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The economics of reducing the cost of energy by 13% revenues

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At what “speed” is your digitalization effort? There is no dispute, digitalization will play a key role in improving the sustainability of renewable energy sources through efficiency. The question remains – Where are you? While the industry has embraced the importance, water cooler conversations continue - How to monetize the true value of the data from digitalization?

The webinar outlines:

• How digitalization is applied across all corporate business units: asset management, operations management, risk management and supply chain management to reduce the cost of energy by up to 13%
• An industry operator case study on monetizing your digitalization efforts and understand the true ROI
• A digitalization value statement to enable operations management can provide a short-term watch list from 0-12 months enabling early detection prior to consequential damage beyond an operator's current capabilities – attributes to 2-3% of cost avoidance or cost savings.

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The economics of reducing the cost of energy by 13% revenues

  1. 1. The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  2. 2. SentientScienceCorp.-Proprietary/PrivateLevel1 Host Natalie Hils Director, Revenue Marketing nhils@sentientscience.com +1 716.807.8655 Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  3. 3. SentientScienceCorp.-Proprietary/PrivateLevel1 Webinar Instructions Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  4. 4. © 2016 Sentient Science Corporation – Confidential & Proprietary About Sentient Science Our Pedigree & Awards/Recognition 2001-2016 51 SBIR Awards 16 Phase II Projects $15M+ SBIR Funding 2010 NASA Validates DigitalClone® 2014 Tibbett's Award Best SBIR Program April 2016 2016 Bloomberg New Pioneer Award October 2017 2017 Frost & Sullivan New Product Innovation Award Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  5. 5. SentientScienceCorp.-Proprietary/PrivateLevel1 Sentient Science Data Fusion - Differentiation Material Science Models Data Science Models Data Fusion MODELS 12-18 months COMPONENT REMOVAL DAMAGE INITIATION 3 yrs Life 5 yrs Life + time Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Portfolio Manager, Purchasing Manager Asset Watchlists Risk Forecasts Component Watchlists Site Manager Asset Watchlists Risk Manager Risk Forecasts VALUE
  6. 6. SentientScienceCorp.-Proprietary/PrivateLevel1 Sentient Science Customers Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  7. 7. © 2016 Sentient Science Corporation – Confidential & Proprietary Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues WIND TURBINE MODELS COMPLETE OR UNDER CONTRACT Acciona Windpower AW 1500 (1.5MW) AW3000 (3.0MW) Alstom Ecotechnia 74,80 (1.6MW) Bonus B41, B44 (600kW), B62 (1.3MW) Clipper 2.5MW Gamesa Made AE 30 (330k), G42, G47 (660k), Made AE 46 (660k), G52, G5X (850k), G87, G8X, G90 (2MW) GE 1.5, 1.5S, 1.5SLE (1.5MW), 1.6/1.7-100, 103 1.6SLE (1.6MW), 1.85 Repower (1.85MW), 2.0 (2MW), 2.3MW Goldwind G48-759 (750k) MHI Vestas V164 (2.4MW) Mitsubishi MWT-1000-57 (1MW) Neg Micon NM44-48 (600k), NM52 (900k) Nordex N60 (1.3MW), N80 (2.4MW), N90 (2.5MW) Senvion 2XM (2MW), MM92 (2.05MW) Siemens 2.3MW, 3.6MW Sinovel 1.5MW Suzlon S88 (2.1MW) United Power U97 (2MW) Vestas V47 (660k), V80, V90, V93/G42, V100 (1.8MW), V82 (1.65MW), V117 (3.3MW) GEARBOXES COMPLETE OR UNDER CONTRACT BaoChi GD1663B Bosch Clipper Quantumdrive Dalian PPSX129 Echesa GE2000PL, PE477V, PE88-A, GE700PL, GE850PL Eickhoff CPKHZ-195 Fellar TPH3-1600HN, TPH3-1500, TPH3-1080V-1080V/1, TPH3-1100G/1- 1100G Metso/Moventas PLH3-8X61, S3GHD-500X, PLH1100, PLH2900, S3GHD-506X, PLH-309X1G, 310X1G, 312X1G Nanjing FDM-00R8, FDMD, FDMF, FDM2, FD835-01R7 Winergy/Flender PEAB4407, PZAB3535, PEAS4375.x, PEAS4280.x, PPSX129, PEAS4280.1, 4411, 4419, PEAB4410.2, PEAB4431, PZA3505, PEAC4300.x, PEAB4420 Sentient’s Digital Library of Wind Turbine and GBX Models
