Nautilus

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Nautilus Revolutionary Concept in Wave Energy
Generation BUSINESS PLAN
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Nautilus - Revolutionary concept in Wave Energy
Generation

• Renewable Energy is high on the agenda of
  governments and utilities worldwide.
• As wind, solar, biomass technologies achieve
  maturity, focus has begun to shift to examine
  ways to utilize the worlds oceans as the
  ultimate source of sustainable renewable energy
• Mr. Reuven Weinberg has developed a revolutionary
  concept for transforming near shore waves to
  electrical energy - the Nautilus.
• Mr. Weinberg has also submitted a US
  (11/967.281) and a PCT patent applications for
  the Nautilus system
• In comparison to existing technologies, the
  Nautilus concept provides
• Exceptional efficiency (mechanical energy to
  mechanical energy, utilization of waves 1 1.5
  meters high)
• User favor environment (near shore, electrical
  generating segment on shore)
• Simplicity (no hydraulic oil, very few systems
  underwater, low maintenance)
• Sustainability the system enable storage of
  energy for periods of low wave activity
• The Nautilus provides the cleantech interested
  investor an early stage opportunity to capitalize
  on existing governmental and institutional
  development funding as multiplier for development
  of revolutionary cost-effective source of clean
  energy.

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Global Energy Trends
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A Changing World
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Primary Energy Consumption

• About 80 of the total energy consumed worldwide,
  is produced by burning fossil fuels (oil, coal
  and gas).
• These resources takes a severe toll on
  environment, and are limited in supply.
• During the last couple of decades the world has
  become increasingly aware of the possible
  environmental problems associated with fossil
  fuels.

Source IEA 2007.
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Continuing Dependence on Coal

• World energy demand expands by 45 between now
  and 2030 an average rate of increase of 1.6
  per year with coal accounting for more than a
  third of the overall rise

• Demand for coal has been growing faster than any
  other energy source is projected to account for
  more than a third of incremental global energy
  demand to 2030

Source IEA World Energy Outlook 2008
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RENEWABLE ENERGY
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Renewables Become Substantial Source

• Soon after 2010, renewables to become the
  2nd-largest source of electricity after coal,
  thanks to government support, prospects for
  higher fossil-fuel prices declining investment
  costs
• IEA forecasts total global energy demands 2007 -
  2030 requires investment of 26 trillion (over 1
  trillion/year), of which a total of 6.8 trillion
  slated for investment in Power Generation.

6.8 T
Source IEA World Energy Outlook 2008
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Global New Investment in Clean Energy

• 1 of global fixed asset investment
• Clean energy asset finance is 9.6 of global
  energy infrastructure asset finance
• 23X the size of commercial aircraft investment
  sector

• Five main forms of renewable energy
• Solar
• Wind
• Water
• Biomass
• Geothermal

Source (1) New Energy Finance (2) www.ren21.net
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Renewables - Business Opportunity

• Falling costs as renewable technologies mature,
  assumed higher fossil-fuel prices and strong
  policy support provide an opportunity for the
  renewable industry to eliminate its reliance on
  subsidies and to bring emerging technologies into
  the main stream.
• Excluding biomass - wind, solar, geothermal,
  tide and wave energy together grow faster than
  any other source worldwide, at an average rate of
  7.2 per year.

Source IEA, 2008
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EU Renewable Energy Targets - 2020
The European Union has adopted 20/20 target
requiring 20 of their nations' energy to be
produced from renewable sources by the year 2020.

• Individual State measures
• The Netherlands - 20 target for 2020.
• Germany plans to increase the share of renewable
  electricity to 25-30 by 2020 and continue to
  increase the share, possibly to 45 by 2030.
• The Renewable Obligation in Scotland (ROS) is
  9.1 for 2008/09, rising to 15.4 in 2015/16 and
  to reach 30-35 2020.

Source (1) www.ren21.net (2) European Renewable
Energy Council
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Rising Costs for Power Infrastructure

• NG fueled Cogeneration Electricity Generating
  Facility IEC is installing 2 Cogeneration units
  with capacity to generate total of 750MW.
  Investment is assessed at NIS 2.7 Billion
  (1m/MW)

• Offshore Wind Costs are up over 100 in five
  years. Costs for projects (contracted) from 2008
  to 2012 are 2.2m/MW 3m/MW

