Thorntonbank project description and status

19-Apr-10 (v1.6)

Agenda

Thorntonbank project presentation and status

Contractual structure

Financing strategy

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C-Power shareholders

By cooperating in the Thornton Bank project, the Belgian and European shareholders developed unique expertise and leadership in the offshore wind energy sector. The experience gained in the C-Power project is already beneficial for other offshore wind farms in the North Sea and beyond, in which the shareholders are involved

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Shareholders experience

The DEME-group is a worldwide operating dredging and marine engineering specialist. Through its daughter companies GeoSea, Tideway, Scaldis Salvage & Marine Contractors and Dredging International, DEME has so far been involved in the construction of seven of the largest offshore wind farms:

– Utgrunden, Sweden: construction of a 7 X 1.5 MW offshore wind farm

– Horns Rev, Denmark: erosion protection for 80 X 2.3 MW offshore wind turbines

– Samsø, Sweden: installation of 10 X 2.3 MW offshore wind turbines

– Rødsand, Denmark: transport and installation of the transformer module (650 tones) to the Nysted offshore wind farm

– Beatrice Field, United Kingdom: assembly and transport of 2 X 5 MW turbines

– Thornton Bank, Belgium: marine engineering and installation of 6 X 5 MW offshore wind turbines of C-Power’s first project phase

– Alpha Ventus, Germany: Prepiling of 6 OWEC jackets on Alpha Ventus offshore Test Field 45 km of the coast of Borkum (ongoing)

– Ormonde (UK): installation of 30 jacket foundations in summer 2010 (same jackets as for C-Power)

Ecotech Finance, is an environmental holding of the Walloon regional investment company SRIW and Socofe, the investment company of the local and intermunicipal authorities of the Walloon Region in Belgium. Both holdings are specialists in financing and development of environmental as well as utility infrastructure projects

NUHMA is an investment holding controlled by Flemish cities & communes for the participation in electricity and utility ventures

EdF-Energies Nouvelles (EN) is a private company in which Electricité de France (EdF) holds 50% of the shares. EdF EN is worldwide active in the development and exploitation of renewable energy projects of which more than 300 MW wind farms

RWE Innogy pools the renewable energy expertise of the RWE Group. The company plans, builds and operates renewable power generation facilities, and aims to vigorously grow its renewable energy capacity in the UK and Continental Europe. On 30 April 2009, RWE Innogy has acquired a 26.7 percent stake in C-Power, with the objective to enlarge its participation in the offshore wind sector

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C-Power concession

C-Power has obtained a concession to build and operate an offshore wind farm in the Exclusive Economical Zone of Belgium Continental Shelf

The new Ministerial Decree (03-Feb-2010) allows the exploitation of 50 to 60 wind turbines for an installed capacity between 3,6 and 6MW (maximum total installed capacity = 360 MW)

The concession area is located on the Thornton sand bank, which lies about 30 km offshore from the Belgian Coast

The concession is crossed by the Interconnector gas conduct and the Concerto South 1 telecommunication cable. The concession is then split in two areas (Western part = Area A; Eastern part = Area B)

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Wind farm layouts and phases

Maximization of the concession

– 24 new WTG in Area A

– 24 new WTG in Area B

Installed capacity

– Phase 1 30,5 MW(Operating pilot phase)

– Phase 2 147,6 MW(Construction: 2011-2012)

– Phase 3 147,6 MW(Construction :2012-2013)

– Total 325,7 MW

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Phase 2 = 24 REpower 6M

Area B

Phase 3 = 24 REpower 6M

Area A

Phase 1 = 6 REpower 5M

Area A

Expected production

Yearly production estimated by Sgurr Energy LTD:

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P50 P90• 1.167.549 MWh Green production @ 100%• 1.085.821 MWh Green production@ 93% • 1.053.246 MWh Grey production@ 93%

• 950.680 MWh Green production @ 100%• 884.132 MWh Green production @ 93% • 857.608 MWh Grey production @ 93%

Construction works per phase

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Phase 1 (Pilot Phase operating since Jun-09)

• a directional drilling for beach and dune crossing• installation of temporary 36 kV-onshore cables• installation of 6 foundations + wind turbines (5MW),

mutually connected with a 36 kV-cable• installation of the first 150 kV-offshore cable• connection between the 150 kV-offshore cable with the

temporary 36 kV-onshore cable and the connection with high voltage station “Sas Slijkens”

• set-up of protection- and control system

Phase 2 (Sub area B) – 2011-2012

• Installation of 24 foundations and wind turbines (6MW) in sub area B mutually connected with 33kV-cables

• installation of 2 subsoil 150 kV-onshore connections between the 150 kV-offshore cables and the high voltage station “Sas Slijkens”

• enlargement of protection- and control system• laying and connection of infield cables (including

crossing with Interconnector 33/36kv gas pipeline and Telecom South Cable

• De-connection works of 150/170 kV cable A from D1 and connection to transformer station

• laying of 33kV infield cable between Transformer station and D1

• construction of an offshore transformer station + its jacket foundation

Phase 3 (Sub area A) – 2012-2013

• construction of 24 additional mutually connected wind turbines (6MW) and the necessary connections with the transformer station

• installation of the second 150 kV-offshore cable

• enlargement of protection- and control system

2010 2011 2012 2013

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Area A in 2012 and Area B in 2013

Design & Engineering, Soil investigation

Contract and financial negotiation (incl. due diligence)

Onshore cable installation

Steel reservation for foundation

Pre-order WTG

Financial close

Equipment construction at contractor site (WTG, cables, OHVS, found.)

