Presentazione UNISI Economia_03122012_fb_mb_fbj pdf

TSX : AXYwww.alterrapower.caPage | 1
a subsidiary of
Geothermal Energy – An International overview:
Alterra Power Corp./Magma Energy Italia
Fausto Batini
Siena, December 3, 2012
a subsidiary of

Content
Company profile
Basic concepts on geothermal energy
Geothermal Energy Market
Geothermal regulatory framework
Magma Energy Italia projects
Conclusions

Forward-Looking Information
This Presentation contains certain “forward-looking information” within the meaning of Canadian securities laws, which may include, but is not limited to,
statements with respect to future events or future performance, management’s expectations regarding Alterra’s production capacity, results of operations,
cash flows, revenues and requirements for capital, future demand for and prices of electricity,and Alterra’s business prospects and opportunities.
These statements reflect the current views of Alterra with respect to future events and are necessarily based upon a number of assumptions and estimates
that, while considered reasonable by Alterra, are inherently subject to significant business, economic, political and social uncertainties and contingencies.
Many factors, both known and unknown, could cause Alterra’s actual results, performance or achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this presentation, and Alterra has
made assumptions based on or related to many of these factors. Such factors include, without limitation: fluctuations in currency markets (particularly with
respect to the Icelandic krona, the U.S. dollar and Canadian dollar); risks related to the technological and operational nature of Alterra’s business; changes
in national or regional governments, legislation, regulation, permitting or taxation; political or economic developments in Canada, the United States, Iceland
or other countries where Alterra may carry on business; risks and hazards associated with the business of renewable energy generation; risks relating to the
creditworthiness and financial condition of suppliers and other parties which Alterra will deal with; inadequate insurance or inability to obtain insurance to
cover these risks and hazards; employee relations; relationships with and claims by local communities and First Nations; availability and costs of equipment
and labour; litigation; the success and timely completion of planned expansion and development programs; the growth rate in net electricity consumption;
support and demand for renewable energy; government initiatives to support the development of renewable energy generation; the reliability of technical
data and capital expenditure estimates; and availability of capital to fund development and expansion programs. Forward-looking information and
statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-
looking informationand statements will occur.
Although Alterra has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described or intended. There can be no assurance that the forward-looking information will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should
not place undue reliance on forward-looking information. Other than as required by applicable securities laws, Alterra does not assume any obligation to
update or revise such forward-lookinginformationto reflect new events or circumstances.

Who we are
Magma Energy Italia s.r.l.
A wholly owned subsidiary of Alterra Power Corp.
to develop geothermal projects in Italy
Headquartered in Siena with Italian staff supported by Alterra Power Corp.
international experts
Investments are entirely financed by Alterra Power Corp
Two exploration leases in Tuscany:
Mensano 215 km²
Roccastrada 272 km²

TSX : AXYwww.alterrapower.caPage | 5 GLOBAL GEOTHERM AL PERSPECTI VEDECEMBER 2012

Managed Owned
Wind 144 MW 51%
Hydro 235 MW 40%
Geothermal 187 MW 69%
Alterra Power
Alterra’s mission: to be a leading global renewable energy company through…
 Continued excellence in production and safety as premier asset operator /
manager
 Successful origination and development of new utility-scale projects
 Opportunistic acquisitions of other renewable power projects and development
assets
Alterra assets today:
Alterra totals:
Managed: 567 MW
Owned: 298 MW
Managed Assets: 1.5 $ Billion
Alterra Revenue: 110 $MM
Alterra EBITDA: 55 $MM
2015E EBITDA: 105 $MM(a)
(a) Reflects 66.6% of HS Orka and 100% of Soda Lake assets.

Assets and Pipeline
Globally diversified across technology types and renewable power markets
 Wind and hydro: primarily concentrated in North America
 Geothermal: located in overlap of resource and strong markets / power demand
Power Plant Capacity Technology
Operating (2012) Gross AXY Share
Reykjanes 1 + 2 100 MW 67 MW Geothermal
Svartsengi 72 MW 48 MW Geothermal
Soda Lake 16 MW 16 MW Geothermal
East Toba &
Montrose
235 MW 94 MW Hydro
Dokie 1 144 MW 73 MW Wind
Total Capacity 567 MW 298 MW
AnnualNetGeneration 1,425GWh
Planned (2016)
ABW Solar 50 MW 5 MW Solar
Upper Toba 124 MW 62 MW Hydro
Reykjanes 3 + 4 80 MW 54 MW Geothermal
Dokie 2 156 MW 80 MW Wind
Mariposa 50 MW 25 MW Geothermal
Eldvörp 50 MW 34 MW Geothermal
BC, Chile, Peru, Italy 200 MW 200 MW Geothermal
Planned Total 710 MW 460 MW
Total Capacity 1,277 MW 758 MW

