1 | P a g e

Cleantech Capability Teams, 10th December 2012 Meetings

COMBINED MINUTES (Held jointly with the Water Capability Teams)

Venue

TEAM VENUE DATE, TIME Manufacturing (MAN)

The offices of Deloittes Level 9, 225 George St, Sydney

3:00 - 5:00pm Monday

10 December 2012

Mining & Resources (MIN)

Built Environment (BE)

Developing Countries (DC)

Food & Beverage (F&B)

Registered Attendees TEAM MEMBERSHIP Name Organisation BE MAN DC F&B MIN IN PERSON 1. Marc Newson Cleantech Supplier Advocate 1 1 1 1 1 2. John O'Brien Australian CleanTech 1 1 1 1 1 3. Sean McDonald DIISRTE 1 1 1 1 1

4. Gary Dunshea (Celeste Howden & Leon Drury) Manufacturing Skills Australia 0 1 0 0 1

5. Simon Roycroft Refuelling Solutions 1 1 1 1 1 6. John Keegan Enterprise Connect 1 0 1 0 0

7. Peter Rimmer EC Sustainable Environment Consultants 1 0 0 0 0

8. Nigel Hennessy CleanTech Business Accelerator 1 1 1 1 1 9. Michael Warner RotorGen 1 0 0 1 0 10. Sonya Williams enLighten Australia 1 0 0 0 0 11. Margaret Madikian Food Consultant 0 0 0 1 0 12. Biman Bhattcharjee (BK Bhat) Benworth Consulting & Services 0 1 1 0 1 13. Julian Crawford SustainAsia 1 0 1 0 0 14 Craig Carlyon EarthSafe 0 0 1 0 0 15 Marc Newson Cleantech Supplier Advocate 1 1 1 1 1

16 Tristram Travers Clean Technology Innovation Centre 0 1 0 1 0

17 Chris Urie Environmental Earth Sciences 1 1 0 0 1 18 Peter Gregory AusIndustry NSW 1 1 1 1 1 VIA TELECONFERENCE 13 10 11 10 10 19 Nic Jacobson (CHAIR) 0 0 1 0 0 20 Mike Duggan (CHAIR) EC3 Global 0 0 0 1 0 21 Rob Fischer IMAGINiT Technologies 1 1 1 1 1 22 Jenny Paradiso SunTrix 1 0 0 1 0 23 Ian Harkin Magnetite (Australia) 1 0 0 0 0

2 | P a g e

TEAM MEMBERSHIP Name Organisation BE MAN DC F&B MIN

24 Anne Kennedy Cleantech Industries Sunshine Coast Inc 1 1 1 1 1

25 Dominic Da Cruz Enigin Western Australia 1 1 1 1 1 26 Erwin Boermans Comfortid.com Pty. Ltd. 1 0 0 0 0

27 Peter Henson Tom Elford Canberra Data Centres 1 0 1 0 0

28 Dr Dilip Manuel CSIRO's Future Manufacturing Flagship 1 1 0 1 0

29 Don Perugini Intelligent Software Development (ISD) 1 0 1 0 0

30 Ian Gardner AVT Services 1 1 0 1 1 31 Mike Sewell Enterprise Connect 0 1 0 1 0 32 Peter Clark 33 Sandy Spanos Citisolar 1 1 1 0 1 34 Garry Williams Prozess 1 1 1 1 1 35 Anthony Emmerson Taylors 36 TOTAL ATTENDING 25 18 19 19 16 APOLOGIES 36 Jürgen Schneider (CHAIR) Futuris Automotive 0 0 0 0 1 37 Dexter Clarke (CHAIR) Futuris Automotive 0 1 0 0 0

38 Michael LeMessurier Renewable Energy Solutions Australia Holdings Ltd (Eco Whisper Turbines)

1 1 1 1 1

39 Andrew Hudson Window Energy Solutions 1 0 0 0 1

40 Sue Smith Australian Industry & Defence Network Inc (AIDN) 0 1 0 0 0

41 Catherine Ossolinski Lunar Lighting 0 0 0 0 1

41 TOTAL ATTENDING & APOLOGIES 27 21 20 20 20

223 REGISTERED TEAM MEMBERS 143 105 86 80 128 16%

% ATTENDING 17% 17% 22% 24% 13%

18%

% RESPONSES 19% 20% 23% 25% 16%

3 | P a g e

Meeting Notes Ref Topic Detail Action

1. Teams Business

The Water and Cleantech Capability Teams presented the activities that had been undertaken during 2012 and those currently planned for 2013 as follows: Cleantech Capability Teams Activities 2012 o July 2012 – Publication of Capability Directories o August 2012 – Pitch Training held across the country o September 2012 – Futurebuild Expo o October 2012 – Launch of team website o December 2012 – CSR Clean Tech Showcase

