The WindFloat:

Enabling a Paradigm Shift in Offshore Wind

Oslo, January 26, 2016
Principle Power Overview

Our Vision: Be the global leader in deep water wind technology

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Our Mission: To make the WindFloat the most competitive, safe, reliable and environmentally
friendly floating technology and unlock GWs of global renewable energy potential

Industry Challenges: Further from Shore; Deeper; Larger Turbines; Reduction of LCOE

The WindFloat, a Key part of the solution

Globally Patented, Proven Floating Technology: 5 years 2MW Pilot;

Projects in Europe, US, Asia, w/ highlight for advanced 25 MW Project in

Portugal and 24 MW in France

Global presence with offices in US, France, Portugal (30 employees)

Leading in Cost and Performance; LCOE competitive with currently

commercial technologies to bring offshore wind to its potential
- Principle Power Offices
Paradigm Shift => Reduction of Cost and Risk for the Industry
- Active Markets

To Bring Offshore Wind to its Global Potential

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 The Offshore Wind Industry is projected to grow at a 20% CAGR
and the trend is to move to deeper waters
Global Offshore Cumulative Capacity (GW) Distance to Shore and Water Depth Trends

Projected Floating
Capacity

Source:
Roland Berger, April 2013

Source: IHS, JRC, BNEF, Principle Power, 2015 3

Global Market for Deep Offshore Wind current projections consider
mostly shallow sites - deeper waters are an untapped resource

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As the industry moves deeper, floating will be key part of the
solution and Floating Semi-Sub technology is competitive >40m

The WindFloat
design is predicated
on well-established
and proven offshore
oil & gas
semisubmersible
platform
technologies.

The
Semisubmersible
Semi-Sub TLP Spar technology is viable
Monopile Jacket/Tripod Floating in all types of water
Floating Structures depths above >40m
0-30m, 1-2 25-40m, 2-5 Structures
>120m, 5-10MW
MW MW >40m, 5-10MW

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Floating Offshore Wind is an Industry Game-Changer in Two Ways

Open the market for deep

Key Industry Trends water exploitation (>60m)
Open coastal markets with high
power demand, high prices, high
Further from shore population density and deep
waters
Expanding total market for offshore
Deeper waters wind
Floating
wind: a game
Larger Farms changer
Substitute existing technologies
in transitional waters (40-60m)
While Reduction of costs
Floating Semi-Sub technologies will
and risk needed to truly
be a competitive alternative to
globalize the Industry! current foundations (eg. Jackets /
gravity based foundations)
Opportunity to capture market
share from existing technologies

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 Multi Megawatt prototype
Floating Wind has now deployed 20 MW,
Scaled model installed offshore
proving itself as a key solution for the industry Under Commissioning

Sway, 1/6 scale TLP/Spar,

150 kW, 2011
G Hywind, Spar,
2MW, 2009
VolturnUS, 1/8 scale Semi- Gicon, 2MW, 2017
Sub, 200 kW, 2013
Mitsui/ Mitsubishi, Semi-Sub,
Blue H scale TLP, 2MW 2013, 7MW 2015
No Turbine, 2009
JMU, 5MW 2016
WindFloat, Semi-Sub,
2MW Vestas, 2011
JP Ministry of Env. 1/10 scale Spar
100kW, 2012, 2MW 2015

Total: 20MW
Installed

2009 2010 2011 2012 2013 2014 2015 2016/17

WindFloat 1 GICON SOF

Hywind 1 Fukushima
2 MW 2 MW (currently
2 MW 2 MW + 7 MW + 5 MW delayed)
Floating is already large market Close to 400 MW of
Demos and 7 GW of Large Scale Projects in development

Current MW Current Floating Wind Farms (Announced) under Development

Installed: 20MW Demo Projects Large Scale

12 MW > 2 GW in
US
Hawaii and CA

France, 100-150 MW France, 3.5 GW with

Europe UK, 80 MW commercial tenders
Portugal, 25 MW starting to be prepared

TBD (Target 8GW by 2030,

Japan Up to 100 MW
with mostly floating)

