VALMONT WIND ENERGY, INC.

MODULAR TOWER SYSTEMS

Presentation Overview

• Bigger Machines

• Modular Tower Systems (MTS)

• Transportation Restrictions

• Flexible site Management

• Standardized Transportation Loads

• Cost Benefits and Comparisons

Is BIGGER always better?

• Larger wind turbines – 2.5 MW – 3 MW w/ 100 meter rotors

• Larger Tower– 70 – 100 meters– 100 – 200 tons

• Larger Trucks– Custom heavy haul trailers

Is BIGGER always better? (Cont.)

• Larger Cranes– 400 – 600 ton crawlers with 400’ booms

• This all equals more efficient turbines…

But also:

• More expensive transportation and installation

• Over length – 85’• Over width – 14’ • Over height – 14’• Over weight – 115,000 lbs• Painted surfaces prone to scratch = RUST• Tower is often an afterthought by the

turbine manufactures

Tower Transportation today

Base section 80m tower

TRANSPORTATIONConventional 80m Tower:

• Over Length / Over Width / Over Height / Over Weight• Cost: $60-80K for 500 Miles Transportation

MTS:• Ships Via Standard Flatbed Trailers• Cost Savings on Freight: 50-70%

MTS: Modular Tower Systems- Broad Market Application- Mimics Industry Standard Tapered

Design- Increased Bottom Diameter Options- Conventional Crane Installation- Low Freight Costs- Multiple Coating Options- ‘Simple’, Low-Labor Content

MTS PRIMARY COMPONENTS

T-FLANGES TRANSITION CASTING

PETAL FRICTION PLATE

PETALS

• Allows For Very Large Diameters• Enables Increased Tower Heights• Opportunity To Use Lower Strength Steel (A-36)• Dependent Upon Use Of Bolted Connections• Can Be Galvanized• Thickness Range: 3/8”-1” For Towers Up To 2.5MW/80m

FRICTION PLATES

• Bolted Friction Connection• Excellent Fatigue Characteristics• Commonly Used in Bridge Construction World Wide• Allows for Complete Installation from Inside the Tower

T-FLANGES

• Segmented Base Flange Design• Addresses Freight & Field Installation Objectives• Standard Anchor Bolt Connection to Foundation• Friction Plate Connection to Tower

TRANSITION CASTING

• Cast Design• Solves Geometry Transition Issues• Mates Seamlessly with Turbine Base Flange• Most Technically Complex Component of MTS Design

WIND ENERGY

WIND ENERGY

Hub height: 65 meters

Weight: 220.000 lbs

Sections: 4

Petals per section: 4

Standard trucks: 7

First installation: December 2nd 2005

Competitive Advantages

• Standard transportation to site– $70,000 vs. $16,000 (500 miles)

• Site assembly– Less than $9,000 per tower

• Tower price FOB factory– Same or lower than conventional

Competitive Advantages (Cont.)

• Tower Installation– 4 sections vs. 3 sections

• Savings are site dependent

• Faster lead time than conventional towers

• Working closely with Developers and Manufactures to optimize savings.

Recent Market Trends

• Surging fossil fuel prices put alternatives in the spotlight

• With low volatility, wind is becoming interesting to large utilities

• Disruption of the U.S. oil production as a result of Hurricane Katrina and Rita has put upward pressure on the oil prices

Recent Market Trends (Cont.)

• Elevated natural gas price and high volatility plus political initiatives, should spur broader interest for alternative energy among U.S. utilities.

• Wind is currently the lowest cost alternative• Declining interest rates will improve wind energy

competitiveness further.

                                                                                                                                                                                              

                 

THANK YOU!