Water Capability Teams Activities 2012 o May 2012 – OzWater networking event and Austrade international

delegation briefings o June 2012 – Nubian capability briefing/site visit o August 2012 – Pitch training held across the country o November 2012 – SKM Showcase o December 2012 – Barossa Valley site visit/showcase

& Launch of Water Industry Capability Teams Statement

Combined Activities Scheduled for 2013 Expos Mining Expo, Perth, 20th – 23rd March - 20 companies have signed up Manufacturing Week Expo, Melbourne, 7th – 10th May - details to be sent out very soon and will cost approx $1500/company OzWater, Perth, 7th - 9th May Training RISCI – Mining industry readiness workshop, to be held in Sydney and Melbourne 1Q13 IP Strategy training with Griffith Hack in Sydney, Brisbane, Melbourne and Perth – 2Q13 Customer Showcases Facilities Management Showcase - Melbourne, 27th February National Off-grid Mining Showcases - Adelaide 21st February, Brisbane 14th March AusIndustry Customer Event

– Adelaide 21st February – Food Industry – Adelaide 22nd February – Manufacturing Industry

Food Manufacturers SA Showcase - Adelaide Q2 2013 Design and Engineering Showcases – Q1 2013 Major Customers Showcase – Q1 2013 Potential for Water Trade Missions to Latin America and China in 2013

4 | P a g e

Ref Topic Detail Action

2. Meeting Presentations

The Combined Presentation Slides for all four presenters are attached to these minutes as Attachment 2 and are also available at: http://auscleantech.com.au/PDF/other/networks/Capability%20Teams/121210-CCT%20Combined%20Meeting%20Slides.pdf

Meeting Presentations

1. Ken Wiggens, Infrastructure Delivery, Sydney Water - Working with the Utilities: Effective Engagement and Opportunities

The key points from the presentation were: • Sydney Water has a $1.3 billion renewal program over 5 years for

treatment and pumping facilities and network renewals. • Contracts are being let for three separate aspects:

o Major works o Minor works o Facility Renewals

• For each aspect, there are three different providers: o Project Management o Delivery contractors o Engineering and environmental service providers

• The aim is not to let large alliance contracts but rather to let a larger number of smaller contracts with different providers.

2. Andrew Johnstone, Managing Director, NuPower Resources- Cleantech Needs for Mining Projects

The key points from the presentation were:

• Large phosphate resource which is in increasing demand from growing agricultural demands from growing population

• For instance, parts of India have moved to 8 growing cycles per year which requires lots of fertilizer and 40% of any applied fertilizer can be washed away with the first rain.

• 'Peak' Phosphate will be a big issue • Largely quarry operations with transport and logistics as the biggest

costs and key issues for a viable project. • Example of cost saving is a handheld mineral analyser that allows

assessment on site of phosphate content. • Seeking solutions for water, energy and waste.

3. John Le Couteur, Director, Hansard Consulting - How to Access Utility and Industrial Clients by Working with Prime Contractors

The key points from the presentation were: • Just 'conforming' tenders rarely win a project - winning tenders include

options and alternatives to add value. • Need to establish structure and commitment between prime contractor

and technology provider very early in the tender process. • Prime contractor is often more focussed on manhours and

implementation risks as opposed to historical costs at other sites. • Need to split the capex components into elements that can be allocated

as needed to the final tender documents. • The prime contractor is not interested in a solution being a clever

technology but rather wants to know how it will add value. • Performance guarantees are critical

5 | P a g e

Ref Topic Detail Action

Meeting Presentations

4. Peter Heanke, previously Manager of Emerging Technologies at Origin Energy - Working with Large Energy Companies: Pitfalls and Opportunities

The key points from the presentation were: Five key steps to be able to engage successfully with a big energy company:

1. Create clear Value Proposition 2. Research all potential channels to market and how the Energy Co can

best fit in. 3. Research the Energy Co and where you will fit best in the structure 4. Engage & Refine your value proposition - it is never right to start with 5. Make it easy for Energy Co to engage with you

• Big Energy companies have many activities beyond their retail operations

• Key driver is that total energy consumption has decreased over the last two years due to the GFC, efficiency, insulation, distributed generation - important to understand bigger picture of market dynamics.

• What do you want from the Energy Co - Capital, Channel Partner, Wholesale of power etc - tailor approach accordingly

5. Hamish Gordon, National Sector Manager – Water, Industry Capability Network - Working with the Coal Seam Gas Sector: Needs and Requirements

The key points from the presentation were: • The key needs from the CSM sector are:

o Water transfer: Pumps; pipes; valves o Water treatment: Reverse Osmosis & Microfiltration etc. o Water Re-use: Irrigation; alternate re-use within mining

process o Water: Sensory and control IT solutions o Water environmental: Pre and post monitoring

• To be involved suppliers must address: o Safety and Environment o Fully Capable o Local Content inclusions o Competitive pricing to global alternatives o Customer focussed and will meet customers’ deadlines, o commitments, policies and terms. o Innovative Solutions o Commitment to compliance

• Presentation included lists of projects, status and prime contractors • Link to Arrow Energy Capability Statement template -

www.icnqld.org.au/media/documents/Business-Profile-Template.pdf • Link to Tier Barometer assessment tool -

www.icnqld.org.au/services/tier_barometer_assessment.html

6 | P a g e

Ref Topic Detail Action

3. Membership

• Good growth in team membership

since last meeting with an additional 6 organisations joining since the October meetings.

