RICHARD YEMM
 Chief Technology Officer
 Pelamis Wave Power Ltd.




Stanford School of Engineering
          May 4 2009
  ...
Cost reduction – the development cycle
             Wave Energy – why?




• Resource is enormous            • Renewables ...
Cost reduction – the development cycle
            PELAMIS – Business Overview
      Industry standard model

            ...
Pelamis WEC technology - USPs
 Offshore deployment
 Non-site specific
 Inherent survivability - CRITICAL
 3 x power/to...
Wave Energy – where have we got to?
• We have come a long way in 11 years…!!!
• Significant Venture Capital now engaged in...
FROM THIS….




              6
TO THIS….




                                      7
Commercial in in Confidence
  Commercial Confidence
8
Commercial in in Confidence
  Commercial Confidence
9
Commercial in Confidence
10
Commercial in in Confidence
  Commercial Confidence
11
Commercial in in Confidence
  Commercial Confidence
12
Commercial in in Confidence
  Commercial Confidence
13
Commercial in in Confidence
  Commercial Confidence
14
Commercial in in Confidence
  Commercial Confidence
15
16
17
Commercial in in Confidence
  Commercial Confidence
18
Commercial in Confidence
19
Commercial in Confidence
20
Commercial in in Confidence
  Commercial Confidence
21
Commercial in in Confidence
  Commercial Confidence
22
Commercial in in Confidence
  Commercial Confidence
PELAMIS - Status
• ‘P1’, first generation technology demonstrated:
   – 4 x 750kW machines built/installed
   – All relate...
Cost reduction – the development cycle
             Wave Energy – costs

                               First-of-a-kind
  ...
Cost reduction – the– parallels with wind
      Wave Energy development cycle
The wind industry….. 1980s



              ...
reduction – the development cycle
CostWave Energy – costs & cost reduction




       Wave




                           ...
Status of Markets – EUROPE
• Many initiatives have come through specific lobbying at
  National level
• Scotland has led t...
Status of Markets – UNITED STATES
• Lots if interest, enthusiasm & activity in various States
• West Coast leading as reso...
What are Key Industry Issues?
• Stepping to the next level of funding for technologies &
  projects…
   – Private Investme...
What should Industry & Government do?
 • Significantly raise the profile of the sector in forward
   thinking to enhance i...
RICHARD YEMM
        May 2009




www.pelamiswave.com
                      31
Upcoming SlideShare
Loading in...5
×

Wave Energy Startup - Richard Yemm - Pelamis Wave Power - Stanford May409

2,193

Published on

alternative energy, entrepreneur, wave energy, ocean power, uk, carbon trust, stanford, burton lee

Published in: Technology, Business
2 Comments
8 Likes
Statistics
Notes
No Downloads
Views
Total Views
2,193
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
2
Likes
8
Embeds 0
No embeds

