Presented by: Ioan Jenkins - Development Director

Tidal Lagoons:

1. Harness a free and reliable source. The moon

2. Remove risk. Proven hydro turbines and civil engineering methods

3. Challenge everything. 3 years to analyse every impact and construction norm

4. Create proof of concept and systematic buy-in. The world’s first tidal lagoon with unprecedented community support

How to do big and sustainable, successfully

2

OUR VISION

Low carbon electricity: 8-10% of UK electricity, secured within a decade

Energy security: Reliable, home-grown and near continuous power supply from proven technology, lasting 120 years

Affordable energy: Lowest generation cost of all electricity for 85+ years following investment period. Lower support cost than most low carbon electricity; larger lagoons generate cheaper power

Hydro for Britain

A national fleet of 6 tidal lagoons to deliver …

15

6 lagoons

offshore

wind

turbines

4416 10 reactors= =

Installed capacity : 6 tidal lagoons, 15.9 GW ; London Array, 3.6 MW per turbine ; Hinkley Point C, 1.6GW per reactor

17

A new UK industry

UK investment and growth: £30bn+ investment programme with 50%+ Welsh content, and 65%+ UK content, by developing 5 of 12+ potential sites

UK jobs: Long-term, diversely skilled, industrial employment

Social and economic regeneration: Iconic energy infrastructure at the heart of the community

An industry based in the Swansea Bay City Region

is created to deliver…

It all begins in Swansea Bay

Swansea Bay Tidal LagoonWall length: 9.5km

Area: 11.5km2

Rated capacity (@4.5m head): 300MW

Installed capacity: 320MW

Daily generating time: 14 hours

Annual output (net): 495GWh

Annual CO2 savings: 236,000 t

Design life: 120yrs

Height of wall: 5-20m

Wall above low water: 12m (max)

Wall above high water: 3.5m (max)

Tidal range Neaps: 4.1m

Tidal range Springs: 8.5m

• 150,000 homes powered

• c.85% of Swansea Bay’s domestic use

• c.11% of Wales’ domestic use

2014 2015 2016 2017 2018

18 months of development work suggests Swansea Bay offers great potential for lagoon construction. Key ongoing work streams:

EIA – scope agreed with regulators, EIA now underway, with collaborative input from statutory consultees (including NRW and LPAs). PEIR published 4 July.

Hydrodynamic modelling – multiple lagoon shapes/sizes tested for water quality, sediment transport and sand erosion/deposition impacts

Value engineering – reduce cost of sea wall, turbine housing, construction methods

Turbine design – leading manufacturers Voith/Alstom/GE/Andritz Hydro refining specifications for low-head bulb turbines

Grid – planning consent has been achieved with National Grid & Western Power Distribution

Leasing & consents – engagement with landowners including The Crown Estate, ABP Swansea, Swansea University, St Modwen

Onshore masterplanning – maximising onshore opportunities with ABP & University

Ongoing EIA, viability & design refinement

Headline Statistics Following Public Consultation

3.90% 4.30% 6%

85.80%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

No response No Undecided Yes

Having heard more about the project, do you support the proposal for a tidal lagoon and

associated facilities in Swansea Bay?

Planning context

2014 2015 2016 2017 2018

Planning Act 2008

+100MW offshore lagoon = Nationally Significant Infrastructure Project

Application to Planning Inspectorate (PINS) for decision by Sec. of State for Energy

Development Consent Order (DCO) combines previous separate consent procedures

DCO will comprise: lagoon structure, onshore grid connection, supporting development

Marine and Coastal Access Act 2009

Marine license required for construction and dredging in Welsh waters

Issued by Welsh Govt. Marine Licensing Team (MLT)

PINS and MLT cooperate; processes run in parallel

Town & Country Planning Act 1990

Apply to Swansea/NPT Councils for elements outside the NSIP above Mean Low Water, e.g. bio-fuels facility

Swansea Bay Project Timeline

Planning approval granted

(10th June)

First power

2015 2016 2017 2018 2019

ConstructionFinancial close

PROVEN TECHNOLOGY, INNOVATIVE THINKING

Breakwater design – geotextile option

Water is impounded by a wall or “breakwater” to create a lagoon

1. Breakwater comprises layered geotextiles encased by rock armour

2. Geotextiles are filled with dredged sand from Swansea Bay and then positioned around the lagoon’s perimeter

3. Rock is transported from our own quarry to the lagoon by sea

14

Geotubes at Incheon Bridge, Korea (© TenCate)

Breakwater design – quarry run option

Water is impounded by a wall or “breakwater” to create a lagoon

1. Breakwater comprises bunds of quarry run with sand fill in between

2. Armour rock is placed on top (similar as for geotextile option)

3. Rock and quarry run is transported from our own quarry to the lagoon by sea

31

Turbine house: bidirectional turbines

97% availability in the 47 years

93% efficiency on the ebb

75% efficiency on the flood

Year 47 – first overhaul of turbines, 5 turbines received replacement parts

Year 48 – control system to be replaced

Years 1 and 47

Over 45 years of field data

La Rance, salt water, 240MW tidal range power station, Brittany, France

EXCELLENCE IN OPTIMISATION

Design evolution: 14 options considered

UK content

Rohr Turbine – Bulb Turbine © Andritz Hydro

Key component processes - Turbines

Casting Forging Pressing Welding Machining Painting Fabrication

Runner

bladesX X

Runner

hubX X X

Turbine

shaftX X X

Discharge

ringX X X X X

Turbine

housingX X X X

Bulb nose X X X X

Draft

tubeX X X X

Hatch

coverX X X X

With a Welsh core

The Tidal Lagoon Industry Advisory Group

Chair

Roger Evans MBE, Schaeffler (UK)