Source 1) www.globes.co.il (Jan 13, 2009) 2)
Douglas-Westwood to REFF (Sep. 08)
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Comparative Cost of Renewable Energy
Price Range of Renewable Electricity by
Technology (2007)
Technological advances have succeeded in
substantially reducing the generation cost of
Wind power. Wave Power remains the most
expensive of all renewables.
Capacity Factor for Renewable Resources (2007)
Geothermal and Biomass have highest Capacity
Factor. Other systems enjoy substantially lower
Capacity Factors. The net capacity factor of a
power plant is the ratio of the actual output of
a power plant over a period of time and its
output if it had operated at full nameplate
capacity the entire time. A ratio less than 100
by renewables is due to conditions inhibiting the
production of energy (lack of sunlight, wind,
waves etc.)
Does not relate to later specified application
which utilizes relatively low waves and therefore
enjoys a higher Capacity Factor
Sources U.S. Department of Energy Renewable
Energy Data Book Sep 2008
CSP reaches the upper part of this range when
systems are combined with natural gas
co-firing This range is derived from
experimental wave installations
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WAVE ENERGY Market Review
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Marine Energy Introduction
Tidal power- sometimes called tidal energy, is a
form of renewable energy that converts the energy
of tides into electricity or other useful forms
of power. Although not yet widely used, tidal
power has potential for future electricity
generation. Wave power- refers to the energy of
ocean surface waves and the capture of that
energy to produce electricity.
The marine energy sector has recently
demonstrated that it can deliver power onto the
electricity grid. Wavegens shoreline wave device
in Islay, Scotland, has been operational since
2000 and three further technologies have recently
achieved this milestone OpenHydros 250kW
tidal device, located at EMEC in Orkney, Scotland
in May 2008 Marine Current Turbines 1.2MW
tidal device, located in Strangford Lough,
Northern Ireland, in July 2008 Pelamis Wave
Powers Aguçadoura project, located off the
Portuguese coast, in July 2008.
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The Ocean Wave Energy Resource
Ocean waves are caused by the wind as it blows
across the sea. About 10 of the ocean wave
energy reaches a coastline somewhere. This power
potential is of the same order of magnitude as
the total electric power production of the world.
The vast energy potential is one of the reasons
why energy from ocean waves is such an
interesting possibility. In the northern
hemisphere, wave energy is highest during the
winter season. This is advantageous considering
the seasonal variations of energy demands.
Moreover, in countries depending on hydropower,
such as Norway, the available energy is minimum
during the winter (rivers feeding hydroelectric
dams are frozen). This means that an energy
supplement from wave power to a energy system
based mainly on hydropower, will help to reduce
the need for storage capacity, and thereby reduce
long term investment costs.
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The Ocean Wave Energy Resource

• Advantages
• No fuel needed, no waste produced
• Not expensive to operate and maintain
• Can produce a great deal of energy
• Predictable
• Locations near high demand areas (close to highly
  populated areas)
• Creates great number of new jobs

• Disadvantages
• Depends on the waves highly varying amounts of
  energy production
• Needs a suitable site, where waves are
  consistently strong
• Must be able to withstand very rough weather
• Perils of the Sea

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Global Distribution of Wave Projects
Less than 10 MW of ocean power capacity has been
installed to date worldwide (The Prometheus
Institute for Sustainable Development and
Greentech Media)
Sources Scottish Enterprise
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Commercial and Pilot Plants in Operation
SourcesU.S. Department of Energy Renewable
Energy Data Book Sep 2008
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Commercial and Pilot Plants in Operation
SourcesU.S. Department of Energy Renewable
Energy Data Book Sep 2008
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Wave Energy- Market Review

• World capital expenditure on wave energy between
  2004 - 2008 is to total 140 M, with almost 50
  of this in the UK
• Investment to date (since 2001) in the ocean
  power market totals appr. 500 M - relatively
  small compared to other renewable energy market
  segments
• The combined wave and tidal global energy markets
  is assessed as totaling 250 M
• UK and Portugal are most active countries in the
  field

• The Prometheus Institute predicts that by 2015
• the Ocean Power market is expected to achieve 1
  GW of installed capacity and an annual market
  size of 500 M.
• More than 2 B will be invested to build
  commercial ocean wave power farms.
• 2 B will go towards research and development
  globally

Source The Prometheus Institute for Sustainable
Development and Greentech Media
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Wave Energy Global Potential
The Global WaveTidal Resource
Wave power levels in kW/m of crest length in
European waters
Source Centre for Renewable Energy Sources (CRES)
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Wave Heights (ex. Jan 19, 2009)
Swansea, Wales
St. Marys, England
Zeebrugge, Belgium
Source http//www.mobilegeographics.com81/zones/
Europe/
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Wave Energy- Devices

