5CGroup Newsletter July 2010

5CGroup International Corporation Add: 6 Fl, East China Science & Tech Building, 16, No. 1 Str., Hangzhou Economic & Technological Development Area, Hangzhou, Zhejiang 310018, China Tel: 86-571-28969687 Fax: 86-571-28969685 Email: 5cgroup@5cgroup.net Website: http://www.5cgroup.net

This month’s issues:

Offshore wind development: Leaving a

better carbon footprint for the future

o Further market and technology

growth

o UK offshore potential

o China offshore potential

o US offshore potential

Wind Power Asia 2010

Offshore wind development: Leaving a better carbon footprint for the future Offshore wind energy still plays only a small role in global wind energy. However, now that the market for onshore wind energy has started to saturate, wind energy is bound to become a key element in future energy supplies. According to the World Wind Energy Association (WWEA), 45 offshore wind farms

are or will soon be in operation in twelve countries around the world. By the end of 2011, an estimated of at least 3,700 MW capacity will be running. Great Britain and Denmark will at that point be in the lead, with 13 and 10 farms respectively. Noticeable is that the Danish turbines are all older models and that the UK’s installed capacity of 1,850 MW will be three times higher than of its Danish competitors. Further market and technology growth The trend leans towards bigger turbines on the European market for offshore. The average size of turbines installed in Danish waters since 1991 is about 2 MW. The British turbines on the other hand are already in the 3 MW range. Nonetheless, the 5 MW turbines are well on its way to take over the 3 MW turbines. Even more, designing teams are looking at the potentials of 7.5 MW and 10 MW offshore turbine possibilities. UK offshore potential This year, worldwide 2,200 MW of offshore capacity will go online, about half of which will be in the UK. Uncertainty arises in the British offshore industry only because of the decline of the pound. This hurts, because the UK has almost no indigenous offshore wind power industry, so turbines must be purchased in euros or dollars. The slump of the pound, however, is the only shadow on the British offshore boom. The British wind industry enjoys a wholehearted support by the British government, which underpins the deployment of wind turbines at sea on ideological and technological grounds.

5CGroup Newsletter June 2010

China offshore potential Experts estimate the total technically usable offshore wind potential in China to be around 750,000 MW. According to the Chinese Institute of Meteorological Sciences, this is three times as high as the onshore potential, and together the two add up more than the country’s entire hydroelectric potential. Within 20 or 30 years a significant proportion of the wind power in China will be offshore. US offshore potential Wind energy has been on a roller-coaster in the US for the past 30 years. In the early 80s the US took the lead in the industry, before then President Ronald Reagan cut the legs from under the boom with the stroke of a pen. In the last 10 years wind turbines have again been going up in the US, at first a tentatively but then at an unbelievable rate. The total technically usable potential for the US cannot currently be reliably estimated. However, the US department of Energy talks of a possible 1,000 GW. Noticeable in the offshore wind industry is the fact that transportation costs account for more than 40% of the total costs.

Country Operational

offshore wind farms

Number of turbines

Installed capacity

13 n/a 1.247

10 n/a 644

7 n/a 610

2 96 228

5 66 134

1 n/a 105

1 10 30

1 6 30

1 7 25

1 5 10

2 2 4,5

1 2 1

Source: WWEA, Wind Energy International ’09 ‘10

Wind Power Asia 2010

The Wind Power Asia 2010 faire in Beijing turned out to be a huge success, not only for 5CGroup, but for most of the exhibitors. Not only

did the faire offer good opportunities to widen current wind industry networks, it also offered good opportunities to learn more about current market development and activities. Noticeable was the fact that a lot of new European players on the Chinese market needed assistance in entering the Chinese market as they were not familiar with the Chinese market mechanism, as for the veterans on the Chinese market had the chance to close new business deals. 5CGroup was present to support as many players as possible, providing them with professional guidance regarding the Chinese wind industry. A word from 5C member Ms. Liu: 5Cgroup is now more and more focusing on renewable energies, especially in wind power. Attending the Wind Power Asia Exhibition 2010 was a very good opportunity for the team to gain more knowledge. This event took place on 23th, 24th and 25th of July in the National Convention Centre in Beijing. Not only the 5C members of the Hangzhou Office were attending this event, even our president Paul Yih (COO) from the US was there too! In order to be presentable for the WPA, the team has been working hard to finish the brochure and the website on time. Unfortunately, our clients’ logos weren’t