  8. 8. SentientScienceCorp.-Proprietary/PrivateLevel1 International Energy Agency 2017: Value of Digitalization Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Optimize O&M Costs 1. IEA claims that the overall savings could be in the order of USD 80 billion per year from 2016-40. 2. One of the most important benefits of digitalization is extending the operational lifetime of power plants and network components, through improved maintenance and reduced physical stresses on the equipment. 3. If the lifetime of all the power assets in the world were extended by five years, close to USD 1.3 trillion of cumulative investment could be deferred over 2016-40. On average, investment in power plants would be reduced by USD 34 billion per year and that in networks by USD 20 billion per year. Increase Network Efficiencies Reduce Unplanned Outages Life Extension of Assets Improved O&M Source: http://www.iea.org/digital/#section-4
  9. 9. SentientScienceCorp.-Proprietary/PrivateLevel1 New Development • Win new deals • Competitive PPA biding • Buy on Life & Price • Optimize suppler choices Business Strategy • Optimal Governance by digitizing wind fleets • Integration with existing MAXIMO and other IT systems • Optimize Key Performance Indicators to lower Cost of Energy • Benchmark performance against industry competitors Operations Management • Lower the cost of asset operations • Reduce technical visits due to bundling & false alarms • Reduce costs from scheduling technician time and equipment Asset Management • 18 month rolling budgets and forecasts • Avoid down-tower rebuilds with increased up-tower replacements • Reduce mobilization cost by bundling crane visits • Avoid downtime with inventory available Risk Management • Reduce insurance and extended warranty costs • Reduce annual gearbox replacements with preventative O&M recommendations • Reduce long-term gearbox O&M cost with “right first time” procurement • Reduce insurance premium from risk management Supply Chain • Improve terms and costs with key suppliers • Reduce risk of exceeding O&M budgeting • Reduce inventory storage required to mitigate failure risk • Reduce unit cost of gearbox purchases with long-term agreements DigitalClone® Reducing COE by 13% of Revenues 6 Business Areas to Reduce Costs with Digitalization Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  10. 10. SentientScienceCorp.-Proprietary/PrivateLevel1 Presenter Keith Vergien Vice President, Energy Operations kvergien@sentientscience.com Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  11. 11. SentientScienceCorp.-Proprietary/PrivateLevel1 Savings of Revenue Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues 2018 2019 2020 2021 2022 Total Assets under DCL Contract 200 600 1000 1400 1800 Avergae MW - Per Asset 1.56 1.56 1.56 1.56 1.56 Total MW 312 936 1560 2184 2808 Price per MWh - Power Purchase Agreement (PPA) $ 36.86 $ 36.86 $ 36.86 $ 36.86 $ 36.86 Price per MWh from Production Tax Credit (PTC) $ 24.25 $ 24.25 $ 24.25 $ 24.25 $ 24.25 Average Capacity Factor 38% 38% 38% 38% 38% Average Turbine Availability 96.9% 96.9% 96.9% 96.9% 96.9% Per Turbine - Daily Production Revenue $ 848 $ 848 $ 848 $ 848 $ 848 Per Turbine - Annual Revenue $ 309,525 $ 309,525 $ 309,525 $ 309,525 $ 309,525 Total Assets - Revenue $ 61,905,067 $ 185,715,202 $309,525,337 $ 433,335,471 $ 557,145,606 5% Savings in O&M, per IEA org. $ 3,095,253 $ 9,285,760 $ 15,476,267 $ 21,666,774 $ 27,857,280 13% Savings - Sentient Science DCL through all business units $ 8,047,659 $ 24,142,976 $ 40,238,294 $ 56,333,611 $ 72,428,929 Savings captured in BVA $ 1,060,151 $ 3,802,679 $ 7,486,222 $ 12,247,866 $ 18,228,702 % of Savings Capture, per IEA org vs BVA 34.3% 41.0% 48.4% 56.5% 65.4% DESCRIPTION PRODUCTION&FINANCIAL
