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• Neal Scrivener

• UK Business Development Manager

Introduction


Last Years Message

We’re Open For Business


What Have We Achieved So Far

2011 slow uptake

UK content on our hillsides

195 New jobs

First Welsh orders

Building supply chain

Healthy order book


What's Next

New £5.5m Extension Welsh contractor (Morgan's of Usk)

Further £1m investment to new production line for small / medium wind

30 New Jobs! Moving to 40 on full production

Tower Erection & Installation

Wave & Tidal

Ports & Harbours


Thank You!


Offshore

Peter Clusky Senior Manager Renewables

Offshore Wind Supply Chain

31st of May 2012

Birmingham

Table of Contents

1. MHI/MPSE – company profile

2. SeaAngel – 7mw offshore windturbine

3. Procurement strategy

4. How to engage with us!

1. MHI/ MPSE Company Profile

• Mitsubishi origins trace back to 1873 to Nagasaki shipyard & Machinery Works

• Manufactured ships, heavy machinery, aeroplanes, and railways. With interests in steel, paper, glass, oil, and financial services

• Rapid growth in the 1950s and 1960s with additional business interests in aviation, space, electrical equipment, and data communications

• MHI has 5 key business areas

– Power Systems (currently c30% of MHI business)

– Shipbuilding & Ocean Development – shipbuilding; ship repair & conversion; marine structures, marine development equipment

– Machinery & Steel Structures – bridges, coastal structures, cranes, tunnel boring equipment;; transport systems; environmental

conservation equipment; chemical plants. CCS (pre and post combustion).

– Aerospace – aeroplanes, engines, helicopters, defence equipment; Space equipment, launch vehicles, space

transport vehicles, rocket engines

– Mass & Medium-Lot Manufactured Machinery – construction machinery; air conditioners; loading & transport; industrial machinery; special vehicles

Annual Sales £21 billion (Y/E 31.03.12)

Employee 67,416

MHI Business Areas

• Mitsubishi Power Systems Europe

– Incorporated in October 2007, established in January 2008.

– c£120m T/O

– London is dedicated Power Systems headquarters for European, Middle East, and African markets.

– UK registered company based in London with branch offices including Edinburgh, Glasgow, Hamburg, Madrid, Vienna, Istanbul, Cairo, Turin, Dublin and Leeds.

– Growing rapidly, currently > 200, >650 in group

– Responsive and customer focussed with security and global scale of parent company.

– Acquired Maintenance Partners, a European service and maintenance specialist with 400 staff in April 2009.

– Acquired Artemis Intelligent Power, a UK based specialist in the development of Digital Displacement® Hydraulic Technology in December 2010

– Sponsoring member of Renewable UK (British Wind Energy Association).

MPSE Company Profile

MPSE Network

6

MPSE London HQ

MPSE Hamburg Branch

MPSE Spain Branch

MPSE Ireland Branch

MPSE Austria Branch

MPSE Edinburgh Office

MPSE Italy Branch (Turin)

MPSE Turkey Branch (Istanbul)

MPS-EG(Cairo, Egypt)

200staff

MPSE Glasgow Office

MPSE Leeds Service Centre

Update: 19 April 12

ARTEMIS (Edinburgh)

100 % - MPSE 47 staff

Digital Control Hydraulic Transmission System for large scale Offshore Wind Turbine

Antwerp Abu Dhabi

Turkey Morocco

100% - MPSE + 400 staff

Romania (Saudi Arabia)

Electrical/ Mechanical Rotating Equipment – Maintenance/ Repairing, Wind Turbine Gear Box Repairing etc

ATLA (Turin)

40% - MHI 55 staff

GT Hot Gas Path Parts Manufacturing/ Repairing, Combustor Repairing

100% - MPSE 27 staff

EPC + Engineering + Procurement

MPSE Netherland

http://www.atla.it/index.php

http://www.atla.it/index.php

• Wind turbine generators

• Photovoltaic systems

• Combined cycles gas turbines

• Gas and steam turbines

• CCS (carbon capture and storage)