Shareholders
Alterra Power Corp listed in Toronto stock exchange under the
symbol AXY
The Alterra largest shareholder is Sitka Foundation, a
Canadian non-profit foundation whose mission is to promote
biodiversity and conservation of the environment
www.sitkafoundation.org
Governance
Alterra Power Corp and all its affiliates are committed to
maintain the highest standards of business conduct and
ethics, as well as full compliance with all applicable laws and
regulations of the countries in which they operate
ALTERRA POWER CORP – Shareholders and Governance

Content
Company profile
Conclusions

THE GEOTHERMAL ENGINE
Geothermal Resources and Technologies
Heat
FracturesFluid
Source: Geothermal Education Office (GEO)
Essential factors for a good
geothermal reservoir

Geothermal system
Heat source
Depth 5-10 km
T > 600- 700 ° C
Meteoric water
Hot fluid
Production
wells
Caprock
Thickness 500 – 1500 m
Impervious rocks
Reservoir
Porous – fractured rocks
Tickness 500 – 1500 m
T = 150 – 300 °C
Reinjection
well
Power plant
Steam
gathering
system
Drilling rig

Resource classification and production technology
Reservoir Temperature Reservoir
Fluid
Common Use Technology commonly chosen
High Temperature
>150 oC
Water or
Steam
Power Generation
Direct Use
 Dry steam
 Flash Steam
 Dual flash
 Binary Cycle
 Heat Exchangers
Intermediate
Temperature
90-150oC
Water Power Generation
Direct Use
 Binary Cycle
 Heat Exchangers
Low Temperature
<90oC
Water Direct Use  Heat Exchangers
 Direct Fluid
 Heat Pumps

Geothermal Plants for Energy Production
Dry steam plants
Binary Cycle
“No Air Emission”
Two-phase fluid
systems

Direct use of geothermal resources

There are several ongoing R&D Projects:
European Project : “EGS Pilot Plant”
in Soultz-sous-Forêts (France),
operating since 1985. At present an
Electric Genetating Plant (1,5MWe)
with geothermal resource of 200°C.
Other projects in Europe (Austria,
Germany)
Australia: several projects ongoing
USA_DOE is financing several
projects
The Enhanced Geothermal Systems, allthough still experimantal, represent a great development opportunity
for geothermal energy in the medium-long period.
New frontiers: EGS (Enhanced Geothermal Systems)
Norway _ feasibility study of
a 5 MW Binary Plant

New frontiers: Supercritical Fluids and Magmatic Systems
A Supercritical Fluid is made of very high temperature
and pressure so that it acts as a liquid as well as a gas.
Temperature and Pressure required to reach the
supercritical state depend on fluid features. Water
reaches supercritical state when its pressure and its
temperature go beyond respectivery 218.3 atm and
374.1°C.
Traditional
Geothermal Wells
Supercritical Wells
Temperature 235 °C 430-550 °C
Pressure 30 bar 230-260 bar
Volume Fluid 0.67 m3/s 0.67 m3/s
Electric Power Circa 5 MWe Circa 50 MWe
A Pilot Project has started in Iceland to verify feasibility of finding and employing
supercritical fluids
(Iceland Deep Drilling Project).

Content
Company profile
Conclusions

Geothermal Energy – Worldwide production
COUNTRY
INSTALLED GENERATING
CAPACITY
2010 (MW)
USA 3093
PHILIPPINES 1904
INDONESIA 1197
MEXICO 958
ITALY 843
NEW ZEALAND 628
ICELAND 575
JAPAN 536
EL SALVADOR 204
KENYA 167
COSTA RICA 166
NICARAGUA 88
RUSSIA 82
TURKEY 82
PAPUA NEW GUINEA 56
GUATEMALA 52
PORTUGAL 29
CHINA 24
FRANCE 16
ETHIOPIA 7.3
GERMANY 6.6
AUSTRIA 1.4
AUSTRALIA 1.1
THAILAND 0.3
CANADA 0
PERU 0
CHILE 0
TOTAL 10716.7
Source: Geothermal Power Generation in the World 2005 - 2010 Update Report by Ruggero Bertani
Source: IGA International Geothermal Association - June 2011
Established industry and proven technology
Biggest current producers: Chevron, PNOC-EDC,
CEE, ENEL, Calpine, Alterra, Ormat, PLN-
Pertamina.
Capacity has been steadily growing
World production capacity now nearly 11,000
megawatts (“MW”)
ALTERRAPresence

