EarthWind Energy LLC Overview May 21, 2008. 12-Jun-14Confidential Slide 2 EarthWind Wind Strategy A...

EarthWind Energy LLCOverview

May 21, 2008

Apr 11, 2023 Confidential Slide 2

EarthWind Wind Strategy

• A new window of opportunity exists in the renewable energy market sector

• An opportunity to combine other renewable technologies – solar and biomass/fuel coupled with wind to create more

predictable renewable generation • Seeking investment to expand its development

opportunities in the Renewable sector


Evolving US Market

• Many Utilities already have significant wind power• These Utilities are concerned with variability and its impact

as wind penetration increases.• Transmission doesn’t exist for many large scale wind farms• Wind energy’s daily power generation profile is not

coincident with load and peak loading.• Valuations of construction-ready projects have soared

increasing the valuation gap with early stage projects


Demand for Eligible Renewable Generation in WECC (GWh)

State Target Deadline Bundling Requirement

Banking Penalties

AZ 15% 2025 Yes All Years None

CA 20% 2010 Yes n/a $0.05/KWh

CO 20% 2020 No Five Years $0.055/KWh

MT 15% 2015 No $10/MWh not recovered in sales

NM 20% 2020 No Three Years None

NV 20% 2015 No Four Years Fines assessed on per kilowatt basis

OR 25% 2025 No All Years None

WA 15% 2020 No Three Years $50/MW if over 25,000 customers

WECC: Western Electricity Coordinating Council


Wind Energy Capacity Factor

• Wind Capacity Factor up to 40%• Wind as exclusive RPS source of energy requires:

– Accurate forecasting of Operational Reserves– Large spinning reserve load-firming capacity– Geographically distributed load-firming capacity– Over-investment in T-line capacity due to low load factor– Placement of an artificial cap on wind energy as a

percentage of the grid


Wind & Transmission

• The loading of the US power grid is already a topic of considerable discussion

• Large wind farms not co-located with reserve generation cause significant strains on grid loading

• Many utilities are interested in smaller strategically located power sources


Wind Daily Capacity vs. Loading

• Wind Capacity Decreases during utility peak loading hours

Source: New York State – Power Grid and Electricity Delivery Overview

0%

10%

20%

30%

40%

50%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2001

20022003

Hour of Day

New York State Hourly Daily Capacity Form Pattern Averaged over the Year

EarthWind Differentiation

1. EarthWind consults with utilities to see what their power requirements are – location, variability etc.

2. EarthWind combines multiple technologies including, solar, wind, biomass & firming power to best utilize an area’s green energy potential while matching the utilities needs.

3. EarthWind has an innovative approach to transmission development which greatly reduces the timeline of medium length ( ≤ 200 mile) lines.


Load Balancing / Firming

• Wind’s Capacity Factor makes it less attractive• Solar Energy is complementary as its peak capacity occurs

during Wind’s typically lowest capacity.– New technologies dramatically lowering the cost of solar energy– Solar averages 4 - 6 hours/ day generation around noon.

• Load Firming can be co-located providing both stable base load capabilities and uniform transmission loading– Renewable or non-renewable load firming options available


Project Overview

Project MW Pipeline

Walsenburg: Wind 400 to 600

Walsenburg: Solar 600 to 1,250

Colorado: Firming Power 600

Santa Theresa Solar 100

Eastern Canada Wind Farm 400

Total 2,100 to 2,950


EarthWind - Project One

• Walsenburg Area Energy Project– 400 to 800 MW of wind capacity– 600 to 1,250 MW of solar capacity– 600 MW of spinning reserve firming capacity

• Total: 1,600 to 2,650 MW Portfolio– Power transmission to 2 or 3 main substations– Potential purchasing utilities (Xcel, Tri-State, CSU,

Aquila)• Future Opportunities in other jurisdictions


W.E.P - Wind

• Walsenburg Area – GDA8 on following map– 2000 MW capacity potential– Wind Power Class 4 to 7 (400 - 800 W/m2)

• EarthWind identified up to 600 MW of power rights– Available for immediate lease or purchase


Denver

Colorado Springs

Walsenburg

WPC W/m2

1 <200

2 200 - 300

3 300 - 400

4 400 - 500

5 500 - 600

6 600 - 800

7 >800


W.E.P - Solar

• Walsenburg Area – – some of the best solar energy sites in the US

• The high altitude increases solar capture– Solar constant increases with altitude from 1000 W/m2 at sea

level.• Up to 4,000 acres can be acquired resulting in approximately

1,250 MW of solar potential• Land can have both wind & solar co-located via top lease

arrangement.


