1. 1 | Program Name or Ancillary Texteere.energy.gov Water Power Peer Review Reedsport PB150 Deployment and Ocean Test Project Dr. Philip R. Hart Ocean Power Technologies 1590 Reed Road, Pennington, NJ 08534 (609) 730-0400 x263 prh@oceanpowertech.comprh@oceanpowertech.com Sept. 27, 2011 PowerBuoy Spar at Oregon Ironworks Reedsport Project PowerBuoy Float at Oregon Ironworks

2. 2 | Wind and Water Power Programeere.energy.gov Purpose, Objectives, & Integration The overall objective in the Reedsport PB150 Deployment and Ocean Test Project is to assemble and deploy a full scale 150kW PowerBuoy ® for “relevant ocean testing” in the Oregon Territorial Sea, and collect detailed operating characteristics during two (2) years of operation The project will address numerous challenges and knowledge gaps, such as: –Assembly The capability to assemble the PowerBuoy needs to be investigated The contractor to accomplish final assembly must be selected –Mobilization and Deployment A buoy the size of the PB150 has never been deployed off the western coast of the US New methodologies and processes need to be developed Cost impacts need to determined and reviewed for future buoys

3. 3 | Wind and Water Power Programeere.energy.gov Purpose, Objectives, & Integration The project will address numerous challenges and knowledge gaps (con’t): –Two Years of Ocean Testing to Investigate Buoy Performance Electrical Output Energy Conversion Buoy Reliability Design Improvements Operations and Maintenance –Environmental Studies Investigate the long term environmental impacts, if any, of deploying a buoy off the territorial water of Oregon –Manufacturing Plans Determine the manufacturing methods for large scale manufacturing of PowerBuoys Lockheed Martin MS2 is performing this effort

4. 4 | Wind and Water Power Programeere.energy.gov Purpose, Objectives, & Integration Meeting the challenges above will demonstrate that the PB150 is a reliable, affordable and environmentally sustainable water power technology. This will help realize the benefits of domestic renewable energy production. –Reduce the cost of assembly and deployment –Advance the efficiency of the Power Take Off (PTO) –Improve the rate at which subsequent buoys are manufactured and assembled –Demonstrate the low environmental impact of deploying multiple buoys –Confirm the design of the mooring system reliability and performance –Determine a base line for improvement of the operation and maintenance costs for managing a wave energy farm –Confirm that a PB150B2 can be economically viable in areas that have high costs for electricity.

5. 5 | Wind and Water Power Programeere.energy.gov Purpose, Objectives, & Integration This Reedsport PB150 Deployment and Ocean Test Project will provide the performance and reliability data required to develop manufacturing methodologies to maximize production and minimize cost for PB150 deployment in future buoy farms. This project represents the initial phase of the first commercial wave park on the west coast of the US.

6. 6 | Wind and Water Power Programeere.energy.gov Technical Approach The methods used: Assembly –Produce PowerBuoy specifications and procedures that chronologically detail the sequence for assembly of the buoy components –Conduct vendor evaluations to assess technical competency for assembly. Mobilization and Deployment –Generate methodology to deploy a structure of this size –Review the capabilities and experience of commercial sea merchants that have the deployment resources Two Years of Ocean Testing –Collect performance and operational data –Establish operation and maintenance schedule and requirements.

7. 7 | Wind and Water Power Programeere.energy.gov Technical Approach The methods used (con’t): Environmental Studies –In August 2010 OPT executed a stakeholder agreement to support the responsible phased development of a wave power station –OPT filed stakeholders agreement and final license application with FERC –All environmental studies will be conducted on a pre-deployment and post-deployment basis Sets up a base line to show the impact of a deployed buoy. Acoustic - Industry standard autonomous recorders will be used to monitor sounds at and from the buoy Electromagnetic Frequency (EMF) - Study naturally occurring field levels at various distances from the buoy

8. 8 | Wind and Water Power Programeere.energy.gov Technical Approach The methods used (con’t): Manufacturing Plans –Study the manufacturing methods to reduce multiple unit production costs ability of subsequent buoys using: Design for Manufacture (DFM) Design for Test (DFT) Lean Six Sigma Design for Six Sigma (DFSS) Design Guidance for Producibility (MIL-HDBK-727) –Generate build schedules and preferred supplier lists

9. 9 | Wind and Water Power Programeere.energy.gov Technical Approach The key issues being addressed during this Cooperative Agreement are: Assembly –Review and analyze the assembly methods to discover cost reduction strategies. Mobilization and deployment –Study the deployment of the PowerBuoy off the Oregon territorial waters in order to stream line future buoy deployments. Two Year Ocean Testing –Generate a robust operational test plan –Perform functionality testing –Demonstrate target costs of electricity –Reduce operational and maintenance costs

