The document discusses the potential of airborne wind energy (AWE) and its capacity for market growth due to higher altitude winds, price competitiveness, and advancements in technology. It details the structure of kite turbines and outlines the current status of various AWE companies, emphasizing the importance of infrastructure and local market conditions for commercial viability. The analysis includes comparisons of energy costs and forecasts for the future of AWE in the renewable energy sector.

1. FIRST TUESDAY PRESENTATION
FEBRUARY 2015
1

2. 2

3. -
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
2013 2015 2020 2030
MW
Global cumulative wind power capacity
Source: global cumulative wind power capacity: GWEC 2014 – Moderate Scenario, (1MW delivered represent about 1,2 MEUR in sales).
Kitemill: "Airborne wind is expected to capture part of
the market and to even expand growth further”
Drivers:
- Climate
- Need for renewables
Methods
- Politically enabled
3
Airborne Wind Energy (AWE)
POTENTIAL IS VIRTUALLY UNLIMITED

4. WIND AT NEW HEIGHTS
HEIGHT
AVERAGE
WIND SPEED
AVAILABLE
POWER
1 000 m 11 m/s 580 W/m2
500 M 8 m/s 320 W/m2
100 M 5 m/s 80 W/m2
THE WIND GRADIENT is an expression of the increase in speed and stability with higher altitude.
The energy content of the wind varies with the cube of the average wind speed

5. A KITE TURBINE
A kite turbine is made up of the following main parts:
• A kite - which generates the tractive forces (lift) in the same way as a
sailplane that climbs.
• Ground system - which converts the tractive force from the tether to
electricity.
• Control system - which controls winch and the kite. The kite is controlled in
the same way as an autopilot for a plane.

6. A KITE TURBINE
A kite turbine is made up of the following main parts:
• A kite - which generates the tractive forces (lift) in the same way as a
sailplane that climbs.
• Ground system - which converts the tractive force from the tether to
electricity.
• Control system - which controls winch and the kite. The kite is controlled in
the same way as an autopilot for a plane.

7. PRINCIPLE

8. (1) Average world GWEC 2013, (2) Annuity 8 % x year (3) Real (excl. inflation), (4) excl. carbon tax, (IPCC) IPCCreport issued 2012 “Renewable Energy Sources and Climate change Mitigation”.
1. Potential to become price competitive:
2. The geographical market is very large due to the availability of wind at high altitudes
High altitude winds are more often available then near surface winds.
Cost calculation - unit cost:
Kite
(Vision)
Windmill
(year 2012)
Power kW 2 000 2 000
Full load hours per year hrs 4 200 2 452
(1)
Annual production MWh 8,4 4,9
CAPEX M€ 1,5 2,3
Average energy cost
LCoE: c€/kWh 2,8 6,4
(2,3)
ATTRACTIVE WITH A POTENTIAL TO BECOME PRICE COMPETITIVE
Electricity cost (sources calc. with 3% discount rate)
Bioenergy (IPCC)
Hydro power (IPCC)
Kite
Nuclear
Wind onshore (IPCC)
Geothermal (IPCC)
Coal (4)
Natural gas
Wind offshore (IPCC)
Solar (IPCC)
c€/kWh41 2 3 5 6 70
Germany
market
price
electricity
2014

9. ON THE VERGE OF A BREAKTHROUGH
University of Grenoble
Kitemill
Ampyx Power
Makani Power
Crosswind Power
Skywind Power
Skysails
EnerKite
Kitegen
NGR Kite
Guangdon HAWP
Technology
Magenn
Windlift
Omnidea HAWP
TU Delft
KU Leuven
University of Limerick
DTU Wind Energy
IWES Fraunhofer
Chalmers University
University of Tampere
Stanford University
RMIT University
Companies
Universities
Source Delft University www.kitepower.eu, modified by Kitemill.
Commercial sub-suppliers are not included even if their involvement includes investments and thereby «risk taking».

10. Status for Kitemill:
Lean organization & a solid network of partners and close suppliers
Commercial: Progressing towards launch of the first market place for kite turbines
Technical: On pair with the best AWE players towards a commercial viable solution
Financial: Dedicated owners and strong governmental backing
ON THE VERGE OF A BREAKTHROUGH
*Evaluation in acquisition
Airborne Wind Energy (AWE)– players :
Competitors Investor / Partner Time Status
Altaeros (US) Softbank (JP) 7 MUSD December 2014 30kW pilot
Makani (US) Google X (US) 110 MUSD* June 2013 20kW pilot
Ampyx (NL) KLM September 2012 20kW pilot
Kite Power (UK) Shell 2 MUSD 2013 20kW pilot
Skysails (Germany) DSM 15 MEUR January 2011 55kW pilot

11. COMMERCIAL
MARKETS
CONCEPT ACCEPTED ENABLE MARKET
EMERGING
MARKETS
CREATING THE MARKET
20192015
DEMOS IN OPERATION
COMMERCIAL
INSTALATIONS
COMMERCIAL PRODUCTS
>100 000 hrs>1000 hrs >10 000 hrsCUMULATIVE OPERATIONAL HOURS
RAPID COMMERCIALISATION

12. Site requirements:
• Suitable conditions
• Approval/permit/concession
• Offers operating experience
• Grid capacity
• Relevant local supply businesses
THE FIRST KITE PARK HOSTS TEST CENTRE + COMMERCIAL PLANTS
Invest in:
- Infrastructure
- First customer
Become:
- Competence centre
- Commercial viable
CREATING A MARKET PLACE FOR DEMO PLANTS
Several business models open up (kite supplier, kite operator, site developer)

13. THE SCALE UP RACE
PROTOTYPE
DEMO 30 kW
DEMO MEDIUM
SCALEKITEMILL
TECHNOLOGY STEPS
2019
LARGE SCALE
2015
PRODUCT DEVELOPMENT
EFFICIENCY RATE WILL INCREASE BY SIZE
OPERATION & MAINTENANCE COST WILL REDUCE BY SIZE

14. NORWEGIAN INDUSTRY
Wind power global volume: 40 000 MW annual installed capacity:
336 BNOK and the industry employs 680 000 people.
In time AWE can take over parts of this volume and even contribute to an increased.
Examples of relevant Norwegian Industry: Annual turnover
Kongsberg Maritime AS - winch/wind power supplier : 5 800 MNOK
Rolls-Royce Deck Machinery AS – winch supplier at Brattvåg: 10 000 MNOK
Offshore Trawl Services AS – one of worlds leading rope
supplier:
86 MNOK

15. SYSTEM DEVELOPMENT
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FOR DETAILS, PLEASE CONTACT:
Thomas Hårklau
General Manager
th@kitemill.no
+47 468 37 117
Lode Carnel
Technical Manager
lc@kitemill.no
+47 902 90 602