2/3 of the total installed capacity are for dry steam and single flash units
Binary units are increasing, but with a lower value of capacity per unit.
29%
37%
25%
8% 1%
Single Flash
Binary/Combined Cycle/Hybrid
Dry Steam
Double Flash
Back Pressure
Source: IGA 2008
The geothermal industry worldwide

Geothermal energy in Italy
Net Electric Power 772 MW
Net Genetating Power 5520 GWh
Distributed Heat 235 Tcal
CO2 avoided 3,4 Mt
TEP avoided 1.13 TEP
2011
Status and Development Scenarios

0
400
800
1200
1600
0
40
80
120
160
1990 2000 2010 2020 2030 2040 2050
Electricityproduction(TWh/y)
Capacity(GW)
GW TWh/yr
In 2050
Over 8.3% of electric power generation
17% of worldwide needs
39 countries fully powered with geothermal energy
Worldwide Development Scenarios

Temperature at 5 km depth
CONFIDENTIAL
1.5 GWe ONLY harnessed today, mainly Italy and Iceland
80 - 100 GWe geothermal resource potential stored up to 6 km
depth for electric energy genertion
European Development Scenarios

Electric Power
1200 - 1500 MW at 2020
Direct Use:
6.000 MW at 2020
(UGI estimates)
Italian Development Scenarios
Situation after D.Lgs 22/2010 Onshore Exploration Permits No. 23
Offshore Exploration Permits No. 1
Onshore Exploitation Concessions No. 11
About 11.000 km2 total
Resource Permit Holders:
COGEME
DER
ENEL GREEN POWER
EXERGIA TOSCANA
EUROBIULDING
GEOENERGY
GEOTERMICA
GEOTERMICA AB
GESTO ITALIA
MAGMA ENERGY ITALIA
POWER FIELD
SORGENIA GEOTHERMAL
Source MISE

Italian Electricity Market - Targets
Not Binding Target Binding Target
Europe 2010 Europe 2020 Italy 2020
Energy Consumption from Renewable Energy
in the transportation sector
26,4%
Energy Consumption from Renewable
Energy in the Electricity sector 18,7%
10%5,75% 10%
17%12% 20%
in the Heating and Cooling sector
9,5%
4,8%
10,1%
Italy 2010
17,1%
% OUTCOME
% TARGET
22%
(Direttiva 2001/77/CE)

Italian Electricity Market – Overview up to now and Future Perspective
PUN is the National Single Price - (Source GME)
€/MWh
year

Souce GSE
Sustainability and Integration in the Energy Market
FER Prudiction - Technology

EXPLORATION DRILLING
POWER PLANT
CONSTRUCTION
OPERATION
Environmental impact assessment, mitigation
and monitoring
Development of a geothermal project
5 - 7 years > 30 years

Why Geothermal Energy ? Because….
Alterra’s Power Plant in Reykjanes, Iceland
Geothermal Wind Solar Biomass Run-of-River
Scrubbed
Coal
Base Load      
No Fuel Cost Exposure      
No GHG Emission      
REC Eligible      
Low Cost Generation      
GEOTHERMAL HAS A UNIQUE COMBINATION OF BENEFITS RELATIVE TO COMPETING SOURCES
Geothermal power can be produced reliably and constantly
(“base load”); it is not intermittent or unpredictable.
The generating process is clean - there are very low to none:
Nitrous Oxides
Sulphur Oxides
Particulates
CO2
Has a small environmental footprint
Doesn’t take up much land
Is a renewable energy - no fuel cost and continually replenished
Low Technological Risk - plants in operation for over 100 years

0
100,000,000
200,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Year1 Year2 Year3 Year4 Year5
Cost
Geothermal project schedule
Equity Finance Debt Finance
EXPLORATION PROJECT
DEVELOPMENT
100%
50%

Renewable Sources: Performance comparison
Against higher investment costs than other renewables, geothermal energy
guarantees a continuous production throughout the year with a capacity factor next
to 100%.
10 Geothermal MW correspond to 40-50 Wind MW

Geothermal Energy – Most Cost-Effective Power Source
A low cost source of power on a long term basis