10. 10 | Wind and Water Power Programeere.energy.gov Technical Approach The key issues being addressed during this contract are (con’t): Environmental Studies –Determine the sea state baseline of the Oregon territorial waters prior to buoy deployment –Review pre-deployment baseline against post-deployment test results Manufacturing Plans –OPT and Lockheed Martin will perform analysis of buoy manufacturing methods for use in reduction of multiple unit production costs. –Streamline the manufacturing and assembly process to reduce the overall buoy production cost

11. 11 | Wind and Water Power Programeere.energy.gov Technical Approach Unique approach: Assembly Developed vendor evaluation criteria and visited and reviewed various vendor facilities. Mobilization and Deployment: Conducted Extensive Request for Bid process to find qualified candidate Two Year Ocean Testing Produced a comprehensive test plan and procedure and schedule to monitor all aspects of a functional buoy

12. 12 | Wind and Water Power Programeere.energy.gov Technical Approach Unique approach (con’t): Environmental Study OPT executed a historic agreement with 14 stakeholders to support the responsible phased development wave power station Manufacturing Plan Utilize various manufacturing techniques including Six Sigma Investigate the capabilities and limits of shipbuilders with regard to manufacturing

13. 13 | Wind and Water Power Programeere.energy.gov Plan, Schedule, & Budget Schedule Contract initiation date: September 01, 2010 (conditional award) Planned completion date: June 2014 –PTO endurance testing extended to validate the functionality and efficiency Milestones for FY 10 and FY11 –Pre-Deployment Activities Approved: August 2, 2011 –DoE FONZI: August 24, 2011 –All Statement of Work Activities Approved: Sept. 21, 2011 Go/no-go decision points for FY12 and FY13 –Buoy Assembly Complete: April 03, 2012 –Buoy Deployment : April 10, 2012 –Buoy Commissioning: May 14, 2012

14. 14 | Wind and Water Power Programeere.energy.gov Plan, Schedule, & Budget Budget: Cooperative Agreement DE-EE0003646 does not have any variances from the planned budget. $111,467 of the total project cost of $5,684,096 has been expended to date Budget History FY2009FY2010FY2011 DOECost-shareDOECost-shareDOECost-share N/A $111,467$176,900

15. 15 | Wind and Water Power Programeere.energy.gov Accomplishments and Results Accomplishments Assembly Vendor finalized. Buoy assembly to commence to meet deployment date Mobilization and Deployment Review of submitted bids and down selected deployment vendors Two Year Ocean Test Ocean test and monitoring plans & procedures in development and on schedule Environmental Study Request for Proposal developed for Acoustic Studies Identifying vendors for EMF testing Manufacturing Plan Sub award issued to Lockheed Martin Current manufacturing process in review to evaluate cost reduction possibilities

16. 16 | Wind and Water Power Programeere.energy.gov Accomplishments and Results Benchmark against method target: Assembly Buoy assembly vendor evaluated and chosen as per project schedule Mobilization and Deployment: On schedule evaluating vendors for buoy deployment Two Year Ocean Testing ADCP Request for Quotes received for ocean conditions data information Manufacturing Plan Review of present PB150B2 fabricator’s manufacturing process

17. 17 | Wind and Water Power Programeere.energy.gov Challenges to Date Most important challenges: The success of the buoy assembly and deployment weighs heavily on choosing the appropriate vendors: –Assembly: ability, experience and facility –Deployment: ability, experience and marine equipment

18. 18 | Wind and Water Power Programeere.energy.gov Next Steps Task NameStartFinishComplete Investigate Buoy Assembly Vendors12/16/1003/04/11Complete Issue PO to Buoy Assembly Vendor09/09/11 Complete Investigate Deployment Vendor11/22/1011/10/11 Issue PO to Deployment Vendor12/09/11 Ship PTO to Spar Assembly Vendor12/15/11 Spar Assembly Complete02/18/1202/18/11 Ship Spar to Buoy Assembly Vendor02/23/1202/25/12 Start Buoy Assembly02/27/12 Buoy Assembly Complete04/03/12 Ship Buoy to Reedsport, OR04/05/1204/09/12 Deploy Buoy04/10/1205/10/12 Buoy Attached to Moorings05/11/1205/13/12 Commission Buoy05/14/1205/30/12 Buoy Operations and Data Collection Begins06/01/12 Buoy Operations and Data Collection Continues for FY1206/01/1209/30/12

19. 19 | Wind and Water Power Programeere.energy.gov Next Steps Next Steps: Simplify Buoy deployment to reduce cost Continue Buoy Operations and Data Collection– October 01, 2012 through November 2014 Analyze PTO performance to increase the power output Deploy Wave Energy Farm at Reedsport