--- Hi Energy VASWT ---Create Blue Ocean for Renewable Energy

Presented By

Hi Energy Technology Co., Ltd.

CONTENTS

I. Blue Ocean Overview Of Clean Energy:

II. Market Trend of SWT

II. SWT Market Study:

III. Opportunity & Threats Of SWT:

IV. Introduction Of Hi Energy VAWT:

V. Blue Ocean Strategy Of Hi Energy VASWT:

Blue Ocean Overview Of Clean Energy

•Blue Ocean Concept:

- Competition Red Sea vs. Innovation Blue Ocean

•Power Concept:

- Centralized Power vs. Distribution Power

•Prospective Renewable Technologies:

- LWT vs. Photovoltaic

•Blue Ocean Of Clean Energies:

- Distribution Power

Company Goal

Living With Nature

CORE BUSINESS

Residential & Micron Vertical Axis Wind Turbine

Company Profile

•Company Establishment: January 20, 2005

•Company Name: Hi-VAWT Technology Corp.

•Company Logo:

•Core Business: Design & Manufacture of VASWT

•Capital: US$ 4,000,000 by April 2009.

•Business Item: Design & Manufacture

•Current Employee Number:

-Taiwan: 19 persons

-China: 25 Persons

Production Factory

Taiwan Linkou

• Function: R&D, Operation

center & Production

• Factory space:1,250 sq meters

• Monthly Production Capacity:

200 sets DS3000

China Kunsan

• Function: Mass production

• Factory Space: 7,000 sq meters

• Monthly Production Capacity:

1,000 sets DS3000

Competition Red Sea

vs.

Innovation Blue Ocean

Competition Red Sea Innovation Blue Ocean

Compete in the existing market Create new market territories

Defeat competitors by price

competition through huge

production

Get away from competitors

Discover more demands Create and acquire new demands

Judgment between value and cost Break and create new value and

cost structure

Select either differential or low

cost strategy to organize company

goal

Chase differential and low cost

simultaneously by coordinating

company activities

Global Energy TrendRenewable energy are expected to:

• Grow quickly during years 2000~2020

• Start to boom during years 2020~2040

WP Target OF EU4% In Year 2008 To 30% by Year 2030

Nearly 4% of the EU’s electricity consumption is met by wind power

(2008), but this share could increase to almost one quarter by 2030,

Information from EWEA on July 2008

• Starting Feb. 2009, USA Federal government offers 30% tax rebate incentive for SWT. The incentive program of SWT is same as PV.

• USA SWT market grew by 73% in year 2008 and market sale was US$77 millions; AWEA forecasts USA SWT market will become 20 times bigger by year 2013 or US$16 billions annual sale.

• SWT standard including noise regulation will be published in late June 2009 and effective to apply in year 2012.

USA Market Grows Strongly

SWT Market in UK Has Been Growing in Average 2~3 Times Annually

BWEA forecast 60 millions British pounds by year 2009

Centralized Power Concept vs.

Distribution Power Concept

Centralized Power Concept•Power plant of billions watts

power generator operated by professional team.

•Supply power through grid network which is huge infrastructure investment

•Nuclear and gas power plants are traditional examples. LWT is the representative example of clean energy.

Distribution Power Concept• Small scale power generator for self power supply and operated by

amateur people.

• Power generator should get close to the user so as to reduce the power loss during power transportation.

• Diesel generator is an example of traditional power. PV and SWT are the choices of clean energies.

