THE HALCYON SOLUTION A NEW APPROACH TO TIDAL RANGE POWER GENERATION December 31, 2012 2 TABLE OF CONTENTS THE HALCYON SOLUTION Introduction Background of Tidal Range Power THE HALCYON SOLUTION: CIVIL WORKS The Cost of Civil Works: Statement of the Problem Reducing the Cost of Civil Works, Part I: The Halcyon Marine Enclosure Reducing the Cost of Civil Works, Part II: The Powerhouse Patents THE HALCYON SOLUTION: THE ENVIRONMENTAL IMPACTS The Environmental Impacts of Conventional Tidal Range Developments Alleviating the Environmental Problem: The Free Flow Cycle THE HALCYON SOLUTION: THE BENEFITS Large Tidal Lagoons The Economics of Tidal Range Power at Greater Tidal Ranges THE BUSINESS CASE FOR HALCYON SOLUTION TIDAL RANGE POWER THE HALCYON SOLUTION TO TIDAL RANGE POWER IN SCOTS BAY, NOVA SCOTIA The Civil Works The Environmental Benefits The Economics WORLD WIDE OPPORTUNITIES APPENDICES Halcyon Key Members and Associates Figure 1. Halcyon Marine Enclosure – Lagoon Configuration Figure 2. Halcyon Marine Enclosure Dimensions Exhibit I. Part A. Excerpts from DECC Options Definition Report Part B. MEG Letters Part C. Cianbro Letter Figure 3. The Operating Cycle Figure 4. The Free Flow Cycle Figure 5. Scots Bay Tidal Range Project Site Figure 6. DOE Levelized Cost of New Generation Figure 7. Worldwide Deployment of Tidal Range Facilities Halcyon Tidal Power LLC 3 THE HALCYON SOLUTION Introduction The potential for ‘Tidal Range Power Generation’ to make a significant contribution to the world’s electric supply has been well understood for years. Successful projects have been constructed in France (1966) and Nova Scotia (1984). However, the prohibitive cost of traditional construction methods and the adverse environmental impact of conventional turbine operating methodologies have limited further deployment. Halcyon Tidal Power LLC (“Halcyon”) now has available patented (x) techniques that will dramatically reduce the cost and time of construction of such projects and (y) an operating cycle that will address the related environmental concerns. These breakthroughs create the opportunity to develop tidal range projects capable of delivering electricity at prices competitive with fossil fuel generation, with the potential for numerous individual projects located near major load centers ranging in scale from $100 million to $10 billion or more. Tidal range power is clean and renewable, requires no feedstock and is more predictable than wind, given the effects of the moon and the sun over the millennia. Therefore, the amount of energy generated from a tidal range power plant can be predicted reliably within minutes for years into the future unaffected by seasons and weather conditions. The tidal range power plant on the Rance estuary near Saint Malo, France provides an illustrative example of these benefits. This facility has a nameplate capacity of 240 MW and, according to its owner, Electricitie de France (“EDF”), it produces clean, renewable power for less than .022 Euro per kWh, a price cheaper than power from any fossil fuel power plant. Further, the La Rance project has produced electricity for almost 50 years and will continue producing electricity for at least an additional 50 years! With these positive characteristics, why are tidal range power plants not deployed everywhere? The simple answer is twofold. Historically, the cost of the civil works has been prohibitively high, and the construction period too long. More recently, as environmental issues have taken center stage in power production, many have voiced concerns over the negative impact of loss of intertidal zones. For the past eight years, Halcyon has developed fundamentally new solutions to these obstacles. Halcyon has developed a lower cost construction methodology from recent advances in the construction of offshore oil and gas platforms. The prefabricated construction methodology as led to much shorter construction periods. The Halcyon Solution to the tidal range civil works underwent a two-year technical review by the Department of Energy and Climate Change of the United Kingdom during the Severn Tidal Power Consultation (2008-2010), which is discussed in further detail below. The Halcyon Solution to environmental impacts of tidal range power was developed with input from Alstom Power, the largest and most technically advanced provider of hydroelectric turbines in the world. Halcyon Tidal Power LLC 4 We believe that the Halcyon Solution provides an enormous opportunity to develop large costeffective, clean energy projects at initial prices competitive with conventional fossil fuel energy facilities. Moreover, because of their long useful lives stretching from 80 to 120 years, all tidal range power plants would provide power at a fraction of the cost of fossil fuel energy generation facilities once project debt is retired. Given the enormous scale of tidal resources throughout the world, coupled with the benefits of installing tidal range facilities employing the Halcyon Solution, such as operational reliability, predictability, long economic useful lives, electric power price stability and zero emissions, Halcyon is convinced that it has provided the springboard to substantial tidal power production. Background of Tidal Range Power As a preliminary matter, tidal range power should be distinguished from ‘tidal stream power’. Tidal stream power is essentially underwater ‘wind’ driven by tidal flows. Like the wind, these underwater tidal flows are not constrained permitting substantial ‘leakage’ of energy over and around these hydrokinetic structures. Therefore, the cost to produce energy from tidal stream power facilities is much higher than the cost of energy produced from tidal range power facilities – an inherent deficiency in their deployment. Tidal stream power is also in the early stages of development. Conversely, tidal range power uses the head pressure created by the rise and fall of the tides against a fixed, but flexible enclosure to generate power. The equipment for extracting tidal range power is closely related to conventional hydropower, is at an advanced stage of development and has been, and