• IGCC (integrated gasification combined cycle)

• Geothermal power plants

• Fuel cells and batteries

• Marine machinery and engines, diesel/gas engines

MHI Power Systems Products

0

500

1000

1500

2000

2500

3000

1978 1981 1984 1987 1990 1993 1996 1999 2002 2005

Ou

tpu

t kW

Squirrel cage

induction motor

Synchronous

motor

Wound induction

motor

Mitsubishi

Nagasaki

Test

Machine

40kW

Winkra-

Energy,

Germany,

450kW

Kyushu

Electric Power

Okino-erabu

Island,

300kW

NEDO

Tappi WP,

500kW

Foote Creek,

USA,

600kW

Tohoku

Electric

Power

Tappi WP,

275 kW

Tohoku

Electric

Power Tappi

WP, 300 kW

Tohoku

Electric

Power

Tappi WP,

300kW

Hokudan

600kW

Okinawa New

Energy Development

Gushikawa

1950kW

Muroran-city,

1000kW

Hotel New Awaji

2000Kw

2006

Yokohama city

(Demo model)

2400kW

Mitsubishi Wind Profile (onshore)

Gearless

Geared

2008

We built 1st Turbine in 1980 in Nagasaki. MHI is one of the oldest WTG Manufacturers in the world.

• Project Objectives; – Develop a market leading offshore specific 5 + MW WTG.

– Develop a UK/ European centric supply chain.

– Create Mitsubishi Research and development centres in UK & Hamburg to develop and deploy prototype and 0-series WTG.

– Establish a UK based offshore WTG manufacturing and assembly facility (subject to proving the technology and certainty of the market).

– Set up a dedicated offshore wind service and maintenance facility.

– Enter the European market in time for UK R3 and Scottish Round in c2015.

MPSE UK Offshore Wind Plans

Mass production

Validate technology

Establish mass production

Carry out R&D into production, logistics, transport, and installation – optimise land-based systems.

Work with supply chain partners

Carry out R&D (WTG technology)

2011 2012 2013 2014 2015 2016 2017

Investment increasing over time

Making It Happen

Making It Happen

Activities in the UK

13

Artemis Intelligent Power

• Edinburgh, Scotland

• c40 employees; 5 Phds

• Sparked by research on wave power at University of Edinburgh

• Licensing business model

• Supporting licensees from concept to product

Patents

Granted: >20 patents (>8 families)

Applications: >30 new families

Innovator of the Year

Making it happen

• Actively investigating potential manufacturing sites in the UK

SeaAngel TM The future of offshore wind.

What is SeaAngel TM ?

Technical specification

Rated output

7MW-class

Rotor diameter

Over 165m

Wind class IEC-Class S Drive system

Hydraulic transmission system

Generator Brushless synchronous generator

Inverter N/A

Features

1. High quality electrical output

2. Highly reliable and robust drive system

3. Lower maintenance cost

4. Less complex and made from easily sourced materials

What is SeaAngel TM ?

18

Our Solution A Digital Displacement® Wind Turbine Transmission

Synchronous generators

Digital Displacement ®

motors (high speed)

Digital Displacement ®

pump (low speed)

19

Wind Turbine Digital Displacement Drive System

Generator Pressurized Oil

Return Oil

11KV 11KV/33KV

Accumulator

Pump(DDP) Motor(DDM)

Variable

Speed

Constant

Speed

Oil

20

Our Solution

Digital Displacement® vs. Geared

Rotor Mechanical

gearbox

Induction or PM

synchronous generator Frequency

converter

Transformer

Grid

Standard synchronous

generator Rotor DD

® hydrostatic

transmission

D i g i t a l D i s p l a c e m e n t ® s y s t e m

Not needed Reduced size

& cost

G e a r b o x s y s t e m

21

Our Solution Digital Displacement® vs. Direct Drive (PMSG)

Rotor Heavy PMSG

generator Transformer

Grid

Standard synchronous

generator Rotor DD

® hydrostatic

transmission

PMSG s y s t e m

D i g i t a l D i s p l a c e m e n t ® s y s t e m

Not needed Reduced size

& cost

Not needed Not needed

Big diameter of PMSG ⇒

Heavy? ≧6MW? Supply Chain? Cost? IPR? ????

