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Minesto

Tidal and Ocean Current Energy

Dr. Martin EdlundChairman of the BoardMartin.edlund@minesto.comMinesto AB

Tokyo, UK Embassy, October 9, 2014

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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)

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Minesto’s products have a global market potential to generate electricity for £135 billion in annual yield.

Minesto tidal market World market ocean currents

Complementary market – Ocean currents- Kuroshio Current Taiwan: 19GW (38.000 units)- Kuroshio Current Japan: 8GW (16.000 units)- Florida Current: 27GW(54.000 units)- Australian Current: 18GW (36.000 units)

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

“The Deep Green technology is able to operate economically at sites where no other renowned technology has been identified”

Market with great potential

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Global potential and government support

Sources: An overview of ocean renewable energy in China, Yuhe Jiao; DHI study for Minesto; http://www.nippon.com/en/in-depth/a01203/; The transition to green energy in China, Japan and Korea, Innovation Norway; http://energy.gov/eere/water/marine-and-hydrokinetic-resource-assessment-and-characterization; Global trends in the emerging ocean energy market, IEA

USA- 250 TWh/year*- 25% renewables

by 2025- Feed in tariffs

Canada- 6300 MW*

- 250MW marine by 2020

- Feed in tariffs

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

* Tidal stream potential energy

• Potential market is substantial• Minesto expands the practical resource

beyond those numbers!

CONFIDENTIAL

Markets activities

April 19, 2023

North America- MOU with SNMREC to

develop a test site in the Florida Current

- Discussions for partnership with Worcester Polytechnic Institute

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

Japan- Established relationships

with large OEMs, universities and developers

- Tidal and Ocean currents

UK- 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

Taiwan- Seeking joint

demonstrator with NTOU

- Strong awareness of potential with ocean currents

China- More than 4000MW

potential with a 10% SIF- Manufacturing

capabilities- Advisor and share holder

based in Hog Kong

Norway- Vegdirektoratet has identified

Deep Green as the most suitable technology

- Proposed feasibility & demo proposal of €2,5 submitted

Maldives- UN lead project worth

€7M to install 1 MW- Minesto have quoted

work of approximately €1M for project dev.

Korea- Established relationships

with large OEMs, universities and developers

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

CONFIDENTIAL

UK – the Leading Market in Europe

April 19, 2023

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

CONFIDENTIAL

Our Plan: Holyhead Deep 10MW installed 2019

April 19, 2023

Project- Installed capacity: 10MW- Installed devices: 20 DG500

Project financials- Project cost: €60M- IRR: 7-15%

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The competitive landscape

8

Marine Current TurbinesRated Power: 1.2MWRated velocity: 2.4+ m/sCorporate backer: Siemens

ScotrenewablesRated Power: 2MWRated velocity: 2.5 m/sCorporate backers: ABB, Fred Olsen

Andritz Hydro HammerfestRated Power: 1MWRated velocity: 2.2 m/sCorporate backer: Andritz Hydro

Open HydroRated Power: 1MWRated velocity: 2.6 m/sCorporate backers: Bord Gais, DCNS

FlumillRated Power: 4MWRated velocity: n/aCorporate backers: none

Ocean Current Generation SystemRated Power: 4MWRated velocity: n/aCorporate backers: IHI, Toshiba, Mitsui

ORPCRated Power: 0.5MWRated velocity: 3 m/sCorporate backers: none

MinestoRated Power: 0.5MWRated velocity: 1.5 m/sCorporate backers: none

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

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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

Wing Span 12 Meters

Rotor Diameter 1m

Tether Length 65m or more

Rated Power 500kw @ 1.6m/s

Desired Velocity 1,4 m/s or more

Installation Depth 50 m or more

Devices/km2 18-26

Weight 7 tons

Specifications

CONFIDENTIAL

Test plan

April 19, 2023

SURFACE MOUNTED SEABED MOUNTED

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Electricity production in low velocities

Deep Green0.5MW@1.5m/sWing span: 12m

Tether length: 90m

1MW@2.5m/s0.25MW@1.5m/sDiameter: 18m

Hub height: 28m

Scaled up0.5MW@1.5m/sDiameter: 32mHub height: 60

75% of the energy is in the upper 50% of the water column…

… and 25% is in the lower 50%

Depth: 80mCurrent velocity: 1.5m/s

CONFIDENTIALApril 19, 2023

Site Accessibility

OPEX

- Significant lower max peak- Lower flows = Less

turbulence- Cable laying- Installation & O&M

windows

- Small vessel decreases cost- Smaller devices enhance

the mobilization and service speed

- Most service can be made on land

What are the cost drivers?

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Deep Green – competitive advantages• Unlocks new tidal market

Only known technology that operates cost-efficiently using low velocity tidal streams (1.2-2.4 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, 10-25 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 currentsTidal energy competitor comparison

Proven technology in real conditions

- Complete power plant installed- Focus on performance and design freeze- Most cost effective R&D platform in the industry

- Complete power plant installed- Focus on performance and design freeze- Most cost effective R&D platform in the industry

Competitive with conventional technology

CONFIDENTIAL13 November 2013

Why?

CfD until 2019

CfD after 2019

1. Half CAPEX cost2. 1000 times the energy (energy output proportional to velocity cubed)3. Small vessels used for operation and maintenance

NEDO Phase 1

NEDO Phase 2

Remote Islands

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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 2013-2014• 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 2017-2018• 1:1 scale• Integrate in infrastructure• Inter array cabling1

3

5

7

8

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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

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Deep Green – Intellectual property

ControlMethod• 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

1:4 prototype currently installed in Northern Ireland

Main patent

ControlSystems

Wing & TurbineConfiguration

Multiple Torque Controlled Turbine

Tether Spring/Pump

Multiple WingsConfiguration

Water Lubricated

Bearing

Tether

Control Method

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Business plan

Funding

Licensing

Product sales

• Public funding

• Private funding

• IPO in 2017

• International funding opportunities

• Geographical licensing• Initial payment• royalty fees

• Site development• Assessment• Modelling

• Deep Green sales• Commercial arrays• Additional units• Spare parts

• Asset management

2014 2015 2016 2017 2018 2019 2020

Minesto is planning to be cash-flow positive by 2019. This is based on on-going licensing contracts, the sale of a 10MW commercial array and contracts for future commercial arrays

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Use of funds

• €20M matched grant funding from Welsh Government body WEFO

• €8M in pending applications for grants from Horizon 2020 and Climate-KIC

Minesto requires €40M+ to manufacture, install and operate a 1.5MW array by 2018. An investment of €20M is required to achieve this goal. This will be matched by a number of grants, which are currently pending:

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.

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Minesto ABVita gavelns väg 6426 71 Västra FrölundaTelephone: +46 (0)31-760 2102E-mail: martin.edlund@minesto.com

Contact