Photo: Arjo Nieuwkoop

Agenda

Tocardo introduction

Technical demonstration projects in the Netherlands 2015

Introducing the UFS

UK project portfolio

Growing the tidal energy industry

Who we are

Netherlands based tidal turbine developer and manufacturer

Ocean energy project developer

Active since 1999, independent company since 2008

Commercially available turbines, worldwide project pipeline

Tribute Resources (CA) as strategic shareholder

Company offices in

Den Oever

Tidal Testing Center

Den Oever

Offgrid Test Center

Den Oever

Achievements ytd

2 standardized turbines

R1/T1 turbine, 100kW

T2 turbine, 250kW

3 standardized foundation systems

retrofit array

floating BlueTEC

Universal Foundation System (UFS)

track record of over 8 years

9 turbines operational and grid connected

3 projects installed in 2015 in NL

8 projects under development in NL, UK, CA

Turbine technology

Direct drive, permanent magnet generator

Scalable blade diameter

Passive smart reverse rotor blade: no pitching, no yawing!

Advanced control system for tidal sites

20 Year lifetime design

Running for type certification presently

Market development

River

Inshore & nearshore

Offshore

2005 2010 2015 2020 2025 2030

T1 100kW

T2 250kW

T3 by 2019

Estimated potential > 120 GW Project value in million €

Tocardo markets

Den Oever prototype project

Demonstration project

Computer model verification

Smart blade testing

Full-time grid connected since 2008

Tidal power plant Afsluitdijk

Three T1 turbines, 300kW

Operational since February 2015

Array testing: turbulence, turbine interaction and foundation behaviour

Grid connected

Next phase 1.8MW roll-out

Afsluitdijk rollout

6 arrays, 18 turbines in total

1.8MW installed capacity

To power 600 Dutch households

Texel tidal project

Deployed with both T1 and T2 turbines

Next step: double T2

Ideal testing platform and very suitable for shallow sites

17

VIDEO

Tidal power plant Delta Works

World’s first tidal array of five turbines

Pre-commercial project, installed in October 2015

Five T2 turbine array

1.25MW installed capacity, grid connected, powers 1.000 households

Permit for 2nd sluice gate, roll-out to 30 sluice gates

INSERT GOOD PICTURE

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Developments 2016-2020

Technology development within commercial constraints

“Energy-up, Cost down, Risk down”

Development of a new semi-sub foundation system: UFS

Improving the T2 turbine energy yield

Smart hybrid island grid, off-grid test center

Developing and testing the T3 turbine

Financial engineering

Multi-MW fund for tidal energy project developments

Exclusive project development rights for 8 sites in NL, UK and CA

Market development in UK & Ireland, Canada, South-Korea, ASEAN

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Universal Floating System UFS

Fully integrated up to 2 MW product

Designed for array configurations

Building forward on proven T2 turbines

Extreme high survivability (storms)

Low visual impact

Easy accessibility for onsite service

Commercial solution for established FIT

Easy install, only small workboats required

Local supply chain can be involved for installation and service operations

Low OPEX and local content

UFS dimensions

Tocardo’s UK project portolio EMEC, Fall of Warness 2MW

PTEC, Isle of Wight, 20MW

Morlais Energy, West Anglesey Demonstration Zone, 15-30MW

~60 x UFS ~300 x T2 turbines

Isle of Man, 30MW

In discussion with agnostic project developers

EMEC project – Fall of Warness - Scotland

EMEC is the globally leading demonstration and test site for tidal and wave energy

20 year berth lease agreement for commercial demonstration array

Location: Berth 6 in the Fall of Warness at the Orkney islands in Scotland

Resource: max. water velocity is 4.2m/s, rock bottom

The site is consented, PPA in place, there’s a subsea power cable and onshore power station

Superior supply chain locally available, which makes this an ideal location for testing the first UFS

Project size: 1,25 MW installed capacity with UFS systems.

Battery storage may be added to make the project a hybrid

Water speed >4m/s

PTEC project – Isle of Wight - England

PTEC is a fully consented 30MW project

South of the Isle of Wight in England

Project development by Perpetuus Tidal Energy Centre

Tocardo is to install 20MW over 16 UFS platforms

Morlais project

Site managed by Mentor Mon - a third sector social enterprise delivering projects across North Wales in various sectors

Received Agreement for Lease from the UK’s Crown Estate – area of 35km2

Zone divided into 8 sub-zones

Competitive tender process open to developers

Tocardo bid successful, 15MW berth

Sub-zones are allocated to developers

Up to 30MW capacity available per sub-zone

Total site capacity intended 150MW

Creating a new industry

Learning from the wind energy sector

Levelized Cost of Energy (LCoI): the key success factor

Improving project IRR, lowering LCoE

Mission: “energy-up, cost down, risk down”

Learning curve of the industry

Bench mark is offshore wind energy in 5 years

0 50 100 150 200 250 300 350 400

Tidal

Wave

Solar PV

Solar CST

Geothermal

Bio Mass

Offshore wind

Onshore wind

Hydro

Peak gas

Gas

Coal

Nuclear

Tidal LCoE learning curve (€cents/kWh) LCoE by technology ($/MWh)

$/MWh

Present feed-in tariffs in UK and CA

Expected benchmark offshore wind

The business case: selling energy

1. Energy income

FIT: € / MWh

Energy yield

2. CAPEX: capital expenses

Steel, copper, magnets, concrete, …

3. OPEX: operational expenses

Repairs, maintenance

4. CoC: cost of Capital

Bank interest

Return on investment

IN BALANCE!

Inco

me C

AP

EX

Inco

me

Inco

me

CA

PEX

OPEX Co

C

Inco

me

CA

PEX

OPEX

Inco

me

Co

C

CA

PEX

OPEX

+ -

Cost of capital

Cost of Capital: ratio to CAPEX (finance)

Risk profile defines ratio

Other industries:

Tidal: CoC = major cost component!

Return on investment

Risk profile

0% 50% 100% 150% 200% 250%

Cost ratios

Traditional hydropower: 2 – 3%

Wind: 5 – 6%

Solar: 7 – 8%

Tidal (currently): 10 – 12%

(assuming CAPEX + OPEX = 100%)

117% – 126%

146% – 157%

168% – 179%

203% – 228%

CoC max CoC CAPEX OPEX

TOCARDO’s de-risking policy (1/2)

Implement lessons learned from wind industry

Lean development: start small with scalable technology

Over-engineered technology platform, “better safe than sorry”

i.e. blade test showed fatigue expected life time >60 years

Focus on near shore locations first <5MW

We are lucky in the Netherlands with our barriers

Smaller turbines means lower installation and O&M costs

Smaller thus cheaper installation vessels required

TOCARDO’s de-risking policy (2/2)

Tocardo’s technology roadmap shows 2MW machine on current technolgy platform

Work together with finance and insurance partners to understand todays requirements for turn key delivery

Complete product line based on proven product supply chain

All generator components have life time >20 years

Anticipated on shareholders who understand early stage capital goods market

Lean and mean organization with inner circle of supply chain and engeneering companies

Actively involved in government policies: local, national and European

Thank you for your attention

Tocardo International BV www.tocardo.com

info@tocardo.com

Head Office

Sluiskolkkade 2

1779 GP Den Oever

The Netherlands

Tel: +31 227 727 200