Alterra presentation sep

download Alterra presentation   sep

If you can't read please download the document

  • date post

  • Category


  • view

  • download


Embed Size (px)

Transcript of Alterra presentation sep


2. Forward-Looking InformationThis Presentation contains certain forward-looking information within the meaning of Canadian securities laws, which may include, but isnot limited to, statements with respect to future events or future performance, managements expectations regarding Alterras productioncapacity, results of operations, cash flows, revenues and requirements for capital, future demand for and prices of electricity, and Alterrasbusiness prospects and opportunities.These statements reflect the current views of Alterra with respect to future events and are necessarily based upon a number ofassumptions and estimates that, while considered reasonable by Alterra, are inherently subject to significant business, economic, politicaland social uncertainties and contingencies. Many factors, both known and unknown, could cause Alterras actual results, performance orachievements to be materially different from the results, performance or achievements that are or may be expressed or implied by suchforward-looking statements contained in this presentation, and Alterra has made assumptions based on or related to many of thesefactors. Such factors include, without limitation: fluctuations in currency markets (particularly with respect to the Icelandic krona, the U.S.dollar and Canadian dollar); risks related to the technological and operational nature of Alterras business; changes in national or regionalgovernments, legislation, regulation, permitting or taxation; political or economic developments in Canada, the United States, Iceland orother countries where Alterra may carry on business; risks and hazards associated with the business of renewable energy generation;risks relating to the creditworthiness and financial condition of suppliers and other parties which Alterra will deal with; inadequateinsurance or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with and claims by localcommunities and First Nations; availability and costs of equipment and labour; litigation; the success and timely completion of plannedexpansion and development programs; the growth rate in net electricity consumption; support and demand for renewable energy;government initiatives to support the development of renewable energy generation; the reliability of technical data and capital expenditureestimates; and availability of capital to fund development and expansion programs. Forward-looking information and statements are alsobased upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur.Although Alterra has attempted to identify important factors that could cause actual results to differ materially, there may be other factorsthat cause results not to be as anticipated, estimated, described or intended. There can be no assurance that the forward-lookinginformation will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information.Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicablesecurities laws, Alterra does not assume any obligation to update or revise such forward-looking information to reflect new events orcircumstances.2 3. Alterra Power Corp - HIGHLIGHTSMagma Energy (founded 2008) acquired Plutonic Power in May 2011;name changed to ALTERRA POWER CORP.Pure play clean energy company: geothermal, wind, hydro and solar assets3 year growth metrics RevenueEBITDA MW Capacity Power Production $120$70 400 2,000Millions USD Millions USD $100$60 $50 300 1,500$80 $40 GWhMW$60$30 200 1,000$40$20 $10 100500$20 $- $- $(10)00Jul/08 - 2010 2011e Jul/08 - 2010 2011eJul/08 - 2010 2011e Jul/08 - 2010 2011eDec/09Dec/09 Dec/09Dec/09Organic growth prospects could drive capacity > 800 MW by 2016 363 MW Geothermal62 MW Hydro80 MW Wind 5 MW Solar 510 MWValue proposition strong production growth, unrivaled development pipeline, world classgeothermal discovery prospects, strong financial capacity for new growth3 4. Alterra Power - A Leading Renewable Power ProducerMay 2011 Magma Energy + Plutonic Power = Alterra PowerImproved Scale Geographic Diversification Larger production base Iceland, Canada, United States,Chile, Peru and Italy Expanded growth pipeline andgrowth potentialDiverse Generation Base Lower Cost of Capital Geothermal, Hydro, Wind, Solar Larger scale and enhanced liquidity Enhanced buy-side interest Enhanced Operations Complementary talent pool Organizational synergies (overheads, industry expertise, etc.) of ~$2.2 MM Optimization of partner relationships4 5. Balanced Portfolio - Global Exploration & Operations ICELAND: 2 geothermal power plants with 175 MW capacity (75% Alterra) Additional 130 MW of defined expansion plans 80 MW of expansions underway WESTERN