• Current team member locations: State/Territory

ACT 7 NSW 53 NT 5 QLD 43 SA 37 VIC 52 WA 26 Total 223

• Current team member sectors: Sector

Renewable Energy 34 Energy Efficiency 32 Air Quality 1 Water 16 Waste and Remediation 8 Green Buildings 26 Energy Storage 1 Transport Fuels & Technologies 7 Environmental Services 8 Carbon Offsets 5 Engineering & Project Management 24 Research 5 Government 20 Customer 5 Internal Services 31 Total 223

4. 2013 Meeting Schedule The 2013 meeting schedule is being finalised and will be issued in early 2013

7 | P a g e

ATTACHMENT 1 - Team Actions

Team Topic Detail Who Status

General Marketing Copies of Capability Statement for team members

John O'Brien

Team members to advise if they want copies. They will need to cover some of the costs

General Team Skills

Review options member workshops for: • Social Media Strategy • Marketing & Exhibiting: how to get the most

out of tradeshows • IP Strategy workshops • Winning Tendering Strategies: How the

customer sees value

John O'Brien

Social Media & Marketing - proposals being reviewed from DMG Media IP Strategy - proposal being reviewed from Griffith Hack Tendering Strategies - no progress

General Contacts Australian Council for International Development suggested as possible partner or presenter - see www.acfid.asn.au.

Nic Jacobson In progress

General Marketing

Members to add links to directory website to their website and email signatures.

Suggested text: Cleantech Company Directory - profiling Australia's best cleantech companies

ALL Team members to action

General Marketing Members to send through any success stories which can be then publicised through the Dept for extra member and team publicity.

ALL Team members to action

General Marketing Members to refer clients to the website to increase traffic and interest. ALL Team members to

action

General Speakers Contact Vic Urban CFO to see if he would be interested in presenting to the teams.

Dexter Clarke In progress for 2013

General Speakers Contact CHAF and the LGA to see if they would be interested in presenting to the teams.

Marcus Clayton In progress for 2013

General Team Activity Prepare short briefing document on education opportunities for cleantech for consideration at the next meeting.

Erwin Boermans

Brief verbal update to be provided to meeting

MIN Industry Benchmarks

Find AUSES or other figures for off grid power parity

John O'Brien In progress

DC Information Sharing Find AusAid funding list and distribute to team John

O'Brien In progress

8 | P a g e

ATTACHMENT 2 - Slides from Meeting Presentations

Working with the Utilities: Effective Engagement and Opportunities Ken Wiggens

Infrastructure Delivery, Sydney Water

PRESENTATION

NSW Major Projects ConferenceNovember 2012

Collaborativecontracting frameworkSydney Water’s Network & Facility Renewals Program

9

Today’s content

Sydney Water and the Network & Facility Renewal program 1

Key features of the collaborative contracting framework 2

Implementation progress3

10

About Sydney Water

State owned corporation

Water and wastewater services

4.6 million customers

Revenue $2.3 billion per annum

42,000 kms of pipes

Over 700 treatment and pumping facilities

11

About Sydney Water

12

Network & Facility Renewals$1.3 billion infrastructure

investment over 5 years

Quality done – renewal focus now– treatment and pumping facilities– water and sewer networks

Servicing infill urban growth

13

Past delivery methodsfour program alliances

plus

design and construct contracts

great improvements in safety

good environmental and community

delivered time, quality – cost?

14

Opportunity for changeValued water solutions

Regulator demands efficiencies

Safety, quality, environment, community

Change in nature of the work

Efficiencies:– risk allocation and commercials– consolidation

15

Key features - organisation

Network Major Works

• large water mains renewal

• new or amplified water assets

• new pumping stations

• large sewer renewal

Network Minor Works

• small sewer and stormwater renewal

• small reticulation water main renewal

Facility Renewals

• mechanical and electrical renewals

• civil renewal of tanks, channels, etc

three workstreams

16

Key features - organisation

Network Major Works

Program Management Office

Network Minor Works

Facility Renewals

OtherInfrastructure

Engineering / Environmental

Services

Proj

ect

Man

agem

ent

Del

iver

y C

ontr

acto

rs

Program, Cost & Risk Management

services provider

Program, Cost

Project Management

services provider(s)

Delivery Contractors panel of service

providers

17

Key Features – commercialSydney Water contracts directlyRange of payment mechanisms:

– target cost– fixed price– reimbursable cost plus fee

Open book - to understand costsPerformance regime:

– key performance indicators– % fee at risk and some gain– league tables

Competition retained

18

Key Features – collaboration

Key result indicators

Collaborative Leadership Group

Collocation– Program Management Office– Project Managers– Sydney water staff and providers

Five year plus arrangements

19

Implementation

Market sounding

Program, Cost & Risk Management services

Project Management services

Facility Renewal Delivery Contractors – two work types

Environmental & Engineering services panel

Network Delivery Contractors – six work types Tender in July for award in November

Tender in Oct for award in April 2013

March 2013 to September 2012

Tender in July for award in Dec

20

Questions?