• Attenuator - An attenuator is a floating device
  which works perpendicular to the wave direction
  and effectively rides the waves. Movements along
  its length can be selectively constrained to
  produce energy. It has a lower area parallel to
  the waves in comparison to a terminator, so the
  device experiences lower forces (see Pelamis)
• Point absorber - A point absorber is a floating
  structure which absorbs energy in all directions
  through its movements at/near the water surface.
  The power take-off system may take a number of
  forms, depending on the configuration of
  displacers/reactors.
• Oscillating Wave Surge Converter - This device
  extracts the energy caused by wave surges and the
  movement of water particles within them. The arm
  oscillates as a pendulum mounted on a pivoted
  joint in response to the movement of water in the
  waves.
• Oscillating water column - An oscillating water
  column is a partially submerged, hollow
  structure. It is open to the sea below the water
  line, enclosing a column of air on top of a
  column of water. Waves cause the water column to
  rise and fall, which in turn compresses and
  decompresses the air column. This trapped air is
  allowed to flow to and from the atmosphere via a
  turbine, which usually has the ability to rotate
  regardless of the direction of the airflow. The
  rotation of the turbine is used to generate
  electricity (see Wavegen).
• Overtopping device - This type of device relies
  on physical capture of water from waves which is
  held in a reservoir above sea level, before being
  returned to the sea through conventional low-head
  turbines which generates power. An overtopping
  device may use collectors to concentrate the wave
  energy.
• Submerged pressure differential - These devices
  are typically located near shore and attached to
  the seabed. The motion of the waves causes the
  sea level to rise and fall above the device,
  inducing a pressure differential in the device.
  The alternating pressure can then pump fluid
  through a system to generate electricity.

Source The European Marine Energy Centre (EMEC)
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Universities Engaged in Ocean Energy Conversion
Research
Source www.absenergyresearch.com
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Wave Energy- Main Players
Wavegen, Scotland- Wavegen is a wholly owned
subsidiary of Voith Siemens Hydro Power
Generation. Wavegen activate the LIMPET (Land
Installed Marine Powered Energy Transformer) a
shoreline energy converter sited on the island of
Islay, off Scotlands west coast. The current
Limpet device Limpet 500 (500 kilowatt
capacity) was installed in 2000 and produces
power for the national grid. Limpet uses the
principle of an oscillating water column (OWC)
with Wells turbine power take-off.
Source www.wavegen.co.uk
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Wave Energy- Main Players
Pelamis, Portugal- The Pelamis contains three
Power Conversion Modules, each rated at 250kW.
Each Power Module contains an electro-hydraulic
power generation system. The Pelamis installed on
site at the EMEC test centre, Orkney, Scotland.
The machine is a semi-submerged, articulated
structure composed of cylindrical sections linked
by hinged joints.
The wave-induced motion of these joints is
resisted by hydraulic rams which pump high
pressure fluid through hydraulic motors via
smoothing accumulators.
The hydraulic motors drive electrical generators
to produce electricity. Power is fed to the
seabed via a single dynamic umbilical connected
to a transformer in the machines nose.
Source www.pelamiswave.com
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Promoting Governmental Policies

• The United Kingdom is the leading country in
  development of wave and marine currents energy.
  Policy instruments include capital grants,
  obligations, tradable certificates, feed-in
  tariffs and regulatory and administrative rules.
• Ireland launched, in March 2007, the White Book
  Delivering a Sustainable Energy Future for
  Ireland, which set a target deployment of 500 MW
  of ocean energy power by 2020. 22 c/kWh /kWh
  guaranteed price for marine energy
• Portugal launched an attractive feed-in tariff of
  up to 26 c/kWh for first 20MW, 23 c/kWh
  thereafter.
• Spain has a target 5 MW of installed wave power
  by 2010 for which has allocated 15 M and has
  established a feed-in tariff of 0.43 c/kWh.
• France launched in March 2007 a law setting a
  feed-in price of 15 c/kWh for electricity
  produced using wave energy.
• Germany, hosts many RD activities in developing
  wave, tidal current and osmosis power in the
  framework of mainly European research projects.
  Germany offers investment and production tax
  credits as well as a feed-in tariff for ocean
  energy system developments and projects.

Source
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Government-backed Initiatives U.S.A

• U.S. interest in advanced water power such as
  tidal, river and ocean current, and ocean wave
  energy is just beginning to grow, with many
  prototype projects in testing stages and permits
  being filed at the Federal Energy Regulatory
  Commission (FERC).
• In Fiscal Year 2008, the U.S. Government
  appropriated about 10 Million for water power
  research and development.