SeaAngel™ Implementation Programme

• 2011 - 1.6 MW test rig

• 2012 - 2.4 MW DDT onshore in Yokohama

• 2012 – 2.4 MW MWT offshore in Choshi

• 2012 - 7 MW rig test

• 2013 - 7 MW onshore at Hunterston

• 2014 - 7 MW offshore at;

• Sites under investigation

• 2014 - 7 MW floating offshore Fukushima bay, Japan (MHI, Marubeni, and Mizuho).

• 2015 – Mass production starts

MPSE Procurement Strategy

UK SCM Target 1. High volume localisation in the UK

2. Ability to achieve our price targets in a competitive market

3. Capability for mass production

4. Achieve high quality according to MPSE standards

5. Minimising logistics costs

Summary of Past & Current Actions 1. ETF2 SCM 2. Integrated European procurement team 3. Divided components amongst purchasing team 4. NDA‘s distributed 5. RFQ‘s distributed and proposal‘s received 6. GTC‘s negotiated with main component suppliers 7. PO‘s placed for main components for prototype manufacture

1. Major components defined for the UK market for prototypes • Nacelle covers / Welding & machining items

2. Select Prototype suppliers and if possible sign LTPA (Nov 2011 – Aug 2012)

3. Consider other major components for mass production in the medium term (Sep 2012 – Dec 2013)*: • Transformers / Generators / Cables / Casting / Main Shaft *The suppliers that are experienced and have been qualified by

MHI Engineers & QC, can be moved from middle term to short term

4. All other items including minor parts, service & logistics to be considered in the long term (Jan 2014 – Dec 2014): • Screws / piping / hydraulics / After Sales service / Transportation

MPSE Procurement Strategy

Procurement – Main focus: Risk management

Wind turbine business is essentially a complex assembly business with:

– 80% + cost allocation in parts

– 800 purchase article (1600 single articles)

– 200 article above €200

– 20 article generate 90% of total piece part cost

Tactical counter measure to handle risk – Supplier qualification - factors considered include

• Track record (previous experience in Wind or related field)

• Quality standards (ISO certification)

• Localisation (geographic proximity to plant)

• Finance (solid financial footing)

• Existing/ conflicting supply agreements

– Enter into LTPA (long term purchasing agreement) with

• Annual cost reduction potential (volume discounts, improved process)

• VA/VE Value analysis + value engineering to

• Improve operational performance

• Improve product quality

• Cost avoidance in future programs

• Reduction in product variations

Procurement – Main focus: Risk management

1. Provide contact details (i.e. company name and email address / business card)

2. Make contact through one of the following means;

Website www.mhips.com (new supplier section under construction)

By telephone: Hamburg 0049 403 770 78273 / 78274

London 020 7647 0184 / 0820

How best to engage with MPSE?

SeaAngel TM The future of offshore wind.

1

ALL ENERGY

Regen SW Crown Estate Supply chain Seminar

Regen SW – 31st of May 2012

Peter MacDonald- R & D Manager

Gamesa

2

ALL ENERGY

1

Turnover 3,033 EUR m Installed 3,308 MW Employees 8,300

2011

Key Statistics

Wind turbines manufacturing

Operation & Maintenance

Wind farms

GAMESA

BUSINESS UNITS

Gamesa profile A leader in the Wind Energy industry

3

ALL ENERGY

1 Global Leader Gamesa, pioneer in wind turbine manufacturing, are the world’s 4th largest supplier

DESIGN AND MANUFACTURING OF WTG, STRATEGIC KEYS

History of MW installed: 24,147 MW The world's 4th largest supplier with an accumulated market share of 11% in 2010. (Source: BTM 2010) 8 of the 10 largest developers by cumulated installed capacity in 2010 are Gamesa’ s customers. Gamesa is leading relevant markets as Spain, Mexico & North Africa. Source: BTM/MWU 2011; AEE January 2011; Internal sources.