Grid-tied wind power Stand alone wind power

Blue Ocean Overview Of

LWT vs. PV

Global LWT Grows QuicklyAverage annual market growth reaches 32%;

Global LWT market amount was around US$15 billions or annual installed capacity of 15,197MW in year 2006 Global Annual Installed Capacity of Wind Power

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

MW

直條圖 1 移動平均　週期: 2 (直條圖 1)

Information From EWEA

Global PV Market Is Larger Than LWTAnnual average market growth is around 35%;

Global annual market amount hit US$20 billions or annual installed capacity of 2,249MW in year 2007

Annual Installed Capacity of PV

0

200

400

600

800

1000

1200

1400

1600

1800

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

MW

p

0

500

1000

1500

2000

2500

EU Global

Information from EIPA

PV vs. WP

Power cost of PV is 20 times more than LWT; but both market scale and annual growth of PV are larger than LWT

(Information from AWEA website)

Installed

Cost

(US$/W)

Electricity

Cost

(US$/kWh)

Pay

back Yrs

Potential

Cost Yr

2010

(US$/W)

Typical Site

LWT 0.9~1 0.035 Remote

Area

PV 8 0.61 25 3.0 Suburban

SWT 4 0.22 15 1.5 Rural

Distribution Power Trend Of PVDistribution power has been more than 95% of PV

application

Global Cumulative Installed PV

0

2000

4000

6000

8000

10000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

MW

Off Grid Grid-tied Distributed Grid-tied Centralized

Information from EIPA

Why PV Market Is Growing Quicker Than LWT Even The Cost Is Very Much Higher?

LWT PV

Power Application Centralized Distribution

Power Scale Large Small

Global Annual Market US$15 billions US$20 billions

Average Annual Market

Growth

28~32% 35%

Power Cost US$0.035/kWh US$0.61/kWh

Average Project

Investment

US$ billions US$ thousands

Users Professional Amateur

SWT Market Study

SWT Merits: Low cost of WP + Distributing Power of PV

LWT:

Centralized Power

Plant

Low Cost

SWT: Middle Cost,

Middle Scale,

Distribution PowerHigh Cost

Sm

all ScalePV: Distribution

Power

大型化趨勢

Larg

e Scale

Diesel Generator

2000kW

1kW

Sm

all Scale

Target Market Of SWT

AWEA Estimated Global SWT Potential Market In US$200 Billions By Year 2010 Or Average

US$20 Billions Annual

0

50,000

100,000

150,000

200,000

250,000

2000 2010 2020

Single home system

Village systems

Facilities

Miscellaneous

Total

Potential SWT (million set)

196 215 288

Install Capacity (GW)

80 131 212

Estimated Market (billion US$)

136 223 360

(Information From AWEA)

Actual SWT Global Market Sale is Only 0.5% Of The Potential Market

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

US$ x 1,000

2004 2005 2006 2007

Year

SWT Market Sale Reported by EWEA

US Market Sale US Manufacturers Export Total Global Sale of US Manufacturers

AWEA estimated global SWT market sale

was only US$10 millions in Year 2007

Market Comparison Of LWT/PV/SWT

Global Total Market Yr.2005 Yr.2010 Average Annual Growth

LWT 8 >10 26%

PV 9 >11 34%

SWT 0.09 0.32 16~25%

•Power cost of SWT is around 1/3 of PV, but total market of SWT is only 1% of PV

•SWT is confined to use in rural area

Equipme

nt cost

(US$/W)

Power Cost

(US$/kWh)

Return

Year

Target Equipment

Cost By Year 2010

(US$/W)

Installed

Site

LWT 0.9~1 0.035 Remote

PV 8 0.61 25 3.0 Sub-urban

SWT 4 0.22 15 1.5 Rural

(Unit: US$ billion)(Information From AWEA)

The Studies Of

Traditional SWT Problems

&

The Appropriated Solutions

Of Hi-VAWT

SWT Market Is Small

Because Of HASWT

Design Fails to Fit

SWT Distributed

Power Application

• Geographic Turbulence

Problem

•Noise Nuisance

Turbulence Area

Wind

DownwindUpwind

HASWT Design Fails To Handle Geographic Turbulence Problem Of

SWT Application

It is 45 (dB) even the HAWT is 300 meters away

Noisy Nuisance Of HASWT Makes It Unacceptable for Suburban Installation

HALWT

vs.

HASWT

Wind Direction Problem:• LWT is using anemometer to assure wind direction has been change and drive

servo motor to rotate wind turbine toward the correct wind direction. LWT is not sensitive to the random wind direction change.

