Neptune Wave Power, LLC

5646 Milton Street, Suite 130, Dallas, TX 75206

Time to Commercialize the Science

12 August 2015

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 Outline

Key Staff
WEC
Market
Key Technology
Technology Protection
Technology Verification
Monetize The IP
Plan
Investment
Questions

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 WEC

 Monty S. Montgomery, CEO

 BA Finance, Southern Methodist University
 Founder and CEO of Bismuth Cartridge Company

 Steven C. Hench, CTO

 MS Computer Science, Texas A&M
 Los Alamos National Laboratory

 Terence Waldron, President

 BS Engineering Mechanics, Columbia University
 Owner and Founder Waldron Engineering & Construction, Inc.

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 WEC

 Wave Energy Conversion (WEC): Renewable power generation

extracting energy from ocean waves and converting it to electricity

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 Market

 Average Electric consumption of Coastal Countries is 1.5 tera watts

(10^12)

 1% Market Penetration represents 15 giga watts

 1% Market Penetration represents $50 billion in buoy sales

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 Key Technology
 First IP - Horizontal Pendulum

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 Key Technology

 Second IP - Tunable Pendulum & Power Optimization

 The pendulum can be tuned to various conditions (sea states), and generates more power
than non-tunable systems.
 For any given sea state, there is a unique setting for the length of the pendulum and a
function for power harvesting.

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 Key Technology

 Third IP – Counter Weight

 The center of motion moves from the buoy to under the buoy
 Allows for the harvest of energy related the heave.

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 Technology Protection

Patent Number Issue Date Title

7,453,165 11/18/2008 Method and apparatus for converting Ocean
Wave Energy into Electricity
7,629,704 12/08/2009 Additional Claims – Method and apparatus for
converting Ocean Wave Energy into Electricity
7,737,569 4/20/2010 System and method for converting ocean wave
energy into electricity
8,004,104 8/23/2011 Additional Claims – Method and apparatus for
converting Ocean Wave Energy into Electricity
8,046,108 10/25/2011 Additional Claims – System and method for
converting ocean wave energy into electricity

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 Technology Verification
 All IP has been confirmed in the 1/5 scale prototype buoy
Model 3.1 tested off the coast of New Hampshire
 Survived two gale force storms

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 Monetize the IP
 Sell individual Buoys to Utilities and Private Power Producers
 Expected unit price of $150,000 per Buoy

 Sell Long Term Service Agreements “LTSA” on a monthly fee basis

 Equal to selling a second buoy over the 20 year LTSA life.

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 Monetize the IP

Business Case
Buoy Target Deployment Cost $150,000

Name Plate 70 kw

Capacity Factor 65%

Annual kwh 390,000

Avoided Fuel Cost ($60/bbl basis plus $0.12

maintenance)

Annual Revenue $46,800

Simple Payback* 3.2 years

ROI* 30%

* calculation does not include capacity payments, renewable energy credits, grants,
investment tax credits, or depreciation.

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 Plan
Seeking funding for Phase 2 ($8M):
 Develop an Product Design Team
 Develop a Sales and Marketing Staff
 Engineer and Manufacture (2) 15 meter units commercial scale
 Launch pilot commercial electricity generation program in Bahama Islands
 Connect to electric grid, generate, and sell electricity

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 Plan
Measure of Success Phase 2:
Ready to sell manufacture and support the Neptune Wave Buoy.
 Finalize Design of Production Buoy
 Sales Pipeline Established
 Data to Support Output Guarantees
 Prove Technology Operates Effectively on a Utility Grid
 Component Supply Chain Established
 Support Supply Chain Established

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 Investment
 $8.0 million investment purchases 32% of Neptune Wave Power
 Year one investment $4.8 million

 Year two investment $3.2 million

 Investment use
 4.0 Program, $7.0 million to deploy two commercial buoys in the Bahamas
 On going NWP operations until Revenue is realized to support operations

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 Bahamas Shipyard – Project Location

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