20

Cleantech Needs for Mining Projects Andrew Johnstone,

Managing Director, NuPower Resources

PRESENTATION

Phosphate�in�Central�AustraliaDecember�2012

NuPower

NuPower Disclaimer

This presentation has been prepared by NuPower Resources Limited (“NuPower” or the “Company”). It should not be consideredas an offer or invitation to subscribe for, or purchase any, securities in the Company or as an inducement to make an offer orinvitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basisof this presentation.

This presentation contains forecasts, projections and forward looking information. Such forecasts, projections and information arenot a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of NuPower's control.Actual results and developments will almost certainly differ materially from those expressed or implied. Nupower has not audited orinvestigated the accuracy or completeness of the information, statements and opinions contained in this presentation. To themaximum extent permitted by applicable laws, NuPower makes no representation and can give no assurance, guarantee orwarranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy,suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentationand (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or otherforward looking information contained or referred to in this presentation.

Throughout this presentation all figures are quoted in A$ dollars unless otherwise stated. You should not act in reliance on thispresentation material. This overview of the Company does not purport to be all inclusive or to contain all information which itsrecipients may require in order to make an informed assessment of NuPower's prospects. You should conduct your owninvestigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information,statements and opinions contained in this presentation before making any investment decision.

NuPower Competent Person’s Statement

The information in this presentation that relates to Exploration Results and Mineral Resources is based on information compiled byMr Andrew Johnstone who is an Officer of the Company. Mr Johnstone is a Member of the Australian Institute of Geoscientists. MrJohnstone has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Johnstone consents to the inclusion in this report of thematters based on the information in the form and context in which it appears.

The information in this report that relates to mineral resource estimation is based on work completed by Mr Jonathon Abbott who isa full-time employee of MPR Geological Consultants Pty Ltd and a member of the Australian Institute of Geoscientists. Mr Abbotthas sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activitywhich he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves’. Mr Abbott consents to the inclusion in the report of the matters based onhis information in the form and context in which it appears.

Overview

What is Phosphate (P205) and why is it so important

Three 100% owned phosphate projects covering 5,720km2

in Northern Territory• Arganara• Lucy Creek• Warrabri

Arganara JORC Compliant Resource announced in August

• 310 million tonnes @ 15% P205 (10% cutoff)

Name change – Central Australian Phosphate Limited

Clean Tech – Applications to NuPower

Phosphate�in�Fertiliser

Advantages of Phosphate Fertiliser

Phosphate is an essential element of life, found in all living cellsIntensive Agriculture is difficult without Phosphate fertilisersPhosphate increases:

YieldsGrowing cycles per yearResistance to disease

Growing populations and urbanisation are driving food demandTropic and Sub Tropic soils are Phosphate deficientPhosphate fertiliser greatly improves protein rich crop production yieldsApplication on pasture for dairy increases yields and milk quality

Food Security is a major global issue

Phosphate

Australia’s Phosphate reserves are found in the Georgina BasinPhosphate Hill - Queensland P205 MineAustralia is an importer of PhosphateIndia – largest Global importerChina, America and Morocco - exportersFertiliser requires Phosphate Rock or Phosphate levels of ~30% P205

Global Direct Ship Ore (DSO +30% P205)resources are depleting, lower grade ore through washing, flotation and calcining is being minedGlobal consumption of Phosphate Rock increasing, growing global food requirementsRock Phosphate price has remained stable during 2012 ~ US$180t

Project�Overview

Favorably locatedclose to the Central Australian Railway

Northern Territory Phosphate projects

Arganara�Phosphate�Project

ArganaraResource

Arganara�Resource

Drilling program of 387 RC holes for 14,480 metres has defined JORC Resource of:

310 million tonnes @ 15% P205

One of Australia’s largest reported Phosphate resources– 2nd largest reported resource in NT

High grade Resource containing numerous drill intersections above 30% PhosphateClose to infrastructure– 90km east of Darwin to Alice Springs Railway– Situated on major outback road