Italian Feed-in Tariff: D.M. 06/07/2012

Power (Mw) Plant life Base Tariff
P≤1 20 y 135 €/MWh
1<P≤20 25 y 99 €/MWh
P>20 25 y 85 €/MWh
Pilot plant (5MW) 25 y 200 €/MWh *
Increments:
a) 30 €/MWh - total reinjection and no air
emission
b) 30 €/MWh - first plant of 10MW within
areas of new exploitation lease where
it didn’t exist plants
c) 15 €/MWh - higt enthalpy plant that
break down at least 95% of the level of
hydrogen sulfide and mercury present
in the production fluid
*For Tmax of 151 °C and 1,5% of gas concentration the Base Tariff is = 200€
Otherwise the Tariff is = 200€ - (Tx – 151 °C) x 0,75
The tariff can not be combined with the increment of points (a) and (c)
Italian Feed-in Tariff: D.M. 06/07/2012
Geothermal

European Feed-in Tariff in Geothermal Energy – 2012 overview
€/MWh

Mayor European Renewable Energy Producers
TOTAL 8452 4253,4 1841 7324,7 7280 4438,5 31882 17976 2423

Mayor Italian Renewable Energy Producers
TOTAL 861,4 1865 7609 593 91 716,4 30 1553,3 541,3 216
INSTALLEDMW

Content
Company profile
Conclusions

Current legislation:
D.M. 06-07-2012 – Incentives for production of electricity from renewable energies
D.G.R. 12-06-2012 n. 49 – Criteria and conditions for the exclusion from EIA and
Subject Verification according to art. 43 of L.R. 10/2010
D.Lgs. 03-03-2011 n. 28 – Implementation of 2009/28/CE law for promoting the
employment of renewable energies
D.Lgs. 11-09-2010 n. 22 – Research and exploitation of geothermal resources
updating law.
L.R. 12-02-2010 n. 10 and Attachment D with changes to L.R. 6/2012 2011/92/UE
Law – Procedures of Strategic Environment Assessment (V.A.S.), E.I.A.
D.Lgs. 03-04-2006 n. 152 – Environmental regulations
D.P.R. 18-04-1994 n. 485 – Exploration and Exploitation permits release procedures
R.D. 29-07-1927 n. 1443 – Exploration and Exploitation permits release procedures
Laws and rules

30 years90 or 150 or 270 days2 years4 years
APPLICATION FOR
EXPLORATION
PERMIT AWARDING
AND E.I.A.
EXPLORATION
LEASE DURATION
EXTENSION
EXPLORATION
LEASE
APPLICATION FOR
EXPLOITATION
CONCESSION AND
E.I.A.
EXPLOITATION
CONCESSION
Geothermal Project Duration
240 days

Laws and Processes for Geothermal leases acquisitions
D.Lgs 22/2010
Exploration for, and production of, geothermal resources for energy purposes are
considered in the public (national community) interest and public utility (usefulness)
Exploration leases: Exclusive exploration permits will be issued to competent operators
having appropriate technical and economic capacity. The work program is proposed by the
company. Max. 300 km2 each – Max. 1000 km2 for each region (each company) – Max. 5000
km2 for Whole Italian Territory
Annual fee: € 339.12 /sq km + bank guarantee for environmental recovery
Criteria of selection in the event of competing applications (within 60 days):
a. the interest, merits, and new exploration objectives;
b. the understanding of geological and structural specifications of the request;
c. the completeness and rationality of the proposed exploration program;
d. how the work is carried out (safety, protecting the environment);
e. expertise and experience.

Application of
competitiveproposal
4 years + 2 (ext.)
Exploration lease: application and awarding procedure
90 (min.) or 150 or 270 days
Environmental Impact Valutation
APPLICATION
- Work program
- Technical report
- Environmental report
- Geothermal experience
& skills
- Maps
- Balancesheets
To: Region, Energy dept.
ENVIRONMENTAL
APPLICATION
- Technical report
- Geothermal
experience & skills
- Maps
To: Region, Environment dept.
Cc: Municipalities – Provinces
– Authorities (archeological,
landscapes, environmental)
Evaluation of application
Comparison with
competitors, if any
Exploration lease
Execution of
explorations Phase 2 :
drilling & test
Execution of
explorations Phase 1 :
surface exploration -
assets excluded from the
process of subjection
NO
GO
30 years + 30 (renew.)
Exploitation lease
60 days
ENVIRONMENTAL
APPLICATION
- Technical report
- Geothermal experience
& skills
- Maps
To: Region, Environment dept.
Cc: Municipalities – Provinces –
Authorities (archeological,
landscapes, environmental)
Environmental Impact
Evalutation
90 (min.) or 150 or 270 days

