1. Update on ORPC-Alaska, Cook Inlet Tidal Project Presented to: Alaska Coastal Management Program Statewide Conference March 4, 2009 Presented by: Monty Worthington Alaska Projects Director ORPC Alaska 911 W. 8th Ave., Suite 205 Anchorage, AK 99501 mworthington@oceanrenewablepower.com Emission-Free Electricity from the Boundless Energy of the Worlds Rivers and Seas

2. Introduction www.oceanrenewablepower.com Founded in 2004, Ocean Renewable Power Company (ORPC) is a New England based developer of tidal, deep water ocean and river current technology and projects. ORPC Headquarters, Fall River, MA with regional offices in Portland and Eastport, ME (ORPC Maine), Anchorage, AK (ORPC Alaska) and Miami, FL (ORPC Florida). ORPC has project sites with FERC Preliminary Permits in three of the worlds most promising tidal energy resources (Western Passage and Cobscook Bay, ME and Cook Inlet, AK). Initial Investment from founders, angel investors, states of Maine and Massachusetts. Continues to seek out diverse investment from the private sector and the government.

3. ORPCs Projects in Alaska www.oceanrenewablepower.com Tidal energy project in Northern Cook Inlet View of Cairn Point portion of permit area from Anchorage

4. ORPCs Projects in Alaska www.oceanrenewablepower.com In Stream River Site and Test Bed on Tanana River at Nenana FERC permit on Tanana River to be used for RIver In Stream Hydrokinetic Test Bed, in partnership with UAF and Alaska Center for Energy and Power, and for commercial River Project

5. The Tidal Cycle The sun, the moon, and the tidal cycle... Draiwing/graph courtesy of Mirko Previsic EPRI

6. 66 Velocity varying through tidal cycles Graph courtesy of Mirko Previsic, EPRI

7. 7 Velocity and Power in a tidal resource Graph courtesy of Mirko Previsic, EPRI

8. 88 Tidal Potential of the United States courtesy of Mirko Previsic EPRI

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10. 10 ORPC Cook Inlet Tidal Site boundaries

11. www.oceanrenewablepower.com ORPC Cook Inlet Tidal site with ADCP lines

12. 12 Cairn Point ADCP transects Page 2

13. 13 Fire Island ADCP transects www.oceanrenewablepower.com

14. 14 Cook Inlet Bottom Samples www.oceanrenewablepower.com

15. Tidal Potential of ORPC-Alaska Cook Inlet Tidal SIte Tidal currents at Cairn Point in Knik Arm could generate an average of 116 megawatts. It has been estimated that 15% of total channel power can be converted for a total of 17 megawatts at Cairn Point alone Total potential of entire site and developable resource yet to be determined Initial FERC Pilot Project License will be for installation of 1MW in 2011 Site will be built out to 5MW after testing has proven out technology and addressed environmental concerns under Pilot Project License Eventual build out will take place under full FERC License to size that the resource and local energy market can support

16. Tidal Technologies 5 years ago www.oceanrenewablepower.com

17. Tidal Technologies Today www.oceanrenewablepower.com

18. Tidal TGU - ORPCs Core Technology www.oceanrenewablepower.com Key Design Features (Patent Applications Filed) Generating capacity of approximately 250 kilowatts in a 6 knot current. Unique proprietary turbine rotates in one direction only, regardless of current flow direction. Two sets of proprietary ADCF turbines drive a single proprietary underwater permanent magnet generator on a common shaft – direct drive arrangement with no gears (one moving part). TGU is shop assembled in modular components and shipped to project sites. TGU are stacked to create much larger OCGen modules. Assembled OCGen modules are deployed in arrays comprised of tens to hundreds of modules. OCGen modules are held into position underwater using a deep sea mooring system. A power and control cable connects each OCGen module to an underwater transmission line that interconnects with an on-shore substation. OCGen module operations are monitored and controlled from on-shore computers. OCGen modules are brought to the water surface for inspection and maintenance.

19. 19 TGUs Stack together to form OCGen Modules 1 MW OCGen Module 4 x 1 Configuration

20. Tidal OCGen Module Configurations 1 MW Peak Generating Capacity in a 6-Knot Current Vertical (4x1) Configuration Low Profile Horizontal (2x2) Configuration www.oceanrenewablepower.com

21. ORPC Tidal Demonstration Project 2008 Eastport, Maine The TGU has been stress tested in current speeds up to 8 knots with no excessive vibration or deflection. Initial turbine blade efficiency was less than expected prompting blade redesign and testing ORPC has instituted an analysis and subscale testing program to address the issue of turbine efficiency with UMass Dartmouth, UMaine Orono and Maine Maritime Academy. Engineering, Fabrication, Assembly & Testing of a prototype TGU – Approximately 1/3 the Size of a Commercial Scale TGU Initial test results proved favorable and ORPC is thrilled to report positive results.