• SWT designed with tail which expected to trace wind direction directly; but it results that SWT has been too much sensitive to the random wind direction change.

Noise Problem:• LWT is operating at rated 12~20 rpm; the noise is acceptable.

• SWT is operation at rated 500~1,200 rpm; the comparatively high rotor speed results in very high noise.

SWT Developing Roadmap

AWEA “American SWT 20-

Year Roadmap”

•Short-Term Goal (0~3 Years): Cost Reduction

•Middle-Term Goal (4~10 years): Controller improvement, noise solution and Power efficiency enhancement

•Long-term Goal (11yrs+ ):Hydrogen battery and other energy storage battery

Southwest Windpower developed low noise HASWT in yr.2006

Hi Energy VAWT Is Designed To

Fit SWT ApplicationVAWT Solution

•Excellent wind direction adaptability: fit to install at urban area such as roof of mansion.

•Completely silent: no noisy problem.

Japan SWT Market Research Done By Yano Economic Research Report In Year 2005

SWT Japan Market Survey Summarization

VASWT Will Replace HASWT(Amount Unit: million Japanese Yen)

Year 2001 2005 2008

Quantity Amount Quantity Amount Quantity Amount

<500W 1961 953 5320 2859 10694 9775

500W~1kW 168 150 436 495 309 532

1kW~20kW 95 381 701 1216 2801 4020

合計 2224 1484 6459 4606 13804 14327

HASWT 2081 1112 5121 2637 9041 4909

VASWT 49 78 900 1291 3463 6876

•Total Market: Average annual market growth is 40%

•Design: VASWT sale was only 7% of HASWT in year 2001;

but VASWT sale will exceed 40% of HASWT by year 2008

•Unit Price: VASWT is 3.67 times of HASWT

BWEA Accomplish SWT Standard To Be Applied In January 2009

Noise Level no more than 45dB has become the essential standard for SWT; HASWT will face noise level problem

Competition Comparison

Of

SWT

Idea Wind Turbine

SWT

LWT

Grid-connectedMPPTControl

System

Direct Drive,

Multi-pole,

Variable speed control

Motoring start, Clutch,

Coreless PMG

Gener

ator

Yawing System,

VAWT

Large Scale

Auto-brake & Mechanical

brake

Pitch Control for stall

Airfoil & attack angle,

Hybrid blade

Rotor

Wind

Direction

Adaptability

Low

Cost

Safety &

Life

High wind

EfficiencyLow Wind

Self Start

Key

Part

Shinko, Japan

E&E, Japan

Japanese VASWT Competition

•By year 2004:

There were 3 Japanese VASWT products selling in Japan market

•By year 2006:

Additional 7 Japanese companies launched for VASWT development.

Low Wind Cut-in Technology

-The critical criteria of a successful VASWT

Critical

Parts

Design

Challenge

Alternatives Potential Problem

Rotor Low wind

Self-start

Clutch Expensive Design

Genera

tor

Extreme

low start up

torque

Motoring Waste Energy

Hi Energy VAWT achieves low wind self-start

without clutch nor motoring

Hi Energy VAWT Excels Japanese VAWTE&E Shinko HiEnergy

Rotor Design D+S Hybrid D straight Blade D+S Hybrid

Tech. Source Waseta University Self-develop Self-develop

Commer. year 2003 2002 2005

Commercial 750W~20kW 340W~1.5kW 200W~3kW

Model No. HW-5A WK16-09 DS-200

Rated Power 750W 340W 200W

Weight 300kg 37kg 35kg

Swept Area 2.1m² 1.5m 0.657m²

Cut in WS ２m/s (Motoring Start) 4m/s (Motoring Start) 2.8m/s

Rated WS １3m/s １2m/s １2m/s

Cp 27% ２1.8% 30.89%

Motoring Start Failure Of Japanese VAWT

Reported By Japan DistributorNews Source : InterNet Daily News - Mainichi Daily Newspaper,

