Vision for a Lake Erie Wind Energy Center

RFQ ConferenceMarch 28, 2007

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Today’s Meeting Provide overview of Lake Erie Wind Energy

Center

Discuss information sought in RFQ responses

Answer questions from interested parties

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Cuyahoga County, Ohio

459 sq. mi., ~1.3 million residents, including Cleveland and many of its suburbs

County government: Three elected Commissioners, ~9400 employees, ~$1.4

billion budget ~40 buildings, ~10 MW of load, currently supplied by coal

power

Uncommon opportunity for wind: Bounded on the north by Lake Erie, with very attractive wind

resource (and proximity to Eastern North America load centers)

Supportive political environment: strong desire for economic development and environmental improvement, minimal public opposition

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Energy Task Force

Authorized by Commissioners in August 2006

Mission: to generate benefits for County citizens by recommending a plan to promote advanced energy for… Economic development: job creation through new business

activity Reduced energy expenditures by local consumers (especially

with rate caps expiring end-2008) Environmental improvement (especially air quality) Improved image: from “Burning River” Rust Belt to “Green

City on a Blue Lake”

First priority: exploring offshore wind energy deployment and R&D potential in Lake Erie

Cuyahoga Regional Energy Development Task Force (CREDTF)

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CREDTF Members Bill Mason, Cuyahoga County Prosecutor (Chair) Steve Dever, Cuyahoga County Prosecutor’s Office (Secretary) Paul Oyaski, Director, Cuyahoga County Department of Development Robert Klaiber, Cuyahoga County Engineer Paul Alsenas, Cuyahoga County Planning Commission Andrew Watterson, Manager of Sustainability, City of Cleveland Matt Zone, Councilman, City of Cleveland Michael Wager, Vice Chair of Cleveland/Cuyahoga Port Authority Hon. Deborah Sutherland, Mayor of Bay Village Clarence Rogers, Former Commissioner, Public Utilities Commission of Ohio Richard Stuebi, BP Fellow, The Cleveland Foundation Susan Luria, VP of Attraction/Retention, Team NEO Dr. Larry Viterna, NASA Glenn Research Center Linda Abraham-Silver, Executive Director, Great Lakes Science Center Dave Rosenberg, Manager, Market Development, GE Energy Dr. Saurabh Lawate, Commercial Manager, The Lubrizol Corporation Sohan Uppal, VP Technology, Eaton Fluid Power Group Jack Myslenski, EVP, Parker Hannifin Corporation Dave Nash, McMahon DeGulis LLP Lou McMahon, Thompson Hine

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Lake Erie Wind Resource

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Great Lakes Wind Potential Enormous market opportunity for wind energy in Great Lakes:

But, no company or region in leading position to exploit:

Few offshore projects completed to date, all in Europe and in saltwater (not freshwater)

Selected manufacturers (GE, Vestas, Siemens) with still-modest experience, a few others (e.g., Enercon, RePower) developing products

Depth Lake Erie All Great Lakes

< 20 m 44 GW 151 GW

20-30 m 21 GW 58 GW

30-40 m 3 GW 40 GW

Total < 40 m 68 GW 249 GW

Source: “The Great Lakes as a Regional Renewable Energy Source” by David Bradley, February 2004, www.greengold.org/wind

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Lake Erie Wind Energy Center

5-20 megawatt demonstration offshore wind project for energy production and monitoring & diagnostics (M&D)

R&D center for testing new wind technologies (blades, gearboxes, towers, etc.) designed for offshore application

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Wind Project 5-20 megawatts (2-10 turbines) 3-5 miles

offshore downtown Cleveland: Energy production Monitoring and diagnostics (M&D) for continuing

technical advancement

Objectives: Proof of concept (regulatory precedents and

improved economics) to stimulate development of Great Lakes wind

Visual icon for area Reduced reliance on coal for local electric

generation reduced air emissions

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Potential Sites

Arch

Grid

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“The Crib” Water Intake Fixed permanent platform

about 3 miles offshore downtown Cleveland – only such resource in Great Lakes

Collecting wind and other meteorological data continuously since May 2005 at 50 meters