  12. 12. SentientScienceCorp.-Proprietary/PrivateLevel1 Business Value Assessment Summary Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Year 2018 2019 2020 2021 2022 TotalAssets in DCL 200 600 1000 1400 1800 Total Savings Per Deployment 1,060,151$ 3,802,679$ 7,486,222$ 12,247,866$ 18,228,702$ Savings perAsset 5,301$ 6,338$ 7,486$ 8,748$ 10,127$ Savings perMW 2,718$ 3,250$ 3,839$ 4,486$ 5,193$ TotalFleetDigitalClone Live Price: 195,000$ 585,000$ 975,000$ 1,365,000$ 1,755,000$ ROI Ratio: 4.4 5.5 6.7 8.0 9.4 Selecting "Best" LifeX Action: Choosing the correct action to avoid Future Cost of "Right First Time" Replacement (Matching correct component to Asset age,align remaining useful life) $ 491,216 $ 1,600,284 $ 2,882,258 $ 4,342,100 $ 5,984,880 Short-term Watchlist(0-12mo): Early Detection priorto consequential damage,beyond operatorcurrent capabilities 535,500$ 2,076,452$ 4,347,790$ 7,477,751$ 11,598,868$ Short-term Watchlist(0-12mo): LostEnergy Per Asset - Reduce Downtime,Ensure Resource is Available forChange- Outs - (Manpower, Parts,Tooling,Equipment) 33,435$ 125,943$ 256,174$ 428,015$ 644,955$ Example of Value Statements Example:
  13. 13. SentientScienceCorp.-Proprietary/PrivateLevel1 Business Value Assessment – Assumptions Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues 2018 2019 2020 2021 2022 Total Assets under DCL Contract 200 600 1000 1400 1800 Avergae MW - Per Asset 1.95 1.95 1.95 1.95 1.95 Average Wind Turbine Capacity Factor 45% 45% 45% 45% 45% Price per MWh - Power Purchase Agreement (PPA) $ 38.00 $ 38.00 $ 38.00 $ 38.00 $ 38.00 Price per MWh from Production Tax Credit (PTC) $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 Cost of Capital 5.50% 5.50% 5.50% 5.50% 5.50% Average Per Event Downtime (Days) - Up-tower 4 4 4 4 4 Average Per Event Downtime (Days) - Full GBX Replacement 20 20 20 20 20 Average Annual GBX Failure Rates 7.5% 7.4% 7.2% 7.1% 6.9% Up-Tower Repair Frequency 3.0% 2.9% 2.9% 2.8% 2.8% Complete GBX Replacement Frequency 4.5% 4.4% 4.3% 4.2% 4.2% Average Per Event Up-Tower Repair Costs $ 10,000 $ 10,500 $ 11,025 $ 11,576 $ 12,155 Average Cost of GBX, including manpower and crane mobilization $ 350,000 $ 360,500 $ 371,315 $ 382,454 $ 393,928 Average Per Asset, Potential Savings $ 340,000 $ 350,000 $ 360,290 $ 370,878 $ 381,773 % of increased uptower repairs to downtower refurbishment 35% 41% 47% 52% 58% Sentient Capture Rate 50% 55% 60% 65% 70% GEARBOXEVENT PRODUCTION& FINANCIAL DESCRIPTION Example:
  14. 14. SentientScienceCorp.-Proprietary/PrivateLevel1 Long Term Service Agreement – Business Value Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Year 2028 2029 2030 2031 2032 # of Assets underLong term service agreement LTSA 330 330 330 LTSA Total Cost - Today (per asset peryear) $ 45,000 $ 54,000 $ 64,800 LTSA Estimated costs today peryear $ 14,850,000 $ 17,820,000 $ 21,384,000 LTSA Estimated costs at time of renewal peryear $ 17,077,500 $ 20,493,000 $ 24,591,600 NPV LTSA Cost years 10-20 $ 80,955,469 $ 97,146,563 $ 116,575,875 # of Assets under Long term service agreement LTSA renewal 330 330 330 % of LTSA negotiated savings by having historical Data and estimated forward risk 10.0% 10.0% 10.0% Estimated LTSA negotiated savings by having historical Data and estimated forward risk $ 8,095,547 $ 9,714,656 $ 11,657,588 Weighted Average Cost of Capital 5% 5% 5% Cost of Monitoring Fleet per year- (Digital Clone) $ 321,750 $ 321,750 $ 321,750 NPV Cost of Monitoring Fleet over yrs 1-10 $ 2,608,692 $ 2,608,692 $ 2,608,692 Total Cost Savings over yrs 1-10 $ 5,486,855 $ 7,105,965 $ 9,048,896 Annual Cost Savings 548,686$ 710,596$ 904,890$ Total Cost Savings 21,641,716$ Medium/Long TermWatchlist (0-48mo): Cost Savings - Long Term Service Agreement Negotiation Align corporate objectives to bid or manage LTSA agreementsExample:
