Clipper Windpower, Inc.

Jason Degroot
Supply Chain Manager
GACCoM’s Renewables & Energy Efficiency Roadshow 2008
 Agenda

• Industry
y Overview
• Clipper Snapshot
• Supply Chain Insight
• Supplier Partnership Expectations
• Photo Appendix

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Clipper Windpower, Inc.
 Industry Overview

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Clipper Windpower, Inc.
 Wind Energy – Rapid Expansion Globally
Cumulative Global Wind Power Development
Actual 1990-2007 Forecast 2008-2012 Prediction 2013-2017
700,000

600,000

500,000

400,000
MW

300,000

200,000

100,000

0
1990 2007 2012 2017

Source: BTM Consult ApS - March 2008 Prediction Forecast Existing capacity

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Clipper Windpower, Inc.
 Europe is the Largest Wind Market
Annual Wind Power Development
Actual 1990-2007 & Forecast 2008-2012
60,000

50,000

40 000
40,000
MW

30,000

20,000

10,000

0
1990 1995 2000 2007 2012

Source: BTM Consult ApS - March 2008 Europe USA Asia Rest of World Existing

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Clipper Windpower, Inc.
 Global Wind Power Market Growing Rapidly
The Global Wind Power Market in US$
Expected development 2008-2012
125,000 450,000

112,500 405,000

100,000 360,000

87,500 315,000

US$
umulative mill. U
75,000 270,000
mill. US$

62,500 225,000

50,000 180,000

Cu
37,500 135,000

25,000 90,000

12,500 45,000

0 0
2007 2008 2009 2010 2011 2012
Source: BTM Consult ApS - March 2008 Forecast offshore Offshore 2007 Onshore 2007
Forecast onshore Cumulative market

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Clipper Windpower, Inc.
 Cost of Wind is Very Competitive

Courtesy of Puget Sound Energy

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Clipper Windpower, Inc.
 Growing Popularity for U.S. Renewable
Portfolio Standards

Daniel M. Kammen. Renewable & Appropriate Energy Laboratory – UC Berkeley

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Clipper Windpower, Inc.
 Clipper Snapshot

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Clipper Windpower, Inc.
 Clipper Snapshot

• Formed in 2000
– WTG Design/Engineering (R&D)
– WTG Manufacturing g
– Project Development
• U.S Headquarters - Carpinteria, California, USA
• WTG Manufacturing g - Cedar Rapids,
p , Iowa,, USA
• European Headquarters - London, England, UK
• Publicly Traded on London AIM market – CWP
Ticker Symbol

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Clipper Windpower, Inc.
 Clipper Product Line

Liberty Onshore Britannia Offshore

• 2.5
2 5 MW • 7.5
7 5 MW
• Onshore • Offshore
• Clipper
Clipper’s
s First Commercial • Clipper
Clipper’s
s First Commercial
Onshore Wind Turbine Offshore Wind Turbine
• In Operation • In Development
• Manufacturing: Cedar Rapids, • Manufacturing: Blyth, England
IA, U.S. U.K.

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Clipper Windpower, Inc.
 Supply Chain Insight

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Clipper Windpower, Inc.
 Supply Chain Bottlenecks

• Supply base struggles to keep

up with industry demand and
growth

• Large
g components
p are
stretching current capabilities of
supply base

• Logistics: oversized loads, road

restrictions and high costs

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Clipper Windpower, Inc.
 Strength in Supply Chain from Overseas
European Suppliers Moving to the U
U.S.
S

• Overseas expertise in Wind

Energy

• Growth of U.S.

• State Incentives

• High Cost of Euro

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Clipper Windpower, Inc.
 State Support of Investment

• Provide tax credits/exemptions

• Provide state loan and grant

programs

• Support utility rebate programs

• Research and outlook

programs at State Universities

• P
Proactive
ti R Recruiting
iti

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Clipper Windpower, Inc.
 Supplier Partnership Expectations

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Clipper Windpower, Inc.
We Strive to Build Long-Term Partnerships
High Performing
Suppliers Partner - Long-term Framework Contract

- Exceeds requirements in Quality, Cost, Delivery, Responsiveness

- Proven record of Value Improvement
- Provides innovation and technology support
- Provides full-time site support as required

Bid - Competitive Quote, Limited Order Duration

− Achieves required Quality, Cost, Delivery, Responsiveness

− Manages scope change without cost creep
− Provides on site support for delivery problems

Exit - No New Business

- Fails to achieve QCDR requirements

Poor Performing - High level of ‘cost creep’ post contract
- Exit if no performance improvement
Suppliers

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Clipper Windpower, Inc.
Quality, Cost reduction, Technology…..

• No U
N Undeclared
d l d
Quality Defects

• Cost Reduction

• Technology

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Clipper Windpower, Inc.
Delivery & Lead Time Are Critical Success Factors

On-time Delivery
• Late Delivery = Unhappy Customers
• Delivery Performance must improve
− Engineering changes impact schedules
− Steel crisis having impact, must be managed
− Effective capacity planning and production
• Right quantity
quantity, right time
time, right quality

Lead Time
• Continuous reduction of ‘supply
pp y time’
• Speed of delivery wins projects
• Accurate & Current Lead Times are Essential

Growth Potential

A Commitment Is A Commitment
Commitment…Stand
Stand By It!
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Clipper Windpower, Inc.
 In Summary

Wind Energy’s growth requires strong, committed

suppliers

Clipper’s commercial performance and technology

offer suppliers confidence in our financial and
future strength

Agility
g y and ppre-emptive
p actions are needed to
support an increasingly demanding marketplace

Delivery delays and undeclared quality defects are

unacceptable

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Clipper Windpower, Inc.
 Questions?

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Clipper Windpower, Inc.
 Appendix:
pp
- Liberty (Technical)
p
- Components, Project
j & Turbine Photos

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Clipper Windpower, Inc.
 Liberty Machine

• 3 Blade Horizontal Axis

• Upwind
• Variable Speed
• Individual pitch
• Active Yaw
• 75 to 80 m Hub Height
• 4 Rotor Options: 89m,
93m, 96m, 99m
• Tower Options:
Seismic, cold weather

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Clipper Windpower, Inc.
 Liberty
1 Hub
2 Nacelle
3 Gearbox 2
4 Main Shaft 11

5 Generators
6 3
6 P ki B
Parking Brakes
k 4
1
9
7 Yaw System
5
8 Machine Base 10

9 Turbine Control
C Unit ((TCU)
C )
10 Hydraulic Power Unit (HPU) 8

11
On-Board Hoist 7

Certifications:

- Germanischer Lloyd WindEnergie GmbH: Operation in extreme cold climate conditions (C93 and C96)
Temperatures down to -30° C, survival to -40˚C.
- Germanischer Lloyd WindEnergie GmbH: Statement of compliance for design assessment of the wind turbine:
WT 00 009A 2006 (C93) / WT
WT-00-009A-2006 WT-00-008A-2006
00 008A 2006 (C96) / WT-00-012A-2006
WT 00 012A 2006 (C89)
- USDOE’s NREL Accredited Lab 12/04-3/05 : Drivetrain dynamometer test

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Clipper Windpower, Inc.
 Cedar Rapids, IA

330,000+ sq. ft
Assembly/Manufacturing

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