Ocean / Marine Renewable Energy: From the Orkney Islands to the Philippine Archipelago

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Ocean / Marine Renewable Energy: From the Orkney Islands to the Philippine Archipelago Marianne Eleanor Catanyag Business Developer Oceantera Energy Corporation www.oceanteraenergy.com

Orkney one of the world s most sustainable islands? The Orkney Islands

Buffeting Winds The maritime setting and northern latitude of the Orkney archipelago contributes to the windiness of the place. Winds often reach over 100mph during major storms and average wind speeds are typically 8-12m/s. Over 50 MW of wind turbine capacity is installed on the islands, with plant output factors typically as high as 40-45%.

Pounding Seas The seas of the Atlantic Ocean and the North Sea focus their energy on the coastal waters of Orkney, making it ideal for wave energy generation. Maximum recorded wave heights in the last 10 years have reached 16m. The average energy available is between 20-40 kw/m of wave front.

Raging Tides The deep water channels and exposed headlands of Orkney are subject to very strong tidal currents. Flow speeds reach over 16 kts or 8 m/s in the Pentland Firth and flows of 6 kts or 3 m/s are quite common throughout the islands.

Orkney s renewable energy resources Key Onshore wind New onshore wind 40 MW existing/planned 100-200 MW Total = > 5,000 MW deliverable capacity Wave Tidal Offshore wind Wave leases Tidal leases Mirco & other Gas & other EMEC sites 500-1000 MW 500-2,500 MW 1000 MW 550 MW 500 MW 2.5 MW 20 MW 5 + 7 MW Dispersed Dispersed and

107% of electrical demand in Orkney met by renewables in 2014

TAPCHAN _ Norway 1980 s early beginnings 8

1990 s laying the foundations Osprey wave energy device 9

2000 s decade of preparation THE GRID? 10

2010 s decade of delivery 11

Decade of delivery (2010s)

Decade of roll out 2020s 13

Test site support and regional centres of excellence EMEC OWET Cumbria Bellmullet Chile Taiwan Nagasaki Pacific PMEC Caribbean CMEC Singapore (NTU, ClassNK) South East Asia SEAMEC South America SAMEC Philippines? Caribbean Marine Energy Centre (planned)

Wave and tidal Marine energy markets: LONG TERM Grid electricity MEDIUM TERM Diesel replacement; water pumping and desalination (mines) SHORT TERM Remote diesel replacement

* 16 ORE Potential: Philippines (170 GW) Tidal Current Ocean Thermal Wave >80GW 1 3 2 Tidal In-Stream Energy Potential Sites Wave Energy Potential Sites OTEC Route to Grid Parity

SEA Case Study: Island with Industry

Case Study: Hybrid System for an Island Micro-Grids PV Tidal DG-100 DG -910 DIESEL Generators Only Power System Config. RE Fraction Excess Electricity Diesel GenSets (910, 100 kva) + Batt (576kWh) + Solar (300kWp) + Tidal (200kWp) Diesel GenSets (910kVA, 100 kva) + Batt (720kWh) + Solar (600kWp) LCOE (USD/kWh) 31.6% 12.6% 0.368 38.6% 20.1% 0.386 Diesel GenSets (910kVA, 100 kva)+batt.(1440kwh) 0.0 % 2.47% 0.456 Diesel GenSets (2x 910, 500, 100 kva) 0.0 % 14.5% 0.50 18

* Potential Feasible Installation Areas (Applied Depth-Mask of <100m) Energy Matnog Samar Capul Dalupiri San Bernardino 1-Month Energy Density, W-h/m 2 19

LCOE, IRR, Feed-in-Tariff Total Project (20-Years) 100 MW ~USD 378M ~USD 560M ~USD 984M CapEx = $ 233.2M OpEx = $6.63M/yr CapEx = $ 406.5M OpEx = $6.63M/yr CapEx = $ 810.2M OpEx = $6.63M/yr FIT (PhP/kWh) USD 2M/ MW (LCOE = $ 0.11/kWh) USD 4M/ MW (LCOE = $ 0.17/kWh) USD 8M/MW (LCOE = $ 0.3/kWh) 10 ROI = 95% IRR = 14% ROI = 32% IRR = 6% Profit = ~USD 358M Payback = ~6.5 yrs Profit = ~USD 177M Payback = ~11 yrs 13.5 ROI = 163% IRR = 21% ROI = 78% IRR = 11% ROI = 1% IRR = 3% Profit = ~USD 616M Payback = ~5 yrs Profit = ~USD 434M Payback = ~7.6 yrs Profit = ~USD 9M Payback = ~16.2 yrs 17 ROI = 232% IRR = 28% ROI = 124% IRR = 15% ROI = 27% IRR = 5% Profit = ~USD 873M Payback = ~3.5 yrs Profit = ~USD 691M Payback = ~6.3 yrs Profit = ~USD 267M Payback = ~12 yrs 200 MW FIT (PhP/kWh) 10 13.5 17 Total Project Cost (20-Years) ~USD 753.5M ~USD 1,117.3M ~USD 1,966.3M CapEx = $ 465.3M OpEx = $13.25M/yr CapEx = $ 811.8M OpEx = $13.25M/yr CapEx = $ 1,620.3 M OpEx = $13.25M/yr USD 2M/ MW (LCOE = $ 0.11/kWh) USD 4M/ MW (LCOE = $ 0.17/kWh) USD 8M/MW (LCOE = $ 0.3/kWh) ROI = 95% IRR = 14% ROI = 35% IRR = 6% Profit = ~USD 718M Payback = ~6.5 yrs Profit = ~USD 354M Payback = ~11 yrs ROI = 164% IRR = 21% ROI = 78% IRR = 11% ROI = 1% IRR = 3% Profit = ~USD 1,233M Payback = ~4.5 yrs Profit = ~USD 869M Payback = ~7.6 yrs Profit = ~USD 20M Payback = ~16.2 yrs ROI = 232% IRR = 28% ROI = 124% IRR = 15% ROI = 27% IRR = 5% Profit = ~USD 1,748M Payback = ~3.5 yrs Profit = ~USD 1,384M Payback = ~6.3 yrs Profit = ~USD 535M Payback = ~12 yrs

Suitability: Sites and Devices 21

Multi-Site, Multi-Device, Multi-Criteria Geographic Information System Suitability Maps Data Analytics Multi-Metric Scoring Tools

Strategic planning and advice Concept and project design, review and verification Research and concept feasibility testing Energy resource and market assessment Site selection and feasibility assessment Environmental impact assessment Technology testing and assessment Site-device matching and suitability studies Navigational risk assessment Mitigation and monitoring plan development Hazard identification and risk assessment Safe working method statements Health and safety management Marine superintendence

Key Take Away Points Ocean / Marine Renewable Energy is coming up. Having a Feed-in-Tariff is essential to progress ORE. Pilot, Demos, First movers are needed. Need to increase ORE allocation for commercial projects in the Philippines Clean Electricity (from the Ocean) is just one aspect, there are also jobs, industries, and other benefits

CONTACT US Oceantera Energy Corporation Unit 10-1 Fort Legend Tower Bonifacio Global City, Taguig City +63.917.894 6889 (Philippines) +65.9066 3584 (Singapore) +44.7850 130599 (UK) Thank You! Email: info@oceanteraenergy.com www.oceanteraenergy.com