OYSTER 800 – GREEN ENERGY OUT OF THE BLUEMartin McAdam, CEO

Is nuclear energy as sustainable as solar and wind energy - or geothermal and wave energy for that matter?

Nuclear Production

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• There are now over 440 commercial nuclear power reactors operating in 30 countries, with 350 GW of capacity.

 • They provide about 13% of the

world's electricity. 

WAVE ENERGY

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Aquamarine Power is a technology company that has developed a product called Oyster which produces electricity from ocean wave energy.

We are now seeking project joint venture partners and a

financial partner to commercialise Oyster.

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WAVE ENERGY ADVANTAGES

• Exploitable wave resourceo Estimated at 80,000TWh/year (electricity

world consumption x5)• Size of the market for Oyster

o £192bn - global Oyster marketo 64GW - global Oyster resourceo 14GW - European Oyster resource

• Enhanced national energy security• Diversified/enhanced renewable portfolio

o Reduces variability o Enhances system stability o Lowers balancing costs

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• Carbon Trust analysis has shown that the UK could capture just under a quarter of the global marine energy market.

• Equivalent to up to £76bn to the UK economy by 2050, this growing sector could also generate over 68,000 UK jobs.

WAVE ENERGY AND THE UK

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Does anyone care?

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SHAREHOLDERS

• Global power and automation group

• Operations in over 100 countries - 117,000 staff

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• UK’s leading generator of renewable electricity

• Over 3,500MW of renewable energy capacity

• Investment arm of Scottish Government

MARTIN MCADAMCHIEF EXECUTIVE OFFICER

MATTHIAS HAAGCHIEF OPERATING OFFICER

RICHARD ROUNDCHIEF FINANCE OFFICER

• 30yrs financial/operational experience in renewables, oil, gas, coal and mining sectors

• Proven track record of raising finance and operating in developing global markets

• Formerly of Novera Energy Plc, one of UK’s leading renewable energy generators

• Track record in oil, gas and wind industry

• Former general manager for Shell wind energy projects on a global basis

• Project managed North Sea Dutch Offshore Windpark

• Track record in building successful large-scale renewable businesses

• Founder of Airtricity’s North American operations, sold to E.On in 2007 for £0.75bn

• Proven leadership skills

MANAGEMENT TEAM

DR. SIAN GEORGEHEAD OF COMMERCIAL DEVELOPMENT

• Track record in start-up business development and raising public finance

• Proven experience of securing marine consents

• Leading role in EU, UK and Scottish government marine energy industry advisory groups

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PROF. TREVOR WHITTAKERRESEARCH ADVISOR TO BOARD

PROF. STEPHEN SALTERSPECIALIST TECHNICAL ADVISOR

ALLAN THOMSONCOMPANY FOUNDER

• Leading developer of wave power technology in UK

• Founded first ever wave energy company

•Developed Limpet, commercial-scale 500kW device in 1999

•Professor of Engineering Design, University of Edinburgh

•Pioneer of wave energy since 1970s

•Developed Salter Duck, ground-breaking wave energy device, in 1970s

•Professor of Coastal Engineering and Head of Wave Power Research Group, Queen’s University, Belfast

•Experience of five wave power sea-trials to date including Islay 75kW plant

•Pioneered wave powered navigation buoys in 1984

INDUSTRY EXPERTISE

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DR PADDY O’KANECHIEF TECHNICAL OFFICER• Former Head of Engineering &

Wind Resource Assessment at SSE Renewables

• Track record of overseeing technical design/specification of £2Bn renewable projects

•PhD in electrical engineering from Queen’s University, Belfast

OYSTER TECHNOLOGY

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• Shore-based electricity generation

• Simple• Survivable 12

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OYSTER 1

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Oyster 1:

• 315kW demonstration device• Installed at EMEC 2009

Oyster 1 delivered:

• > 6000 operating hours• Up to 100kW generation, consistent with design

predictions• Peak power close to 300kW• Approaching 24hr continuous generation• Survival through two winter seasons – meeting its

two year design life requirement

Oyster 1 in operation off coast of Orkney Scotland, 2010

Oyster 1 in operation off coast of Orkney Scotland, 2010

OYSTER 800

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Oyster 800:

• 800kW demonstration device• Manufactured in Scotland 2011• Installed at EMEC – September 2011• Due to be grid-connected later this year• Two further devices to be installed in 2012 and 2013 –

connected to one 2.4MW onshore power plant

Oyster 800 offers:

• significantly improved power generation• reduced cost of power• simplified marine installation process• easier routine maintenance

Installation of Oyster 800 device – September 2011

Oyster 800 project onshore power plant

OYSTER 801 and OYSTER 802

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• Simpler to install – monopile rather than two piles • More cost effective – cylinder concept reduces steel

requirement• More efficient– improved hydro-dynamic shape• More economic – lighter and cheaper than Oyster

800• Route to value - fabrication from FRP materials to

take advantage of weight saving properties

REDUCING THE COST OF POWER

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-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Oyster 1 Oyster 2a Oyster 2b Oyster 2c Oyster 3 Oyster 4

Offshore Installation

Onshore PTO

Pipelines

WEC complex parts

WEC Metal & Metal work

Design & R&D

Project Management cost

Why do we need wave power?

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• In 2004 DECC predicted oil prices to be at $23/bbl in 2011

• In 2011 (today) Brent Crude is trading at $123/bbl

• Energy prices this year have increased by 20% in the UK

• The key driver of this price increase is the underlying fossil fuel price

IMPACT OF RENEWABLES ON CONSUMER BILLS

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Renewables Obligation4%

Wholesale energy costs46%

VAT and other costs34%

Social spend obligation1%

Gross margin15%

Total = £621

Source: Energy Supply Margins: Update September 2011, NERA Economic Consulting

Breakdown of average annual bill for UK electricity-only customers, September 2011

IMPACT OF RENEWABLES ON CONSUMER BILLS

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2010 2015 20200

20

40

60

80

100

120

140

160

Addition due to Renewables Obligation and Feed-in TariffsBaseline retail price projections

£/MWh

4%

9%16%

Source: Estimated impacts ofenergy and climate change policies on energy prices and billsDECC, July 2010

Estimated impact of Renewables Obligation and Feed-in Tariffs on average

UK domestic retail electricity prices (£/MWh)

• Cost of doing renewables is tiny compared with the underlying price volatility in the fossil fuel prices.

Gas price forecast

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DECC UK wholesale gas price projections October 2011

DECC GRANT SUPPORT FOR ENERGY SOURCES

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Nuclea

r

Renew

ables

Oil and

Gas

Carbon

Captur

e and

Storag

e

Other L

ow Carb

on

Historic

al Ene

rgy Li

abiliti

es (N

uclea

r and

Coal)

0

500

1000

1500

2000

2500

Departmental expenditure(£ million)

Source: http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm110620/text/110620w0005.htm

DECC direct expenditure by energy technology, 2011-12

PUBLIC SUBSIDY FOR NUCLEAR

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Nuclear Decommissioning Authority – > £2 billion per annum

Future deep geological disposal – forecast £14 - £20 billion

Insurance liability – to be capped at £1 billion – (Tokyo Electric Power Co. requesting $9.1 billion state aid (first tranche))

Conclusion

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Wave energy offers a huge opportunity for electricity generation.

There are challenges but they are significantly fewer than the challenges of managing the legacy of nuclear power.

When compared with nuclear power and counting the vast nuclear subsidies wave power offers a real alternative to powering our world

Wave power offers an excellent ethical TBL investment opportunity

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MARTIN MCADAMCHIEF EXECUTIVE OFFICER

AQUAMARINE POWERELDER HOUSE, 24 ELDER STREETEDINBURGHEH1 3DXUNITED KINGDOM Tel: +44 131 524 1421Fax: +44 131 524 1444Mobile: +44 7590 350100Email: martin.mcadam@aquamarinepower.comWeb: www.aquamarinepower.com

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