FIRST TUESDAY PRESENTATION

FEBRUARY 2015

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2

-

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

2013 2015 2020 2030

MW

Global cumulative wind power capacity

Source: global cumulative wind power capacity: GWEC 2014 – Moderate Scenario, (1MW delivered represent about 1,2 MEUR in sales).

Kitemill: "Airborne wind is expected to capture part ofthe market and to even expand growth further”

Drivers:- Climate- Need for renewables

Methods- Politically enabled

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Airborne Wind Energy (AWE)

POTENTIAL IS VIRTUALLY UNLIMITED

WIND AT NEW HEIGHTS

HEIGHTAVERAGE

WIND SPEEDAVAILABLE

POWER

1 000 m 11 m/s 580 W/m2

500 M 8 m/s 320 W/m2

100 M 5 m/s 80 W/m2

THE WIND GRADIENT is an expression of the increase in speed and stability with higher altitude. The energy content of the wind varies with the cube of the average wind speed

A KITE TURBINE

A kite turbine is made up of the following main parts:

• A kite - which generates the tractive forces (lift) in the same way as a

sailplane that climbs.

• Ground system - which converts the tractive force from the tether to

electricity.

• Control system - which controls winch and the kite. The kite is controlled in

the same way as an autopilot for a plane.

A KITE TURBINE

A kite turbine is made up of the following main parts:

• A kite - which generates the tractive forces (lift) in the same way as a

sailplane that climbs.

• Ground system - which converts the tractive force from the tether to

electricity.

• Control system - which controls winch and the kite. The kite is controlled in

the same way as an autopilot for a plane.

PRINCIPLE

(1) Average world GWEC 2013, (2) Annuity 8 % x year (3) Real (excl. inflation), (4) excl. carbon tax, (IPCC) IPCC report issued 2012 “Renewable Energy Sources and Climate change Mitigation”.

1. Potential to become price competitive:

2. The geographical market is very large due to the availability of wind at high altitudesHigh altitude winds are more often available then near surface winds.

Cost calculation - unit cost:Kite

(Vision)

Windmill(year 2012)

Power kW 2 000 2 000

Full load hours per year hrs 4 200 2 452(1)

Annual production MWh 8,4 4,9

CAPEX M€ 1,5 2,3

Average energy cost LCoE: c€/kWh 2,8 6,4

(2,3)

ATTRACTIVE WITH A POTENTIAL TO BECOME PRICE COMPETITIVE

Electricity cost (sources calc. with 3% discount rate)

Bioenergy (IPCC)

Hydro power (IPCC)

Kite

Nuclear

Wind onshore (IPCC)

Geothermal (IPCC)

Coal (4)

Natural gas

Wind offshore (IPCC)

Solar (IPCC)

c€/kWh41 2 3 5 6 70

Germanymarket

price electricity

2014

ON THE VERGE OF A BREAKTHROUGH

University of Grenoble

Kitemill

Ampyx Power

Makani Power

Crosswind Power

Skywind Power

Skysails

EnerKite

Kitegen

NGR Kite

Guangdon HAWP Technology

Magenn

Windlift

Omnidea HAWP

TU Delft

KU Leuven

University of Limerick

DTU Wind Energy

IWES Fraunhofer

Chalmers University

University of Tampere

Stanford University

RMIT University

CompaniesUniversities

Source Delft University www.kitepower.eu, modified by Kitemill. Commercial sub-suppliers are not included even if their involvement includes investments and thereby «risk taking».

Status for Kitemill:

Lean organization & a solid network of partners and close suppliers

Commercial: Progressing towards launch of the first market place for kite turbines

Technical: On pair with the best AWE players towards a commercial viable solution

Financial: Dedicated owners and strong governmental backing

ON THE VERGE OF A BREAKTHROUGH

*Evaluation in acquisition

Airborne Wind Energy (AWE)– players :

Competitors Investor / Partner Time Status

Altaeros (US) Softbank (JP) 7 MUSD December 2014 30kW pilot

Makani (US) Google X (US) 110 MUSD* June 2013 20kW pilot

Ampyx (NL) KLM September 2012 20kW pilot

Kite Power (UK) Shell 2 MUSD 2013 20kW pilot

Skysails (Germany) DSM 15 MEUR January 2011 55kW pilot

COMMERCIAL MARKETS

CONCEPT ACCEPTED ENABLE MARKETEMERGING MARKETS

CREATING THE MARKET

20192015

DEMOS IN OPERATIONCOMMERCIAL INSTALATIONS

COMMERCIAL PRODUCTS

>100 000 hrs>1000 hrs >10 000 hrsCUMULATIVE OPERATIONAL HOURS

RAPID COMMERCIALISATION

Site requirements:• Suitable conditions• Approval/permit/concession• Offers operating experience• Grid capacity• Relevant local supply businesses

THE FIRST KITE PARK HOSTS TEST CENTRE + COMMERCIAL PLANTS

Invest in:- Infrastructure- First customer

Become:- Competence centre- Commercial viable

CREATING A MARKET PLACE FOR DEMO PLANTS

Several business models open up (kite supplier, kite operator, site developer)

THE SCALE UP RACE

PROTOTYPEDEMO 30 kW

DEMO MEDIUM SCALEKITEMILL

TECHNOLOGY STEPS

2019

LARGE SCALE

2015

PRODUCT DEVELOPMENT

EFFICIENCY RATE WILL INCREASE BY SIZEOPERATION & MAINTENANCE COST WILL REDUCE BY SIZE

NORWEGIAN INDUSTRY

Wind power global volume: 40 000 MW annual installed capacity:

336 BNOK and the industry employs 680 000 people.

In time AWE can take over parts of this volume and even contribute to an increased.

Examples of relevant Norwegian Industry: Annual turnover

Kongsberg Maritime AS - winch/wind power supplier : 5 800 MNOK

Rolls-Royce Deck Machinery AS – winch supplier at Brattvåg: 10 000 MNOK

Offshore Trawl Services AS – one of worlds leading rope supplier:

86 MNOK

SYSTEM DEVELOPMENT

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FOR DETAILS, PLEASE CONTACT:

Thomas HårklauGeneral Managerth@kitemill.no+47 468 37 117

Lode CarnelTechnical Managerlc@kitemill.no+47 902 90 602