2. Commercial in Confidence
PWP – Business Model
Component Suppliers, Sub-
contractors and Fabricators
Pelamis Wave Power
Technology provider. Pelamis design, procurement,
Patented concept. assembly, installation, operation
45 staff covering all elements. & maintenance
Incorporated 1998 Project
~£45m invested Development
~£19m sales
~£10m grants Power Generation Projects
Only company in sector to have secured
Electricity Markets
supply contracts.
6 full-scale machines built & grid connected.
Proven, scaleable & familiar business model
2
Commercial in Confidence
3. Commercial in Confidence
PELAMIS – Fundamental Principles
Survivability principles Absorption principles
Engineering embodiment Construction and O&M strategy
PELAMIS IS A UNIQUE COMBINATION OF THESE ESSENTIAL PRINCIPLES
Commercial in Confidence
8. Cost of Energy forecast to match Offshore Wind
Levelised cost of energy
2 MW
1,400
1,200
1,000
2 MW
800
Profitable at 5 ROC’s
600
Offshore wind R3 2009-17
400 10 MW (approx.)
Source: Mott MacDonald, 2010
50 MW 100 MW
200
0
2008 2011 2014 2017 2020
Historic LCoE Forecast LCoE
Each of the customers completed LCoE DD prior to proceeding.
All analysis based on validated cost & yield inputs from real
“ B&V’s recent appraisal of Pelamis’ LCoE
machines – unique in sector. trajectory agrees with PWP’s estimates
to within c.10% , this is clear indication
Detailed LCoE validation study completed by Black & Veatch.
of the high level of confidence in PWP
With the right partner we believe we can further accelerate this plan.
LCoE modelling
” – B&V December
2011
8
Commercial in Confidence
9. CF16539GG 1
Scottish Context - Projects in Development
Client Pelamis Projects:
Orkney North [50MW], Orkney. E.ON
Marwick [49.5MW], Orkney. ScottishPower Renewables
Joint Ventures:
Aegir [10MW], Shetland. Vattenfall.
Pelamis Wave Power Projects:
Farr Point [50MW], Sutherland.
Bernera [10MW], Western Isles.
Project Pipeline – 200MW with Agreement for Lease from The Crown Estate.
Context to de-risk & commercialise Pelamis product for global market.
Commercial in Confidence 9
10. Current Strategic Investment Process
Customer demand has prompted the search for an industrial partner.
Three of the world’s largest renewables generators are working with us and
have been for several years.
Pelamis has generated £19m revenues to date.
The key requirement for a mass roll out is a strategic partner with
complementary skills, capabilities and long term vision.
Customers now driving the need for a solid supplier to deliver product.
3+ years to get product rolling – timing is right now .
Commercial in Confidence 10
