Transportation of Water from Kimberley to Perth Aquatankers

1. Transportation of Water from Kimberley to Perth Aquatankers 2004 United Nations Association of Australia – World Environment Day Awards- Finalist 2003 – 6 year contract with Capt Cook Cruises 2002 – SEDA NSW Green Ambassador 2001 Winner Australian Design Award of the Year 2001 – Engineering2001 Australian Technology Award – PWC/Technology Transactions - Finalist 2001 Australian Technology Showcase Patrons Award - Finalist2000 Winner International Cargo Handling Co-ordination Association Award –Cargo Handling2000 Winner Boating Industry Association of Australia Marine Awards – Best New Product 20001999 Winner Far Eastern Economic Review/Du Pont Asian Innovation Award – Gold Medal 20001997 Winner Advanced Technology Boat Race Canberra Australia – Major Prize 1997

2. Aquatankers Consortium • Solar Sailor Holdings, Ltd • Australian Company based in Sydney • Military subsidiary in US (Unmanned Ocean Vehicles) • Investment support from Europe - Germany (Mithril Eur 600m fund) • Global patents on wing design, unique expertise / designs in hybrid marine power systems, • AMSEC LLC / M. Rosenblatt & Son • One of the world’s leading naval architecture, • Marine engineering, ocean engineering and industrial engineering firms, • Seven offices and over 400 engineering, design and logistics personnel. • Partnership between Science Applications International Corporation (“SAIC”) and the Newport News Division of Northrop Grumman Corporation • Science Applications International Corporation • Largest employee-owned research and engineering company in the United States, • 45,000 employees at offices in more than 150 cities worldwide • Extensive experience with environmental assessment programs • Experienced with environmental impact analyses • Working with indigenous US communities • SAIC is a global leader in risk and reliability assessment • Capability highlights and experience

3. Aquatankers Proposal • Aquatankers is proposing a Build, Operate & Transfer solutions • Key Assumption - 20 years license • Cost Estimates based on: • Capital expenses - $710m AUD approx - includes • Single Point Moorings (SPMs) x 2 – each able to dock up to 8 ships, • Ships and • Shoreside transfer stations • System suitable for a 70 gigaliter transport. • This is the TOTAL construction and acquisition cost of all ships, land acquisition, shore side facilities and associated outfitting • Aquatankers will lead: • Engineer - include all necessary economic and social impact studies, a complete risk assessment, reliability analysis for the entire system and major components • Procure, Install and Commission (EPIC), • Operate the vessels and port facilities for an agreed time period (20 years assumed) • Conditionally transfer the operation and ownership of the physical assets to the government at the end of the given time period

4. Aquatankers Solution Aquatankers expects to meet the required annual 50 gigaliter quantity, but actually deliver closer to 70 gigaliters, using three ships and a single SPM at each port • Optional Solar Sailor wing sails • reducing fuel consumption and emissions up to- 40-60% from wind- 2% from sun • Super-Tankers specially designed and constructed for the carriage of potable water • Estimates that the cost of transporting water, 1.20 AUD/tonne or 1.20 M AUD/gigaliter without Solar Sail technology and 0.95 AUD/tonne or 0.95 M AUD/gigaliter with the Solar Sail technology SPM Kimberley • 2 Single Point Moorings SPM Perth

5. Bulk Carrier Retro-fit – Normal drive

6. 1 Aquatankers Benefits • Environmental Benefits: • Land Use Minimal: • Includes onshore transfer facilities, temporary water storage tanks, short pipeline runs from the transfer facilities and the collection source and municipal distribution network. • No Interference from SPMs • The SPMs, are placed far enough from shore as to not interfere with the sea grasses or other shoreline issues. • Ships • The Aqua Tankers estimated to be better than a pipeline or aquaduct because the length and elevation changes of the route are substantial • Solar Sailor Wings - established up to 50% fuel efficiency using proven technology currently in commercial operation today • Even without the benefits of Solar Sailor technology - Estimated that ships are • 300 times more efficient than over the road trucks, • 100 times more efficient than rail and • 50 percent more efficient than desalination..