Ample power (PV and batteries) for further monitoring equipment

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R&D Center Testbed for commercializing freshwater offshore wind

technologies: Open-access facility for research clients Ability to calibrate results with nearby offshore wind project facing

same wind/weather/water regime Designed for applied product engineering by industrial partners

Potential configuration(s): Buildings/facilities for subcomponents (e.g., drive train center) “Plug-and-play” test towers just onshore Pre-wired/pre-permitted offshore plots Other?

Objectives: Economic development: attractor of research, entrepreneurial and

manufacturing activity in wind technologies and products/services Recognition of area as an important center of North American wind

industry

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Local R&D Strengths Substantial research capabilities:

Cleveland offshore “Crib” with monitoring equipment NASA-Glenn’s wind tunnels and icing research/testing equipment Northwest Ohio Wind Coastal Initiative U. of Toledo’s Lake Erie Center for environmental/ecological impacts

(marine, avian) Academic excellence in materials science research

Deepwater port infrastructure for installation/logistics management

Local supply chain and R&D expertise: Bearings: Timken, Rotek Blades and materials: MFG, Owens-Corning, Sherwin-Williams Drive trains: Eaton Control systems: Parker-Hannifin Lubricants: Lubrizol Casting, machining and fabrication: Many companies

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Potential Funding Sources

“Buy-down” to make output of project competitive in local energy markets: Grants from Cuyahoga County,

Cleveland Foundation, Port Authority, others

Ohio and Federal participation Discounted equipment from

suppliers (valuable R&D, high-visibility)

Standard windfarm financing structures: Cuyahoga County: power

purchase agreement Public sector: OAQDA financing,

CREBs, muni bonds Private sector: project finance

and equity (to monetize PTC) REC’s?

Ohio Third-Frontier R&D-grant program (potentially deca-million dollars for establishment of dedicated offshore wind center)

Ohio academic institutions (e.g., Case) as required “match” for Third Frontier funding

Federal appropriations for R&D (DOE/NREL)

Other commitments from Ohio (Gov. Strickland) and local parties

Revenues from rent/lease of facility to users (discounted for long-term or block purchases)

For Wind Project For R&D Center

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Feasibility Study 6-9 month feasibility study to be commissioned:

Technical/engineering issues and turbine manufacturer participation for offshore demonstration project

Environmental/siting/permitting/aesthetic issues for offshore demonstration project

R&D needs across supply chain, manufacturer interests and equipment/facility requirements for research center

Economic/financial viability for offshore project and research center

$800K funding for feasibility study being obtained

Process underway to identify/select consultants for feasibility study: RFQ issued, due April 23 RFP to follow

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RFQ Responses Due April 23 RFP to be issued to consultants or teams that demonstrate experience

across disciplines in their RFQ response: Wind turbine manufacturers and windfarm development (especially offshore) Offshore/marine engineering Finance: public and private Community engagement: aesthetics, public opinion, etc. Avian and other environmental/siting issues

Qualification of interested parties to receive RFP will be determined by Subcommittee of CREDTF

Local participation encouraged, but RFP will not not be issued to inexperienced local consultants

Based on feedback from RFQ respondents, RFP may be structured into multiple RFPs with separate issue areas: Technical/engineering issues and turbine manufacturer participation for offshore

demonstration project Environmental/siting/permitting/aesthetic issues for offshore demonstration project R&D needs, manufacturer interests/demands and equipment/facility requirements

for research center Economic/financial viability for offshore project and research center

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For More Information Report available at www.cuyahogacounty.us

Contact: Paul Oyaski, Director, Cuyahoga County Department of Development, (216) 443-7535, cdpxo@cuyahogacounty.us