5CGroup Newsletter June 2010

included in our brochure as references, which might have been better. People would have gotten a better idea of what 5C does and what 5C has achieved until now.

The Wind Power Asia in Beijing is one of many big Wind Power events in China. Not only Chinese companies attended this event, but also many foreign companies. Among them were many European participants, including the Netherlands, Germany and Denmark. During this event you can find many famous market players, but also many new and potential partners. Unfortunately the largest players in the Chinese Wind market didn’t attend. The purpose of the participation of 5C was not only to gain more knowledge, but also assisting the Dutch company We4Ce during the event. It had two stands, which one of them was part of the Dutch Pavilion. Although the team has to stand behind the booth most of the time, everyone has get a better understanding of the wind industry now. It does not only help us to integrate better into the market, but also helps us to improve our service to our current and future customers. After all, 5C wants to be efficient and to offer a high quality services to all our customers. During this event the team not only met up with many people within the wind industry, exchanging business cards, but also had the chance to learn more about the background of different kind of companies. It is remarkable how small the word within the Chinese wind

industry is. Many people have met each other before during their business trips in China. Therefore it is very important for 5C to operate on a global scale as much as possible. Our new company’s website will make this possible. Many companies have shown how their products or components work and wherefore it serves during the exhibition, which was very instructive. Below is a short summary of each day:

Day 1: It was a very busy day for both teams (We4Ce and 5C). There were many visitors coming on that day. The audience was very diverse. Although it was very busy, all the team members got the opportunity to visit most of the booths to have a chat and exchanging information, business cards and brochures.

Day 2: It was less crowded than the day before. Most of the visitors were business people. Just like yesterday 5C had the opportunity to visit other booths as well. Besides business people, there were remarkable a lot of students there too. With this observation 5C could work with

5CGroup Newsletter June 2010

universities to transfer their knowledge of renewable energy to the younger generation. Eventually it’s all about helping to improve their living environment in the future, by creating a cleaner environment. During this day presentations were held by different participating companies, including the presentation of We4Ce. Unfortunately, most of 5C members couldn’t attend those presentations. It seems to be a very informative and instructive for the future development in the Wind industry.

Day 3: The last day, the day were most contracts were signed and to discuss the future possible agreements. Although the Wind Power Asia was not what most exhibitors had expected, it was a very fruitful event, this coming from the perspective of We4Ce and 5C. Both companies have met potential customers and partners during this event. It was for most 5C members a memorable experience!

Afterwards there was time for relaxing. Most people went to explore Beijing for enclosure. The next morning it was time to say good bye and time to go back home.

Hopefully the next Wind Power Event could be held in Hangzhou! -Ms. Liu Chinese National Holidays 2010

1 Jan New Year 14-16 Feb Spring Festival, Chinese New Year

5 Apr Qing Ming (Tomb Sweeping) Festival

1-3 May Labor Day

16 Jun Dragon Boat Festival 22 Sep Mid-Autumn Festival

1-3 Oct National Day Note: In addition to the above, other holidays may be observed locally and certain groups have official Public Holidays on the following dates:

8 Mar International Women’s Day 4 May National Youth Day

23 May Tibet Liberation Day

1 Jun International Children’s Day

1 Aug Army Day

5CGroup Newsletter June 2010

5CGroup and Catum

M. Wang (5CGroup) and A. Timmer (We4Ce)

5CGroup, Aerodyn and We4Ce

5CGroup and Red Maple

We wish you a happy deal making July from all of 5CGroup and we hope to meet you in future exhibitions!