CANADA: Toba-Montrose hydro plants with 236 MW capacity (40% Alterra) Dokie wind farm with 144 MW capacity (51% Alterra) 124 MW Upper Toba expansion and 156 MW Dokie 2 expansion WESTERN USA: 16 MW geothermal power plant with expansion potential Excellent government support for geothermal projects 12 other early stage properties CHILE Very large (320 MW) inferred resource discovered at low cost Emerging renewable power markets with world-class potential Strong government support for geothermal projects Active exploration concessions covering in excess of 158,000 ha FURTHER GROWTH ASSETS IN ONTARIO, ITALY AND PERU5 6. Assets & Pipeline CapacityProjectGross AXY Share TechnologyOperating (2011)Soda Lake 16 MW 16 MW GeothermalSvartsengi75 MW 56 MW GeothermalReykjanes 1 & 2100 MW 75 MW GeothermalEast Toba & 236 MW 94 MW HydroMontroseDokie 1144 MW 73 MW WindTotal Capacity571 MW 315 MWAnnual Net Generation 1,575 GWhOperating Additions (2016)Upper Toba 124 MW62 MWHydroOntario Solar 50 MW 5 MWSolarReykjanes 3 & 4 80 MW60 MWGeothermalDokie 2156 MW80 MWWindMcCoy 15 MW15 MWGeothermalMaule 50 MW50 MWGeothermalEldvrp 50 MW38 MWGeothermalOther (e.g. Chile, Iceland)200 MW200 MW GeothermalPipeline Total 725 MW510 MWTotal Capacity1,296 MW 825 MW6 7. Outstanding Developer Track RecordSuccessful developer track record across renewabletechnologies Proven ability to develop and deliver large new assets at greenfield locations Development teams from all these projects remain substantially intactRecent project successesWindDokie 144 MW2011 CODHydro Toba Montrose 236 MW2010 CODGeothermalReykjanes 100 MW2006 CODNear term organic growth - all near existing operationsWindDokie 2 156 MW COD 2014EHydro Upper Toba124 MW COD 2015EGeothermalReykjanes 3/480 MW COD 2013-14E7 8. Overview - Svartsengi and Reykjanes in IcelandAlterras 75% - owned subsidiary HS Orka owns two geothermal power plants insouthwestern IcelandFacilities Svartsengi and Reykjanes Electricity production 175 MWCapacity Thermal (hot water) production 150 MW th 75% - AlterraOwnership 25% - Jarvarmi (Icelandic Pension Funds)Start of Operation 1978 for Svartsengi and 2006 for Reykjanes Four PPAs with terms expiring from 2011 to 2026, for totalPower Purchase 1,082 GWh/ year; additional power sold on one-year contractsAgreements 46% of power sales paid in USD and linked to aluminum price $170 MM total company debt with average 9 years to maturityProject Debt and average 2.645% effective current interest rateRevenue 2011E project revenue of $64 MMEBITDA 2011E project EBITDA of $27 MM8 9. Overview - Soda Lake in NevadaAlterra owns a 23 MW geothermal power plant near Fallon in northern NevadaFacilities Soda Lake 1 and Soda Lake 2Capacity 23 MW, currently operating at 16 MW grossOwnership 100% - AlterraStart of Operation 1987 & 1991Power Purchase Two PPAs to 2020 with NV Energy for total 84 GWhAgreementProject Debt NoneRevenue 2011E project revenue of $5 MMEBITDA 2011E project EBITDA of $1 MM9 10. Overview - Toba Montrose Project in B.C. Alterra owns a 40% economic interest in two recently completed run of river hydroelectric generation facilities in southwestern British Columbia Facilities East Toba River and Montrose Creek Capacity 236 MW 60% - GE EFS Ownership 40% - Alterra Start of Operation 2010 Electricity Purchase EPA to 2045 with BC Hydro (710-730 GWh / year) Agreement $470 MM total project debt with 35 year amortization and Project Debt6.4% effective interest rate 2011E project revenue of $74 MM Revenue Includes $10/MWh ecoEnergy Program incentive 2011E project EBITDA of $60 MM EBITDA $24 MM net EBITDA to Alterra10 11. Overview - Dokie Wind Project in B.C. Alterra owns a 51% economic interest in the recently completed Dokie Wind Farm, located in northern British Columbia Facilities Dokie Wind Farm Capacity 144 MW 51% - Alterra Ownership 49% - GE EFS Start of Operation March 2, 2011 Electricity Purchase EPA to 2036 with BC Hydro (320-340 GWh / year) Agreement $175 MM total project debt with 20 year amortization and Project Debt7.2% effective interest rate Annual project revenue of $35 - $40 MM Revenue Includes $10/MWh ecoEnergy Program incentive Annual project EBITDA of $27 MM EBITDA $14 MM net EBITDA to Alterra Alterra and GE own rights to expand the Dokie Wind Farm,subject to feasibility confirmation and a successful EPAnegotiation with BC Hydro Expansion Wind assessment, turbine layout, infrastructure and financialstudies currently ongoing11 12. Overview - Option on ABW Solar in Ontario Alterra has an option to acquire a 10% interest in a portfolio of solar facilities from First Solar, to be built in Ontario Facility 3 solar facilities in southwestern Ontario Amherstburg 10 MW Capacity Belmont 20 MW Walpole 20 MW Proposed 90% - GE EFS Ownership 10% - Alterra Late 2011 early 2012 Start of Operation Construction to start in 2011