1. Tidal and Ocean Current Energy
Minesto
Tidal and Ocean Current Energy
Dr. Martin Edlund
Chairman of the Board
Minesto AB
Tokyo, UK Embassy, October 9, 2014
16/09/2018

2. Executive Summary
Minesto AB is a tidal energy company spun out from Saab Group in 2007
26 dedicated staff including R&D and business experts from wind power, tidal power and automotive industries
Patented technology: Deep Green is unique in its ability to cost effectively produce electricity from low flow currents at a wide range of depths
Minesto’s technology provides unique access to global tidal stream and ocean current resources not economically accessible to most other marine energy technologies
Minesto has received €15M and is now seeking €20M in private funding to take the company from a pre-revenue position to a revenue position
Minesto is seeking €20M in matched grant funding from Welsh Government (European Union Structural Fund)
16/09/2018

3. Market with great potential
Minesto’s ability to produce cost-efficient electricity at low velocity sites significantly expands the market potential, the market is valued to €250 billion in annual electricity sales
Minesto tidal market
World market ocean currents
Minesto’s products have a global market potential to generate electricity for £135 billion in annual yield.
Complementary market – Ocean currents
Kuroshio Current Taiwan: 19GW ( units)
Kuroshio Current Japan: 8GW ( units)
Florida Current: 27GW( units)
Australian Current: 18GW ( units)
“The Deep Green technology is able to operate economically at sites where no other renowned technology has been identified”
16/09/2018

4. Global potential and government support
USA
- 250 TWh/year*
- 25% renewables by 2025
- Feed in tariffs
Canada
MW*
- 250MW marine by 2020
PRC
-14GW*
15% renewables by 2020
Investors
Japan
- 22GW*
- 10% renewables by 2020
Korea
- 288,000 tonnes of oil-worth*
- 16% marine by 2024
Europe
- 20GW*
- 20% renewables by 2020
- Horizon 2020
Chile
- $25M investment in marine
- High electricity costs
Potential market is substantial
Minesto expands the practical resource beyond those numbers!
* Tidal stream potential energy
Sources: An overview of ocean renewable energy in China, Yuhe Jiao; DHI study for Minesto; The transition to green energy in China, Japan and Korea, Innovation Norway; Global trends in the emerging ocean energy market, IEA
16/09/2018

5. Markets activities 16 September 2018 CONFIDENTIALUK
R&D site in Northern Ireland
10MW Demonstration Site in Wales
Member on the MSG R-UK
Grants from Carbon Trust, DECC, Eurostar
100% of the shares in Minesto UK
Norway
Vegdirektoratet has identified Deep Green as the most suitable technology
Proposed feasibility & demo proposal of €2,5 submitted
Japan
Established relationships with large OEMs, universities and developers
Tidal and Ocean currents
Korea
Established relationships with large OEMs, universities and developers
North America
MOU with SNMREC to develop a test site in the Florida Current
Discussions for partnership with Worcester Polytechnic Institute
Taiwan
Seeking joint demonstrator with NTOU
Strong awareness of potential with ocean currents
China Longyuan Power Group Corporation Ltd
China Three Gorges Corporation
Power China
Hydrochina
Chile
MoU under development with Green elements
Discussions with local governments and IADB for funding
South Africa
Detailed projects discussion with University of Stellenbosh and TIA
Site identified
Maldives
UN lead project worth €7M to install 1 MW
Minesto have quoted work of approximately €1M for project dev.
China
More than 4000MW potential with a 10% SIF
Manufacturing capabilities
Advisor and share holder based in Hog Kong
16 September 2018
CONFIDENTIAL

6. UK – the Leading Market in Europe
Strangford Lough – Northern Ireland
1:4 test installation
R&D test platform
Performance & reliability optimization
O&M process development
Commercial sites identified
Holy Head Deep - Wales
10 MW Demonstration Array Agreed
Discussion on a €20M project with 50% match funding from WEFO
Working relations with PMSS, Bangor Uni, SEACAMS, Swansea Uni
UK perspective
Member of the Marine Strategy Group- RUK since 2008
Working relationship with gov. bodies; DECC, Carbon Trust, Crown Estate, WEFO
Working relationship with Bangor, Strathclyde, Swansea and Queens Uni
Supply chain for manufacturing, installation and Site Development
Joint EUROSTAR project with Atlantis Resource Corporation for wing development
Isle of Wight – SOLENT
30MW site developed by TB Partners LLB and Isle of Wight Council
Possible for a 5MW “plug and play” solution for Minesto
16 September 2018
CONFIDENTIAL

7. Our Plan: Holyhead Deep 10MW installed 2019
Project
Installed capacity: 10MW
Installed devices: 20 DG500
Project financials
Project cost: €60M
IRR: 7-15%
September 16, 2018
CONFIDENTIAL

8. The competitive landscape
1st generation technologies
‘Underwater wind turbines’
Strong corporate backing
Absorbed ‘first-mover’ costs
2nd generation technologies
Diverse technologies
Demonstration stage or earlier
Minesto complements 1st gen tech
Marine Current Turbines
Rated Power: 1.2MW
Rated velocity: 2.4+ m/s
Corporate backer: Siemens
Scotrenewables
Rated Power: 2MW
Rated velocity: 2.5 m/s
Corporate backers: ABB, Fred Olsen
Andritz Hydro Hammerfest
Rated Power: 1MW
Rated velocity: 2.2 m/s
Corporate backer: Andritz Hydro
Open Hydro
Rated velocity: 2.6 m/s
Corporate backers: Bord Gais, DCNS
Flumill
Rated Power: 4MW
Rated velocity: n/a
Corporate backers: none
Ocean Current Generation System
Corporate backers: IHI, Toshiba, Mitsui
ORPC
Rated Power: 0.5MW
Rated velocity: 3 m/s
Minesto
Rated velocity: 1.5 m/s
16/09/2018