is currently deployable. A tidal range power plant consists of a basin separated from the ocean by an enclosure. The enclosure can be formed from one of two configurations. The first configuration is a barrage placed across the mouth of an estuary. The second configuration is a shore-connected lagoon (Figure 1). The rising and falling tides create a differential head across the enclosure (Figure 2), leveraging gravity to drive water through turbines built within caissons at the center of the enclosure. Billions of gallons of sea water flow in and out of the basin four times each day, creating the potential to generate power on the scale of large base load power plants, such as nuclear or coal-fired plants. THE HALCYON SOLUTION: CIVIL WORKS The Cost of Civil Works: Statement of the Problem The fundamental problem of cost has been the length and substructure of the enclosure required to capture and store tides. A barrage across the mouth of a typical tidal estuary is likely to be a long structure. The Severn Barrage proposed for the Severn Estuary between England and Wales would be 15 kilometers in length. The tidal lagoons envisioned by the French utility, EDF, would be 65 kilometers in length. Projects on this scale require low-cost construction to be feasible, yet no low-cost methods have been developed until invention of the Halcyon Solution. Traditionally, three techniques have been employed in constructing tidal range enclosures. The first is ‘construction in the dry’, where a cofferdam is constructed to holdback and redirect the Halcyon Tidal Power LLC 5 water while the actual barrage is constructed on the dry seabed. This is the methodology used is used to build dams across rivers, such as the ‘Three Gorges Dam’ built across the Yangtze River in the People’s Republic of China. These dams are prohibitively expensive and require a substantial construction period. A second technique is embankment construction. Because of its triangular cross section, the volume of material required for an embankment quadruples each time the depth is doubled. The result is that an embankment becomes prohibitively expensive in deep water. Embankment construction is appropriate only for relatively small shore-connected lagoons built in shallow water. A third technique is caisson construction. The method was developed by LB Bernshtein, a Soviet engineer, and has since found wide application. In principle, the idea is simple. Caissons are floating concrete boxes, towed out to the site and placed side by side to form the enclosure. Caissons can contain turbines to form the powerhouse, sluices to control the flow of water in and out of the basin, or they can be used as simple connectors. The Severn Barrage (1989) would have been one the world's largest power plants with an installed capacity of 8800 MW and an output equal to 7 % of the UK's total electrical power consumption. The caissons are very large, measuring about 75 m by 100 m (by as much as 42 m in height). Each has a surface area larger than a football field. Further, they must be placed on a level surface excavated along the entire alignment. Caisson construction would use vast amounts of reinforced concrete. Further, these massive caissons can only be set in place at neap tides when tidal currents are small. As a result only two caissons a month can be installed. In the case of the Severn Barrage, about 200 caissons would have been required. Such a massive undertaking would take at least seven years to complete. Combined, the vast amount of concrete, sea floor modifications, and construction time drive the costs associated with the caisson method to exorbitant levels. Because of the anticipated cost and concerns regarding environmental impacts, the British government terminated publicly funded efforts to support this project. Reducing the Cost of the Civil Works, Part 1: The Halcyon Marine Enclosure The ‘Halcyon Marine Enclosure’ is a low-cost alternative to dry, embankment or caisson construction of the enclosure of the basin for a tidal range power plant. The Halcyon Marine Enclosure is a pile-supported enclosure using advancements made over the last 20 years in largediameter piling methods developed for the construction of offshore oil and gas platforms and pre-stressed reinforced concrete. In 2007, the UK's Department of Energy and Climate Change (“DECC”) initiated a major (£ 13 million) study to assess tidal power options in the Severn Estuary between England and Wales. The DECC retained the engineering and construction concern of Parsons Brinkerhoff (“Parsons”) to conduct the ‘Severn Tidal Power Consultation’. Additionally, the DECC appointed an Expert Committee to further review Parsons' findings and conclusions. The DECC then published the Parsons’ results in the Strategic Environmental Assessment for Tidal Power Development in the Severn Estuary: Options Definition Report (the “Report”). Halcyon Tidal Power LLC 6 Halcyon submitted its pile-supported enclosure design in response to a ‘Call for Evidence’ from Parsons for information regarding available technologies that might apply to construction of five projects under consideration. Parsons performed a two-year technical review of the Halcyon Marine Enclosure design, which was further reviewed by the DECC's Expert Committee. Because of its potential for cost-reduction, Parsons specifically investigated the application of Halcyon methods to the Bridgewater Bay Lagoon, a shore-connected lagoon 16.1 kilometers long. Specifically, Parsons’ Report stated “the Halcyon [S]olution is an innovative modular solution to the construction of the lagoon enclosure.”1 The Report goes on to describe the construction method – “The proposal is to construct the lagoon enclosure with a line of precast concrete mini caissons [panels] on a line of precast concrete supporting columns inserted into sockets pre-drilled into the underlying rock…. Locking posts inserted into channels cast into the supporting columns and the edges of the minicaissons [panels] provide lateral support.” 