View
1.489
Download
0
Category
Preview:
DESCRIPTION
Catch the Wind is focused on making renewable energy more profitable. The company provides wind sensing technology that accurately determines wind speed and direction, resulting in higher energy output and lower maintenance costs for wind farm operators and turbine manufacturers.
Citation preview
1
November, 2009
©2009 Catch the Wind, Inc.
Catch the WindMaking Wind Energy Profitable
2
Forward-Looking Statements
Certain statements in this presentation may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this presentation, such statements use such words as “may”, “will”, “expect”, “continue”, “believe”, “plan”, “intend”, “would”, “could”, “should”, “anticipate” and other similar terminology. These statements reflect current assumptions and expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under “Risk Factors”. Although the forward-looking statements contained in this presentation are based upon what we believe are reasonable assumptions, neither we, nor the Underwriters, can assure investors our actual results will be consistent with these forward-looking statements. We assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.
3
Forward wind measurement technology
Focused on making renewable energy more profitable-Wind farm operators-Turbine OEMs
About Catch the Wind (TSX-V: CTW.S)3
We Make Wind Turbines Smarter
4
Catch the Wind, Inc.
Spin-off of OADS
$15M Qualifying Transaction – Sept. ‘08
Experienced management team
Technology license for all commercial (non-aviation) applications
Optical Air Data Systems (OADS)
Established in 1990Industry leader in fiber-optic pulsed LIDAR technologySBIR Program Success StoryRoland Tibbetts Awardee -Top Small Business Defense ContractorManassas, VA Small Business of the Year 2007
4
Genesis of Catch the Wind4
5
Technology Applications5
LidarTechnology
Military & avionics applications
Licensed to
All other commercial applications
Licensed* to
* Irrevocable, perpetual and transferable
6
Aerospace TechnologyInitially Developed for Safety of Flight Critical Applications
Nacelle-Mounted Smart Turbine ControlVindicator® Laser Wind Sensor (LWS)
19 yearsin development
$70M+invested in R&D
Lightweight
Compact
Rugged 27patents
7
Substantial Wind Energy Profit is Lost
0
7
50%Actual
efficiency
100% Available
wind energy
8
Result: No lead time to adjust
8
Why? Current Turbine Controls are Reactive
Reactive
… but, here is where the wind is always shifting and gusting
Here is where wind
is measured today…
9
10
Reactive
10
See the Wind That’s Coming…
Here is where wind
is measured today…
Here is where we measure the wind
300 meters (20 seconds at 35 mph)
Proactive
11
Accurately predicting windspeed and direction
1. Increased Power OutputYaw Improvement approximately 10%Pitch Improvement approximately 5%
2. Decreased Operating CostsCost decrease approximately 10%(from 30% less stress on blades and 10% less overall damage)
Forecast Benefits(National Renewable Energy Laboratory Studies)
Wind Power’s Holy Grail11
12
Higher revenues- Increased production- Sale of Renewable Energy
Certificates (RECs)- Production Tax Credits (PTCs)- Higher capacity payments- Preferable external financing
terms; lower weighted average cost of capital (WACC)
12
We Make Wind Energy More Profitable 12
Reduced maintenance costs“Recent development of LIDAR systems promises large improvements in cost, compactness, and reliability so that it becomes viable to consider the deployment of such systems on large wind turbines. Potential advantages of this approach include increased turbine energy output and reduced turbine fatigue damage.”
NREL
13
How We See the Wind…Laser Doppler Velocimetry (LDV)
300 meters (20 seconds at 35 mph)
We sense the color change and calculate wind speed and direction
1
3
4
Three laser beams
Vindicator® LWS commands optimal turbine alignment and blade pitch
2 Lasers reflect off dust particles in wind and change color
13
14
Larger/heavierMoving partsInexpensive
Compact/lightweightNo Moving Parts/RuggedEconomical
Larger/heavierMoving partsApprox. $200,000 per unit
Not forward looking Measures up not forward
Forward-looking to 300 meters
14
Conventional Anemometer ZephIR LIDAR Vindicator® Laser Wind Sensor
No Forward-Looking Competition14
15
100 MWFARM
67 1.5-MW Turbines
Sample Financial Model*
Improving Economic Value15
Incremental NPV+1% Availability $1.9M-10k/WTG O&M $5.9M
Cost to Purchase $9.4MA/T Cost $5.6M
*Per AES Houston Wind Power 2009 | Based on $125K per unit + $15K retrofit kit Assumes 40% corporate tax rate
16
Industry Validation – WEICan Phase 2
Based on Data collected Apr – June 2009Vindicator® and Wind Vane alternate control every 9 hrsVindicator® uses wind vane control algorithm - not optimizedVindicator shows increased power production
Power Production Comparison
0
10
20
30
40
50
5.5 6.5 7.5 8.5 9.5
Wind Speed (m/s)
Ave
rage
Pow
er (k
W)
Vindicator Contro l
Nacelle Wind Vane Contro l
REGION 2
REGION 3
Vindicator® LWS
Percentage Increase in Power Production
0
5
10
15
20
5.5 6.5 7.5 8.5 9.5Wind Speed (m/s)
% In
crea
se
REGION 2 REGION 3
17
Industry Validation – Nebraska Power
Installed on Vestas V-82 #T22 in JuneIntegrated by CTW and DNV-GEC
Vindicator started controlling the wind turbine on July 8, 2009Control optimization in progress Data collected during AugustData shows significant increase in power
0 500 1000 15000
500
1000
1500
Time (Min)
Pow
er (K
W)
Average Active Power