  15. 15. SentientScienceCorp.-Proprietary/PrivateLevel1 The Economics of Using Digitalization to Reduce the COE by 13% of Revenues Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues 01 Operations Management Understand the current health of your asset to reduce planned and unplanned maintenance activities. 02 Asset Management Optimize Asset Portfolio to reduce costs and increase AEP. 03 Supply Chain Management Improved planning and scheduling for critical part- replacements and long-term agreements with suppliers for major systems within the turbine. 04 Risk Management Reduce extended warranty costs and insurance premiums.
  16. 16. SentientScienceCorp.-Proprietary/PrivateLevel1 Our primary business goal is LIFE EXTENSION, In order to accomplish this our software focuses on three areas of inter-related value: Inter-related Value: 1. Verify Asset Life State... Identification of damage on units with no additional sensoring (e.g.: CMS, Oil sensors, …). Helps primarily O&M. Technological approach: Data Science & Material Science. 2. Long Term Forecasting Term of <36 Months helps primarily Asset Management, Procurement & Planning. Term of >36 Months helps primarily Risk & Insurance Management. 3. Life comparisons using computational testing – Leverage computational testing to support physical testing (vs. year long testing on limited samples) to greatly improve understanding of sensitivity of life to loading, mechanical design and material quality factors. Life Extension to Reduce the Cost of Energy Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  17. 17. SentientScienceCorp.-Proprietary/PrivateLevel1 Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues 01 Operations Management Understand the current health of your asset to reduce planned and unplanned maintenance activities.
  18. 18. SentientScienceCorp.-Proprietary/PrivateLevel1 Case Study: Operations Management By evaluating the lost energy per asset, the operator was able to improve efficiency of manpower by ensuring the availability of the replacement and the right tools and equipment were in place when the repairs were done up-tower. Across a fleet, annual savings of $600,000 to $1.9 million can be achieved with early detection prior to consequential damage and through the optimization of maintenance activities, man power efficiency and improved safety of technicians. Business Challenge: Correctives that occur in high wind conditions have a significant impact on use of operational manpower Component(s): Intermediate Pinion Bearing Case Study: In visual representation to the right, an intermediate pinion bearing with a predicted life of 16.6 years showed signs of damage. It was recommended that the additive solution be applied to the bearing and gear to extend life until an up-tower replacement could be performed during a low wind productivity period to optimize return on investment (ROI). Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  19. 19. SentientScienceCorp.-Proprietary/PrivateLevel1 #1 Value for Operations Management  Reduced planned and unplanned maintenance activities, work-orders and costs  Gearboxes projected to fail that are not on the current watchlist  Identification of gearboxes with damage under warranty that can be used for post warranty negotiations  Improve failure prognostics reporting over existing internal capabilities  Improve quality and consistency of failure reporting and action  Calculated remaining useful life of a gearbox based on uprating  List of critical subcomponents causing a reduction in life and replacement options  Strengthen the accuracy of your watch list(s)  Logistics and service effectiveness  Manage for serviceability  Crane & service optimization  BOM management Operations Management $ 1 MW/hr. Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  20. 20. SentientScienceCorp.-Proprietary/PrivateLevel1 Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Asset Management Optimize Asset Portfolio to reduce costs and increase Annualized Energy Production (AEP). 02
