2. Doing Renewable Business in the Isle of Man Manx Tidal Energy Ltd

3. The Derillion Group has successfully been awarded three potential tidal energy sites within the Isle of Man’s Territorial Waters. Manx Tidal Energy Ltd has been successful in obtaining the tidal stream site in the North of the Isle of Man (Point of Ayre); The potential energy from this site could initially be 120MW; Langness Tidal Energy Ltd has been successful in obtaining the tidal stream site in the South of the Isle of Man (Langness Point); The potential energy from this site could initially be 60MW; Kitterland Tidal Energy Ltd has been successful in obtaining the tidal stream site in the South of the Isle of Man (Calf of Man Sound); The potential energy from this site could initially be 30MW;

4. Derillion Energy Limited Derillion Energy Limited will be the new parent of the group’s renewable energy projects. (Local Isle of Man Company) Derillion’s Asset Management Division will be responsible for the delivery of the energy to the UK through a new interconnector. A new local company will be formed for this venture “MACS Link Limited”. The interconnector will be a state of the art 144kva AC – AC link with the UK and will support multi-channel fibre optics. This will give the potential for 200MW of power to be delivered in either direction.

5. Tidal Energy Types (wave and barrage) 1.Wave power, where devices lie on the surface and are activated by wave motion. This is not what Manx Tidal are doing! 2.Tidal barrage, where sea water on the incoming tide generates power through turbines situated in the barrage wall. Energy is then generated when the tide recedes but sea water is retained and released over a period to reduce the power surges. This is not what Manx tidal are doing! 3.Wave piercing turbines. Similar to the 1MW turbine in Strangford Lough which is visible at low tide. This is not what Manx Tidal are doing! 4.Combination devices. In future it be possible to incorporate these devices into the water column.

6. Tidal Energy Types (wave and barrage) Variations on a theme (tidal barrage)

7. Tidal Energy Types (wave and barrage)

8. Tidal Energy Types (tidal stream) 1.Tidal stream or tidal current energy is generated when the incoming tide moves millions of tonnes of water across a series of sea turbines similar to wind turbines but bottom mounted. Water is 832 times denser than air so the torque of the incoming tide turns turbine blades at depths of between 10-60m; 2.Tidal turbines vary in size and construction from 10kw to 1.5MW; 3.They can be small, less than 5m in diameter, to the larger turbines which are 27m tall with blade diameters exceeding 20m; 4.They can be bottom mounted using piles or gravity bases but can also be floating devices using flotation chambers which hold them in the maximum tidal flow.

9. Tidal Energy Types (tidal stream) Variations on a theme (gravity base)

10. Tidal Energy Types (tidal stream) Variations on a theme (piled base, power driven to face tidal stream )

11. Tidal Energy Types (tidal stream) Variation on a theme (piled base, bi-directional)

13. Point of Ayre Tidal Stream Energy – Manx Tidal Energy Range from 2.5 to 3.5 m/s with several hotspots in excess of 3.8 m/s using 1MW or 1.5MW proven turbines; Area awarded for survey purposes is over 146sq/km; The whole area will be surveyed and hot spots identified for seabed based turbine placement; Site relatively close to shore in an area with very little other activity; The Port Facilities at Douglas or Ramsey will be used for survey and later installation and maintenance; Site has very little environmental activity based on current survey reports.

14. Castletown Tidal Stream Energy – Langness Tidal Energy Smaller shallower site suitable for smaller seabed turbines and/or mid mounted turbines; Access to grid within four kilometres; Tidal speeds from 2.5 m/s to 4 m/s according to current surveys; Access to Port facilities in Castletown or Douglas; Extensive business park areas close by for research on turbine dynamics; Greater environmental issues for EIA; Totally invisible.

15. Calf of Man Tidal Stream Energy – Kitterland Tidal Energy Smallest site to be used for turbine development purposes; High environmental impact with extensive wildlife and topographical issues; Use of low impact environmentally friendly technology; Tidal flows of 2.5 m/s to 3.5 m/s in certain areas but 8 m/s in selective areas; Possible conflicting tides; Area of outstanding beauty requiring careful planning and development; Totally invisible.

16. MACS LINK Limited Interconnector The cable route is being explored with a view to delivering upwards of 180MW direct to UK using AC cable; AC/DC conversion on Island if required for battery storage purposes; Spare capacity of 50MW in initial phases which could be utilised for solar arrays; Energy delivery under appropriate subsidy regime; National Grid options under discussions; Technology partners chosen and initial funding in place.

17. Method of transmission (land) 1.Cables will be required to bring power from the turbines to an onshore transmission building where they can be amalgamated into one, two or possibly three AC cables for an outward route to the UK; 2.The cables will arrive on shore on the North East of the Island for the Northern site under the beach and travel in trenches to a site (yet to be determined) to the transmission hub and control rooms; 3.None of the sea route cables or the land cables will be seen and they will all be trenched at least 2m under the sea bed or under the beach. There is no chance of snagging; 4.A similar land based exercise is required when the transmissions cables arrive in the UK.

18. Benefits to the Isle of Man 1.No cost to the Island. The Manx Government is not investing financially in this venture, all funding coming from private or institutional investors or lenders. However, they are providing Government time resource; 2.Seabed lease income. The Manx Government benefits from sea bed leases which are based on power generated and exported to the UK; 3.Other fees and benefits. In addition to the sea bed lease the Manx Government will benefit from licencing fees and local company fees; 4.Employment will be generated on the Island through administrative services, local engineering services involved in assembly of the devices, installation of the devices and maintenance of the devices over the 50 year lease period;

19. Benefits to the Island (cont) 1.Educational and vocational training opportunities; 2.Engineering input from local business; 3.Marine Services. A dedicated vessel/vessels will remain in Manx waters with a Manx crew to assist in the installation, maintenance and removal (decommission) of the turbines; 4.Research and development of more efficient or more specialised turbines or tidal devices will be conducted on Island; 5.Project expansion. Subject to local opinion it may be possible to extend the energy in the water column by adding wave devices; 6.Invisibility. The whole project is invisible unlike other types of renewable energy and is predictable well into the future guaranteeing revenue streams; 7.Reputation. The development will be one of the largest privately funded tidal projects in the world.

20. Obstacles and Challenges 1.Technological issues. Tidal energy is still regarded as an emerging technology in a hostile environment; 2.Subsidy and UK Government issues. The UK Government have recently severely reduced the subsidies of onshore solar and onshore wind and are not seen by the industry as renewable energy friendly; 3.Environmental Impact Assessment issues including Basking sharks, whales and dolphins, seals and other marine organisms. Whilst the Northern area is free of fishing, horse mussels and scallops there may be issues in the Southern sites; 4.Planning, Until very recently there was only draft planning legislation for the seabed. This week the Marine Planning Bill was issued. This needs to be passed before work can start in earnest.

21. Summary of timescales Survey work to commence as soon as possible together with EIA; Smaller areas to be subject to detailed Agreements for Lease (AFL); Detailed planning required for areas subject to AFL; Applications to be made to UK Government for Contract for Difference subsidies (earliest March 2018); Agreements for Lease converted to 50 year sea bed leases on completion of planning; Estimated delivery date of first power Q4 2018 - 2019 Castletown/Calf of Man; Estimated delivery date of first power Q1 2018 - 2019 Point of Ayre Supply chain opportunities at all levels on and off the Island between now and project end (50 year lease)

22. Contact Details Steve Malley Manx Tidal Energy Ltd Mobile 07624 204518 Andy Roy Baker Tilly Office Number 01624 693900 Website to go live in Jan 2016