth industries

High alternative non renewable energy prices

Energy security

A concern over some sources of non renewables ie nuclear of which Japan is new experiencing, ie oil as the Gulf of Mexico is now experiencing.

They know it’s coming – higher non renewable energy prices, and eventual depletion

The size of the opportunity – in the U.K. alone there are about 40,000 mill sites that suitable for micro-hydropower enough to generate 10,000[6] GWh per year

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

WHY are they doing it abroad?

Page 15: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

The Archimedes Screw15

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

HOW are they doing it abroad?Feed in Tariff systems established by government that provides contracts at set price to sell electricity to the grid.

Community led groups – like Whitby Esk Energy community project - a 50kW Archimedes

Ie Stockport Metropolitan Borough Council

screw hydroelectric power turbine on the River Esk at Ruswarp, nr Whitby, North Yorkshire local government led – like Stockport Metropolitan Borough Council

Private site owners

For the “Social investment” versus the financial investment

Page 16: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 16

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Hundreds of installations

All shapes, sizes, designs, colors

Page 17: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 17

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Most incorporate fish passage of varying designs

Almost always installed beside dam off to avoid any “depleted reach”

Page 18: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 18

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Multiples are common on very large flow sites, where the head (water drop) is lower, so that screw radius doesn’t exceed head

Page 19: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 19

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Most designs are open topped in Europe due to milder winter temperatures

Page 20: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 20

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Diameters can get up to 4 meters or more to accommodate greater flows

Page 21: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 21

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Installations are being made at old existing infrastructure

There are approximately 40,000 old mill sites in the UK alone

Page 22: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 22

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

External designs can be whatever the owner the wants architecturally

Page 23: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 23

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Since most old mill sites formed the basis of towns, most installations are in populated areas and result in electricity generation right where it is used

Page 24: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 24

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Designs are modified to fit the tight spaces and existing old infrastructure found in Europe that is hundreds of years old.

Page 25: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 25

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Environmentally powered castle: The 40-ton Archimedes Screws were lowered

into place by crane at Romney Weir

Page 26: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 26

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

One of two huge 40-ton Archimedes Screw turbines that was being installed in

the River Thames at Windsor Castle

Page 27: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 27

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 28: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 28

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Some installations have protective screening over the main screw, but not all surprisingly.

Page 29: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 29

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Screws are made off site, except for small civil works, and then brought to the site for installation.

The trough the screws rotate in can be made of steel and cast in place, or steel and not cast in place, or the trough can be grout itself, formed by turning the screw slowly.

Page 30: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 30

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Cantilever design for the purpose of keeping civil works on dryer ground with closed tube extending down to water level

Simplest cheapest design, but no cold freezing protection

Page 31: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 31

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 32: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 32

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

An open screw, and no screening surprisingly.

Can accommodate heads ranging from 1 meter to 10 meters. The screw just gets longer with higher head (more water drop)

Page 33: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 33

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 34: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 34

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Some designs are very simple with almost no civil concrete work, no generator room

Page 35: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 35

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Fish ladders of various designs are evident

Page 36: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 36

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Another fish ladder to the right of the screw

Page 37: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 37

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 38: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 38

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Concrete trough design

Page 39: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 39

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

This screw design has a steel trough that is not cast in place in the concrete but just sits within a concrete channel.

Page 40: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

European Screws 40

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Screws are integrated into the urban landscape everywhere

Page 41: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Environmental IssuesSafe Fish Passage

Fish can Safely Pass through the screw (down)

imageimage Extensive fish passage tests in the UK have conclusively

demonstrated that the large water chambers and slow rotation of the Archimedes Screw allow fish of all sizes safe passage through the turbine. As a result, the Environment Agency in the UK has agreed that no screening is required.

Fish Pumps

imageimage

In fact Archimedes screws are used as “fish Pumps” in the aquaculture industry to move fish.

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

The screw does not affect the upstream passage of fish, however it does allow safe downstream passage

Page 42: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Environmental IssuesEquipment related

Lower Bearing– the submerged lower bearing is a water lubricated composite or our proprietary submersible roller bearing assembly.

Upper Gearbox– contains food grade oil. Upper gearbox is within a concrete room above the water.

Protective Coating on the steel screw– after application and hardening the coating is chemically inert- potable water coatings can be used but are not in Europe.

Sitework – minimal concrete site work is necessary to install the screw beside the existing water control structures. Existing control structures are unaffected.

Equipment is Manufactured off site – because the screw is manufactured off-site and then installed by crane beside existing water control structures, disturbance to stream beds and water flows is minimal during installation.

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 43: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Environmental IssuesWater Resources

100% of water is returned to the water course – essentially part of the water just travels down the screw instead of over the dam

Does not increase the height of the existing water control structure

Does not have to affect the water levels above or below the water control structure

Existing natural flows are maintained – In this run of river type of hydro installation flows are not managed in any way.

There is no depleted reach – because the screw is installed beside the existing water control structure and the water is returned at the base of the structure there is no depleted reach.

Does not affect the flood flow capacity of the existing water control structure, but adds to the flood flow capacity of the site.