27km�Mineralised�Corridor�– Enormous�Potential

Arganara�EL24726

5km

Arganara�Resource�310mt�at�15%�P205�

27.8km2 Mineralised�Phosphate�Corridor�~92km2

Arganara�Inferred�JORC�Resource,�Arganara�Phase�1,�2�&�3�drilling�results

Inferred�Resource�Estimate

Cutoff

Tonnes

P2O

5

Al2

O3

CaO

Fe2

O3K2O MgO MnO Na2O

SiO

2TiO2 U LOI

P2O5%Million

% % % % % % % % % % ppm %

5 360 14 7.4 19 5.8 1.6 0.80 0.18 0.17 46 0.41 15 3.7

10 310 15 7.3 20 5.8 1.5 0.80 0.18 0.18 45 0.40 15 3.715 120 18 6.6 24 4.9 1.3 0.73 0.16 0.18 39 0.35 15 3.5

20 4 23 5.2 31 5.5 1.1 0.62 0.27 0.17 31 0.28 12 3.2

387 holes 5.8 km EW x 5.4 km NSAverage thickness 7mAverage depth 19mShallow, near surface high grade PhosphateDensity 1.7gcc

Arganara,one of Australia’slargestdefinedPhosphateResources

Targeting�DSO�Grades

Hole East NorthFrom�(m)

To�(m)

Int.�(m)

P2O5�(%)

+ 30% Phosphate��Intersections

ARC180 515596 7622205 14 19 5 29.3 Inc.�2m�@�33.9%�from�17m

ARC090 519996 7623000 12 15 3 28.3 Inc.�2m�@�30.3%�from�12m

ARC196 516189 7621611 23 25 2 27.8

ARC200 516399 7621001 25 31 6 26.7 Inc.�3m�@�32.5%�from�26m

ARC354 516415 7621787 24 30 6 25.8 Inc.�2m�@�32.9%�from�24m

ARC197 516194 7621395 24 29 5 25.7 Inc.�2m�@�30.3%�from�26m

ARC351 516401 7621204 22 25 3 25.3

ARC169 520001 7621995 23 30 7 24.9

ARC086 517995 7620200 20 26 6 24.8 Inc.�2m�@�30.4�from�23m

ARC181 515601 7622004 13 19 6 24.5 Inc.�2m�@�31.9%�from�16m�

15%�cutoff,�includes�up�to�2m�@�10%�internal�dilution2011 Drilling, Arganara Prospect

In fill drilling program will target DSO grade intersections

DSO�+25%�Phosphate�Depth�Distribution

Lucy�Creek�Phosphate�Project

Lucy Creek Project

PatanellaDrilling 2009

Lucy Creek - DSO potential

Warrabri�Phosphate�Project

Warrabri Project

Potential geology - strike length of 80 km x 12km width

NT Geological Survey reported cuttings from a Wycliffe Well drill hole assayed 3m @ 2.2% P205

Phosphate recorded at WarrabriOn Stuart Hwy and Darwin to Adelaide railwaySurface drilling planned Q4 2012 to test

Upcoming�Program

Mining Lease Application

Diamond Drill Program

Metallurgical test work – Phase 2

DSO Drilling

Development strategies

Market assessment (CRU, Ferticon)

Bulk Samples

Transport Studies, Social Impact Studies

Relationships, Partnerships, Marketing, Off-take

agreements

Hypothetical Economics (DSO):

Phosphate loaded Darwin ~ $75 to $85

FOB Sales +30% P2O5 ~ $165 to $185

200Ktpa

NuPower��Phosphate�Development�Options

DSO�Operation Long�Term�Fertilizer�Option

Simple�Mining�– Free�Digging Simple�Mining�– Free�Digging

Crush�and�Screen�– Input�Grade�~�25�to�30%�P2O5 Crush,�Screen,�Floatation – Input�Grade�~�15%�P2O5

Containerized�product�to�Darwin Bulk��movement�of�P2O5 to�Darwin�� Rail

Transport�,�Truck�120km�to�siding�then�Rail�to�Darwin�Port Production�of�Super�phosphate�(low�capex)

FOB�sales�via�Darwin�to:�India,�SE�Asia,�China MAP�or�DAP�production�(med�high�capex)

Aim:�150,000�to�200,000tpa Ammonia�and�Sulfur,�bi�products�from�INPEX (liquefied�gas�plant�being�constructed�in�Darwin)

Low�Capex – Quick�startup Aim:�1,000,000t�to�2,000,000�tpa

Larger�Capex – Longer�development�time

NuPower

The Arganara Resource has excellent size, grades and location

NuPower has defined a 27km corridor of phosphate

mineralisation which could host a significantly larger resource.