Taiwan/Korea Up to 30 MW 1.5 GW

Source: Principle Power

Proven technology, Operating Since 2011; Meeting Manufacturers
Specification; Producing c. 17GWh of Energy; Tested in Extremes
WindFloat Technical Overview
1 Turbine Agnostic
Any conventional
commercial Turbines
Minimum redesign in:
- Control system software
- Tower structural interface
3 Water Ballast
(Operational draft)
Located at the bottom
of each column and
used to achieve
operating draft
More water in the
columns not supporting
the turbine
2 Hull Trim System
(Active ballast)
Displaces some water
between columns to
compensate for changes
in mean wind velocity
and direction
1
4 Heave Plates
(Dynamic Stability)
Move platform natural
response above the
wave excitation (mass of 2
entrained water)
Viscous damping
3
reduces wave induced
motions 4
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WindFloat 1 performance proven over 5 years operation
Project Description Prototype Objectives
Vestas 2MW turbine Demonstrate the ability to: Fabricate,
Operation commission at quayside and install fully-
~ 17 GWh produced in 5 years
assembled WindFloat
Operated in Hs of 7 m
Produce power up to the one-year
No production losses overall
storm
17 m waves Survive large winter storms
Reliable O&M and inspection program Withstand wave- and wind-induced
fatigue
Decommissioning
Perform O&M activities on the platform
July 2016
Operate the Active Ballast System and
Reversible operation
other systems and equipment
Sole use of local tugs (No AHV)
Predict the important responses of the
Removal of the turbine at quay side (hull
floating) system with numerical tools
Life extension of the platform possible Decommissioned safely with minimal
budget and negligible impact to the
WF1 Power produced binned by sea states
environment
2500
WindFloat Energy Production
2000 Energy Produced (MWh) Cumulative (MWh)
3,000 18,000
2,595 2,582.3
Energy Produced (MWh)

16,000
1500 2,500
Power (KW)

2,220

Cumulative (MWh)
Power (KW) 2,160 2,069.5 14,000
Hs=0-1m 2,000 1,839 12,000
1,637 1,586
1000 Hs=1-2 m 10,000
1,500
Hs=2-3 m 8,000
Hs=3-4 m 1,000 6,000
500 4,000
500
2,000
- -
0
1H 2012 2H 2012 1H 2013 2H 2013 1H 2014 2H 2014 1H2015 2H2015
0 5 10 15 20 25
Wind Speed (m/s)
WindFloat during decommissioning
PortSines, Portugal
July 2016
Financing Entities are already seeing the large paradigm shift it
represents in terms of Reduction of Cost and Risk
Cost Risk
Reduce Environmental Marine Spread / Existing
Impact and Geotechnical Vessels
Requirements
Lower Interface Risk with
Flexible Site Location / Water
Reduction offshore contractor
Depth independence of Cost &
Lower Weather Dependence
Serial Production Risk
Return to Shore for
Quayside Commissioning and Unanticipated Maintenance
WTG Installation
Now implementing demonstration scale projects, with state of the
art turbines and optimized designs

WF1 Current Generation

larger turbines (x3-4)

design life extension (x5)
global sizing smaller platform
structural optimizations
equipment improvement
accessibility
mooring improvements
installation improvements

Capacity: x4

Production: X4.5

Unit Cost: x1.75

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 Competitive tenders driving offshore wind LCOE to convergence with
other zero emission technologies; Floating in same direction

Evidence of progress towards

reducing LCOE (e.g., Borssele
and Kriegers Flak further
establish offshore wind as
credible large-scale RE source)

Recent price offerings the

result of great sites, favorable
financing costs and process
efficiencies (supply chain
effects)
Borselle III & IV @ EUR 54.50
and Kriegers Flak @ EUR
49.9, before Dev and
Transmission Costs

60-70
https://www.rolandberger.com/publ
ications/publication_pdf/tab_offsho
re_wind.pdf 15
Significant innovation under way that will drive WindFloat
LCOE below the 100/MWh target
General 1. Larger Turbines; power / weight ratio
Design 2. Structural Optimization / Hull weight

3. Optimize Ballast System

Detailed
4. Optimization of controllers for Loads
Design
5. Challenging Class rules for lighter / cheaper design
Target:
6. Industrialization / Serial Fabrication/ Minimize
<100/MWh
Fabrication
downtime (Communications, Access, etc.) By FID 2020

