1. Wind-Diesel & H 2 Activities in Canada March 10, 2011 Carl Brothers, P.Eng., Frontier Power Systems Ramea Wind-Diesel Project Ramea, NL

2. Ramea Project Widely Reported Previously Original Objective Select a major Canadian utility with isolated communities and influence among utilities Demonstrate that Wind technology is reliable Wind and diesel systems are compatible Economics can work under appropriate circumstances Set the stage for subsequent economic projects Results Project has been in operation since 2004 NL Hydro has installed additional wind capacity and a wind hydrogen project in same community in 2009 Appear to be believers!!

4. Windmatic WM15S Reliable mid-80s Danish turbine 15 meter rotor Three blade, stall regulated Upwind design, Forced Yaw 25 meter free-standing tower Re-manufactured by Frontier Why re-man turbines? $$$$ Total Project Costs –$1,300,000 < $3,500/kW (Target price assumed to be marketable)

5. Ramea Operation

7. Operational Results 400 kW wind on 700 kW load has visible impact on diesels Voltage quality issues during connection Improved with recent changes Frequency stability affected but within limits +/-0.01Hz. Variation no wind +/-0.1 Hz. Variation with 400 kW wind Fuel savings have been less than expected Reliability issues on less than fully re-conditioned turbines Modest Loads / Big Diesels Limited land base increased array losses Banks still getting paid!

8. Wind – Hydrogen Projects in Canada Ramea Wind Hydrogen Project –To existing wind and diesel plants NL Hydro added: –3 – NW100 turbines –Electrolyzer and storage –Hydrogen Power Gensets –Medium penetration operation (diesel always on) PEI Wind Hydrogen Village –High Penetration Operation –More aggressive and more challenging –Ultimately where we want to be –Stabilizing the grid is the challenge

9. Are tanks farms likely to be a practical and affordable part of the Arctic landscape in 30 years? If not, what? Looking Ahead

10. Short Term Energy Storage Attenuates Short Term Fluctuations in Wind Power

11. Long Term Energy Storage

13. ~ Cape Dorset ~ (Community Energy Requirements) l/yrEff’yMWh% –Electricity1,614,16932% 5,630 23 –Heating 1,904,37480% 16,606 67 –Motive Diesel283,69530% 928 4 –Gasoline463,16820% 1,0104 –Jet A1 249,37520% 5442 Total 4,514,780 24,717

14. Cape Dorset ~ Estimated Wind Generation vs Load ~ 5,900 MWh 1,375 MWh 5,500 MWh

15. Energy Storage needed for significant oil displacement Short Term (Seconds - hours) –(Seconds – minutes) Flywheels, batteries –(Hours ) Batteries Long term (Days) –Batteries Costs and life uncertain Potential resource constraints for large deployment –Hydrogen? Cost challenges Round trip efficiency challenges

17. Conversion to Hydrogen - Electrolyzers Bi-polar units –More efficient –Lower ramp rates Uni-polar units –Slightly lower efficiency –Much more robust –Supposedly extremely responsive (needed for frequency control) –Higher ramp rates should provide frequency control Not quite the case New bi-polarelectrolyzer design has potential to increase ramp rates – not yet commercial –Unlikely to improve conversion rates

18. Storage Medium pressure storage will very expensive for isolated communities Are there low pressure alternatives?

19. Reconversion to electricity Fuel cells have recent pleasant surprises –Improved life; improved efficiency, reduced costs –Still some way to go on all three fronts Automotive based engines –May offer an economic alternative –Diesel plant operators will be sceptical of spark ignition Bi-fuel technology may offer a bridging technology until fuel cells ready –Conventional diesel with standard performance –Significant displacement at intermediate loads

20. ~ Bi-fuel Diesel Displacement ~

21. Current Thoughts on H 2 Many technical and logistical issues to resolve –R&D and demo projects are essential to do this Technology pathway is not yet defined – and not clear there is one Current round trip efficiency won’t find economic application or excitement in our careers Still 1 MWh H 2 ~= 1 MWh Diesel Fuel

22. Electrolyzer Water Treatment Power Supply Gas Holder Genset Gas Control Panel Storage Compressors Coolers Primary Components Hydrogen Village

26. Current Status Field Testing frustrated by wind capacity –250 kW of small wind capacity available this week Field tests to start mid-March – End April Application for pilot project in collaboration with Nunavut under review Hopeful project can move forward to advance wind-diesel advanced wind-storage technology

27. ~ Cape Dorset – Conceptual Layout ~