Pipeline of phosphate projects

Available infrastructure ,

rail to both Darwin and

southern states of Australia

Darwin – INPEX

Darwin Port

Gateway to Asia and India

Name�Change,��Cleantech

At our recent AGM, shareholders voted to change NuPower's name to:

Central Australian Phosphate Limited

New identity reflective of the Company’s key commodity and geographic focus

CLEANTECH, applications must make economic sense

Exploration, Development, PermittingTime Savings, Multiple use, New technologiesProcessing – DSO vs Flotation (low grade material)WaterWasteEnergyMining techniques, new technologiesTransport and Logistics – Biggest CostINPEX Value Add. Fertiliser Plant Darwin

Corporate�Overview

NuPower

ASX: NUP

Market Cap $7.6 million(share price 1.5c)

Shares on Issue:

511.8 million

Unlisted options

5 million(exp: 6/2013 @ 3.5c)

Cash at hand:

$1.2 million

Robert Owen Chairman

Andrew Johnstone Managing DirectorSam Herszberg Non-executive Director

Ian Kowalick Non-executive DirectorMick Muir Non-executive DirectorAnthony Schildkraut Company Sec. CFO

Current:�0.150�cents

NuPower - A Northern Territory Phosphate Company

How to Access Utility and Industrial Clients by Working with Prime Contractors

John Le Couteur Director, Hansard Consulting

PRESENTATION

Cleantech Industry Capability Teams Sydney Team Meeting & Networking Event Monday 10 December 2012

‘How to Access Utility and Industrial Clients by working with Prime Contractors’

John Le Couteur Hansard Consulting Pty Ltd jlecoute@bigpond.net.au Revision: 10.12.12_Final V2

23

Content

• Role of the Prime Contractor

• Example – New Technology & Local Water Authority

• Commercial Model Options

• Prime Contractor’s Drivers

• Information to be provided to Contractor

• Lesson’s Learnt

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 24

What does a Prime Contractor offer?

• Norm in the water industry is the ‘D&C’ or ‘Alliance’ type method of project delivery.

• Under ‘D&C’ model, contractor typically delivers a ‘new asset’ or ‘piece of infrastructure’ for a fixed price, to a certain specification, by a certain date with penalties for non-performance.

• Ability to take a concept and turn it into a workable solution.

• Takes on the majority of delivery and performance risk.

• One point of contact for Client.

• Balance Sheet / Securities / Guarantees.

• Different risk profile than an EPCM Contractor.

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 25

Lets look at an example

• Client (say a local government owned water authority) requires a Prime Contractor to design, build and commission a new Wastewater Treatment Plant (‘WWTP’), to the Client’s specification.

• You hold the Australian distribution rights to a novel phosphate recovery technology.

• You have approached Client on previous occasions without much success.

• Client has advised it is due to release a D&C tender in a couple of months for a new WWTP. Suggests to you that you best liaise with the list of Tenderers that have been selected to participate in the RFT process.

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 26

Two typical commercial models

• Supplier / Subcontractor

– Many suppliers and subcontractors.

– Suppliers can be either be (i) included in client’s preferred supplier list, (ii) open, or (iii) nominated.

– Either Client’s specification is purely performance based, or is written around a particular process.

• Split Scope Joint Venture

– Technology component is high in terms of overall $ value of contract.

– Each party responsible for their own scope of works and performance.

– Technology partner usually offers performance guarantee.

• Many derivations of the above models

27

Prime Contractor’s drivers

• Not many contracts are awarded based on fully conforming offers.

• What can I offer as a Value for Money (‘VFM’) alternative, whilst still meeting objectives? Want to offer client alternative(s) to set myself apart from other tenderers.

• Tender bids submitted are often > than Client’s budget. Options? – Cut Scope – Consider Alternative offers – Remember clock is ticking for client to award……………..

• Minimal cost outlay during tender period.

• Time & Resources.

• Provide relevant information early and then stagger deliverables, according to tender program.

• Have a well thought out draft commercial proposal early on.

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 28

What sort of Technical information do I need to provide?

• Division of Work (‘DOW’) / Responsibility Matrix

• Dwgs - CAD format preferred

• Is there any Balance of Design (‘BOP’) required?

• Packing List (How is it going to be shipped and assembled)

• Bill of Materials (Reduces time to do / verify quantity take offs)

• Benchmark installation from past experience (Man-hours important, not costs)

• Any specialised Plant & Equipment required to install / commission?

• Commissioning Costs (first fill chemicals, labour, spares) – clearly itemise.

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 29

Tips on the Commercial information to be provided

• Description of Alternative Offer – Pictures are good. Be concise - detail in Appendix – Helps to be written from the Contractor’s perspective – Past Experience / Referees / Operating history

• Performance Guarantees

– Very Important

– What is the Client’s fall-back position (How are they exposed if your technology fails or has a major outage?)

– What level of redundancy is proposed?

– Is a Performance Bond being offered by you, or your parent company?

• CAPEX – Provide Breakup of Costs (check against DOW)

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 30

Lessons Learnt

• Not Enough Time – Tender period short – Client’s evaluation period (may have an external driver, i.e. EPA

Licence)

• Communication – Too much generic information provided. – Tell the story appropriate for this Client and this site. Short & Sharp!

• What the Client should already know about you?

– Past Experience / Referees / Operating history

– Site Visits (Both an operating site & new site of WWTP)

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 31

Lessons Learnt (Continued)

• ‘Clarity of alternative solution offered’

– Nothing attractive offered, compared to traditional process.