4

ALL ENERGY

• R&D office in Bellshill

• Opened September 2011

• Global hub for all Offshore R&D

• Currently employees 65 Engineers

• Continued expansion to 180 expected

• Corporate office in London

• Global Head Quarters for Offshore

• University of Strathclyde

• Research clusters

• Applied Engineering

• UK Supply Chain development

• £21M of parts currently procured from UK

• Working to develop supply chain as manufacturing moves to the UK

Gamesa in the UK – Current footprint

Bellshill R&D Office

London Office

5

ALL ENERGY

Offshore Platforms

PLATFORM RATED POWER PROTOTYPES RUNNING-IN

SERIAL PRODUCTION

Gamesa G11X 5MW 2013 2014

Gamesa G14X 7MW Available in 2016

New products for the marine environment focused on optimal performance and reliability

from early design stages

New offshore requirements involving supply chain, creating opportunities

6

ALL ENERGY

Leith- Gamesa future manufacturing site

86 acres near Edinburgh

To manufacture

-Nacelles -Blades

O&M services

800 new jobs

Investments of

€150m

7

ALL ENERGY

Gamesa

Development of local UK Supply Chain

Building a local Supply Chain, whilst reducing the Cost of Energy

Manufacturing & Assembly Components, etc

People Developing local skills

Onshore Services Development of Leith

R&D activities

O&M Offshore

Offshore Services Foundations

Vessels

Helicopters

Academic Support Research and Applied

8

ALL ENERGY

Significant opportunities to:

Support the development of the manufacturing facilities in Leith

Provide operational Services to Leith once manufacturing starts

Provide and Support all our Offshore Services

Supply Manufactured hardware to support Wind Turbine bill of materials

Build and develop the local Skills base required to deliver our projects

We offer significant opportunities for companies that can demonstrate compliance to our demanding quality standards and competitiveness on price, when compared against a global market.

We are looking for local partners to develop log term sustainable relations and help us reduce the Cost of Energy

“Early engagement is essential”

Development of local UK Supply Chain

Summary

9

ALL ENERGY

Who to contact:

Barry McGahon- Advanced Purchasing - UK Braidhurst House

Finch Way

Strathclyde Business Park

Bellshill ML4 3PE

Tel: 0044 1698 572876

Mobile: 0044 782 509 2417

Email: [email protected]

10

ALL ENERGY

Global technology,

everlasting energy

www.gamesasailingteam.com

Thank you

Wind Supplier – Tier One

John F Hill GE Energy Power Conversion The Crown Estate

UK Offshore Wind Supply Chain Events 2012

2 GE Energy Power Conversion The Crown Estate 2012, John F Hill Version 03, 25th May 2012

Class I (Public)

Copyright Statement

©COPYRIGHT 2010-2012 GE ENERGY (USA), LLC AND/OR ITS AFFILIATES. All rights reserved. The information contained herein is GE Energy Proprietary Technical Information that belongs to the General Electric Company, GE Energy (USA), LLC and/or their affiliates, which has been provided solely for the express reason of restricted private use. All persons, firms, or corporations who receive such information shall be deemed by the act of their receiving the same to have agreed to make no duplication, or other disclosure, or use whatsoever for any, or all such information except as expressly authorized in writing by the General Electric Company, GE Energy (USA), LLC and/or its affiliates.


Class I (Public)


• The opportunity

– Just how big?

• Our company

– A capability to match the curve

• Our offer

– Capital equipment in product volumes

• Our plan

– Growth founded on innovation


Class I (Public)

Challenging sector backdrop

Turbine Maker

Tier One

Tier Two

Tier Three

There is no UK, utility scale turbine maker… yet.