Members

Owain Davies, Amcanu

Mark Coia, Mabey Bridge

Nick Revell, Ledwood Engineering Ltd

Winston Hall, JW & E Morris & Son Ltd

Russell Scaplehorn, Hornbill

Gherold Davies, Fairwood Fabrications Ltd

Robert Williams, WRW Group

Adrian Davies, Acorn

Gareth Barker, Sheffield Forgemasters

Observers

Ian Price, CBI

Robert Lloyd-Griffiths, IoD

Left to right: Russell Scaplehorn, Mark Shorrock (TLP), Roger Evans, Owain Davies, Winston Hall, Ioan Jenkins (TLP), Nick Revell, Mark Coia

22

A UK supply chain

Realising a 50% Welsh, 65% UK content aim

UK content

Business Hub

Purpose:

To foster a world class cluster of manufacturing, assembly and construction businesses capable of supplying an initial 5 tidal lagoons in the United Kingdom, with the potential thereafter to supply up to 50 locations world wide.

The Business Hub is centred on the Swansea City Region where the most attractive packages can be offered.

Anchor tenants of the Zone will be core Tidal Lagoon Power consortium members, who can then support a new Tier 1 and Tier 2 infrastructure.

Anchor tenants include Alsotm, Voith and Costain

Proposed Pre-assembly areas

• Precast-Assembly Plant – Swansea Bay City Region . 15 acres

• Turbine Assembly Plant –Swansea Bay City Region. 3 Acres

ENVIRONMENTAL IMPACT

28

Comprehensive assessment of impacts, from construction to

decommissioning, and including cumulative impacts from other

proposed development and activities

• Coastal processes, sediment transport &

contamination

• Marine water quality

• Intertidal & sub-tidal benthic ecology

• Fish, recreational & commercial fisheries

• Marine mammals

• Coastal birds

• Navigation & marine transport

• Terrestrial ecology

• Seascape & visual amenity impact

• Onshore transport & air quality

• Economy, tourism & recreation

• Marine & terrestrial noise

• Archaeology & historic landscape

• Flood risk

• Land quality

• Habitat regulation assessment

• Water Framework Directive assessment

Opportunities for environmental positivity

1. Colonisation of the breakwater

2. Mariculture farm

3. Kittiwake ledges on turbine housing

4. Artificial reef structures

5. Creation of rock pools

6. Habitat creation: salt marsh, grassland and dune

7. Oyster spats

1

2

3

4

5

6

7

29

ECONOMIC IMPACT

Employment and economic stimulus in Swansea Bay

Construction: 1850 full time equivalent jobs (5,540 new job years) directly created during three-year construction

Operations & maintenance: est. 60 long-term, permanent jobs running the lagoon

Leisure: est. up to 90 additional leisure industry jobs

Gross Value Added: £173m during construction, £264m lifetime operations, £252m lifetime leisure impacts

Independent data from Cardiff Business School. Turning the Tide:

the economic significance of the Tidal Lagoon Swansea Bay, Pro M Munday,

Pro C Jones, Welsh Economy Research Unit, Cardiff University

Attracting tourism

A ‘must see’ attraction for Wales & the West

70 – 100,00 visitors expected annually

Plus 2 - 8,000 visitors attending individual sporting events

The Oyster: offshore building including visitor centre, restaurant, lecture hall and turbine house

‘The Economic Case for a UK Tidal Lagoon Industry’, Centre for Economics

and Business Research, July 2014

Key findings:

• A national fleet of 6 lagoons would contribute £27bn to UK GDP during 12 years of construction

Creating or sustaining 35,800 jobs on average and 70,900 jobs at its peak

In operation, the fleet would contribute £3.1bn per annum to UK GDP

Creating or sustaining as many as 6,400 jobs

Potential to increase net exports by £3.7bn per year – equivalent to 13% of the current trade deficit

SOCIAL IMPACT

Sport and Leisure

A public amenity for:

Walking

Cycling

Running

Water contact sports

Angling

Bird-watching

TriathlonWestern landfall facilities, including sailing & boating centre, disability sports, beach, rock pools and children’s play area

35

Education

STEM Cymru’s Engineering Education Scheme

A unique opportunity to:

Inspire young people

Study real practical challenges

Develop career skills

First ‘Client Based Approach’ with Construction Skills

Primary education

Work Placements 16+

Work Placements 14-16

Curriculum Support Activities

Graduates

Apprentice Starts

Apprentice Completions

Jobs created for local people

NVQ starts for sub contractors

NVQ completions for sub contractors

Advanced health and safety training

Cultural programme to:Stimulate creativity

Showcase local and international art

CultureLaunched ‘Open Call’ Concept Ideas

• International Call-2x10K• Welsh –Call-3x5k• Swansea Bay-Call

CONCLUSION

Helping solve the UK’s electricity sustainability problem

Sustainable electricity to:

Bring down the cost of living

Keep up with energy demand, today and next century

Repatriate energy profits and opportunities

Protect and enhance the environment

Support a new Industry in Wales and UK

Made possible by an iconic proof-of-concept project

39

Q & A