  21. 21. SentientScienceCorp.-Proprietary/PrivateLevel1 Case Study: Asset Management Business Challenge: Optimize Asset Portfolio to reduce cost and increase AEP Component(s): High Speed Shaft Bearing, Low Speed Ring Gear Case Study Description: Sentient’s DigitalClone software accurately predicted damage to the inbound High-Speed Shaft Bearing (HSS) and Planet Stage, Low Speed Ring Gear (LSR-GR). Both were expected to fail at 24 months and 36 months, respectively. If the operator allowed the asset to continue operation with no repair, complete gearbox replacement would have been required. Therefore a defined savings of ~$260,000 was recognized. The OEM recommended replacing the HSS bearing for 12 months additional life and to push the full gearbox replacement out 24-months’ time. The cost would have been ~$6,000 upfront, for a savings of $254,000 in the current budget year. However, within 2 years the impact of the ring gear failure would be at the surface, and a full swap out of the gearbox would be needed. Using computational testing, the software demonstrated seven different options of asset actions, each with different ROIs. It was found that the most valuable action would be to replace the HSS bearing with a higher quality performance bearing and to apply a surface treatment for the life extension of the ring-gear bearing. A combined cost of ~$40,000 and life extension of an additional 36 months, predicted a Net Present Value (NPV) of $221,000 savings. Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  22. 22. SentientScienceCorp.-Proprietary/PrivateLevel1 #2 Value for Asset Management  Life extension options for both in and out of warranty assets - including repowered assets  Multi-year rolling O&M forecasting by assets, site, fleet and energy production  Impact of uprating  Multiyear subcomponent forecast & budgeting and ROI calculations based on 3D watchlist  Supplier and component optimization for longer life  Bulk buying agreement based on multi-year component replacement forecasts  Reduced planned and unplanned maintenance activities, work-orders and costs  Asset Comparison (Vendor selection assistance ) - Buy on Life & price to purchase replacements with higest ROI  Buy vs “Power by the Hour” options Asset Management $ 4 MW/hr. Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  23. 23. SentientScienceCorp.-Proprietary/PrivateLevel1 Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Supply Chain Management Improved planning and scheduling for critical part- replacements and long-term agreements with suppliers for major systems within the turbine. 03
  24. 24. SentientScienceCorp.-Proprietary/PrivateLevel1 Case Study: Supply Chain Management Business Challenge: Supply chain optimization, improved efficiencies and planning directly impacts the improvement of risk management of an organization. Component(s): Gearbox Assemblies Case Study: DigitalClone evaluated more than 100 field gearboxes from a universal OEM and uncovered a risk of a poor-quality material from bearings manufactured in a specific year. It was recommended that those bearings be exchanged with an alternative option to prevent future high failure rates of this specific gearbox type in the fleet. A supplier trade off study was completed to assess the impact of varying supplier choices. In another example, DigitalClone demonstrated the return on investment of picking gearbox OEMs for future development. Based on the failure risks and estimated costs, Figure 2 shows supplier 3 is optimal with a failure rate of less than 50% over 20 years as opposed to supplier 4, which shows a 98% failure rate over 20 years. The financial implications of choosing supplier 4 would be detrimental to the profitability of the site. Assembly/System Lifecycle Prediction Materials Figure 2 Component Lifecycle Prediction Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  25. 25. SentientScienceCorp.-Proprietary/PrivateLevel1 #3 Value for Supply Chain Management  Multi-year inventory forecasts for major and minor correctives based on failure rates  Better T&Cs with Suppliers  Reduce variability between suppliers  Know the life of the supplier offering  Reduced inventory and supply carrying costs  less inventory, JIT, shorter lead times  Place inventory where and when needed  Reduce T&C based on long term forecasting  Decide whether to Increase or decrease number of suppliers  Definition of serial failure of subcomponents out of warranty  Work with suppliers and remanufacturing resources to improve fielded products – Additives/Coatings Supply Chain $ 1 MW/hr. Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  26. 26. SentientScienceCorp.-Proprietary/PrivateLevel1 Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Risk Management Reduce extended warranty costs and insurance premiums. 04