• The U.S. Department of Energy (DOE) awarded EPRI
  a grant of 500,000 to assess U.S. wave energy
  resources and develop a geographic information
  system database. The project will determine the
  resource base, the maximum wave energy potential,
  and annual potential electrical energy
  production. EPRI will develop a methodology to
  gauge the energy potential from all coastal
  states, providing information and data necessary
  to optimally site wave generating stations.
• New York-based Environmental Defense Fund, a
  non-profit environmental advocacy organization,
  said (Dec 08) it has met with Obamas transition
  team to discuss what it says is a confusing, and
  sometimes contradictory, array of federal
  regulations for ocean power. It claims that with
  federal help, ocean energy has the potential to
  generate 10 of the countrys demand for
  electricity, as well as create tens of thousands
  of jobs in the U.S.

SourcesU.S. Department of Energy Renewable
Energy Data Book Sep 2008
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Government-backed Initiatives E.U.

• The RDA is leading the development of Wave Hub,
  which will create the world's largest wave energy
  farm 10 miles (16 kilometres) off the north coast
  of Cornwall. Wave Hub will be an electrical
  "socket" on the seabed connected to the National
  Grid via a subsea cable. With a capacity of up to
  20MW, it will allow the pre-commercial testing of
  wave energy devices on a grand scale. Four wave
  device developers are working with the RDA on the
  project, and up to 30 devices could be installed.
  Government consents for the project were secured
  last year. The developers on board are Oceanlinx,
  Ocean Power Technologies Ltd., Fred Olsen Ltd.
  and WestWave, a consortium of E.On and Ocean
  Prospect Ltd. Each will be granted a lease of a
  sea area of two square kilometers (1.24 square
  miles). Wave Hub will be connected to the
  National Grid by a 15.5 mile (25 km) cable linked
  to a new electricity substation at Hayle. It will
  have an initial capacity of 8MW but could
  generate up to 20 MW of electricity, enough power
  for 7,500 homes or 3 percent of Cornwall's
  domestic electricity needs.

Source www.energycurrent.com
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Government-backed Initiatives E.U.

• The 10m Saltire Prize, unveiled earlier this
  month, would ensure Scotland attracted leading
  pioneers in green technology. The one-off award,
  the world's largest grant for innovation in
  marine renewable energy research, has already
  drawn 33 entrants from five continents, it was
  revealed yesterday. Scottish Government planners
  are confident that the winners will help the
  country achieve its target of meeting half of all
  electricity demand from renewable sources by
  2020, with an interim target of 31 set for 2011.
  Total installed capacity of renewables in
  Scotland is currently over three Gigawatts, but
  when projects under development are added the
  capacity rises to more than 5.5 Gigawatts.
  Renewable electricity generation exceeded 20 of
  total demand in 2007, with figures for 2008 due
  soon.

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Nautilus
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THE VISION
Developing and establishing an innovative wave
energy power application by using the power
potential of ocean waves combined with existing
technology

• Market Success Factors
• Wave producing oceans in close proximity to major
  renewable energy consuming markets
• Favorable off-take tariffs promoted by
  governmental Green Energy policy
• Modular concept enables project flexibility
• Initial capital investment vs limited current
  expenditure (maintenance)
• Patented technology concept

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System Description

• Natural wave action moves anchored buoy up and
  down.
• Buoy contains system of pistons and valves that
  acts as air-pump generated positive air pressure.
• Pressurized air is piped to pressurized air
  storage tank located on the shore.
• Pressurized air is released from storage tank in
  continuous flow to water tank which houses
  buckets attached to wheel. Water tank is
  sufficiently tall to maximize air energy
  efficiency as dictated by Boyle-Marriott Law.
• Pressurized air is released at bottom of water
  tank and captured in buckets, causing buckets to
  rise towards surface (Law of Archimedes).
• Movement of buckets turns wheels attached to
  dynamo, generating electricity.

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Technology Demonstrators
Wave Powered Piston Demonstrator This film
demonstrates the vertical movement of the piston
by the power of the waves. The movement of the
piston serves as an air pump, pushing pressurized
air to serve the Energy Converter.
Land-based Energy Converter Demonstrator This
film demonstrates the effect of the pressurized
air released at the bottom of the tank into the
buckets, driving the buckets up which in turn
drives the axle and attached wheel thus
generating electricity (light bulb)
Generating Electricity
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Technology Competitive Advantages

• High Energy Efficiency - Nautilus system uses
  mechanical energy to generate mechanical energy,
  thus achieving highest efficiency in sector
• Sustainability - the system enables storage of
  energy (as pressurized air) for periods of low
  wave activity
• Simplicity - simple system with very low
  maintenance requirements. No use of hydraulic oil
• Operating conditions - the system designed to
  work near shore in average wave height
  environment of 1-1.5 meters (the prevalent all
  year long wave height).

