AUSTRALIA CASE STUDY

High temperature CSP with distributed towers and pre-designed power block

Introduction to Vast Solar

• Private company formed in 2009 with head office in Sydney, Australia

• Technical campus at Jemalong, central western New South Wales

• Over AUD$20m raised to date

• FTE 35 as at September 2015

• Low-cost, high efficiency, modular tower-receiver CSP system

• Short focal distance (<120m)

• High field optical efficiency c.80%

• Low tower height (<30m) and low cost receiver design

• Sodium used as heat transfer fluid

• High temperature (565C) => optimal turbine and thermal storage efficiencies

• Robust technology now fully-developed

• Initial demonstration in 2011

• 1.2MWth single module (‘1U’) performance validation 2012-2014

• 6MWth (1.1MWe) JSS grid connected pilot project – commissioning starting 1Q 2016

• 30MW CSP project with 4 hours thermal energy storage – build 2016-17

• Project pipeline in excess of 200MW

Australia is a tough proving ground …

For CSP to succeed in Australia, a much lower cost point must be achieved and community concerns addressed

• Despite strong R&D, engineering, construction and financial capability, no large-scale CSP project has been built in Australia (so far)

• Significant oversupply from aged coal-fired generation fleet

• Feed-in-tariffs and portfolio standards => CSP perceived as expensive and inefficient

• Rapid uptake of solar PV has reduced peak demand events

• CSP must be competitive with wind – recent wind auction AUD$81/MWh

• Highly political environment for carbon pricing and renewable energy

• Carbon pricing system introduced 2011; repealed 2014

• Legislated Renewable Energy Target attacked; now reduced

• Hostile conservative government, although some recent moderation

• Previous CSP/solar support programs poorly designed and implemented (Solar Flagships, REDP)

Sydney

Jemalong

…but fundamentals are good

Design driving performance higher and costs much lower

• Modular tower-receiver system

• Short focal distance (<120m) and low tower height (<30m)

• Easier targeting, improved power spread over receiver and low spillage

• High field optical efficiency c.80%

• Minimise issues with glint and glare and bird mortality

• Low tower height => much lower cost to procure and install

• Prefabricated and easily replaceable receiver design => low cost

• Acceptable civil and piping costs

• Sodium HTF

• Lower melting point than salt (98C vs. c.240C) => less stringent flow control requirements, lowering pump, valve and control costs

• High thermal conductivity => easily liquefied if freezing occurs

• High temperature (565C) => thermal storage and turbine efficiencies

Design driving performance higher and costs much lower (2)

• Molten salt thermal storage

• Intrinsic thermal storage decouples energy capture from power generation

• Low-cost and easily scaled

• Procurement philosophy – attack cost throughout the supply chain

• Auto-industry manufacturing techniques and supply chain approaches

• Installation methodologies e.g., <10 mins for 2 people to fully install a heliostat plus design allows fully automated installation which is in development

• High degree of power block pre-design enables ‘mass production’ of power blocks

• Sophisticated software => full automation e.g., proprietary autonomous heliostat control with self-calibration

6

Extensive third-party technical due diligence conducted

July 2013 IT Power Australia Report – ‘Assessment of Vast Solar CSP Technology’

Aug 2013 ARENA Grant Evaluation – technical due diligence via Parsons Brinkerhoff review

Nov 2011 Australian Solar Institute – grant evaluation for 1U Project

Feb 2015 Worley Parsons and Aurecon – Design and Cost Estimation Study (30MW)

Dec 2011 Doosan Skoda Power – thermal efficiency evaluation

Aug 2014 Skoda JS (Nuclear) – receiver fatigue analysis

Aug 2015 Worley Parsons review of sodium HTF loop improvements

Our technology has been subjected to extensive performance and durability validation

CVast Solar 6MWth Jemalong pilot project

Vast Solar 6MWth Jemalong pilot project (2)

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30MW Jemalong Solar Station (JSS1) CSP plant

Receiver

To

Transmission

Grid

Air Cooled Condenser

Generator

Steam

Generator

HTF

565°C

Thermal

Storage

Receiver

Tower

1U Module

Heliostat FieldTurbine

Feed water

Steam

540°C/100 bar

Heat

Exchanger

Hot

Cold

The first grid-scale CSP power plant in Australia, demonstrating the high value of dispatchable solar energy (4 hours storage) at a commercial capital cost

JSS1 Statistics

Turbine 30MW

Modules 90

Total Heliostats c. 65,000

Tower Height 30m

Molten Salt 2,700 tonne

Cooling System Air-cooled

Vast Solar and Doosan Skoda Power collaboration

• Vast Solar and Doosan Skoda Power have partnered to combine innovative start-up and traditional power system supplier approaches

• Vast Solar’s modular approach enables significant savings in the power block

• High degree of pre-design

• ‘Mass production’ of power blocks

• Installation and commissioning

• Doosan Skoda Power have provided extensive design and technical support as well as financial support

• Project studies – 6MWth and 30MW plants

• Technical support in key development areas – steam generation, system integration, piping mechanical design, process design and control, instrumentation and measurement

• Coordination and sourcing of expertise and components from EU CSP industry

• High efficiency (of course)

• High degree of operational flexibility

– Frequent (usually daily) starts and shut-downs

– Ability to start-up rapidly

– Thermal and cyclic stresses impact design of blades, seals, casings, valves and other critical components

• High DNI often accompanied by severe ambient conditions

– Deserts – sand, dust, salinity, etc.

– Often high seismic activity

• High availability and easy repairability as remote locations => limited staff and site resources

CSP applications require specific turbine solutions…

• 2013 development of 6MWth CSP sodium plant in Australia (Jemalong pilot project)

• 2014 awarded 2x projects of 113 MW CSP (Atacama I, II) by Abengoa

• 2015 development of 30MW CSP sodium plant in Australia (Vastsolar)

Vast Solar and Doosan Skoda Power look forward to continuing to develop their partnership

C…which Doosan Skoda Power is experienced in providing

Where to for Vast Solar?

• Construction of the 6MWth pilot project completed 1Q 2016 with commissioning completed 2Q 2016

• 30MW JSS1 project well developed ahead of construction in 2016-17

• Site secured

• Strong support from Australian government entities ARENA and CEFC

• Permitting process well-advanced (planning, environmental, etc.)

• Design well-advanced in conjunction with Doosan Skoda Power

• Bank and equity financing underwritten but with opportunities to optimise

• PPA negotiations commencing 1Q 2016

• Development of pipeline projects at <10c/kWh LCOE including storage