NaREC

1. Ocean Energy For New England Conference 6th October 2008 Sate of the Ocean Power Industry An Industry Perspective NaREC Andrew Mill CEO

2. Introduction • Background credentials • 30 years in the energy industry • Built and made operational EMEC • Member of RAB and chair of Marine Renewables Sub-group • CEO of NaREC • Review of the UK industry progress • Technology • Political • Financial • Industrial R&D

3. Progress To Date - Wave • Earliest technologies date back to mid 70’s in UK • 2004 EMEC opens wave test facility • Pelamis Wave Power • 1st grid connected device 2004 • 1st commercial demonstrator 2008 • Near shore or shoreline devices • Limpet connected to grid in 2000 • 2004 near shore device tested at EMEC • RAB report on progress 2007 • 2008/9 a number of prototype devices will be open sea tested

4. Progress To Date – Tidal Stream • 2008 • MCT install 1.2MW grid connected device Seagen at Strangford Narrows N Ireland • Open Hydro connect to grid at EMEC • EON back Lunar Energy • Verdant install in East River • Hammerfest Strom – Norway • 2006 – EMEC opens tidal test site, Open Hydro connects

5. UK Marine Test Facilities - NaREC • 14 devices tested to date • Wave test facility at 1/10th scale • Tidal test facility at 1/10th scale • Combined wave and tidal stream test capability • Linear generator test rig for grid connection studies

6. UK Marine Test Facilities - NaREC • Blade test facility • Drive train development test rig • Field testing wave & tidal • Power offtake system development • High voltage lab for grid connection studies

7. UK Marine Test Facilities - EMEC Wave • 4 berths, 50m water depth 2km from shore • Atlantic waves regime • 25kW/m + energy level • 20m+ peak wave Tidal • 5 Berths, 10-50m water depth • Grid connected • 3.5m/s flow • Sheltered area

8. UK Marine Test Facilities – Wave Hub • Open sea demonstration facility for pre commercial arrays • 4 berths each suitable for multiple devices • 50+m water depth • Fully grid connected • Atlantic waves regime • 25kW/m + energy level • Planned opening 2010

9. Government Funding Initiatives EMEC Wave Test Site • TSB & BERR • Carbon Trust - Marine Energy Challenge & accelerator • ETI (Engineering & Technology Institute) Private / Public partnership TRL3 to 6 • EPSRC (Engineering & Physical Science Research Council) • MRDF (Marine Renewables Deployment Fund) £50M • Scotland has a number of further initiatives • £150M Committed <£20M spent

10. Political Landscape EMEC Wave Test Site • Targets • 20% renewables by 2020 • Energy is a reserved issue • Environmental issues devolved • Planning Bill • Grid connection • Marine Bill • ROC (Renewables Obligation Certificates) scheme, 2 ROCs • Scotland proposing 5 ROCs • SEA process • EC Directives • Birds • Habitat • Crown Estates Seabed lease initiative

11. Barriers to Progress • Grid connection & competition from wind • Funding • Skills & industrial capacity • Environmental lobby • Technical challenges • Political uncertainty

12. NaREC –Current project examples Aqua Marine Power Ltd (£500k) Grid connected PTO solution • Project Management • Detail design of power offtake system • Procurement • Assembly • Testing • Deployment Evopod – Tidal Device • 1/10th scale open sea testing • Control & instrumentation • Drive train and load • Funding Direct Drive Generator Prototype • Mech & Elec design • Encapsulation system • Wet running design • Marinisation • Assembly & Build • Test and commission Snapper FP7 • Linear generator development • Program management • Partners Upsala University • Prototype development • >£500K – 3 year programme

13. Marine Test Facilities • Why do you want to build one? • Political leadership • R&D • Investment • Other • Answer will dictate what type of facility • Answer will determine the cost and return

14. Ocean Energy For New England Conference 6th October 2008 Sate of the Ocean Power Industry An Industry Perspective NaREC Andrew Mill CEO