9. Deep Green – how it works
Illustration of Deep Green in action
75% of tidal current energy is in the upper 50% of the water column
A tether attaches the turbine to the seabed and delivers electricity to the grid
The figure-of-8 flight path is controlled by a rudder attached to the plant
Specifications
Wing Span
12 Meters
Rotor Diameter 1m
Tether Length
65m or more
Rated Power
1.6m/s
Desired Velocity
1,4 m/s or more
Installation Depth
50 m or more
Devices/km2
18-26
Weight
7 tons
16/09/2018

10. Test plan Surface mounted Seabed mounted 16 September 2018
CONFIDENTIAL

11. Electricity production in low velocities
Depth: 80m
Current velocity: 1.5m/s
75% of the energy
is in the upper
50% of the water column…
… and 25%
is in the
lower
50%
Deep Green
Wing span: 12m
Tether length: 90m
Diameter: 18m
Hub height: 28m
Scaled up
Diameter: 32m
Hub height: 60
16/09/2018

12. What are the cost drivers?
Site Accessibility
Significant lower max peak
Lower flows = Less turbulence
Cable laying
Installation & O&M windows
OPEX
Small vessel decreases cost
Smaller devices enhance the mobilization and service speed
Most service can be made on land
CONFIDENTIAL
16 September 2018

13. Deep Green – competitive advantages
Unlocks new tidal market
Only known technology that operates cost-efficiently using low velocity tidal streams ( m/s)
High efficiency
Kite motion accelerates water flow through the turbine, significantly increasing energy production
Small size and weight
Each unit weighs 7 tonnes, times less per MW than competing technologies
Low-cost offshore operations
Able to use smaller and cheaper vessels for O&M and installation than competing technologies
Utilisation of ocean currents
Tidal energy competitor comparison
16/09/2018

14. Proven technology in real conditions
Complete power plant installed
Focus on performance and design freeze
Most cost effective R&D platform in the industry

15. Competitive with conventional technology
Why?
Half CAPEX cost
1000 times the energy (energy output proportional to velocity cubed)
Small vessels used for operation and maintenance
Remote Islands
CfD until 2019
CfD after 2019
NEDO Phase 1
NEDO Phase 2
13 November 2013
CONFIDENTIAL

16. Deep Green – technology roadmap
QuappenKite 2006
Prototype tests
Proved kite steering control system
SeaKite I 2009
Tank tests at SSPA and marine tests, Netherlands
Proved electricity production
SeaKite II 2011
1:10 scale ocean trials
Consistent power production
Environmental impact assessed
Deep Green Ocean
1:4 scale, handled scale up
Power performance proven to 69%. 100% by November 2014
Use of components from proven manufacturers
Survivability analysis
FMEA and HAZOP testing
SIMLOX used to simulate O&M
Deep Green Utility 2016
1:1 scale
Deep water installation
O&M and decommissioning
Deep Green Array
Integrate in infrastructure
Inter array cabling 1 3 5 7 8 9
Deep Green technology has been extensively tested over the last 8 years. This has proven power generation, demonstrated environmental safety, and de-risked the technology. Minesto is now looking to install and verify a full-scale plant to produce power to a grid
16/09/2018

17. Deep Green – Intellectual property
Patents granted
Australia, Canada, China, Japan, Mexico, New Zealand, South Africa, South Korea and USA
Patents pending
EPO (Europe), Chile, Ecuador and Taiwan
Active protection
Minesto continues to protect disruptive innovations
Control
Method
1:4 prototype currently installed in Northern Ireland
Main patent
Control
Systems
Wing & Turbine
Configuration
Multiple Torque
Controlled Turbine
Tether Spring/
Pump
Multiple Wings
Water
Lubricated
Bearing
Tether
Method
16/09/2018

18. Business plan 2014 2015 2016 2017 2018 2019 2020 Funding Licensing
Public funding
Private funding
IPO in 2017
International funding opportunities
Licensing
Geographical licensing
Initial payment
royalty fees
Site development
Assessment
Modelling
Product sales
Deep Green sales
Commercial arrays
Additional units
Spare parts
Asset management
Minesto is planning to be cash-flow positive by This is based on on-going licensing contracts, the sale of a 10MW commercial array and contracts for future commercial arrays
16/09/2018

19. Use of funds
Minesto requires €40M+ to manufacture, install and operate a 1.5MW array by An investment of €20M is required to achieve this goal. This will be matched by a number of grants, which are currently pending:
€20M matched grant funding from Welsh Government body WEFO
€8M in pending applications for grants from Horizon 2020 and Climate-KIC
In 2017 Minesto will be producing electricity to consumers, have a customer ready to purchase 20 devices and be ready for an IPO or industrial exit.
16/09/2018

20. Contact Minesto AB Vita gavelns väg 6 426 71 Västra Frölunda
Telephone: +46 (0)
16/09/2018