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 44: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Example - Fletchers Horse FarmOriginal Old Existing Mill Structure

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 45: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Site Picture - FletchersExisting Dam

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 46: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Fletchers Horse Farm-Drawing46

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 47: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Fletchers Horse Farm - Install 47

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

During installation

Page 48: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Fletchers Horse Farm48

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Left: bottom of screw where water exits back to watercourse

Right: generator room at top of screw

Page 49: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Fletchers Horse Farm - Video 49

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 50: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Fletchers Horse Farm 50

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Details

55” Diameter

Concrete cast in place

Net Metered

7.2 kW

1.7m Head

536 lps

RPM 41

22 degrees

14% IRR

Page 51: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Opportunities Now51

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Waterpower FIT rate– 14.8 cents/kWh, 20% indexed to inflation

Waterpower FIT term– 40 year contract

Page 52: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Opportunities NowFor the Archimedes Screw

imageimage

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Many sites – thousands of small low head sites across Canada (10,000+ according to Hatch)

An example – to the left are the sites located around the GreenBug location in Delhi, Ontario.

Carbon reduction– there is the opportunity to generate electricity in a distributed renewable way right where it is used and sell it to the grid using existing infrastructure and without large transmission linesSource: Ontario MNR Renewable Energy Atlas

Page 53: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Opportunities Now 53

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

101-page 2008 report prepared by Hatch Energy for Natural Resources Canada titled “Low-Head Hydro Market Assessment” contains the following conclusions –

“Hydropower is the most predictable of the renewable energy sources, with highlyefficient systems and extremely low maintenance costs. It is clean and renewable, with

zero greenhouse gas emissions during operation.

Canada has a vast untapped potential for low head hydropower development. At least5,000 MW of potential have been identified, but the actual potential is likely significantlyhigher. A large portion of this potential lies in dams constructed for other purposes and

other existing structures.

Currently, most of the electromechanical technology used to develop small, low headsites was originally designed for larger, higher head applications. This technology is

often not economically viable in comparison with other generation technologies.However, there are several emerging technologies designed specifically to exploit theselow head sites. These technologies, should they become widely accepted by developers,regulators and utilities, could become economically viable and have a significant impact

on the low head hydro sector.

Promoting the development of low head hydropower is promoting reliable,environmentally friendly, distributed energy generation.

Page 54: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Opportunities NowWater Resources and Feed in Tariff systems around the world

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Over 80 jurisdictions worldwide now with Feed in Tariff systems

Many small water power sites – estimates of 10,000 in Canada, 80 to 120 thousand in the USA, 40,000 in UK alone

International Opportunities - Feed in Tariff rates around the world are higher than our domestic rates – our feed in tariff rate in Ontario is 14.8 cents/kWh, in the U.K. the rates are 39.6 cents/kWh (systems less than 15kW) and 37.5 cents / kWh (for systems 15kW to 100 kW)

Net metering in many cases is better than FIT rates and provides perfect hedge against future rate increases – in our area the electricity rate is about 18 cents/kWh after tax and about 15.9 cents/kWh before tax. If you’re a business that can ordinarily reclaim GST/HST the effective rate earned is 15.9 cents/kWh and if you can’t reclaim GST/HST it’s 18 cents/kWh, both of which are higher than the FIT rate, therefore if a prospective developer can use the power they always choose a grid tied net metered arrangement.

Off grid – third world and industrialized countries remote area electrification to replace diesel generation that is harmful and is $1.00 to 1.50 / kWh in remote areas

Page 55: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Rest of the World – Why Bother55

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

2 Billion people without electricity – it’s important that they don’t choose non-renewables as they electrify

They need viable alternatives - If we don’t present some good viable options that they can afford they just may choose non renewables like we did.Hydro power is the most affordable – approximately 25% of our electricity in Ontario comes from water power

We will be affected – whatever they choose we will be affected, their environment and air quality will be ours

Page 56: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Existing ChallengesAbility to connect – not all jurisdictions have FIT and Net Metering arrangements in place. In Ontario, prior to the Green Energy Act of 2009 there was no way to connect a system to the grid even to off set your own usage even if you wanted to. Now with FIT (feed in Tariff) rules and Net metering rules you can offset your usage or sell to the grid

The government regulatory environment – FIT windows, FIT quotas, low rates domestically, few tranches, and permit and approval processes and costs that are based on large historical projects cause a greater burden on smaller projects. Ie the Ontario class EA is the same for all systems below 200MW.

The internal upfront costs, such as site assessment, project planning and engineering, as a percent of total project costs is higher for small projects than for large projects. (essentially the same thing has to be done regardless of project size, causing a greater burden on smaller developments and economies to scale)

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GreenBug Energy Inc.

Page 57: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

The Options/Economics1) Purchase and own yourself – • GreenBug acts as contractor only• FIT contract in your name (if you don’t net meter) • You assume risk and cost of development• Typically 10-12% return (IRR)

2) Lease your site • GreenBug owns and leases site from Norfolk for 10% of gross revenues• GreenBug owns equipment• FIT contract in GreenBug name• GreenBug assumes risk and cost of development• You have No investment • Plus option to acquire up to a 50% interest in the operating income of the project up

to 2 years after commissioning• Equipment becomes site owners if FIT contract not extended at end of FIT term

3) Joint Equity• New Entity (limited partnership) formed that owns the project and equipment• FIT contract in name of new entity• Share in risk/cost

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1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.

Page 58: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

Why Do it?Global Warming – if you believe it, we have to slow it or stop it or face dire consequences

Global Warming – even if you don’t believe it, the system is so complex and fraught with time delays that we just can’t take the risk, if we don’t address it, it may be a potential global killer, if we do, then all we did was make the environment a little cleaner and spent some money

Can save and make money right now – the IRR (internal rate of return) on projects right now can be attractive

58

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GreenBug Energy Inc.

Page 59: Greenbug energy inc. Archimedes Screw presentation - probus club of simcoe - feb 11 2014

1645 Hwy#3, Delhi, ON, N4B 2W6T: 519 582 8563

GreenBug Energy Inc.