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Technology Competitive Advantages

• Competitive Construction Costs - use of mass
  production techniques (reusable molds for
  concrete sub-systems) and of marine concrete
  (substantially less costly in comparison to
  metals)
• Adjustable to operate during low high tides
• Near-shore - Near-shore wave energy is far more
  accessible and the waves have a much more uniform
  on-shore direction. Wave devices installed
  near-shore generally have less of a requirement
  to shut down in severe weather

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Costs for 1 MW Facility Sea Segment
15 units required to generate 1 MW. Total Cost
(including 22 cost overrun contingency)
4,414,435
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Costs for 1 MW Facility Land Segment
2 units required to generate 1 MW. Total Cost
(including 22 cost overrun contingency)
1,363,716
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Costs for 1 MW Facility Total Costs
Total Cost for 1MW Facility (including 22 cost
overrun contingency) 6.6 Million
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Wave Technology Challenges

• The ocean environment is highly corrosive to
  metals -In our technology no metal comes in
  touch with the water (the buoy is made of marine
  concrete).
• During storms, waves contain enough energy to
  destroy the Ocean Segment of system -When storm
  is forecasted, buoy is flooded with sea water,
  submerging buoy near seabed. The system is to be
  positioned near-shore where waves are less
  aggressive
• It is extremely expensive to bring the
  electricity to shore - In our technology
  pressurized air is piped to shore and generation
  of electricity is on shore.
• High costs for underwater maintenance - With our
  technology most of the elements are either above
  water or on land, therefore minimizing underwater
  maintenance costs

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Technical Validity of Concept
To generate 1 MW electricity requires 2.15 m3 of
4 atmospheres air/second 8,600 liters of
pressurized air/second
Independent technical analysis confirms validity
of concept, showing high energy efficiency.
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System Diagrams Ocean Segment
Ocean Unit Trough Position
Wave powered piston pumping air
Ocean Unit Crest Position
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System Diagrams Land-based Energy Converter
Water Tank with Axle with buckets powered by air
pumped from ocean unit Front View
Water Tank with Axle with buckets powered by air
pumped from ocean unit Side View
Rotating Axle driving dynamo generating
electricity to grid
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System Diagrams Patents
Ocean Segment
Land Segment
Total System Diagram
System Patent Application
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Nautilus Suggested Business Plan till Prototype
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Stage 1 Initial System Analysis

• Stage 1 includes initial analysis of all system
  components, including
• Analysis of mechanical float system
• Analysis of air-compressor system
• Analysis of Base solution
• Analysis of pressurized air delivery system
• Analysis of electrical generating system
• Ascertaining size of module
• Calculating utilization and generating capacity
  per unit
• Required timeframe - 6 months
• Budget - 300,000

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Stage 2 From SSR to CDR

• Stage 2 includes
• Initial modeling to SRR (System Requirements
  Review) level
• Modeling to PDR (Preliminary Design Review)
  level
• Identifying off-the-shelf components for
  Prototype
• Identifying Prototype manufacturer
• Finish modeling to level of CDR (Complete
  Demonstration Review)
• Required timeframe - 9 months
• Budget - 500,000

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Stage 3 Prototype and Trials

• Stage 3 includes
• Production of manufacturing diagrams
• Production of Prototype
• Prototype trials
• Preparation of System file
• Preparation of Product literature
• Required timeframe - 15 months
• Budget - 3,000,000

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Nautilus Development Summary
Development of Nautilus Prototype is expected to
last app. 30 months and require budget of app.
4,000,000
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Thank You
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Giza Singer Even

• Giza Singer Even (GSE) is the leading and largest
  independent business consulting firm in Israel
• GSE has more than 20 years of professional
  experience
• GSEs 50 employees have a wide academic and
  theoretical background combined with an
  impressive professional track record
• GSE possesses an in - depth acquaintance with the
  Israeli business arena and its varied financial
  systems
• GSE has a meaningful role in most of the major
  transactions in the Israeli economy
• GSE is a keen promoter of values such as
  Excellence, Professionalism, Service, Innovation
  and Independence

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Giza Singer Even Services
54

• Reuven Weinberg
• 4 Tnuat Hameri St.
• Kiryat Ono, Israel, 55286
• Tel [phone]
• Fax [phone]
• Mobile [phone]
• email reuven.weinberg_at_gmail.com

Giza Singer Even Ltd Joshua Yeres Manager
Renewable Energy Accounts 7 Jabotinsky st, Ramat
Gan, Israel Tel [phone] email
joshua_at_gse.co.il ( www.gse.co.il )