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

Transcription

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

2 Agenda Industry Overview Clipper Snapshot Supply Chain Insight Supplier Partnership Expectations Photo Appendix 2

3 Industry Overview 3

4 Wind Energy Rapid Expansion Globally 700,000 Cumulative Global Wind Power Development Actual Forecast Prediction , , ,000 MW 300, , , Source: BTM Consult ApS - March 2008 Prediction Forecast Existing capacity 4

5 Europe is the Largest Wind Market 60,000 Annual Wind Power Development Actual & Forecast ,000 40, MW 30,000 20,000 10, Source: BTM Consult ApS - March 2008 Europe USA Asia Rest of World Existing 5

6 Global Wind Power Market Growing Rapidly The Global Wind Power Market in US$ Expected development , ,000 mill. US$ 112, ,000 87,500 75,000 62,500 50,000 37,500 25,000 12, , , , , , , ,000 90,000 45,000 Cu umulative mill. US$ Source: BTM Consult ApS - March 2008 Forecast offshore Offshore 2007 Onshore 2007 Forecast onshore Cumulative market 6

7 Cost of Wind is Very Competitive Courtesy of Puget Sound Energy 7

8 Growing Popularity for U.S. Renewable Portfolio Standards Daniel M. Kammen. Renewable & Appropriate Energy Laboratory UC Berkeley 8

9 Clipper Snapshot 9

10 Clipper Snapshot Formed in 2000 WTG Design/Engineering (R&D) WTG Manufacturing Project Development U.S Headquarters - Carpinteria, California, USA WTG Manufacturing - Cedar Rapids, Iowa, USA European Headquarters - London, England, UK Publicly Traded on London AIM market CWP Ticker Symbol 10

11 Clipper Product Line Liberty Onshore 25MW 2.5 Onshore Clipper s First Commercial Onshore Wind Turbine In Operation Manufacturing: Cedar Rapids, IA, U.S. Britannia Offshore 75MW 7.5 Offshore Clipper s First Commercial Offshore Wind Turbine In Development Manufacturing: Blyth, England U.K. 11

12 Supply Chain Insight 12

13 Supply Chain Bottlenecks Supply base struggles to keep up with industry demand and growth Large components are stretching current capabilities of supply base Logistics: oversized loads, road restrictions and high costs 13

14 Strength in Supply Chain from Overseas European Suppliers Moving to the U.S. Overseas expertise in Wind Energy Growth of U.S. State Incentives High Cost of Euro 14

15 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 Proactive Recruiting 15

16 Supplier Partnership Expectations 16

17 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 Poor Performing Suppliers - Fails to achieve QCDR requirements - High level of cost creep post contract - Exit if no performance improvement 17

18 Quality, Cost reduction, Technology.. No Undeclared d Quality Defects Cost Reduction Technology 18

19 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, right time, right quality Lead Time Continuous reduction of supply time Speed of delivery wins projects Accurate & Current Lead Times are Essential Growth Potential A Commitment Is A Commitment Stand By It! 19

20 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 and pre-emptive p actions are needed to support an increasingly demanding marketplace Delivery delays and undeclared quality defects are unacceptable 20

21 Questions? 21

22 Appendix: - Liberty (Technical) -Components, Project & Turbine Photos 22

23 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 23

24 Liberty 1 2 Hub Nacelle 3 Gearbox 4 Main Shaft Generators Parking Brakes Yaw System Machine Base Turbine Control Unit (TCU) 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 A A (C93) / WT A A (C96) / WT A A 2006 (C89) - USDOE s NREL Accredited Lab 12/04-3/05 : Drivetrain dynamometer test 24

25 Cedar Rapids, IA 330,000+ sq. ft Assembly/Manufacturing 25

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