2 The Report concludes that the Halcyon “… modular wall system and construction methodology is considered a technically viable solution within the design parameters set out above [120 design life, able to withstand storm waves in combination with high tides and a minimum crest width to permit access to and from the lagoon].” The Halcyon Marine Enclosure is shown in the form of a tidal lagoon in Figure 1 below. A line of support columns inserted into pre-drilled sockets anchors the support columns to a solid base. An enclosure panel (minicaisson) is secured between each pair of support columns, which serve as pilings. A typical panel is about 15 m (75 ft.) in length. As the tides rise a differential head builds across the enclosure. The load acting on each panel is transferred to the support columns. The Halcyon Marine Enclosure therefore acts as a pile-supported barrage. Detailed calculations show that this counter-intuitive design will support the differential head generated by even the highest tides. Pile support is the critical innovation. Conventional embankment and caisson methods use massive elements to support the differential head generated by the rise and fall of the tides. By providing pile support, the Halcyon Marine Enclosure eliminates the need for large mass. The result is a thin (3 to 4 m), light but extremely strong wall in place of massive embankments or caissons. The relative dimensions are shown in Figure 3. The minimal dimensions of the Halcyon Marine Enclosure are a major factor in maintaining its low cost. The Report also notes the Halcyon Marine Enclosure’s minimal construction time – “The modular approach is intended to provide a rapid method of constructing the enclosure.”3 A rapid construction methodology also reduces cost. Interest on construction financing is a major factor in determining the final cost of a tidal range power plant, given its rather lengthy construction period. Because of the Halcyon Marine Enclosure’s modular nature, sections of the enclosure can be built simultaneously. Therefore, a Halcyon Marine Enclosure of any length can be built in about two years. As a counterpoint, over 30% of the cost of power from the 1989 Severn Barrage was attributed to the length of the construction period. The cost-reduction resulting from a shorter construction period is therefore very significant. The Report confirmed this reduction in cost for the Halcyon Solution, as follows, “A reasonably detailed evidence based estimate of 1 Prepared by Parsons Brinkerhoff, Ltd in association with Black and Veatch, Ltd for the Department of Energy and Options Definition Report, Vol 2 p. A 130. 3 Options Definition Report, Vol. 2, p. 130. 2 Halcyon Tidal Power LLC 7 the wall cost has been provided by Halcyon …. The estimate provided by Halcyon, including an allowance for fabrication yards omitted from the [original] Halcyon estimate is about 50% of the estimated cost of embankment construction.”4 Embankment construction has been the standard construction methodology for tidal range power projects. The 50% cost reduction cited for the Halcyon Solution alternative at Bridgewater Bay was calculated at a depth of 12 meters. The cost-reduction benefit from the Halcyon Marine Enclosure becomes even more significant in deeper water. The cost of an embankment quadruples each time the depth doubles, whereas the cost of the Halcyon Marine Enclosure only doubles as depth doubles. One reason for this divergence in cost of the overall civil works is the relatively minor cost of material required for the enclosure compared to the higher cost of drilling and the support equipment. Thus, while the amount of material doubles for the Halcyon Marine Enclosure, the drilling and support equipment cost remains approximately the same leading to an overall civil works cost increase somewhat less than two depending on site-specific conditions. Thus, the Halcyon Marine Enclosure remains cost effective at depth. It is the only method known to the author that does. A moderate increase in overall civil cost with depth is critical to the construction of large shoreconnected lagoons required to generate power on the same scale as large combined cycle gasfired, nuclear or coal-fired facilities. The construction cost benefits of the Halcyon Solution become even more evident in the following analysis. The energy produced from a tidal power plant is proportional to the area of the enclosed basin, whereas the cost of the civil works is proportional to the length of the enclosure. The result is that for a semicircular shore-connected lagoon, the energy produced quadruples each time the "radius" is doubled. The cost on the other hand only increases by slightly more than two. The result is that the cost of the civil works to produce a MWh of power decreases with increasing radius. The cost of civil works per MWh is nearly cut in half with each doubling. Thus, by building very large shore-connected lagoons, the cost of the civil works per MWh produced becomes extremely low. No power plant other than a tidal lagoon has this capability, and it is only achievable using the Halcyon Solution! Reducing the Cost of the Civil Works, Part 2: The Powerhouse Halcyon, with input from Alstom Power, developed an operating cycle for tidal range facilities with low environmental impact (described below). A low-cost powerhouse has been designed to support the operating cycle. The powerhouse is a modification and simplification of a powerhouse developed by LB Bernshtein and his Soviet Team for an experimental tidal power plant constructed in 1968. The general concept has since found widespread applicability outside tidal power projects. The operating cycle modifies the 1968 “Kislaya” powerhouse. Importantly, the Kislaya powerhouse was built and tested in Murmansk, which has a marine climate marked by long, severe winters with temperatures dropping to -40oC. The powerhouse was pre- 4 Options Definition Report, Vol. 1, p. 170. . Halcyon Tidal Power LLC 8 fabricated in dry-dock, floated, towed to the site, and then flooded into place. By 1993-94, the powerhouse had undergone 12,000 cycles of freezing and thawing, with no sign of damage.5 Halcyon has provided further innovative development of the historically proven