T22T23T21
18
Nebraska Power - Reduced Stress Loading
SWANTech stress wave analysis data taken before and after Vindicator® installation The Random Friction Index (RFI) for T-22 went from worst to best in the group Random and periodic friction decreased significantly on main shaft bearing on T-22All snapshot data show excellent trends
STRESS DATA CORRELATES DIRECTLY TO A PERIOD OF INCREASED WIND POWER OUTPUT FROM T-22
19
*Large turbines, 1.0MW and above
Number of Turbines
Potential Vindicator®LWS sales*
Global installed based (2008) 80,500 $10.1 billionProjected installs (2009 – 2011) 30,000 $3.7 billion
Total market opportunity through 2011 $13.8 billion
*Based on $125,000 introductory sales price
Global Projected Demand:
500,000 turbines with 1.0 MW+ capacity by 2020
Large Addressable Market
2020
Market Sales Forecast
0
500
1000
1500
2000
2500
3000
3500
4000
2009 2010 2011 2012 2013 2014
WRA - Maritime
WRA - Terrestrial
RetrofitOEM
Number of Units
Unit sales forecast excludes additional product applications
21
DevelopmentComplete
Value-Driving Milestones21
Q2 2008 WEICan Phase I Testing
Q3 2008 WEICan Phase II Testing
Q1 2009 Prototype ProductionFirst Commercial Sale to AXYS TechnologiesMaritime Application Licensing Agreement
Q2 2009 Control Systems Integration ProjectNebraska Public Power District Trial Program
Q3 2009 Helimax Trial ProgramNREL – US Department of Energy TestingGamesa Agreement - Trial ProgramBreconRidge – Contract Mfg Agreement
Q4 2009 Canadian Hydro Developers - Multiple Unit Testing Gamesa Trial Program
Q1 2010 Vindicator® LWS Contract Manufacturing
22
Major Trial Programs22
• Multi-unit testing• Direct side-by-side comparison with non-
Vindicator® mounted turbines• First trial program with OEM• Gamesa G8X 2.0 MW• Integrates Vindicator® LWS with turbine
control• Cooperative Research and Development
Agreement• Primary research lab of U.S. DOE• 3-year program to develop new
advanced smart turbine control systems
23
Vindicator® LWS for Grid Control
Positioning to be required equipment to connect to the grid
24
Management Team
Phil Rogers- President & CEO/Director
21 years experience as successful small business defense contractor; Former director of Special Projects, Lockheed Skunk Works
David Samuels- CFO/Director
Extensive public company CFO and capital raising experience;Significant experience with emerging growth technology companies
Claudia Jaques- VP General Counsel
5 years Associate General Counsel - Corporate Securities, Freddie Mac;8 years experience with large law firm – corporate & securities
William Fetzer- VP Business Development
3 years Business Development Director10 years as President of Strategic Business Management Company
Daniel Lacroix- VP Manufacturing
Designed state of the art, world class Fiber Optical Manufacturing Facility20 years high technology manufacturing experience
25
Board of Directors
David Garman• Former U.S. Under Secretary of Energy• Assistant Secretary for Energy Efficiency
and Renewable Energy.
Alisa Rogers
Phil Rogers• President and CEO of Catch the Wind, Inc.• 20 years experience as successful small
business defense contractor• Former director of Special Projects, Lockheed
Skunk Works
• Co-founder and President of OADS, LLC
25
David Samuels• Extensive public company CFO and
capital markets experience• Significant experience with emerging
growth technology companies
• Co-founder Bayview Public Ventures• Extensive GreenTech experience• Private Equity Investor
Richard McGraw Addition of Two Wind Industry Executives
26
Financing History
Sept. 2008 May 2009
$21.8 Million CDNPrivate Placement16.7 million shares issued ($1.30)Significant Price Premium
$15 Million CDNQualifying Transaction11.5 million shares issued ($1.30)
27
Manufacturing Resources
Manufacturing Resources
MaterialsMaterials
G&A
G&ACAPEX
CAPEX
Q1 09 Q2 09Cash position at June 30 was $19MRamp-up period – new hires, business developmentBeta units currently manufactured by handBurn expected to decline by year-end due to low fixed cost structure
$1.3M$1.2 M
Average ‘Burn Rate’ per Month
Working Capital Usage
2828
Market Sales Forecast
0
500
1000
1500
2000
2500
3000
3500
4000
2009 2010 2011 2012 2013 2014
WRA - Maritime
WRA - Terrestrial
RetrofitOEM
Number of Units
Unit sales forecast excludes additional product applications
29
Equity Market Information
Ticker Symbol: CTW.S – V52-Week Range: $0.50 - $2.00Shares Outstanding: 54.9 MillionFully Diluted: 60.1 MillionMarket Capitalization: ~$100 MillionHolders: Insiders 46%
Institutional 46%Retail 8%
30
Liquidity Initiatives
Analyst CoverageNBF Rupert Merer; RCC Matt GowingExpansion of sell-side analyst coverage
Focus on retail investorsInvestor meetingsAdd-on to equity raise
Broaden US Investor BaseFirst round “.S” restriction expiredSecond round “.S” restriction expires May 2010Potential for future US SEC registration
31
Investment Summary
Additive technology focused on making wind energy more profitableVindicator® LWS is based on proven technology
No competitionSignificant existing market with enormous upside potentialMultiple sales channels
Essential for “Grid Control”Extensive patent portfolio; high barriers to entryNon-capital intensive businessExperienced management team delivering on milestones
32
Investor Contacts:David Samuels, CFOCatch the Winddsamuels@catchthewindinc.com(703) 393-0754 ext.107
Joe RacanelliEquicom Groupjracanelli@equicomgroup.com(416) 815-0700 ext. 243
Recommended