7. 2 Aquatankers Benefits • Social Benefits: • Non land based solution avoids difficulties in • Environmentally sensitive areas, • Urban or ex-urban areas, or • Where indigenous population issues are present. • Development Time: • Turn-Key Solution with new ships in four years of contract (shorter if start with existing ships) including: • designed, procurement, • constructed and • commissioned. • Reliability and Risk: • Tank ships Safe & Flexible • Safest and most reliable transport vehicles or distribution methods ever developed. • Solution provides redundancy and eliminates the elements of risk associated with a system of single components connected in series. • Deliver to / from a variety of ports as required

8. 3 Aquatankers Benefits • Scalability: • Additional ships and SPMs could meet additional capacity requirements and increase the reliability. • Estimated 200 gigaliters - ten ships and four SPMs at each port • Proven Technology: • All aspects of solution uses existing, off-the-shelf technology for every aspect of the program. • over 1,500 ships tank ships built in this size range, • hundreds of SPMs and thousands of kilometers of sub sea pipelines. • Wing sail and Solar Sailor technology has been successfully applied to ships and marine craft commercially. • Economic: • Ships are readily financed on good projects - WHY? If a ship does not work out for a particular trade route, it can generally be sold for application in another trade program. If an aquaduct is not used, it becomes useless and not suitably for alternative products such as oil or gas • Capital costs become relatively fixed compared to other industrial projects because the capital costs are largely contained within the ship and equipment procurements rather than land and permitting components. • It is generally agreed that the aquaduct system for New York City, which includes three aquaducts, numerous reservoirs, dams, bridges and tunnels could not be built in today’s environment because of the cost and environmental impacts

9. Aquatankers Questions / Answers • 1. Infrastructure: • Offshore buoys, sub-sea pipeline to shore, shore distribution to/from pumping station, storage capacity for the ships in the range of 2-3 ships (load) and 2 ships on the discharge. • The load side from the storage tanks to the water source is not clearly identifiable because we are not sure of how the panel envisions extracting water from the source, nor are we exactly sure of the source. On the discharge side, the connection goes from the storage (really a surge or head tank) is piped directly into the municipal treatment or distribution systems. • The surge tanks are there to smooth the flow from a steady flow process (source/discharge) to the parcel load/distribution from the ships. • Refueling and stores of the ships can be handled by conventional supply boats or bunker barges. This is a standard mode for shipping. The nature of this project indicate that stores and refueling will only need to be done on one end (load or disport). • 2. Storage capacity of the tankers: • Anywhere from 330,000 m3 to 550,000 m3 per ship depending on the project requirements and market forces. • 3. Separate Ballast Tanks: • Yes. While it might not be required from a health point of view, elements related to tank coatings, custody transfer and efficiency of operation effectively require separate ballast tanks. • 4. Would purpose built tankers for water transport be single of double skin hull construction? • Double skin. • 5. What is the cycle time for a round trip and what loading and unloading times are assumed? • The cycle time is based largely on the load port location and the speed of the vessels--which is driven largely by a calculation of fuel consumption and capital expense. • Load/discharge times are estimated in the range of 20,000-50,0000 m3/hr. • Cycle times, for a 2,000km voyage is approx. one week (based on key assumptions).

10. Aquatankers Questions / Answers • 6. What provisions need to be made for operating during the cyclone season? What is the estimated downtime per annum due to bad weather? • Ships of this type are remarkably resistant to weather. However, they do slow down in bad weather. However, we have estimated an operating uptime of 330 days per year to account for weather and maintenance as consistent with normal shipping practice. • 7. Could tankers be unloaded without the need for additional storage facilities i.e. discharged directly into the existing water distribution system? • Yes. But the cost would probably be higher because ships are an expensive storage facility compared to on typical shore tanks of similar size. • 8. What would be the expected water quality at the delivery point and would treatment be required? • Water quality at discharge is directly dependent on the water quality at load. We are proposing all treatment to be done at the discharge side so all import water would be treated either in the existing municipal systems or standalone. • 9. Would it be possible to remove oil contamination inside existing tankers previously used for carrying oil? What would need to be done to make • them suitable for water transport? • It is possible, but very expensive. There are some risks inherent in this type of effort and water treatment facilities would probably be necessary to account for some of the residues that might be released from the steel even years later. • 10. Please describe how the operation could be scaled up to meet an increased annual demand from 50 gigalitres to 200 gigalitres. What changes to infrastructure would be required? • The infrastructure of 2 bouys, if designed properly, would already have the capacity of 200 gigaliters. For the ships, it is a matter of adding more ships as required to meet the government's needs.

11. Relative Comparisons