– Concentrate not so much about what the technology does, but clearly spells out how it adds value.

• What you should already know prior to tender being released?

– Basis of the Client’s concept design for the new WWTP (usually undertaken by consultant engaged by client).

– Client’s approach to risk and new technologies – How would use of this technology impact on licences & compliance? – Community / Environmental issues. Is this a sensitive site? – Design basis of Alternative Offer you are proposing (redundancy,

interfaces, BOP considerations) Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 32

Lesson Learnt (Continued)

• Client Expectations

– Don’t assume the Client has resources to devote to the evaluation of alternative offers. Make it easy!

• Operating & Maintenance

– Very Important

– Value Proposition (NPV may be best way of illustrating value)

– Can you offer the Client any guarantees or extended warranties? (Bearing in mind you will have no contractual relationship with the Prime Contractor post Defects Liability Period under a D&C Contract)

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 33

In Conclusion • Awareness of Time

– One of the important considerations during tender period

– Ability for all parties to commit to and meet milestones during tender period is crucial.

• Planning – Actively involve yourself in (i) developing a program of deliverables, and (ii) decision making steps with the Contractor.

• Pre-Bids / Joint Venture Agreements – Get them agreed ASAP or at least to a draft prior to tender submission.

• Expectations – Understand them (both Client & Contractor’s). They are not always what you think they will be.

• Contingencies – Plan for them, they will always occur.

• Communication – Apart from the obvious, builds confidence and trust.

Cleantech Industry Capability Teams - Sydney Team Meeting & Networking Event Monday 10 December 2012 34

Working with Large Energy Companies: Pitfalls and Opportunities

Peter Heanke previously Manager of Emerging Technologies

Origin Energy

PRESENTATION

Working with Large Energy Companies:Pitfalls and OpportunitiesPeter Haenke

10th December 2012Cleantech Industry Capability Teams Meeting

36

5 steps to successful engagement

1. Distil your Value Proposition: make it easy, define it for each player

in the proposed value chain

2. Research all channels - decide on your strategic approach: your

dealing with an Energy Co can then be done in context of your

broader plan

3. Research Energy Co and the most appropriate engagement

approach

4. Engage & Refine your value proposition

5. Make it easy

37

3. ResearchUnderstand the Energy Co and identify your target

38

Australia’s (East Coast) Electricity & Gas Markets

• Wholesale and retail supply are (largely)

competitive marketso Private and government ownership

• Networks are natural monopolies and regulatedo Private and government ownershipo Prohibited from owning “upstream” or

“downstream” operations

• 3 major retailers – all vertically integrated (excluding networks)o AGLo EnergyAustralia (TRUenergy) o Origin

• About 20 active minor retailerso Private and government owned

AER 2011, State of the Energy Market, 2011

39

While retail is often the public face of Energy Co’s...

Source: Origin presentation to the UBS Utilities Conference, June 2012

40

…the full extent of operations may be significantly greater

Source: Origin presentation to the UBS Utilities Conference, June 2012

41

Energy is in the news

Origin warns of higher power prices The Australian, Nov 12, 2012

Complaints spike as energy prices soar Ninemsn, Nov 20, 2012

42

Some key electricity industry drivers• Falling consumption and

demand: reduced demand + increased renewables

• Network costs – rising strongly• Environmental costs – rising• Total delivered costs – rising• Regulatory uncertainty:

Renewable policies – RET review, solar multiplier

• Thermal coal trending to export price linkage

• NSW asset sale

AER 2011, State of the Energy Market, 2011

AEMO 2012, Electricity Statement of Opportunities for the National Electricity Market

43

Trends in the electricity market

44

Some key gas industry drivers• Transition to an export-led

market– Tripling east coast demand– Export linked domestic

pricing

• Massive capital & resource requirements to build LNG capacity– On-time, on-budget delivery is

crucial to share price performance

• CSG water & land access issues• CSG fugitive emissions

45

So, before engaging an Energy Co, some initial screening questions are:

• What does the company do

o Extent of vertical integration, products, retail incumbency

o Market share and geographical coverage

• What part of the business are you targeting?

• Where does that fit in the overall organisation?

• What are the key industry drivers

• How will your offer affect these – positively or negatively?

46

4. Engage & RefineFocus your value proposition

47

Why engage with an Energy Co?

• Capital

o Access funding / investment: Sale of company (whole or part) to

EnergyCo

• Channel partner

o Access customer relationship

o Access billing relationship

• Access wholesale commodity (electricity or gas) provider

• Direct sale of product or service to Energy Co

48

Where to engage? Origin as an example.