Kislaya powerhouse, including a new foundation. The foundation allows the caisson to withstand large loads without slipping. This reduces the otherwise additional mass required for conventional caissons. Patents International Patents for Halcyon’s pile supported construction have been, or are being secured. Patents under the name of The Tidal Energy System have been granted in the United States (Patent No. 6,967,413, Nov. 2005), Australia (Patent No. 200427976, Aug 2007), Canada (Patent No. 2537578, Feb. 2011), China (Patent No. ZL2004800029972.8, Jan. 2009), Mexico (Patent No. 257845, June 2008) and the Russian Federation (Patent No. 2326264). Applications for Patents have been filed and are in prosecution in Brazil, the European Union, and India where patents are provisionally protected under PCT regulations pending final decision. Communications indicate that patents in India will be granted soon. Halcyon will authorize the use of these patented processes to operating subsidiaries of Halcyon. In the final analysis, the viability of the construction methodology of the Halcyon Solution was confirmed when the Halcyon Marine Enclosure design underwent a two-year technical review by Parsons Brinkerhoff and the Expert Committee appointed by DECC in the Severn study. The Options Definition Report concluded that, “In general terms, the modular wall system [Halcyon Marine Enclosure] and construction methodology is considered technically viable….”6 THE HALCYON SOLUTION: THE ENVIRONMENTAL IMPACTS The Environmental Impacts of Conventional Tidal Power Developments Conventional tidal power developments have had adverse environmental impacts. The principal environmental impact has been loss of intertidal zones -- the area that is submerged at high tide and exposed at low tide. In regions of the world where there is a high tidal range (macro-tidal regions) and where the water is also shallow in depth, vast areas of land are submerged by the rising flood tide and then exposed by the receding ebb tide. The effect is particularly pronounced in estuaries where rivers deposit large amounts of rich sediment, creating large areas of shallow water. These estuaries are among the richest ecological environments on Earth. Marine plants grow readily in their rich soils with nutrients added from the incoming tides. Fish 5 V.F. Stepanova , N.K. Rozental, and I.L. Kondratova, Russian Experience with Marine Concrete Structures at the Kislaya Guba Tidal Power Station, in O.E.Gjorv, N. Sakai, N. Banthia, Ed., Concrete Under Severe Conditions, Vo.l2 pp. 596-605, Spon 1998, and L.B. Bernshtein, Tidal Power for Electric Power Plants, Translated from the Russian by the Israel Program for Scientific Translation, Published for the US Department of the Interior and the National Science Foundation 1965. 6 Options Definition Report, Vol. 2, p. A 133. Halcyon Tidal Power LLC 9 fry, shellfish and micro-invertebrates also thrive in this environment. Large numbers of shore birds feed on these fish at high tide, as well as shellfish and invertebrates at low tide. This delicate tide-dependent ecosystem is disrupted by conventional tidal range power developments. All conventional tidal power developments necessarily use barrages, however, as we have seen, conventional construction methods permit their economic use across only narrow estuaries. The interplay between conventional power cycles and the necessity to locate a conventionally built barrage across the mouth of an estuary creates a conflict between the environment and the economics of conventional tidal power development. And here’s the reason why ---Conventional cycles fall into two groups. The first and most commonly deployed operating cycle uses one-way generation -- so named because power is generated only when water is flowing from the basin to the ocean (ebb generation) or only when water is flowing from the ocean to the basin (flood generation). When ebb generation is used, the basin empties only to mid-tide level. For instance, the Severn has an average tidal range of about 10 meters in the upper section of the estuary. When the water level rises 5 meters above mid-tide, vast areas of the intertidal flats become submerged. Likewise, when water levels fall 5 meter below mid-tide, vast areas of intertidal flats become exposed. An ebb generation cycle requires that water levels behind the barrage not fall below mid-tide; otherwise the necessary head pressure is lost. The result is that intertidal habitat that is typically exposed at low tide becomes permanently submerged. Half of the intertidal habitat is permanently lost. For the Severn Barrage (Project B3 in the Severn Tidal Power Consultation), it was estimated that 20,000 hectares of intertidal habitat would become permanently submerged,7 disrupting a delicate ecological system that supports an internationally important assemblage of birds numbering over 20,000.8 The scale of the negative environmental impact played a major role in the UK's decision to put the Severn Projects on hold for consideration at a later time, in spite of its massive energy and carbon reduction benefits. The 520-MW Garorim Tidal Barrage in Korea also proposed using ebb generation. Construction was due to begin in 2012 with completion scheduled for 2017. Environmental groups as well as local fishermen who use the intertidal zone to harvest shellfish mounted strong opposition to the project, citing its negative environmental impact. The project has not been able to secure environmental permits from the government because of the inevitable loss of intertidal habitat. Additionally, conventional construction costs escalated far beyond projections. Predictably, the cost of the civil works and loss of intertidal habitat put the future of the Garorim Tidal Barrage in doubt. Korea's ambitious plans to install 2,544 MW's of tidal range power are on hold. Flood generation is the other one-way power generation cycle. While ebb generation permanently submerges the lower half the intertidal zone, flood generation permanently exposes the upper half of the intertidal zone. Flood generation and ebb generation result in loss of intertidal