Operations 7. Improve reliability

8. Learning by doing / Continuous improvement

Other WF 9. Alternative Steels / Other Materials

Innovations 10. Mooring Innovations

Other Offshore Wind Industry Innovations

(Turbine Performance, Plant Design, Electrical Systems, Supply Chain)
Principle Power is already actively advancing projects globally in
the key target markets (both demos and large commercial scale)

France
WindFloat Japan
24 MW
5-6MW unit, potential
6 MW WF units, 2020
to be followed by ~ 10
units

Hawaii
Up to 400 MW WindFloat Atlantic
6-8MW WF units (Portugal)
25MW
8MW WF units, 2019

- Near Term Projects

- Commercial / Target Markets
 Building on our lessons learned, the WindFloat Atlantic Project will be a
key milestone in the floating offshore wind industry
Total capacity: 25MW capacity, (3 X Vestas V164),
Location: 20 km off the coast of Viana do Castelo, in
water depth of ~ 100m
Interconnection: to be constructed by REN, allowing
a direct connection at 60kV
Project
Overview Construction: shipyards in Portugal (same as WF1).
Turbine installation quayside
Floating structure certification: designed for 25
years, certified throughout design, construction and
installation by ABS, an independent party
Detail design 90% completed Q2 2016 by PPI
Engineering
Equity financing completed in 2015; 7 project partners
Non recourse financing expected completion Q2 2017
First Non- European Investment Bank Selected for InnovFin
recourse
financed
Programme
FOW Export Agencies; Commercial Banks
project Strong Institutional Support:
EU: NER 300; Portugal: Feed-in Tariff, APA
 French Call for Projects: A pivotal Demonstration project in the
Mediterranean sea
Total capacity: 24MW capacity, (4 X GE-Alstom
Haliade 6MW)
Location: 18 km off Leucate, French Mediterranean Fos/Mer

coast, in water depth of ~ 70-100m Port-La-Nouvelle

Interconnection: to be constructed by RTE, allowing a
Project
direct connection at 66kV Leucate Site
Overview
Construction by EIFFAGE at Fos/Mer. Turbine
installation at quayside in Port-La-Nouvelle.
Floating structure certification: designed for 20
years, certification by BV
Operational Q4 2020

3 other Projects Awarded

EOLFI/CGN DCNS/VINCI in Groix (Atlantic)
EDF-EN SBM/IFP in Faraman (Med)
French
Call For QUADRAN/Bouygues-IDEOL in Gruissan (Med) Eiffage Yard, Fos/mer
Project Up to 50M funding/project by the Ministry of the
Environment, the Energy and the Sea
Feed-In between 150-275/MWh (TBC) for 20 years
Technology signed off by Key International Certification bodies in
different markets, prepared for deployment

US West Coast high wind, high wave

WindFloat 8MW turbine, Turbine TBD
Approval in Principle
Pacific, US Full Document and Project Review with no critical
findings

Portugal medium wind, high wave

WindFloat 8 MW turbine, Vestas
Atlantic, Approval in Principle
Portugal Final stages of full certification / AFC stamped Drawings

France high wind, medium wave

Golfe du Lion, 6 MW turbine, GE/Alstom
France Approval in Principle issued

Japan medium wind, medium wave

5 MW downwind turbine, Hitachi
WindFloat Japan Model Testing performed
Japan Passed all technical committees with Class NK and NEDO
Approval in Principle issued
Next Generation WF has been engineered with the major
offshore wind turbine manufacturers

Project Turbine Power Diameter Status

WF1 prototype Vestas V80 2MW 80m Decommissioned and

evaluating opportunities
WindFloat Atlantic MHI Vestas V164 8.3MW 164m Approved for Construction
(Finalizing)
WindFloat Pacific Siemens SWT6.0-154 6MW 154m FEED

WindFloat Pacific MHI Vestas V164 8MW 164m FEED

NEDO project Hitachi HTW5.0-126 5MW 126m FEED

NEDO project Senvion 6.2M152 6.2MW 152m FEED

France / Golfe du Lion GE Haliade 6M150 6MW 150m preFEED

France / Golfe du Lion Adwen 8MW 8MW 180m preFEED

Principle Power: Globalizing Offshore Wind

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www.principlepowerinc.com