Origin

Upstream Oil & Gas Energy Markets

Retail

Mass Market and C&I

Wholesale & Trading

Energy & EnviroMarkets, Major

Customers

Energy Risk Management

Internal Customers

Generation

Development Corporate

StrategyM&A

49

Key considerations – for a retail offering

• Brand & Reputation

• Geographic coverage

• Attractive value proposition

• Professional delivery capability

• Legal constraints

• Regulatory constraints and drivers

• Public & political scrutiny

50

Key considerations – for a wholesale offering

• Scale

• Counterparty risk

• Volume risk

• Market risk

• Dispatchability / “firmness”

51

Key considerations – for an investment offering

• Strategic alignment

• Access unique resource or key technology

• Scale-ability

• Capital requirements

• Reputation

• Option play – potential disruptive technology

52

Know your terminology

• kW does not equal kWh

• kW/h is meaningless

• mW are very different to MW

• Energy vs Capacity

• Understand PPA, Capacity Factor, dispatchability/firmness,

• LCOE (Levelised Cost of Electricity)

• “Upstream” & “Downstream” mean different things to different parts of

the business

• Oil & Gas: mtpa; PJe; 2P, 3P, “Conventional” & “Unconventional”; CSG,

CSM, CBM

53

5. Make it easy(for Energy Co)

54

Structure to minimise risk

• Ensure clarification of expectations (no surprises for any of the

Energy Co departments or hierarchies)

• Customer interface management vital (note Retailer's brand risk)

• Ensure robust delivery processes

• Give confidence in your ability to manage cash flow

• Give confidence in terms of your regulatory competences

• Staged approach: minimise risk to Energy Co (time and money)

• Understand delegated authorities and governance requirements

• Energy Co T&Cs

55

QUESTIONS?

Peter Haenke

Energy. Carbon. Sustainability.

peter.haenke@gmail.com

0409 657 198

56

Working with the Coal Seam Gas Sector: Needs and Requirements

Hamish Gordon National Sector Manager –Water,

Industry Capability Network

PRESENTATION

Working with the Coal Seam Gas Sector Needs and

Requirements

Needs • Water transfer: Pumps; pipes; valves

– Water transfer from bore sites to water treatment facilities – Energy efficiency recovery & reuse – (Arrow 1000 + bores currently expansion to 5000 + in approx 3-5

years)

• Water treatment: Reverse Osmosis & Microfiltration etc. – 100meg total treatment facilities (Arrow) – Waste treatment (Brine) mineral recovery – Energy recovery and re-use

• Water Re-use: Irrigation; alternate re-use within mining process – Processed water use within irrigation and stock watering; integrated

monitoring and control – Onsite water re-use ; dust suppression

• Water: Sensory and control IT solutions – Sensing & control equipment and maintenance – Energy recovery, decision / management

• Water environmental: Pre and post monitoring – Environmental assessment – Continuous monitoring – Post water management and concealment

CSG Requirements • Safety and Environment

– Supplier has proven track record and commitment to operating safely and adhering to environmental regulations and requirements

• Capable

– Suppliers able to demonstrate they can meet designated scope of works and deliver a high quality outcome, on time and budget

• Local Content

– Is evident and supported throughout the supply chain

• Competitive pricing – The supplier is able to demonstrate that they are globally competitive

and have a robust cost management process

• Customer focus – The supplier is focused on delivering the best possible outcome for the

customer and is willing to work to meet the customers’ deadlines, commitments, policies and terms.

• Innovation

– The supplier is looking to continuously improve their business and look at ways that they can provide new innovation to the customer

• Commitment to compliance – The supplier acts within the relevant act in all occasions

Business requirements • Capability Statement

– This needs to be detailed and targeted towards proponent – Arrow Energy capability statement template

http://www.icnqld.org.au/media/documents/Business-Profile-Template.pdf

• Tier Barometer Assessment

– Based on research and responses to a survey from over 100 organisations covering a mix of major project proponents, http://www.icnqld.org.au/services/tier_barometer_assessment.html

– There is also a Tier Barometer available for the Australia Pacific LNG

project and it can be accessed by visiting www.aplng.icn.org.au and clicking on "Assess Your Tier Level".

Time and Cost Commitments • Staff training and development

– Staff involved in project will be required to undertake specific training; this could be anything from a couple of days to a week.

– Need to take this cost into account when tendering.

• Vehicles, machinery and equipment specific requirements – Improved safety devices such as vehicle tracking, ROPS (Roll Over

Protection System) etc. – These costs will need to be met by supplier

• Local supplier base

– Procurement will be conducted locally (first instance) then state - finally Australia wide

– Considered a local operation? Think again • Standards

– In all cases Australian standards will be adopted, unless an overseas product exceeds those standards

Contract Requirements

• Fewer contracts more solutions provision orientated

– Contracts assigned to Tier 1 to oversee a particular project – Tier 1 will be responsible for managing subsequent Tier contracts

• Pre – qualification and registration process

– ICN Gateway – Undertaken by proponent or 3rd party – Information needs to be as detailed as possible

Project Timeline

Details

Hamish Gordon ICN National Sector Manager – Water Hamish.gordon@icn.org.au 08 8303 2587 Project Information and registration http://water.icn.org.au/