  27. 27. SentientScienceCorp.-Proprietary/PrivateLevel1 Risk Management Business Challenge: Loss of rejected insurance claims through additional requirements from insurance carrier. Component(s): Gearbox Assemblies Case Study Description: Root cause analysis becomes important to understand when damage initiated, why the failure occurred, and how to evaluate life extension actions that mitigate repeat failures in the future. Insurance providers have rejected insurance claims in the past when inadequate data is provided that supports the root cause of the failure. When a claim is rejected the operator is required to pay the full amount of the exchange, which can total more than $350,000 for each gearbox replacement as opposed to a $100,000 deductible. A customer could see up to 5% or more of their insurance claims rejected in any given year. With materials science, this risk could be eliminated, saving on average $20,000 per failure, saving on average between $125,000 to $450,000 annually as additional assets come online for digital monitoring. Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  28. 28. SentientScienceCorp.-Proprietary/PrivateLevel1 #4 Value for Risk Management  Reduced extended warranty costs  Failure rates and data used to reduce or isolate assets that require coverage  Reducing litigation/arbitration costs  Reduced insurance premiums  Insurance on components vs. blanket coverage  Better financing terms based on better knowledge of fleet health and longevity  Improved prediction ability with a better insight into long term health  Serial failure of components under warranty  RCA Reports to identify who pays  Life extension beyond Proforma Risk Management $ 3 MW/hr. Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  29. 29. SentientScienceCorp.-Proprietary/PrivateLevel1 Data Science – Sentient WayOperationalizing the selection of "BEST" Life Extension Option for an Asset DigitalClone LifeX Actions enable life extension decisions based on optimal financial returns Life Extension Asset Actions Operating Conditions, Maintenance Events, & Configuration Asset Life State Informed LifeX Decision Probabilistic Financial Forecasts Site Financials Risk-Based Scenario Assessments Supplier Options Customer Factors for Decision- making Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  30. 30. SentientScienceCorp.-Proprietary/PrivateLevel1 BLADES Vision: • Smart Drone inspections • Time to next damage state • Life predictions Today: • Life predictions: initial models deployed in December w/ Bladena. Validation in progress. PITCH BEARINGS Vision: • Short Term Predictions (0-12mos) • Long Term Predictions (>12mos) • Time to next damage state • Life Extension Recommendations Today: • Model development in progress [Internal] GEARBOXES + OIL SENSOR Vision: • DCL gearbox lifing to guide strategic placement of oil sensors • Integration to DigitalClone to improve short term predictions (Time to next damage state) Today: • Static Oil report data ingested in LifeX State GENERATORS Vision: • Short Term Predictions (0-12mos) • Long Term Predictions (>12mos) • Time to next damage state • Life Extension Recommendations Today: • Model development in progress w/ Ingeteam DigitalClone® Platform: Expanding component catalogue Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues
  31. 31. SentientScienceCorp.-Proprietary/PrivateLevel1 Business Value Assessment Summary Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Year 2018 2019 2020 2021 2022 TotalAssets in DCL 200 600 1000 1400 1800 Total Savings Per Deployment 1,060,151$ 3,802,679$ 7,486,222$ 12,247,866$ 18,228,702$ Savings perAsset 5,301$ 6,338$ 7,486$ 8,748$ 10,127$ Savings perMW 2,718$ 3,250$ 3,839$ 4,486$ 5,193$ TotalFleetDigitalClone Live Price: 195,000$ 585,000$ 975,000$ 1,365,000$ 1,755,000$ ROI Ratio: 4.4 5.5 6.7 8.0 9.4 Selecting "Best" LifeX Action: Choosing the correct action to avoid Future Cost of "Right First Time" Replacement (Matching correct component to Asset age,align remaining useful life) $ 491,216 $ 1,600,284 $ 2,882,258 $ 4,342,100 $ 5,984,880 Short-term Watchlist(0-12mo): Early Detection priorto consequential damage,beyond operatorcurrent capabilities 535,500$ 2,076,452$ 4,347,790$ 7,477,751$ 11,598,868$ Short-term Watchlist(0-12mo): LostEnergy Per Asset - Reduce Downtime,Ensure Resource is Available forChange- Outs - (Manpower, Parts,Tooling,Equipment) 33,435$ 125,943$ 256,174$ 428,015$ 644,955$ Example of Value Statements
  32. 32. SentientScienceCorp.-Proprietary/PrivateLevel1 Business Value Assessment – Detailed Value Statements Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Rank Defined Value Statement Yr1 (Start) Yr2 Yr3 Yr4 Yr5 Category 1 Selecting "Best" Asset Action: Choosing the correct asset action to avoid Future Cost of "Right First Time" Replacement (Matching correct component to Asset age,align remaining useful life) $ 308,108 $ 1,456,288 $ 3,371,029 $ 3,218,663 $ 3,309,789 Asset Management 2 Short-term Watchlist (0-12mo): Early Detection prior to consequential damage,beyond operator current capabilities $ 566,010 $ 2,198,212 $ 4,047,254 $ 3,143,653 $ 2,170,479 Asset Management 3 Medium Term Forecast (12-36mo): Reduction in major component storage costs and increased cash flow through improved forecasting 6-12mo $ 53,031 $ 347,756 $ 998,520 $ 1,206,195 $ 1,394,464 Supply Chain 4 Medium Term Forecast (12-36mo): Savings from Improved planning for critical parts replacement - Long term agreements with suppliers, based on forecast $ 95,043 $ 499,533 $ 1,279,606 $ 1,459,516 $ 1,650,316 Supply Chain 5 Short-term Watchlist (0-12mo): Lost Energy Per Asset - Reduce Downtime, Ensure Resource is Available for Change-Outs - (Manpower,Parts,Tooling,Equipment) $ 20,276 $ 103,621 $ 258,045 $ 286,092 $ 314,413 Operations Management 6 RCA: Increase Warranty Claim payout through root cause analysis $ 77,826 $ 362,529 $ 833,937 $ 863,250 $ 893,594 Risk Management 7 Reporting Functionality - Automated reporting, repository for damage class,BOM management,DCL platform $ 27,091 $ 154,139 $ 309,439 $ 313,840 $ 318,336 Asset Management MB Total Main Bearing Savings - Five Value Statements $ 35,034 $ 157,897 $ 374,840 $ 379,242 $ 401,682 Operations Management Gearbox & Main Bearing Savings 1,182,420 5,279,975 11,472,671 10,870,451 10,453,073 Gen Total Generator Savings $ 80,263 $ 504,951 $ 1,221,570 $ 1,302,161 $ 1,398,174 Business Strategy PB Total Pitch Bearing Savings $ 506,968 $ 4,049,019 $ 10,745,695 $ 12,403,885 $ 14,207,987 Business Strategy
  33. 33. SentientScienceCorp.-Proprietary/PrivateLevel1 Questions? Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues Natalie Hils Director, Revenue Marketing nhils@sentientscience.com +1 716.807.8655 Keith Vergien Vice President, Energy Operations kvergien@sentientscience.com
  34. 34. SentientScienceCorp.-Proprietary/PrivateLevel1 Meet the Team! 1. September 25-28: WindEnergy Hamburg Global Summit I Hamburg, Germany 2. October 1-2: AWEA Finance & Investment Seminar – East I New York, NY 3. October 5: AWEA Finance & Investment Seminar – West I San Francisco, CA 4. October 16-17: AWEA Offshore Symposium I Washington, DC 5. October 17-19: China Windpower I Beijing, China 6. November 13-15: AWEA Fall Symposium I Colorado Springs, CO Webinar: The Economics of Using Digitalization to Reduce the Cost of Energy by 13% of Revenues

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