February 3rd, 2006

Citizen Group Requests An Audit for “Unmoving” Wind Turbine

Swaying “Dream Project” – Ibaraki Prefecture

For the Tsukuba-City’s “Mahoroba Project”, which plans to install totally 75 units of small typed wind

power turbines in 52 elementary and junior high schools in the city within 3years from the year 2004,

city group members stood up for making an audit request against the Mayor Kenichi Ichihara calling

for a reimbursement of the project expense of pprox. 300million yen for the reason that such the

sufficient power generation as expected in the target will be hardly achieved. “Dream project” which

is said to have two ideal aspects of environmental education and reduction of electricity consumption is

now widely swaying around.

After the investigation by the city group, however, total

generation while the turbines operated from July to

November last year was only 103kWh, which is only

0.002% of the planned 60,000kWh.

European VASWTs Are Not Commercial Yet

Quietrevolution/UK claimed to supply the 1st 2.8kW turbine in 2008

Ropatec/Italy changed design entirely in year 2007

Turby/Hol. Has claimed to start commercial supply for more than 2 years but

not.

North American

VASWTs Have The

Same Problem

Low Power Efficient Designs

Clean Field/Canada

using motoring start

Introduction Of

Hi Energy VAWT

Taiwan Government SBIR R&D Support Project

Project Number IB930046

Project Name R&D of VAWT Pre-study

Responsible Company Hi Energy Technology Co., Ltd.

Project Type Innovation

Project Stage R&D Study

Approved Support NT$650,000 or around US$20,000

Implement Duration 2005/4/1~2005/9/30

Project Number 2B950002

Project Name R&D of VAWT Implementation

Responsible Company Hi Energy Technology Co., Ltd.

Project Type Innovation

Project Stage R&D Implementation Stage

Approved Support NT$13,500,000 or around US$422,000

Implement Duration 2006/6/1~2007/12/31

University Joint R&D ProgramR&D Subject Consigned School

Direct

ProfessorR&D Method

Power Control

system

National Chin Hwa University, Electrical Engineering Dept.

Professor C.T. Pan

Maximum Power Tracking Technology

Generator

National Chin Hwa University Dynamic Power Dept.

Professor P.Z. Wong

2D/3D Magnetic Simulation

Air Dynamic National Taiwan

Technology

University,

Mechanical Dept.

Professor S.C.

Lin

Computerized Fluid Dynamic Analysis

Mechanical

Structure

Ansys Computer Simulation

Wind Tunnel

Test &

Verification

National Chen kong University, Aviation Dept.

Professor Z. Y. Miao

Torque Meter & Wind Tunnel Test

Darrieus Blades

Savonius Blades

Low wind self-start

High efficiency

Rotor Of Hi Energy VAWT

Low Wind Startup + High Wind Efficiency

R&D Of Wind Rotor

葉形選擇

400W風車初設計圖

CFD氣體動力電腦模擬

400W風車

模型機設計

400W模型機製造

機械結構Ansys 電腦模擬

音錘實體測試 風洞測試

加速規測試

Torque Meter

400W 商品設計與製造

發電機規格

電控器規格

大型化設計

Airfoil Proposal

200W Preliminary Drawing

CFD Simulation

200W Prototype Design

200W Mockup

Ansys Simulation

Impulse Hammer Test Wind Tunnel Test

Acceler-ometer

Torque Meter

200W Commercial

Generator Spec.