A UK onshore maker is

unlikely. There are a dozen

offshore contenders. Who

will survive?


Class I (Public)

UK is good at difficult things

Wind has unique economic, quality and reliability requirements

Pin Ventilated™ Laminations GE Energy Power Conversion patented technology

UK heritage and

future - the solutions

to uncomfortable,

urgent needs


Class I (Public)

The UK power station update

DECC Electricity Market Reform Analysis, courtesy: Redpoint Energy Ltd

FACT 1 – This generating capacity is being retired between now and 2030


Class I (Public)

The UK power station update

EU national energy targets courtesy: European

Commission EuroStat

FACT 2 –Wind energy is crucial to the 2020 mix

Technology operational,

fuel supply secured, and

offshore wind generally

welcomed


Class I (Public)

Joining the supply chain Map Crown Copyright

Z1 Moray Firth

Z2 Firth of Forth

Z3 Dogger Bank

Z4 Hornsea

Z9 Irish Sea

Z5 Norfolk

Z6 Hastings

Z8 Bristol Channel

Z7 Isle of Wight

FACT 3 -

Investment already started

Humber

Fife

Tyneside

Great Yarmouth

Sheerness

Aberdeen

Teesside


Class I (Public)

The shape of the segment

3MW Direct Drive Permanent

Magnet Generator

Rationally, government concludes that wind offers over 30% of 2020

Technology operational, fuel

supply secured, and offshore

wind generally welcomed


Class I (Public)


• The opportunity

– Just how big?

• Our company


• Our offer


• Our plan



Class I (Public)

GE Energy 25% of GE revenue

Technology partner for customers

Est. ’11 revenues: ~$45Bn

Oil & Gas Power & Water Energy Management

• Drilling & Surface

• Global Services

• Measurement & Control Solutions

− Dresser − Wayne

• PII Pipeline Solutions • Subsea Systems • Turbomachinery

• Aero

• Gas Engines

• Nuclear

• Power Generation Services − Parts & Repair Services

• Renewables • Thermal

− Environmental Services

• Water

• Digital Energy

• Industrial Solutions

− Lineage Power • Power Conversion

Energy is a global scale business

John Krenicki GE Vice Chairman President & CEO


Class I (Public)

Local presence in 19 countries, with 12 engineering centers and 45 regional business centers

8 converter factories,

3 electrical machines factories

Global footprint Operating in over 80 countries 5,600 employees


Class I (Public)

UK capability

Kidsgrove, Staffordshire Low Voltage Wind Converters

Glasgow, Scotland Low to Medium Voltage

Converters and Switchgear

Rugby, Warwickshire System Design &

Project Management

Rugby, Warwickshire Generators and Motors


Class I (Public)

Our offering • Wind converters

(for doubly fed, full power)

• Generators (Permanent magnet generators, direct drive, hybrid and standard speed)

• Solar inverters

• Power conditioning systems (grid compliance)

• Power collection and farm level architecture

• Marinised solutions (Wet)

Renewables Onshore wind • Wind turbine drive train • Power quality

Offshore Wind Offshore wind • Turbine drive train • Wind farm architecture

and power quality

Solar P

Solar PV • Photovoltaics farms

(>500kW, architecture and power quality)

Wet renewables • Tidal/current/wave farm

architecture and power quality


Class I (Public)

Committed to helping our planet

Green energy

• Leading supplier of power converters and generators for wind, solar and wet renewables: around 26 GW of converters installed

• Key player in high power renewable solutions to accelerate cost-effectiveness vs. fossil fuel generation

Green technologies

• Innovative motors and variable speed drives, able to reduce power consumption by 30% vs. fixed speed

• Key player in high speed motors as an environmentally friendly replacement for gas turbines in O&G

CO2free base load generation

• Supplier of electrical machines and variable speed drives for CO2

emissions-free base load generation

• Active in nuclear fusion with leading edge power supply systems.