Foundation delivery and installation

Grid connection and onshore cable available

Delivery of OTS

Installation of OTS and connections

Delivery of Cables

Installation infield cables

2nd Export Cable installation

Delivery of WTG

Installation of WTG

Commissioning

Construction timeline

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Phase 2 (Area B for WTG + OTS)

Phase 3 (Area A for WTG + 2nd export cable)

Project status

Pilot phase = 6 REpower 5M on Gravity Based Foundation (GBF) operational since 30/06/2009

– Production performance (S2 2009): 24% above P90 calculation

– Availability increasing gradually up to 98% in Dec-09

– All permits obtained and environmental monitoring program on going with positive preliminary results

– Non-recourse financing (107M€ total senior loans, 20M€ Mezzanine, 25M€ grid subsidy) with 45M€ sponsors support

Status preparation for the next phase

– Soil investigation conducted and design bases finalized

– Wind turbine is selected and 10 year full-O&M contract almost ready for signing

– Architecture business model finalized

Objectives

– Finalization detailed contract negotiation and due diligence: estimated Q2 2010

– Financial close: estimated Q3 2010

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Agenda

Thorntonbank project presentation and status

Contractual structure

Financing strategy

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Contract structure for Phase 2 and Phase 3

C-POWER

ABB THV Seawind (MEC)(DEME / Fabricom GTI) REpower

•Offshore cable design and supply•Offshore cable connecting(from final hang off)• Installation electrical equipment• Supply and commissioning offshore

trafo•Onshore cable laying

• Jacket design and supply• Jacket transport and installation •Offshore infield cable laying•Offshore sea-cable laying•Offshore OHVS transport and

installation•Dune crossing boring•Onshore directional drilling•Maritime logistics on WTG installation

•Design, manufacture, delivery and installation of turbines•Operation and Maintenance over 10

years after commissioning phase III

FIDICBased 1st phase contract update

AAVbased contractlessons learned

First phase contract update

ABB

With its 20 years of experience, ABB serves wind power customers at every stage of the process. Their in-depth know-how, years of experience and thorough understanding of both wind turbine applications and power systems have made ABB a leading partner for the wind power industry

HVAC (High Voltage AC) solutions

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Wind farm

33/36 kV Collection grid

Offshore AC substation

150 kV Export cable

Onshore AC substation

ELIA network

REpowerChoice of wind turbine

The selected wind turbines for the next phases are a 6,15 MW wind turbine of REpower, with the following characteristics:

– Hub height at +95.60 mTAW

– Interface level: deck level of +18.60mTAW + 1m flange height = +19.6mTAW

– Rotor diameter : 126 m

– Total tower height: 73 m

– Hub to tower top distance: 3m

– Tower mass: 240 tons

– Diameter of tower (O.D.): 5.50 m

– Mass of turbine and blade: 455 tons

– Rotor speed: 7.5..12.1 rpm

– First eigen frequency band allowed for the global structure: 0.24 to 0.34 Hz (The critical frequency band in which the turbine is working and wich schould not be the eigen frequency of the global tructure is 0.345 - 0.6 Hz (+- 5%).

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REpowerREpower 6M = upgrade of the REpower 5M

Higher voltage of 6,6 kV (instead of 950 V) in generator stator

Water cooling of generator (air – water –air)

New gear box (higher torque)

Adaptation of transformer to the higher voltage and power

Optimization of the platform

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Foundations (included in MEC contract)Move from GBF to jackets foundations

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Gravity Based Foundation (GBF) Jacket foundations

Man power-intensive works Logistically complex More harbor space needed Many marine preparation works (seabed

preparation, scour protection, …) subject to weather risks

The installation of the GBF requires the intervention of numerous large vessels, subject to weather risks

Requires less time Simpler logistic Less harbor space needed Less marine preparation works For the Jacket installation, only 2 types of

installation vessels are required. One for the pre-pilling with small dimension piles and readily available pile driving hammers and anohter one for the installation of the jacket foundation (delivered to the site directly from the jacket production line)

Currently cheaper (lower steel costs today compared to 3 years ago)

Need for further standardization and industrialization

Foundations (included in MEC contract)Jackets from Aker Solutions

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(pictures from Alpha Ventus project)

Foundations (included in MEC contract)Frames used for the pre-pilling of the jacket foundations

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Maritime works (MEC contracts)Installation vessels from DEME

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Many installation vessels Less installation vessels (larger and more sophisticated vessels)

For the wind turbine installation, 3 jack-up are necessary

• 2 transport jack-up• 1 installation jack-up

With new vessels only 2 jack-ups would be needed• 1 transport jack-up• 1 installation jack-up

Economy of scale reducing overall installation planning

Technical characteristics of new :vessel– Dimensions: 60 x 36 meters – Leg 92 m length (3.50 diameter)– Jacking capacity 2,750 t pre-load per leg– Jacking speed 0.7 m/min ; stroke 1,75 m – Max pay load 1600 ton – Deck capacity 10 ton/m2 over 1.200 m2 – Main Crane of 72m with a capacity of 500 t at 22m – 4 x 800 kW fully azimuthing thrusters DP2

Maritime works (MEC contracts)Installation vessels from DEME

All owned and self operated equipment

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