Spec. for controller

Scale up design of rotor

Traditional PMG Is Unable To

Achieve Low Wind Start

Hi Energy Coreless/Direct Drive

PMG Traditional PMG

R&D Of Hi EnergyDirect Drive Outer Rotor Coreless PMG

2D & 3D magnetic field simulation

Hi Energy Power ControllerOff-grid & Grid-tied system

P

t

opt

smU / 12

smU / 8

smU / 5

1.5kW Power Curve - Wind Speed v.s. Power ( Walt )

0

200

400

600

800

1000

1200

1400

1600

0 5 10 15 20

MPPT & Power Curve Of Hi Energy VAWT

Special controller technology to maintain rated power

at high wind to act as pitch control function of HAWT

Hi Energy VAWT

Product General Specifications

Product 300W 1.5kW 3kW 5kW 10kW

Dimen

sion (m)

A 1.24 2.8 4.0 5.5 7.0

B 1.0 3.2 4.5 6.2 7.7

Generator Direct Drive, Coreless PMG, Out rotor type

Converter

/Inverter

Stand alone battery

storage system

Dynamic grid

connected system

Cut in WS <3m/s Cut out WS 15m/s

Rated WS 12m/s Survival WS 60m/s

Black is commercial available; Blue is to be available in year 2010

Hi-VAWT Applications

Hybrid Street Lamp For Remote Area

300W WP+100W PV Hybrid Street Lamp System

Hybrid Street

Lamp System300W(WP)+85W(PV)+LED

2008/04 , TSMC, Taiwan

Hybrid Street Lamp System300W(WP)+85W(PV)+LED lamp

2009/9, Kunsan City , China

DS300 For Fishing Boat

Battery banks

International Funds

0.465Total Daily Power Requirement

0.0755151Radio

0.284701TV

0.115112LED Lamp

Daily (kWh)

Time (hr)

Pwr (W)

Q’ty(Set)

Loading

China Village Lighting Program Power Breakdown

DS300 For Off-grid Families

300W(WP)+200W(PV) in Gan-Su China

Off-grid Farmer

Ventilation Fan WP Recovery

LCD Manufacturer, AUI, Taiwan

400W Gird-tied Wind Power Recovery System

DS1500/DS3000 Roof Installation For Power

Supplemental

2008/12, Hong Kong

DS1500 High Building Installation 2009/2, Japan

DS3000 Promoting In UK

“Zero Carbon Home” or “Low Energy House”

DS3000 For Residential Power2008/10, Samsung Construction Korea

1.5kW(WP)+1.5kW(PV)

Telecom Station

2009/4 SKT Korea

300W(WP)+200W(PV)

DS3000~10kW + Heat Pump For Water Heating

Power Supply

300W(WP)+85W(PV)Monitoring System

2009/2 Incheon Water Supply Corp.,

Korea

DS3000 For Remote Island

DS3000 For Resorting Hotel

2008/4, India

Sightseeing Village

2009/2, Parking Lot, Taiwan 2008/10, Highway, Taiwan

2009/7, Germany

Advertising Board

2009/9, Boston USADS3000 Grid-tied in School

DS3000 Grid-tied in Factory 2009/6, Dallas USA

Product Roadmap

DS300

DS1500

DS3000

Battery

Grid-tied

Hybrid Street Lamp

Ventilation Fan Recovery

LED Light Advertising

System

Power Supply For Tele-communication

Station

DH5K

DH10K

DH1K Light weight DIY Turbine

Community Applications

UL and VDE

Patent Status

Patent Item Patent type TWN China Japan

Wind Rotor (1) New Style D115854

Wind Rotor (2) New Style D115855

Clutch New Type M288334

Optimum Ratio Between Savonius & Darrieus Blades

Invention 94137850

Double Axis Structure VAWT New Type M310950 200620160785.X

特願2006-266733

Appropriate Generator New Type M312834

Out-rotor Generator New Type 96210000

Special Dumper New Type Applying Applying

Power Factor Control New Type Applying Applying

• Green color for patented items; black color for patent pending items

• Patent pending since April 2008 in USA, Germany, UK, India and Korea

CE Certificate

Blue Ocean Strategy Of Hi Energy

•Trend Business: Clean energy assure as future business trend

•Innovation: Solve the problem of HASWT and expand SWT market

•Cost Competition:Taiwan has the best cost and industrial background in the world to support competition cost

•30% cost reduction of distribution clean power

•Create new market for SWT

SWTBuying Value added

Clean Distribution Power

Value

Innovation

Cost Reduction

Thank You

For The Attention