No notes for slide

Wave Energy Startup - Richard Yemm - Pelamis Wave Power - Stanford May409

  1. 1. RICHARD YEMM Chief Technology Officer Pelamis Wave Power Ltd. Stanford School of Engineering May 4 2009 1
  2. 2. Cost reduction – the development cycle Wave Energy – why? • Resource is enormous • Renewables needs ‘options’… • Most ‘dense’ renewable resource • Dependable & forecastable • ‘Out of sight & out of mind’ • Aggregation with wind => good Major energy source & industrial opportunity 2
  3. 3. Cost reduction – the development cycle PELAMIS – Business Overview Industry standard model Component Suppliers, Sub- contractors and Fabricators Pelamis Wave Power  Technology provider Pelamis assembly, installation,  Model adopted across power sector operation & maintenance  Proven through wind industry success Business & finance Project  Incorporated January 1998 Development  Private - UK Limited Company  Currently 78 staff Power Generation Projects  ~$0.75m seed from ‘friends & family’, Angel  ~$12.5m first stage VC 2002 Electricity Markets  ~$60m since in 3 rounds  2 commercial contracts to date, ~$15m Proven, accepted, financeable business model… 3
  4. 4. Pelamis WEC technology - USPs  Offshore deployment  Non-site specific  Inherent survivability - CRITICAL  3 x power/tonne of competitors  Available technology  Designed to DNV standards  Patented core technology, all key know-how in-house  Acknowledged market leader  Forecastable output  Negligible visual intrusion  Minimal environmental impact  Minimum on-site construction work  Off-site maintenance Breakthrough technology with unique competitive advantages 4
  5. 5. Wave Energy – where have we got to? • We have come a long way in 11 years…!!! • Significant Venture Capital now engaged in sector • We are at the stage of proving-out the technology: – Prototype and now pre-commercial machines – Manufacturing and supply chain development – Project infrastructure – Operational procedures • We are putting in place industry design, performance & operational standards and best practices • We have gained credibility, and the interest of energy sector But… we have not proven full commercial operation yet 5
  6. 6. FROM THIS…. 6
  7. 7. TO THIS…. 7 Commercial in in Confidence Commercial Confidence
  8. 8. 8 Commercial in in Confidence Commercial Confidence
  9. 9. 9 Commercial in Confidence
  10. 10. 10 Commercial in in Confidence Commercial Confidence
  11. 11. 11 Commercial in in Confidence Commercial Confidence
  12. 12. 12 Commercial in in Confidence Commercial Confidence
  13. 13. 13 Commercial in in Confidence Commercial Confidence
  14. 14. 14 Commercial in in Confidence Commercial Confidence
  15. 15. 15
  16. 16. 16
  17. 17. 17 Commercial in in Confidence Commercial Confidence
  18. 18. 18 Commercial in Confidence
  19. 19. 19 Commercial in Confidence
  20. 20. 20 Commercial in in Confidence Commercial Confidence
  21. 21. 21 Commercial in in Confidence Commercial Confidence
  22. 22. 22 Commercial in in Confidence Commercial Confidence
  23. 23. PELAMIS - Status • ‘P1’, first generation technology demonstrated: – 4 x 750kW machines built/installed – All related wave farm infrastructure, operational procedures, SCADA systems etc proven – P1 machines have some limitations in terms of performance & reliability – ‘First-of-kind’ project costs fully defined – Lessons learnt captured & fed into onward programme • ‘P2’, second-generation machine currently in build: – Range of advances & improvements from R&D plus experience – Approaching double annual yield for similar cost – First machine currently being built under contract to E.on, launch schedule for Q2 2010 CONCLUSION: First technology-cycle complete, P2 will be platform for commercial roll-out 23
  24. 24. Cost reduction – the development cycle Wave Energy – costs First-of-a-kind Current focus Capital cost Cumulative finance Rapid Conceptual phase learning Normal learning curve Extended learning Investment risk Cumulative capacity 24
  25. 25. Cost reduction – the– parallels with wind Wave Energy development cycle The wind industry….. 1980s … and NOW - Fully converged & consolidated… - Into mainstream global roll-out 25 - Delivered by solid policy actions in EU
  26. 26. reduction – the development cycle CostWave Energy – costs & cost reduction Wave 26
  27. 27. Status of Markets – EUROPE • Many initiatives have come through specific lobbying at National level • Scotland has led this with: – Saltire prize – (c.f. ‘X Prize’), ~$15m for first commercial demonstration project – EMEC test centre – 4 berth all inclusive test site for prototypes – WATES grant scheme – 40% grant plus 5 years of revenue support at 15$c/kWh for prototype & pilot demos – Feeder market support – 35-40$c per kWh for pre-commercial/commercial projects – Planning & regulatory framework - First Marine SEA, spatial planning etc – Licencing – first managed sea bed licencing programme in process • Attractive schemes also in Portugal, Ireland etc • R&D support from European Union • Many other countries assessing options CONCLUSION: EUROPE IS LEADING WITH POLICY & ACTIVITY 27
  28. 28. Status of Markets – UNITED STATES • Lots if interest, enthusiasm & activity in various States • West Coast leading as resource & renewables focus higher • Wave energy eligible for tax credit, levels & timescale insufficient • Initial permitting requests/exercises in process – complex • Various RFPs & grants schemes at Federal (+1 State) level • Various companies active in US • At a state level (CA,OR, WA) there are significant individual programmes & initiatives, but little sign of a holistic coordinated plan so far • Little concerted or coordinated action at a Federal level, there is a need to move to push this up the policy priority list CONCLUSION: COORDINATED ACTION WITHIN US ESSENTIAL TO MOVE FORWARD STRONGLY 28
  29. 29. What are Key Industry Issues? • Stepping to the next level of funding for technologies & projects… – Private Investment – Grants – Feeder markets • Key issues – scale of finance required, perceived risks & time to return • Achieving industry convergence/consolidation • Absence of clear National & Regional objectives & targets • Poor industry coordination in some areas CONCLUSION: UNLOCKING FINANCE KEY TO SECTOR SUCCESS 29
  30. 30. What should Industry & Government do? • Significantly raise the profile of the sector in forward thinking to enhance investor & customer confidence • Move strongly to drive technology demonstration, refinement and early roll-out in key first-mover markets: – Address sector risk profile efficiently – Learning from / mirroring experience of wind, oil & gas industries and other heavy industrial technologies – Build solid domestic technology and industry base(s) in first mover markets before taking technology global • Move strongly to lobby for holistic policy initiatives at US Federal level to provide solid and consistent investment, development and deployment platform Above all else: CREATE A SOLID PLATFORM FOR PRIVATE SECTOR TO DELIVER! 30
  31. 31. RICHARD YEMM May 2009 www.pelamiswave.com 31

×