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TECHNOLOGY INTRODUCTIONENERGISEMINARET 20171

*Source: global cumulative wind power capacity: GWEC 2016 Moderate Scenario, (1MW delivered represent about 1,2 MEUR in sales).Kitemill: "Airborne wind is expected to capture part of the market and to even expand growth further

Drivers:Climate changeChange to renewable energyA general more efficient society

MethodsPolitically enabled

2POTENTIAL TO CHANGE THE OUTLOOKSGlobal cumulative wind power capacity outlook * Airborne Wind Energy (AWE) illustration

WIND

WIND AT NEW HEIGHTSHEIGHTAVERAGEWIND SPEEDAVAILABLEPOWER1 000m11m/s580W/m2500M8m/s320W/m2

100M5m/s80W/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

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

A kite - generates the tractive forces (lift)Ground system - converts the tractive force to electricity.Control system - controls winch and the kiteDrawing shows a 30kW plant with a 7,5 m kite.THE COMPLETE KITEMILL CAN BE BUILT WITH ONLY 10 % OF THE MASS OF A CONVENTIONAL WINDMILL WITH THE SAME CAPACITY, THUS RESULTING IN A SIGNIFICANTLY REDUCED CAPEX.

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HOW IT WORKSComposite picture several pictures put together to show the kite path.

ProductionTake-off/landingReturn

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(1) Average world GWEC 2015, (2) Annuity 8 % x year (3) Real (excl. inflation)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 2014) PowerkW2 0002 000 Full load hours per yearhrs4 2002 453 (1)

Annual productionGWh8,44,9 CAPEXM1,52,5Average energy cost LCoE:c/kWh2,86,8

(2,3)ATTRACTIVE WITH A POTENTIAL TO BECOME PRICE COMPETITIVE

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ON THE VERGE OF A BREAKTHROUGHUniversity of GrenobleKitemillAmpyx PowerMakani PowerCrosswind PowerSkywind PowerSkysails PowerEnerKiteKitegenNGR KiteGuangdon HAWP TechnologyMagennWindliftOmnidea HAWPTU DelftUniversity of Freiburg University of LimerickDTU Wind EnergyIWES FraunhoferChalmers UniversityUniversity of TampereStanford UniversityRMIT UniversitySelskaperUniversiteterSource: Delft University www.kitepower.eu, modified by Kitemill. Commercial sub-suppliers are not included even if their involvement includes investments and thereby risk taking.E-kiteTwingTecEnevateKite Power Systems

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THE TEAM

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2008Kitemill founded2010Statement of Feasibility by DNV2012Rigid wing design, carbon fiber2015Autonomous production of energy2016Autonomous in all configurations + 30 kW prototype 2017Making control system robust for 24/7 operation.

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THE SCALE UP RACEPROTOTYPEDEMO 30 kWDEMO MEDIUM SCALEKITEMILL TECHNOLOGY STEPS2019UTILITY SCALE2016PRODUCT DEVELOPMENTEFFICIENCY RATE WILL INCREASE BY SIZEOPERATION & MAINTENANCE COST WILL REDUCE BY SIZEThere will be a race towards competitive energy cost and larger scale units.Scaling up is possible as safety and reliability become proven by the former version, the changes cannot be to large as that would make the former operational experience less relevant. The real scale up race is about scaling up the customers ability to fund their projects.

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COMMERCIAL MARKETSCONCEPT ACCEPTEDENABLE MARKETEMERGING MARKETSCREATING THE MARKET20192016DEMOS IN OPERATIONCOMMERCIAL INSTALLATIONSCOMMERCIAL PRODUCTS>100 000 hrs>1000 hrs>10 000 hrsCUMULATIVE OPERATIONAL HOURS

Main target is to always generate more operational hours than any other AWE supplier.RAPID COMMERCIALISATION

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RELEVANT INDUSTRY

WIND RESOURCES & SPACE

CLARIFIED CASE WITH THE AVIATION AUTHORITIES

TIMING FOCUS ON NEW EXPORT MARKETS

ENERGY PRICE

AVAILABLE GOVERNMENTAL INCENTIVES

THE NORWEGIAN MARKET

Det er mange grunnar til at me kan kommersialisere dette i Noreg. Me meiner me skal gjere det for skape ein ny norsk eksportindustri.14

How to make a successful technology introduction?

The Danish model for wind has been profitable for Denmark.

The German model for solar has been successful for the energy mix in Germany.

The Green Innovation ModelBusinesses + Authorities + Scientific Institutions + The Civil SocietyIndustryCitizensGovern-mentAcademiaQuadruple helix innovation

Det er mange grunnar til at me kan kommersialisere dette i Noreg. Me meiner me skal gjere det for skape ein ny norsk eksportindustri.15

CREATING A MARKET PLACE FOR DEMO PLANTS

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HOW IT WORKS

FOR DETAILS, PLEASE CONTACT:Thomas HrklauCEOth@kitemill.no+47 468 37 117Jon GjerdeFounderjg@kitemill.no+47 902 09 813

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