Dear Customers, Valued Business Partners,

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1 Kössler Report Newsletter Edition 19 1 Review and Outlook 2 Join Small Hydro Experience Current Projects: Kanzingbach, Kalliokoski, Bärenwerk, Auslaufturbine, Dolgarrog, Bruksfors, Fossarvirkjun 4 CO 2 -free with Electricity from Hydropower Dear Customers, Valued Business Partners, Ongoing global issues such as declining economic growth, masses of people on their way to Europe, dwindling resources and climate change occupy us all. A major issue is also the impact of greenhouse gases and their influence on climate change, which is evident to us all by now. Climate change is a reality, and global warming with all its consequences such as severe storms, floods, melting polar caps and rising sea levels progresses steadily. While scientists are still unsure to which degree temperatures will rise in future, there is consensus about the fact that a higher proportion of renewable energy generation can make a positive contribution to reducing the greenhouse gas effect. Hydropower can play a vital role in this context, because the worldwide development potential for hydropower is far from being exhausted. The advantages of hydropower such as high efficiency, maximum availability, as well as predictable and controllable energy generation are widely known. This has also been confirmed by a current study among 600 energy experts from all over Europe. 95% of the energy experts that were questioned declared that hydropower is the most stable and reliable form of renewable energy generation, 92% regarded it as ecofriendly, and 80% were convinced that hydropower takes up a vital role in the battle against climate change. (More under In this issue of our Kössler Report you will once again find a number of recent examples of hydropower plants offering high availability for energy generation and also taking ecological aspects into account. Kössler itself has also set an example and made its newly extended location in St. Georgen more ecofriendly by exclusively using energy from hydropower and purchasing an electric vehicle. Through our renewable energy park, which has been co-developed by our apprentices, we would like to bring this subject closer to the public. We hope that you enjoy reading our latest Kössler Report and remain With best regards, Josef Lampl // Kössler Report 1 6

2 Join Small Hydro Experience 2015 On 7 and 8 May Kössler held a small hydro symposium under the heading Join Small Hydro Experience Utilizing the occasion we also celebrated a milestone in our company history in the presence of numerous customers and business partners from all over the world, the Management Board of Voith Hydro, our workforce and representatives from politics and industry: the official opening of our new Technology Center and the Final Assembly Hall. The first day was marked by customers and experts getting together in the Stadtsaal in St. Pölten, in order to discuss small hydro power issues, witness interesting presentations and maintain old or make new contacts. After the welcoming address by Josef Lampl, CEO of Kössler, the project presentations went ahead, taking the audience to the United Kingdom, Sweden, Germany, Austria, Georgia, Russia, Montenegro and Kosovo. The first day did, however, not end with the presentation program. On the contrary, the event continued with a coach trip for all to the Kössler location in St Georgen for a works tour. Afterwards the guests were treated to the actual highlight - the festive inauguration of the expanded facilities of the location. The day was rounded off with a gala dinner and an entertainment program. The second day was used for an excursion to the historic hydropower plant Opponitz in Ybbs operated by Wien Energie. The participants visited the time-honored power station that had been re-opened only last year, as well as the weir system, where the residual water is utilized for power generation with the help of a Kössler turbine. We are pleased to be able to look back to two highly eventful days with our customers and business partners, and are particularly delighted about the positive feedback both on the contents and the program highlights as well as the smooth organization of the event itself. // Kössler Report 2 6

3 KANZINGBACH, AUSTRIA - Small Hydro in the Inn Valley option were strict ecological criteria. Owing to this single-plant solution the constant volume of residual water in the streambed could be significantly increased. In addition, a 150 m² wetland biotope was set up. From a commercial point of view the existing water volume can be utilized far more efficiently with two horizontal Pelton turbines with a runner diameter of 940 mm. Thanks to this modernization, the annual output has been raised to 16 GWh. // Since the beginning of the 20th century, two small hydro plants along the Kanzingbach have been supplying the Tyrolean Inn Valley Region with electricity from renewable energy. Some parts of the plant have therefore been in operation for more than 100 years. In 2013 TIWAG (Tiroler Wasserkraft AG) eventually decided that it was time to revitalize the two plants. In the end, the two locations were combined into one plant. The deciding factor for this Output: 1987 kw Head: m Type: horizontal Pelton turbine KALLIOKOSKI, RUSSIA - Kössler goes Russia The small hydropower plant Kalliokoski is situated at the Tohmajoki River in the Russian district of Sortavala. Thanks to the permanent water volumes at the location, the newly installed plant can secure the uninterrupted supply of the region with clean energy from hydropower, generated by a Kaplan S-type turbine with a runner diameter of 1.8 meters. But the new plant was not only built with commercial but also with ecological aspects in mind. The power station now has a fish ladder that allows fish migration during the spawning season. // The newly built power station Kalliokoski was planned, in order to replace the two previous locations Myllykylänkoski and Kalliokoski. In the past the two plants jointly generated an output of 450 kw with heads of 3 and 5.5 meters respectively. Output: 1203 kw Head: 9 m Type: Kaplan S-type Turbine Kössler Report 3 6