22. Patent applications filed Core Component of OCGen Technology www.oceanrenewablepower.com ORPC Turbine Generator Unit (TGU)

23. Tidal Current Deployment Concept Front Elevation 4 ~ TGU (4X1) Tidal OCGen Module Water Surface Bottom Anchor 40 Ft. Min. Typical Clearance Power Cable Mooring Lines Passive Depth Control System Mooring Harness Chain www.oceanrenewablepower.comPage 6

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25. www.oceanrenewablepower.com Tidal Deployment Vertical (4x1) ConfigurationHorizontal (2x2) Configuration Page 7

26. 26 Challenges of Cook Inlet Tidal Project Development Developing tidal project to coexist with existing Northern Cook Inlet Users Beluga whales Salmon Shipping and marine service industries Existing and future energy industry Commercial Fishermen Recreational users Addressing unique technical challenges of Cook Inlet Environment Winter Ice Heavy sediment loads Anchoring in extreme marine environment Power transmission infrastructure

27. 27 Project Partners and Contractors Devine Tarbell and Associates, Permitting, Study Design and Analysis Terrasond LTD., Physical Site Characterization Design, Data Collection and Analysis University of Alaska Anchorage, Hydrological modeling Port Mckenzie, Base for operations and deployment Matanuska Susitna Borough City of Anchorage Local Utilities Local Marine Service Industries Local scientific research and engineering firms

28. 28 Permitting Processes FERC Has jurisdiction over hydro projects that sell power to the grid, and/or are in navigable waters Created Hydrokinetic Pilot Project License Process to expedite the testing and development of hydrokinetic technologies Preliminary Permit lasts for up to three years, stakes claim Applicant then applies for Pilot Project License or Full License License triggers consultation with all concerned Government agencies, and stakeholders. Pilot Project License lasts from 5-10 years, and includes plans to quickly shut down and or remove device if adversely effects the environment, or the life, health, or property of the public. The purpose is to allow projects to conduct initial testing while monitoring environmental effects, so the effects of these technologies can be studied on a small scale, and the techology can be developed more quickly The goal of the pilot process is to allow developers to test new hydrokinetic technologies, to determine appropriate siting of these technologies, and to confirm their environmental effects, while maintaining FERC oversight and agency input. The process completes licensing in as few as six months to allow for project installation, operation, and environmental testing as soon as possible.

29. 29 Why does Alaska need tidal energy NOW? Natural Gas from Cook Inlet is the primary energy source for the Railbelt Grid Existing known reserves in Cook Inlet could be depleted by 2022 Developing RE resources like tidal energy can replace this energy resource The tides of Cook Inlet could supply 100s of MW of firm power Existing Gas Infrastructure sits in prime tidal locations and may be able to be repurposed for tidal energy extraction Power transmission Infrastructure already exist through prim Cook Inlet tidal zones.

30. 30 Why the world needs tidal energy development People need tidal energy development The creation of this new industry will create sustainable economical development Peak oil is already here or close at hand, the world needs new energy sources now The Oceans need tidal energy development The burning of fossil fuels for energy exacerbates climate change The same CO2 from fossil fuels is leading to ocean acidification, a threat to pteropods and corral reefs, affecting the entire ecosystem Coal power is the leading contributer to mercury in the ocean that works its way to the top of the food chain Tidal energy will provide a CO2 free energy source that is completely predictable, can exist harmoniously with the ocean, and provide clean sustainable power for humanity

31. Opportunities Page 11 www.oceanrenewablepower.com Opportunities Abundant Supply of Emission-Free Electricity Creation of a World Class Tidal Energy Project and Industry Long Term and Sustainable Economic Development Installed Peak Capacity (estimate) Households Estimated CO 2 Reduction 100 MW 36,000 145,000 tons (est. 25,000 autos) Annual Environmental Benefit

32. Page 12 Challenges Securing funding for company and technology development in todays financial climate Designing technology that will withstand longterm effects of the marine environment Continuing to monitor for environmental impacts of the technology and ensuring that it is beneficial for people and the environment Developing and implementing projects as quickly as possible to address the energy problems of the present and future

33. Page 12 Current Activities ORPCs Commitment to Collaboration with Stakeholders Continue to inform stakeholders of project progress - currently filing FERC draft pilot license application On-going integration of stakeholder concerns into study plans and license application Consultation with agencies on permitting and environmental issues Develop[ing baseline study plans on marine mammals, fish, acoustics, and sediment transport Move forwarding developing project while addressing concerns Generate clean renewable energy with tidal power that will be used both on the Railbelt and in many Rural communities in Alaska Establish Alaska as a leader in this exciting new field

34. Page 13 Summary and Conclusions Going Forward Significant benefits regarding clean energy, job creation and other economic development Need collaborative process involving marine transport and service industries, other water users, regulatory agencies, and researchers. All parties will benefit from pilot scale testing and initial small-scale commercial operations.