Sharing Knowledge Across the Mediterranean Malta, May 5th. 2011

OSMOTIC POWER - DEVELOPING A NEW, RENEWABLE ENERGY SOURCE

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A CENTURY OF EXPERIENCE

3200 EMPLOYEES..

89% 277 POWER AND DISTRICT

HEATING PLANTS

33% OF NORWAY’S POWER GENERATION

RENEWABLE ENERGY

...IN MORE THAN

20 COUNTRIES

WITHIN RENEWABLES IN EUROPE

No. 1

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  Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies

  Osmotic power forms a natural part of the new renewable energy portfolio, providing clean baseload energy with low environmental impact,..

 ...requiring cost reductions, a conducive policy framework and a critical mass of developers to succeed

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  Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies

  Osmotic power forms a natural part of the new renewable energy portfolio, providing clean baseload energy with low environmental impact,..

 ...requiring cost reductions, a conducive policy framework and a critical mass of developers to succeed

Renewables (electricity) in Europe TWh

~ 600 Today

Source: Statkraft, EREC, ECF

800- 3000 (by 2050)

~ 600 (by 2020)

2°C 2050

Wind

Hydro

Bio-energy

Geo-thermal

Solar

Ocean

HIGH GROWTH IN RENEWABLES

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  Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies

  Osmotic power forms a natural part of the new renewable energy portfolio, providing clean baseload energy with low environmental impact,..

 ...requiring cost reductions, a conducive policy framework and a critical mass of developers to succeed

8 Company presentation 2009

OSMOTIC POWER A NEW, RENEWABLE SOURCE OF ENERGY

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  Baseload

  Small ecological footprint

  Decentralised source of energy

  Based on proven technology

WHY OSMOTIC POWER?

ABUNDANT RESOURCES

Source: Statkraft

  Global potential:1600 - 1700 TWh/year

  European potential: 180 TWh/year NO: 12 TWh

NL: 18 TWh

UK: 22 TWh

IRL: 12 TWh

FR: 35 TWh

ESP: 12 TWh

Technical potential

Theoretical potential

OSMOTIC POWER OPPORTUNITY

Site criteria's • Salt water with sufficient salinity • Limited need for pre treatment of fresh water and salt

water upstream membranes • Short distance between salt water and fresh water • Available site • Support and incentive schemes applicable for OP • Existing consenting

 Global potential: 1600 - 1700 TWh/year *

 European potential: 180 TWh/year *

* Source: Statkraft

• “Proof of concept” • System scale-up • “Moving down the learning curve...” • Membrane and component testing and optimisation • Operation and maintenance experience • Meeting place for manufactures and utilities

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  Meeting future energy and climate needs requires high growth and huge investments in renewables, across a broad range of technologies

  Osmotic power forms a natural part of the new renewable energy portfolio, providing clean baseload energy with low environmental impact,..

 ...requiring cost reductions, a conducive policy framework and a critical mass of developers to succeed

Forecast 2020 other

technologies

COMPETITIVENESS

Hydro, running

Biomass

65

115

Wind, offshore

55

90

65

110

160

Solar, CSP

Nuclear

85

Gas, CCGT Oil, CC

65

Wind, onshore

80

Coal, PCC Hydro, dam

LCOE €/MWh1

1. Levelized cost of Energy 2. Source: EU Second Strategic Energy Review (2008), Moderate fuel price scenario; BCG

Osmotic Power 50-100 €/MWh

by 2030

JOINT EFFORT TOWARDS MARKET

• Manufacturers invited to test technology at Tofte

• Tofte to become a preferred location for technical OP research

• Tofte capabilities make Statkraft an attractive partner for membrane & component manufacturers • Create demand for osmotic

power among other energy utilities

• Increase awareness of osmotic power also outside Statkraft core markets

Utilities

Manufacturers

• Increase awareness of osmotic power

• Use Tofte as a meeting place for governments representative

• Invite representatives from sites deemed attractive for pilot and demo plants

Governments

OP is spreading across the world  30 plants in operation worldwide (10 in Statkraft operation)  Support schemes have helped OP move down the learning curve  Price of OP power is 50-100 €/MWh

OP an important business for Statkraft  OP breakthrough has given a major publicity boost to Statkraft  Statkraft has a leading position in OP operation in Europe

Osmotic Power – towards 2030

Feasibility Prototype 2 MW Pilot

25 MW Demo Vision towards 2030

2009 2013 ~2018:

Statkraft operated

Other utility operated

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Mtg Mr. Mathers October 14, 2008

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