IT Power

1. Wave and Tidal Current Energy Technologies under development in the UKThe UK-China Ocean Energy Technology Cooperation Project;expand to include Korea?Bernard McNelis

2. IT Power Incorporated 1981 (Derrick, Fraenkel & McNelis co-founders) Renewable energy & climate change consultancy Policy, strategy & planning work for sustainable development, carbon management & trading Project management and technical implementation of energy solutions Expertise in sustainable energy technologies: marine, hydro, solar, wind, biomass, hybrids, co-generation, energy efficiency Investment advise and due diligence services

3. Early days projects Stirling engine Micro-hydro Wind-pumps Solar PV Micro-wind

4. River Current Turbines (1979-82) Purpose – pumping irrigation water Financed by the Netherlands Government as an aid project

5. why tidal current power ? • accurately predictable energy supply • only a niche market – but a $500billion niche market • completely sustainable – minimal environmental impact • a tidal site is like an oil well – except it will never run out San Bernardino Current – Philippines

6. Ocean Energy • A significant resource that has not yet been tapped commercially. • Has the potential to supply major electricity demand, and adds diversity to the energy mix. • The technology is just moving from prototypes to early commercial machines. • Presents an unparalleled opportunities for entry for developers and companies to move into a new industry.

7. ITPower - Tidal Energy Pioneer • ITPower’s Peter Fraenkel published paper proposing Tidal Turbines in 1989 • British Government, and others, highly sceptical • After 15 year uphill battle for support, World’s first working turbine (15 kW) installed in Scotland in 1994

8. Seaflow installed 30 May 2003 rated power 300kW @ 2.5m/s Operational rotor raised for access World’s first full-size, and only offshore tidal current turbine Low cost access from a RIB Marine Current Turbines (MCT) established by ITPower as new company

9. Seaflow in typical exposed offshore conditions located 3km NE of Lynmouth

10. the SeaGen tidal current turbine progress report Peter Fraenkel Technical Director Marine Current Turbines Ltd The Court, The Green, Stoke Gifford, Bristol BS34 8PD, UK. www.marineturbines.com ...and SeaGen in typical conditions 10

12. 12

13. MCT’s SeaGen transported by crane-barge “Rambiz” SeaGen is lowered to the seabed 04:35hrs 2 April 2008

14. SeaGen: 1.2 MW operational since summer 2008 News Flash: 17th February, Siemens to acquire 100% of MCT

15. Technology Developing Fast Openhydro Hammerfest Strom Atlantis Rolls Royce Pulse Tidal MCT

16. Multiple turbines stretched across a tidal race. • Connected to the shore at one or both ends • Turbines share a common bridge structure. Tidal Fence Lower density fence Higher density fence

17. Severn Fence Proposal

18. The Pulse-Stream 100

19. Pilot Plant to Commercial Device 2007 2008 2009 2010 2011 2012 2013 Tank Testing PS100 Design PS100 Demonstration PSCD Preliminary Design Pulse-Stream Pilot Plant

20. UK-China Ocean Energy Technology Cooperation • 3-year Project funded by British Foreign & Commonwealth Office (FCO): China Prosperity SPF Strategy, with co-funding from project partners • Objectives: • generate resource and cost / economic data to enable policy makers to refine the goals of the 12th Five Year Plan, i.e. set indicative targets for ocean energy. • accelerate the development of ocean energy technologies • promote UK-China cooperation in research, development and deployment. UK-TI China Workshop, Beijing 22 Feb 2012

21. Project OutputsPhase 1 to 31 March 2012 1. Status Report on Ocean Energy Technologies and applications in China and UK. 2. Preliminary China Resources Assessment for wave and tidal stream with first indicators of energy potential. 3. Recommended Guidelines for tidal barrage environmental impact assessment. 4. Ocean Energy Roadmap and Policy Recommendations.

22. UK Ocean Energy Study Tour • IT Power organised the Ocean Energy Study Tour, Task 1.2 of the UK-China Ocean Energy Technology Co-operation Project. • The Tour was from 7th to 16th September 2011. 10 delegates were from universities, ocean energy institutes and specialists in ocean energy. • The Tour included attending the European Wave and Tidal Energy Conference(EWTEC), presentations on the Severn Tidal Barrage Proposal and IT Power Ocean Energy Technology Database, Visiting EMEC, Pelamis, NaREC, SeaGen etc.

23. UK Ocean Energy Study Tour • Visiting the Southampton University Ocean and Wave Energy Laboratory

24. UK Ocean Energy Study Tour • Visiting Pelamis Wave Power in Edinburgh. This is the most advanced design and operating wave energy converter

25. UK Ocean Energy Study Tour • Visiting the SeaGen 1.2 MW Project in Strangford Loch near Belfast in Northern Ireland. This is the most advanced tidal current energy technology

26. Resource Assessment Workshop，Beijing December 2011

27. Progress to date • Project launch meetings in Beijing (29 September) and London (13 October) • Study Tour to UK (06-17 September) • Draft Technology Status Report completed (November) • Draft Tidal Barrage Report completed (December) • Resource Assessment Workshop (09 December)

28. Next Steps • Consultations with Chinese Experts and finalisation of Technology Status Report • Consultations with Chinese Experts and finalisation of Barrage Report • Resource Assessment estimates based on published data • Scenarios for realisable energy potential • Draft RoadMap • Workshop to present and discuss RoadMap (April 2012)

29. Installed Capacity • UK total marine renewable energy installed capacity is 4.4MW • 1.31 MW - wave energy capacity • 3.05 MW - tidal stream capacity • Worldwide installed capacity is 7.5 MW 1.7MW – wave • 5.8MW - tidal stream

30. 60MW of ocean energy projects planned for next 4 years. • Prototypes and small arrays <5MW. • 11MW obtained planning permission. • Larger arrays of up to 10MW being planned. UK Future

31. Oceans of Opportunity • A significant resource that has not yet been tapped commercially. • Has the potential to supply major electricity demand, and adds diversity to the energy mix. • The technology is just moving from prototypes to early commercial machines. • Presents unparalleled opportunities for entry for developers and companies to move into a new industry likely to be worth >$100 bn • IT Power is well positioned to assist and advise.

32. Business Potential (1 of 2) • Potential of $100bn to $300bn in electricity sales from wave and tidal technologies • In Europe capital investment of approx $5bn in each of wave and tidal technologies by 2020 expected. • Global wave and tidal equipment market is estimated as >$100bn • Significant markets worldwide

33. Business Potential (2 of 2) • 2010 saw renewed partnering and investment by major players in the market including Alstom, Rolls Royce, ABB, Voith, Siemens • However number of developers looking for strategic partners is now limited (window of opportunity is closing) • Industry growth is similar to wind industry and there are synergies with the developing offshore wind industry

34. Wave + Tidal Prospects - Industry Growth

35. Conclusions; What We Looking Forward to • Funding for scale-up to arrays • Strategic Investment, big players, with patience, and confidence • Like the wind industry 20 years ago, however, the entry is narrower, as it requires more marine and engineering experience, and more complex technology • UK-China technology co-operation, including pilot demonstration projects!

36. Thank You! Bernard McNelis ITPower Beijing Office bernard.mcnelis@itpower.co.uk