habitat in equal measure. It should be noted that the 254-MW Sihwa Lake Tidal 7 Prepared by Parsons Brinkerhoff Ltd in association with Black and Veatch, Ltd for the Department of Energy and Climate Change, Analysis of Options for Tidal Power Development in the Severn Estuary – Interim Options Analysis Report, Vol. 1, Dec. 2008, p. 56) 8 Parsons Brinkerhoff, 2008, p. 59. Halcyon Tidal Power LLC 10 Power Barrage in Korea came on line in 2011 using a flood generation cycle. However, special circumstances were instrumental in the project's implementation. Sihwa estuary had already been cut off as part of a land reclamation project, thereby creating a lake. Sihwa Lake became highly polluted by industrial effluents so that the estuary became ecologically dead. Placement of the tidal power station in the causeway actually had a positive ecological effect by helping to flush out the Lake. The alternative to one-way generation is two-way generation. Modern bulb turbines can generate power with water flowing in either direction. Figure 2 shows a two-way generating cycle. The red lines show the natural high-tide level in the absence of the enclosure. With the presence of the enclosure, the water level does not reach its natural high. Intertidal habitat that is normally flooded at high tide remains exposed. Similarly, intertidal habitat that is normally exposed at low tide remains submerged. Both one-way generation and two-way generation cycles result in the loss of intertidal area. Because of their ecological and commercial importance, the loss of intertidal zones has been a major obstacle to tidal range power development. Alleviating the Environmental Problem: The Free Flow Cycle Halcyon realized that tidal range power could practically be deployed only if it developed an operating cycle that preserved the intertidal zones. In 2011, Halcyon developed such a cycle with input from Alstom Power. A patent was granted to Dr. Ramez Atiya. Modern bulb turbines have the capability of generating power with water flow in either direction. The same bulb turbines also have the capacity to act in reverse as high volume pumps. In fact, bulb turbines with the capacity to generate power with flow in either direction, and capacity to pump in either direction, were developed by Nyperic (now Alstom Power) for the La Rance tidal power plant commissioned in 1961. Bulb turbines have been used as very high volume pumps to divert rivers. Such turbines offer the possibility of fully preserving the intertidal zone. Here is the how it works. When water levels equalize at the end of the Free Flow Flood Cycle (the blue line in Figure 2), the turbines are operated as pumps. Water is pumped from the ocean into the basin/lagoon raising its level to the natural high-tide level (the red line in Figure 2). The natural tide level is thereby restored. Similarly, when water levels equalize at the end of the Free Flow Ebb Cycle, the turbines pump water from the basin into the ocean. Pumping lowers the water in the basin to its natural level (the lower red line in Figure 2). By employing two-way generation with pumping, the natural ebb and flow of the tides within the basin is fully preserved. The natural high water and low water levels are preserved, thus flooding and exposing the intertidal zones to their natural boundaries. The tides rise and fall within the basin as if there were no enclosure or tidal power plant, save for minor differences in the timing of this man-made cycle, fully preserving the intertidal zones. Because such a cycle follows or parallels the natural rise and fall of the tides, it has been named the ‘Free Flow Cycle’. Figure 4 shows water levels in the sea and in the basin. The tidal power cycle essentially retimes the tides in the basin without altering water levels. Halcyon Tidal Power LLC 11 In 2010, Halcyon agreed to apply the Free Flow Cycle to the Pennamaquan Tidal Power Project proposed for Cobscook Bay, Maine -- a project for which a preliminary permit has been secured from the Federal Energy Regulatory Commission (FERC). Halcyon, with input provided by Alstom Power, undertook a research program to investigate the cycle, carrying out detailed computer modeling to determine the required installed capacity, the power output, discharge rates through the turbines, sluicing flow rates, power consumption rates for pumping, and all other performance characteristics in 137-second intervals. The research proved the feasibility of the Free Flow Cycle, while also demonstrating its stability. At this juncture, a clarification of the pumping part of the Free Flow Cycle is due the reader. During pumping (E to F and I to J in Figure 4), the difference in water levels in the ocean and the basin are nearly the same. Pumping needs to act against an average difference of only 0.35 meters (1 ft), requiring a modest amount of energy. On the other hand, power generation begins at the end of the waiting phase (point G) when the difference in water level is nearly 3 m (10 ft). Pumping therefore acts against 1 foot of head while power is generated uses 10 feet of head. Even when efficiency is accounted for, the amount of energy utilized by the turbines acting as pumps is much smaller than the energy produced by the turbines acting as generators. Therefore there is a net gain in energy output. The Free Flow Cycle not only preserves the intertidal zone, it also significantly improves the economics.9 Although initially developed for the Pennamaquan Project, the Free Flow Cycle has now been generalized for application to all potential projects to be constructed under the Halcyon Marine umbrella. A tidal range facility utilizing the Free Flow Cycle in two-way generation has a 40% capacity factor – better than any solar power facility and most wind power facilities. Tidal range power, however, has the advantage of total predictability, making its intermittency much easier to integrate into the grid system with less backup capacity required. THE HALCYON SOLUTION: THE BENEFITS The Halcyon Solution is an integrated solution to the twin historical problems faced by tidal range power developments. • • The Halcyon