●Walsenburg


W.E.P. – Firming Power

• 3 Firming Power sites have been selected• 200MW/ site located near primary substations

– Each can firm ≈ 500MW of wind power• Projected operating cycle keeps firming sites under

“major source” permitting requirements• Firming power will be used to help secure PPA for

the solar and wind power projects


W.E.P. – Power Transmission

• Innovative tariff sharing licensing strategy– Successfully used in Colorado by Partner– Greatly reduces right-of-way acquisition

• Three nearby substations (30, 40 & 45 miles)• Proposed solar property can be used as a portion

of the transmission requirements• Allows market access by linking to multiple utilities


EarthWind - Project Two

• Santa Teresa Solar LLC– Up to100 MW Solar PV Solar Facility near El Paso, NM

• Initial 5 MW Stage for El Paso Electric• Proven Technology• Expansion potential available• Add Wind Farm – attractive wind regime• Potential Gas Firming


Earth Wind - Project Three

• Eastern Canadian wind farm• Potential of 400 MW• Potential power sales in Canada and/or the USA

– Upper NY State power sales possible


EarthWind LLC

• EarthWind brings expertise in:– Land acquisition / Permitting– Power Project Development – Data Collection & Analysis– Data Transmission Planning– Load Firming / Balancing Technologies– Utility Contract Negotiation– Non-recourse power project financing– Valuation


Management

Bill Williams, President 20 years of executive experience in the power development industry as CEO and founder of Altresco, Altresco Philippines and Luzon Power with several successful projects to his credit including the 160MW Altresco Pittsfield gas cogen plant that supplied steam to 5 different divisions of General Electric. Bill has developed projects in North America and Asia and directly and indirectly facilitated over a billion dollars in projects.Bill has also developed a gas pipeline project in Massachusetts and transmission facilities.

Peter Besenovsky , Chairman, Senior Energy and Financial Executive with 30+ years of experience in the electric power industry working in the Americas, Europe, and Asia. Past executive positions at architect/engineering firms, investment bank and as VP Engineering / Development at Westcoast Power with $3 Billion in development, engineering and non-recourse financing of clean and renewable power projects development, and acquisitions. BSME U of M, MBA University of Toronto, P.E., and NASD Series 7 & 63 licenses.

Victor Tkachenko, Chief Financial Officer Senior financial executive with 25+ years of experience, specializes in energy related project finance, venture development, technology commercialization, and turnarounds. He has worked in senior capacities for BNS, CL, CIBC and WestLB. Victor holds a B.Eng. (Chem), a Dipl. M. (Marketing), and an MBA (Finance & Accounting), all from McGill University. He obtained his Certified Turnaround Professional designation in 2003. Victor is a professional engineer (Ing.) in Quebec.


Management

Thomas A Sladek, PhD., Engineer/Analyst Is a Chemical engineer with broad experience in the development and use of unconventional; energy resources. He has fuel resources and waste management experience including bio based fuels. He has worked in the renewable energy sector including wind and solar resources. and their application. He has also been involved in gas generation and power project development internatinally.

Paul Prescott, Operations Manager,, Professional Engineer with over 30 years of experience working in the energy field, in depth experience with a variety of power plant types such as gas turbine, diesel engine, district heat and gas/biomass fired power plants. This includes feasibility/conceptual design studies, permitting, detailed plant design, equipment procurement, contract negotiations, plant construction, and plant O&M . BASE Honors, Cal Ploy; US Navy nuclear power school; PE


Key Personnel

Ian Mallory, Senior Advisor Past Senior Executive with Transalta Corporation, Westcoast Energy Inc. and ENMAX Corporation. Prior to his experience in the Energy industry he was counsel to the Treasury at the World Bank, in Washington, D.C.. Mr Mallory is a graduate of Harvard University, the University of Toronto, and Cambridge University, and was called to the bar of Ontario, Canada in 1986. He is an officer of Sea NG Corporation (marine transportation of natural gas), President of Pickworth Investments LP, and a Director of various private energy companies.

James Ross , Director, Advisor Senior Investment Banker and Executive with 25 years of experience focusing primarily on renewable energy, independent power generation and environmental companies. Past executive positions include President, Northstone Power, Vice President, Westlock-Algonquin Power, Wind Terra, Chief Financial Officer, Daxxes Corporation. Experience in M&A, including public offerings. Director of a number of private and public companies. B. Env University of Waterloo and MBA York University.

James Fitzowich, Senior Advisor, Energy executive with 20 years experience in the electric power, pipeline and EPC industries in North America. Proven track record in developing Independent Power Projects and companies, with commensurate experience in power and gas marketing & trading, venture & project financing, commercial contracts, US energy regulation, and operations. Past executive positions include EPCOR, TransCanada and TransAlta. Over $2 Billion in successful power plant and pipeline project development, acquisitions and divestitures, P. Eng U of A


Key Personnel

Scott Bullis, Advisor Senior Business Executive in the high technology sector including wireless, automated mapping for telecom and utilities, and manufacturing. Held CEO, COO & VP Marketing positions in Canada, USA, Romania and India. As Director of Canada’s National Quality Institute, ran the Canada Award for Excellence program (CDN equivalent of Malcolm Baldrige Award). Teaching Experience in Bus. Policy, Marketing, and Int. Bus. at York University. BSME Queen’s, MBA UWO, P.Eng APEO, CDN Securities Courses

Bruce Heafitz, Director Senior Financial Executive with 40+ years of experience in investment banking, technology, oil & gas, energy, and mergers and acquisitions. Past Founder of Heafitz, Widman, McMahon & Gardner (now First Reserve Corporation), a project finance hedge fund formed in 1979 focused on the energy business as well as various public and private energy companies in the exploration and development sector. Harvard BA, Columbia MBA, Columbia LLB, NASD Series 7 & 63 licenses.

EarthWind Energy LLC Overview May 21, 2008. 12-Jun-14Confidential Slide 2 EarthWind Wind Strategy A...

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