D.Lgs. 22/2010
Exploitation lease: Follows the recognitions of geothermal resources.
The company founding the resource during the exploration is entitled to apply for the
exploitation permit (even partial) within six months.
Unnecessarily spent that period, the concession may be required in competition from other
operators.
The concession may be granted for a period of thirty years, renewable.
Completeness and efficient program of work proposed for the management of geothermal
reservoirs, especially with regard to long-term sustainability
Annual fee: € 678,22 / km2 + bank guarantee for environmental recovery
Laws and Processes for Geothermal leases acquisitions

Exploitation lease: application and awarding procedure
Communication by
the owner of the
exploration permit of
discovery of
geothermal fluids to
the competent
authority (Region)
Pubblication on the BURT,
on the BUIG and on the
Authority web site
Submitting the
application for
exploitation
lease to the
competent
authority
60 days
If the exploitation lease does not
cover the entire area of the original
research permit, other operators
may request concession areas
covering part or the entire surface
remaining, after the expiry of the
exploration lease
Application
submitted in due
time
If the documentation
is not filed within the
deadline, the
concession may be
required in
COMPETITION
30 years + 30 (renw.)
Exploitation lease
Unique process with the
approval of the work
program, the geothermal
project and the
environmental impact
assessment
90 (min.) or 150 or 270 days
Selection of the
competent
authority based
on the following
parameters:
-Completeness
and rationality
-Modalities for
carrying out work
program
-Guarantees
60 days

Authorization and Awarding procedure
Subjects involved
Public Authorities:
•Ministry for Economic Development
•Tuscany Region
•3 Provinces (Siena, Grosseto, Pisa)
•3 Superintendence bodies of environmental and architectural heritage (Siena,
Grosseto, Pisa)
•11 Municipalities (Volterra, Casole, Colle Val d’Elsa, San Gimignano, Castelnuovo
Val di Cecina, Radicondoli, Roccastrada, Massa Marittima, Civitella, Grosseto)
•Military and police authorities
Private Subjects:
•Landowners (about 480)
•Environmental associations

Content
Company profile Alterra Power Corp. / Magma Energy Italy
Conclusions

Mensano
Roccastrada
• Area: 272 km2
• Awarded: October 2011
• Start: February 2012
• Expiry: October 2015
• Area: 215 km2
• Awarded: June 2011
• Start: September 2011
• Expiry: June 2015
Exploration Leases

Exploration Lease - Activity

Sustainable environment development:
low visual impact, no air emission, total reinjection
A better way of doing geothermal energy

Sustainable development
Environmental sustainability :
Social responsibility:
Communication
Transparency
Consultation
No air emission
Low visual impact
Total reinjection of fluid into
the geothermal reservoir
No groundwater interference
Resource sustainability:

5 MW GEO = 40000 MWh/year – operation estimated in about 8000 h/year
1 MW PV = 1500 MWh/ year - operation estimated in about 1500 h/year
Footprint of a 5 MW geothermal plant vs 1MW PV plant

Exploration
Development
Power Plant
construction
Production
Architecture
Earth
Sciences
Engineering
Physics
Economy
Law
Chemistry
External
Relation
Employment opportunities
Many expertises required in developing geothermal projects
10 post graduateed already employed by Magma in Siena office

Integrated use of geothermal resources
Geothermal energy as an opportunity for sustainable development
for the whole region
Greenhouses
District heating
Provide hot water for spas
Electricity generation, possibly at a lower cost
Agriculture
Geothermal-solar cooperation

Content
Company profile Alterra Power Corp. / Magma Energy Italy
Conclusions

Base load reliability > 90% - unaffected by weather and climate change
No fuel supply cost after the start of the project
Financially competitive now compared with other energy options
Low environmental impact
Classifies for renewable energy incentives in most jurisdictions
Geothermal plants do not burn fuel or produce smoke, only water vapour
Geothermal plants can operate successfully in sensitive environments
Conclusions
GEOTHERMAL ENERGY CAN SECURE RENEWABLE ENERGY BECAUSE :

Drivers
Great number of areas with an
interesting geothermal potential
High energy demand growing
within the next years
Base load capacity, renewable and
domestic energy
Employment opportunity
Hurdles
Technologic challanges for deep
seated resourses
Exploration risk in “green field”
projects
High development cost (Drilling
logistics, transmission line, road)
Environmental - adverse impacts in
some areas – Social Acceptance
Regulatory / market / political risks
Drivers & hurdles for geothermal development

a subsidiary of
Via Paolo Frajese,45 int.1,
53100 Siena
Phone: 0039 0577 281093
Mail: info-italy@magmaenergycorp.com
a subsidiary of

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