4 AUSLAUFTURBINE, AUSTRIA General refurbishment in Simmering A nominal output of 740 kw - this is the dimension of the Kaplan turbine utilizing the cooling water of the entire plant for power generation from as early as the 1960s. After an operating period of more than 50 years, Wien Energie finally decided to go for a general refurbishment of the entire machine set. Kössler modernized the two-meter Kaplan runner, as well as the guide vane mechanism, the oil supply and the turbine shaft. The runner blades received new bearings and seals. The runner blades were welded at the periphery, which allowed reducing the runner gap. In addition, two new piston seals were installed, while the oil supply pipes were fitted with new bearings and seals. A special challenge was the very tight timeline of the modernization. The Kössler Service Team was nevertheless able to complete all refurbishment jobs - from dismantling to re-commissioning - within just 29 weeks. // Output: 740 kw Head: 5.7 m Type: Kaplan Turbine BÄRENWERK, AUSTRIA - Revitalization at the Fuscher Ache Bärenwerk hydropower station, one of the oldest power plants of Salzburg AG, entered service back in 1924 and has been of vital importance for the economic development of Salzburg during and after the war. After 88 years of operation, Salzburg AG has now introduced comprehensive revitalization measures utilizing state-of-the-art technology to ensure clean energy generation for the Fuscher region also in the future. During the course of this modernization, Kössler supplied and installed four new Pelton runners to replace the ageing machinery. The general overhaul of the machine set and the water lines enabled an output increase of some 30% to about 15 MW. The annual electricity output was raised to 66 GWh. This is enough to supply 19,000 households with clean electricity from renewable energy sources. The modernization also included ecological aspects in the form of flat water zones and a large biotope next to the Fuscher Ache. // Output: 5.8 MW / 2.3 MW / 6.8 MW Head: 290 m Type: Pelton Turbine Kössler Report 4 6

5 BRUKSFORS, SWEDEN - StreamDiver conquers the North A compact solution for turbine and generator that meets the highest ecological expectations - this was the brief when the Swedish operator Skelleftea Kraft AB placed his order. Special attention had to be paid to criteria such as fish migration and the total omission of oil and lubricants. The main goal was the construction of an eco-friendly and sustainable power station. Kössler met these demands with the StreamDiver compact turbine, which is able to operate without oil as a lubricant. In addition, it allows fish migration by an integrated flap. Due to its design, the water-lubricated bulb turbine can be perfectly integrated into the current infrastructure - an unused turbine bay within the existing hydropower plant. // Output: 250 kw Head: 4.7 m Type: StreamDiver DOLGARROG, UNITED KINGDOM - Modernization in Wales The history of Dolgarrog power station dates back to the early 20th century. Construction work for the dam started as early as 1911, in order to create the necessary reservoir for the hydropower station. In 1924, the plant finally entered service. house presented another special challenge during the project, because they had a major impact on the overall conditions for the assembly work. // Output: kw Head: m Type: Francis Spiral Turbine Some 90 years later, RWE INNOGY decided to perform a part-modernization of the power plant. In concrete terms, parts of the existing penstock from the early 1920s were replaced, as was one of the altogether four machine sets. Therefore, the newly constructed Francis spiral turbine had to be adapted to the dimensions of the existing architecture, for example the axial height or the diameter of the penstock. The space restrictions in the power- Kössler Report 5 6

6 FOSSARVIRKJUN, ICELAND - Austrian Technology at the Polar Circle existing machinery by modern electromechanical equipment. Kössler received an order for the production and installation of a horizontal Pelton turbine with a flow rate of 450 liters per second. The turbine is fed by two reservoirs situated nearby. // Image source: Orkubú Vestfjarda ohf. The history of power generation near the villages of Isafjördur and Hnífsdalur started in February After more than 75 years of operation it was decided to modernize the plant. The project covered the replacement of the Output: 1221 kw Head: 308 m Type: Horizontal Pelton Turbine CO 2 -free with Energy from Hydropower The fact that ecological sustainability plays a major role for Kössler in all areas of the company was demonstrated by the recently completed extension of the company s location. Due to the newly created park focusing on Renewable Energy, this extension is regarded as an asset to the entire town center of St. Georgen. For the park, which is open to all interested parties, our apprentices created six information boards on subjects such as hydropower, wind power, solar power, geothermal energy, biomass and climate change. The production of our turbines is also widely based on ecological aspects. The entire energy supply for the company has been converted to eco-power, and the production runs on clean hydro-electricity. Most recently, Kössler has also purchased an electric vehicle as company car. Green thinking is therefore paramount even for business trips. As a result we are making an active and positive contribution to protecting our climate. // Imprint Kössler GmbH & Co KG St. Georgener Hauptstraße St. Georgen Phone: office@koessler.com Copyright: Any duplication, reproduction or other dissemination of this publication, as well as use of its contents in part or in whole in any manner, is forbidden without the express written permission of the author. Image sources: Kössler GmbH & Co KG; Orkubú Vestfjarda ohf Kössler Report 6 6