Solution provides a low-cost construction method. The Halcyon Solution provides an operating cycle, the Free Flow Cycle, which fully preserves intertidal habitat. Large Tidal Lagoons Low-cost construction makes large shore-connected lagoons possible. Shore-connected lagoons offer many benefits because they: 9 For an elegant derivation see Gibrat, R. L'energie des marees, Bulletin de la Societe Francaise des Electriciens, 7-e serie, Vol. 3. pp.287-288. Gibrat was principal engineer for La Rance tidal power plant. Halcyon Tidal Power LLC 12 • Can be built anywhere along the coast and are not limited to highly indented coastlines. The number of suitable sites for tidal power development is thereby increased by perhaps as much five to ten times. Tidal range power is transformed from an important niche source of electricity to a major global source of power. • Become increasingly cost-effective the larger they are. The energy output is proportional to the area enclosed, while the cost of the civil works is proportional to length of the enclosure. Since the energy output increases faster than the length, the cost of the civil works per MWh decreases with size. • Leave the channel open to shipping, marine mammals, and migrating fish. They therefore can be sited to have negligible economic or environmental impact. The Economics of Tidal Power at Higher Tidal Ranges The site of the Pennamaquan Tidal Power Plant was chosen because the highly indented shoreline makes it economical to develop a small project. The small scale of the project is consistent with its function as a flagship project. The tidal range at the site is about 5.5 m. Other premier locations appropriate for major tidal power developments have much higher tidal range. Tidal range has a major effect on economics. The energy production of a turbine is proportional to H3/2 where H is the average tidal range. A turbine at a location with a tidal range H = 10 m will produces (10/5.5) 3/2 = 2.45 times as much energy as the same turbine at a location where H = 5.5 m. The number of turbines required to produce the same amount of energy is reduced by a factor of 2.45. Seven turbines at tidal range 10 m would produce the same energy as 16 turbines at a location with a tidal range of 5.5 m. The number of turbines to generate a unit of energy therefore diminishes quickly as the tidal range increases. Because fewer turbines are required to generate the same energy, the cost of the generating equipment drops quickly with increasing tidal range. Stated another way – the same number and type of turbines used at a tidal range of 5.5 m can produce 2.45 times more energy at a tidal range of 10 m! Alstom has confirmed the capability of its turbines to accomplish the foregoing. With this greater efficiency at lower cost, the price for power produced is accordingly lower. A tidal power plant has an economic life of 120 years with a single refurbishment of turbines between years 45 and 60. When the debt is retired at year 20 or 25, the cost of power falls to the cost of maintenance and operation, which is no more than half of the day 1 cost of power for its remaining 95 years of service! A large tidal power plant at high tidal range is not only economical from the outset, but produces power for less than any known fossil or renewable power facility over at least 80 % of its remaining useful life! Indeed, as noted earlier, EDF’s La Rance Tidal Project currently produces power at 22 Euros per MWh. Halcyon Tidal Power LLC 13 THE BUSINESS CASE FOR HALCYON SOLUTION TIDAL RANGE POWER Tidal range power is a massive resource, with the potential to provide as much as 40 percent of the world’s 18 terawatt electricity demand. Halcyon’s approach provides a low-cost construction methodology that makes tidal lagoons cost-effective. Halcyon’s construction methodology transforms tidal range power from an important niche source to a globally important source of energy. Halcyon Marine Enclosure tidal power plants are based on well-understood construction methods and employ turbine generators with a long track record. Tidal range is ready to deploy and does not require any research and development. It is "here and now" technology. Further the Halcyon Solution fully preserves intertidal habitat, providing environmentally lowimpact energy production. The minimal environmental impact minimizes licensing and permitting risk. A Halcyon Marine Enclosure tidal power plant sits low in the water and has low visual impact. The enclosure can be converted into a bridge or a walkway extending into the ocean. It can therefore make a positive visual contribution and secure community good will. The Pennamaquan Tidal Power Project in Cobscook Bay, Bay of Fundy, Town of Pembroke, ME is a flagship Halcyon Solution tidal range project. The Project is making rapid headway with a projected commissioning date of 2017. At sites with very high tides, power from Halcyon Marine Enclosure lagoons can provide power at a cost that is competitive with fossil fuels. The economic analysis for the Pennamaquan Project and the application of that analysis to much larger facilities promises a high rate of return to investors. With 120-year useful life, Halcyon Marine Enclosure tidal power plants offer long-term economic benefits. Because of their very long useful life of 120 years, once project debt has been retired in 20 to 25 years, the price of power from that point forward will be substantially reduced. Halcyon Marine Enclosure tidal power plants can provide clean power with no fuel cost and with no toxic by-products. At the end of its useful life, a Halcyon Marine Enclosure tidal power plant can be easily decommissioned, given its modularity. Finally, the Halcyon Solution creates the potential for the development of numerous individual projects located near major load centers ranging in scale from $100 million to $10 billion or more, thus providing scalability and the opportunity for significant growth. Halcyon Marine Enclosure tidal power plants provide an investment opportunity where the benefits are both economic and environmental. Halcyon Tidal Power LLC 14 THE HALCYON SOLUTION