Class I (Public)

Services Spare parts and repairs • Spare parts availability • Obsolescence management • Component repairs and rotating

machine refurbishment

Long Term Service Agreement

Our offering •Full range of lifecycle services for entire offering

•45 Regional Business Centers to support global customers

•Risk management: from preventive maintenance to safe modernization and upgrades

Field services • Installation, commissioning and

start-up • Maintenance, technical assistance

and expert support • Training services

Revamping/upgrades • Life extension projects • Performance improvement • Capacity upgrades

Long term service agreements • From basic time and material to

performance based contracts • Remote monitoring and diagnostics

(VISOR) • Fleet management

(Marine, Offshore, Navy)


Class I (Public)


• The opportunity

– Just how big?

• Our company


• Our offer


• Our plan



Class I (Public)

GE Energy Power Conversion

We're applying the science and systems of power conversion to

help drive the electric transformation of the world's

energy infrastructure.

18 GE Proprietary Information

GE © 2012 – All Rights Reserved


Class I (Public)

Innovation is our DNA

High Temperature Superconductor Machine

• More than 2000 engineers and

R&D associates

• Collaborating with GE Global

Research Labs to advance

fundamental power conversion

technologies

• Pioneering developments in

superconductivity, energy

storage, subsea power

systems, high-speed motors,

permanent magnet generators,

and HVDC systems

Power supply for one of the leading global particle physics

centres Ultra-High Energy Density Battery

SiC Power Devices


Class I (Public)

Complete solution offering

• Continuously advancing technology in critical components

• Helping to optimize the whole system architecture

• Mastering interfaces

Mechanical equipment

Electrical grid

Electrical machines

Variable speed drives

Automation and control

+ +


Class I (Public)

The converter product

3.6MW Liquid Cooled Delta Fully Rated LV power converter

Grid power production in a modern variable speed wind turbine

1.5MW Liquid Cooled Delta Doubly Fed LV power converter


Class I (Public)

The converter product

8MW MV7000 Medium Voltage power converter

The ability to scale up wind


Class I (Public)

The generator product

Hybrid (Intermediate Speed ) PMG Housed and integrated with a planetary gearbox

The Permanent Magnet Generator


Class I (Public)

The generator product




Class I (Public)

The fully DC architecture

MAIN

AUX

AUX

DISTRIBUTION

U

P

S

P

L

C

P

L

C

KEY RATING

DATA

KEY:

RED - APC

BLUE - OTHER SUPPLY,

FREE ISSUE TO

APC

BLACK - OTHER SUPPLY

C

O

N

T

R

O

L

LUBE

€

C

O

NT

R

OL

x

AUX

DISTN

Low Mass DC turbine (Active Stator)

Fully protected DC wind farm

HVDC multi-terminal transmission network

HVDC SOCKET

Power collection efficiency System stability


Class I (Public)


• The opportunity

– Just how big?

• Our company


• Our offer


• Our plan



Class I (Public)

Joining the supply chain

Source: BVG Associates report

for The Crown Estate Q2/09

A measure of the impact of economic uncertainty

UK take-up of this

opportunity has

been slow 0

2

4

6

8

10

12

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

An

nu

al

Dep

loym

en

t C

ap

acit

y (

GW

)

Forecast EU deployments

Manufacturing capacity w ith long term industry confidence

Manufacturing capacity w ithout long term industry confidence


Class I (Public)

GE Energy Management – a partner

• Deep heritage dating back to 1899

• ~$7B business

• 60% global

• ~27,000 employees

• ~4,000 engineers

• Programs ~5% of sales

• $4B+ of new capital deployed… 14 acquisitions and JV’s

What we do

Generate

Transform

Convert

Transmit

Distribute

Protect

Sense

Control

Create mechanical motion

Who we are

Assembling and scaling a competitive business


Class I (Public)

Joining the supply chain

Even investing in the technology after next

The world’s first High

Temperature

Superconducting Renewable

Energy generator

High Temperature Superconducting Rotor GE Energy Power Conversion, Advanced Technology Group


Class I (Public)

Energy



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