TO TIDAL RANGE POWER IN SCOTS BAY, NOVA SCOTIA The potential for shore-connected lagoons in the Bay of Fundy is enormous. Because they can be placed anywhere along an indentation of the coastline, a significant number of shoreconnected lagoons can be built in the Bay. They can be sited to exclude rivers and estuaries. Shore-connected lagoon tidal range facilities best utilize the massive tidal power potential of the Bay of Fundy. Halcyon believes that a public-private partnership with Nova Scotia and Canadian Maritime business enterprises may be the most efficacious means of bringing the Project to fruition. The Civil Works Halcyon has identified a prime location in Nova Scotia for a Halcyon Solution tidal lagoon – Scots Bay – see Figure 5 attached. The Scots Bay Tidal Power Plant (“Scots Bay” or the “Project”) would consist of a Halcyon Marine Enclosure, 10 km in length. The powerhouse and sluice would be combined into single caissons each housing eight bulb, turbine generators. The summary data for the Scots Bay Tidal Power Plant are: Site Scots Bay, N.S. Average Tidal Range 10 meters Turbine generator type Horizontal fixed blade turbine Diameter of turbines 3.2 meters Operating frequency 92 rpm Number of turbine generators 304 Turbine generator rating 3.63 MW Total installed capacity 1100 MW Approximate length of marine enclosure 10 kilometers Number of powerhouse caissons 38 Number of turbine generators per powerhouse caisson 8 Total length of powerhouse caissons 1300 m Approximate remaining length of enclosure 8700 m Annual Output 3.7 Terawatt hours Capacity Factor 38.8 % Mode of Operation Free Flow Cycle Estimated Total Cost $ 3.2 billion The cost of construction of the Scots Bay Tidal Power Plant is based on the cost methodology developed for Halcyon Marine’s submission to Parsons Brinkerhoff in the course of the Severn Tidal Power Consultation and on equipment cost provided by Alstom Power & Transport. Power output and equipment specifications are based methods developed collaboratively by Halcyon and Alstom. Halcyon Tidal Power LLC 15 Scots Bay has a small footprint covering less than a total 20 acres of sea floor. The Halcyon Marine Enclosure can be fully and easily decommissioned at the end of its economics life. All major elements of the Scots Bay Tidal Power Plant can be refloated and towed away. The Environmental Benefits Scots Bay incorporates all of the advantages of the Halcyon Solution. The plant would employ the Free Flow Cycle. As discussed earlier, the Free Flow Cycle closely reproduces the natural tidal cycle within the basin. No net sedimentation is projected. The 34 powerhouses are distributed within the enclosure so that the inflow closely follows the natural flow pattern. The flow rate and total volume in and out of the basin are the same as those in the absence of the Halcyon Marine Enclosure. The natural hydrology within the basin is therefore maintained. This is in sharp contrast with the Annapolis Tidal Power Plant and other tidal power stations that employ the ebb generation cycle only without pumping, or otherwise fail to emulate the natural tidal cycle. The choice of turbines and their design have been optimized to minimize fish mortality. Horizontal bulb turbines used avoid fish mortality due to their large diameter permitting fish pass through, as well as their ability to minimize pressure gradients commonly responsible for fish bladder damage. The Pacific Northwest Laboratory carried out a detailed investigation on behalf of the US Department of Energy on fish passage through horizontal bulb turbines (Abernathy C.S., Amidan, B.G., !ada, G.F., Fish Passage Through a Simulated Horizontal Bulb Turbine Pressure Regime: A Supplement to "Laboratory Studies of the Effect of Pressure and Dissolved Gas Supersaturation on Turbine-Passed Fish", Prepared for the US Department of Energy by, the Pacific Northwest National Laboratory, 2003). The study found low rate of injury and no mortality due to pressure gradients. The study included bluegill, a species whose swim bladder is particularly susceptible. The results were further substantiated by the examination of observation data from run of river hydropower projects employing horizontal bulb turbines. These horizontally attenuated bulb turbines were chosen specifically to eliminate the dominant cause of fish mortality associated with the Straflo turbine at the Annapolis (N.S.) Royal Power Station. The turbines are further optimized to reduce physical fish impacts. For instance, speed increasers are used to operate the turbines at low rotational speeds. Turbine runner edges are rounded. Gaps in which fish can become trapped are closed. Small diameter (3.2 m) turbines are employed to reduce peripheral velocity. Halcyon’s approach has been to include environmental objectives as part and parcel of the engineering design process. The Economics Assuming the same relative cost structure described in this section and the economics discussion above, a shore-connected tidal lagoon across Scots Bay in the Bay of Fundy, where the tidal range is 10 meters, would produce power at a levelized cost of $84 per MWh. This is competitive with all fossil-fuel electric generating facilities, save for the most efficient gas-fired Halcyon Tidal Power LLC 16 electric generating facilities, and better than any renewable electric generating facility! Please refer to the U.S. Department of Energy methodology and chart of levelized costs of power for various electric generating facilities in Figure 6. The number is particularly significant given the massive energy potential of the Bay of Fundy [estimates approach 2500 megawatts], which is significantly greater than NS’s current power consumption, permitting exportation of clean, inexpensive tidal power to population centers in New England and a long-term revenue stream for Nova Scotia. WORLDWIDE TIDAL RANGE PROJECT OPPORTUNITIES Authoritative sources are in agreement that the worldwide potential from barrages is about 700 TWh annually.10 Figure 7 shows the location of barrage projects proposed as of 2000. Barrage construction is limited to highly indented shorelines. Halcyon's low cost construction makes lagoons economical. Lagoons, which can be built along any shoreline, expand the potential by perhaps five to ten times to 3500 to 7000 TWh (Figure 7). This is a significant fraction of the 18,000 TWh's of electric energy consumed annually worldwide. Significantly, many sites with high tidal range are close to large population centers not requiring extensive transmission and providing a ready market. These sites include the Bay of Fundy in Nova Scotia, the Severn Estuary between England and Wales, the north coast of France, the southwestern coast of Korea, the northeast coast of China, and the Gulf of Khambhat in India. 10 Baker, A.C., Tidal Power, Peter Peregrinus, 1991; Bernshtein, L.B. Tidal Power for Electric Power Plants, Translated from the Russian by the Israel Program for Scientific Translation, Published for the US Department of the Interior and the National Science Foundation 1965. Halcyon Tidal Power LLC 17 APPENDICES HALCYON KEY MEMBERS AND ASSOCIATES Alstom Power, Inc. - Alstom is the world's leading turbine manufacturer. Alstom and Halcyon have a collaboration agreement. Alstom would provide the turbine/generators and the balance of plant for the Pennamaquan Project. Alstom has submitted estimates for the electrical works of the Pennamaquan Tidal Power Plant. Parsons Brinkerhoff, Ltd - Parsons Brinckerhoff is a global consulting firm assisting public and private clients to plan, develop, design, construct, operate and maintain critical infrastructure. Parsons has formally expressed interest in acting as project managers for the Pennamaquan Tidal Power Project. It is significant that Parsons carried out the £ 13 million Severn Tidal Power Consultation for the Department of Energy and Climate Change of the UK. As a result, Parsons Brinkerhoff is fully conversant with Halcyon's construction methods. Parsons' interest is grounded in its familiarity with Halcyon's construction methods. MEG Consulting, Ltd. – MEG is highly respected geotechnical consulting group. MEG has provided geotechnical consulting for onshore and offshore oil & gas infrastructure projects. Their clients include Chevron-Taxco, Conoco/Phillips, ExxonMobil/Neftegas Ltds, as well many other well known firms associated with offshore oil and gas. MEG has significant experience with offshore piling in connection with offshore oil & gas platforms. MEG provided piling calculations for Halcyon during the Severn Tidal Power Consultation. MEG additionally provided the initial geotechnical assessment for the Pennamaquan Tidal Power Project. Fugro-Seacore – Fugro-Seacore is probably the world's leading overwater Marine Drilling Contractor. Fugro Seacore provided Halcyon with estimates for the large diameter pile drilling during the Severn Tidal Power Consultation. Fugro-Seacore provided the estimated cost for carrying the drilling and for installation of the support columns for the Pennamaquan Tidal Power Project. MIAH Inc. – MIAH manufactures custom onshore and offshore hard rock trenchers. MIAH provided the preliminary design and estimated cost for the trencher required for the foundation of the Pennamaquan Tidal Power Project. The trencher is a major piece of equipment. Global Marine – Submitted a trenching proposal for the Pennamaquan Tidal Power Project in consultation with MIAH. Global Marine has a global presence in the installation of sub-sea cables. In particular Global Marine has worldwide experience in trenching for installation of subsea cables. Halcyon Tidal Power LLC 18 Perry Marine & Construction – Perry Marine and Construction is a local marine and construction company operating from Perry, Maine a few kilometers from the Pennamaquan Tidal Power Project site. Perry Marine & Construction submitted an estimate to carry out the small diameter core drilling required for the geotechnical analysis. Perry Marine & Construction successfully carried out core drilling for ORPC, a hydrokinetic tidal power company with a project in the area. Perry Marine & Construction have local knowledge of marine conditions so important to operating in the high current conditions of Cobscook Bay. In addition, Perry Marine & Construction operates a suitable construction yard for the construction of the powerhouses, wall elements and support columns for the Pennamaquan Tidal Power Project. Weeks Marine – Weeks Marine is a major marine construction equipment provider on the East Coast of the US. Weeks provided Halcyon with major equipment rental costs for the project the project. The estimate included heavy lift jack up and conventional barges as well as tugs. The Port of Eastport - The Port of Eastport is seven kilometers away from the Pennamaquan Project. The Port of Eastport operates tugs which guide large ships into the deep-water port of Eastport. The Port has highly experienced pilots. The Port of Eastport provided cost estimates for the use of the port's tugs and piloting expertise. Preti-Flaherty – Pennamaquan Tidal Power, LLC is represented by Preti-Flaherty. Preti-Flaherty is the premier law firm in Maine. Preti has a major energy practice. Preti has a great deal of experience in legislative matters in Maine. Halcyon Marine Hydroelectric – HMH is a Utah corporation. HMH manages the patents associated with the Halcyon Solution. It is also a sister company to Halcyon Tidal Power LLC and an affiliate of Pennamaquan Tidal Power LLC. Dr. Ramez Atiya – Founder of Halcyon Marine and President of Halcyon and affiliates. Ted Verrill – Chief Financial Officer of Halcyon and affiliates. Business-to-Business - HMH and Pennamaquan Tidal Power have maintained a low profile and do not have a web presence preferring to operate on a business-to-business basis. The low profile approach maintains technical confidentiality. Halcyon Tidal Power LLC 19 Figure 1. Halcyon Marine Enclosure Tidal Power Plant – Lagoon configuration. Halcyon Tidal Power LLC 20 Figure 2. Relative dimensions: A cross-sectional view of The Halcyon Marine Enclosure (shown in red) in comparison to a conventional caisson and an embankment. Halcyon Tidal Power LLC
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