You are on page 1of 27

Catch the Wind

Making Wind Energy Profitable

Investor Presentation
December 2010

© Copyright 2010 Catch the Wind, Inc. All rights reserved.


Forward Looking Statements

This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

Certain statements in this presentation may constitute “forward-looking” statements which involve known and unknown risks,
uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be
materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. When used in this presentation, such statements use such words as “may”, “will”, “expect”, “continue”, “believe”,
“plan”, “intend”, “would”, “could”, “should”, “anticipate” and other similar terminology. These statements reflect current assumptions
and expectations regarding future events and operating performance and speak only as of the date of this presentation.

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or
results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could
cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to,
the factors discussed under the “Risk Factors” section of the filing statement the Company filed with regulatory authorities on
September 9, 2008. Additional risk factors can be found in the Company's continuous disclosure filings, reports and other filings
with securities commissions and regulatory authorities in Canada and filed under the Company's profile on SEDAR at
www.sedar.com.

Although the forward-looking statements contained in this presentation are based upon what we believe are reasonable
assumptions, neither we, nor the placement agents, can assure investors our actual results will be consistent with these forward-
looking statements. We assume no obligation to update or revise these forward-looking statements to reflect new events or
circumstances.

2
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Corporate Overview
Catch the Wind is a technology company that has developed and is
commercializing a laser wind sensor and turbine control system. The
combined solution enables accurate and proactive alignment of any wind
turbine and has proven to increase power output and reduce stress on
key mechanical components
  Primary product is the Vindicator® laser wind sensor
(LWS) and turbine control system
  Evolved from laser technology first developed for the
aerospace industry for measuring air speed and direction
  Only nacelle-mounted, LIDAR (Light Detection and Ranging)
based wind sensor available in the market, that can
provide wind speed and direction
  Independent testing has been completed and
commercialization is now underway

  Complementary products include WindSeekerTM and


Racer’s Edge ® wind measurement devices
  Hand-held units providing accurate wind speed and
direction measurements up to 1000 m away
  Includes government, weather, entertainment and sports
verticals opportunities
  Only hand-held LIDAR in the world
3
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Timeline

4
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Wind Turbine Control
Performance Enhancement and Durability

  Wind turbines are designed to be facing directly into


the wind
  Wind is highly variable and often unpredictable
particularly over short periods of time
  A modern turbine’s nacelle can pivot left and right
(yaw) to compensate for wind direction changes
  Important aspect of keeping turbines operating
efficiently
  Wind turbines are guided by control systems using
data from wind measurement instruments mounted
at the rear of the nacelle
  Traditional wind measurement instruments gauge
speed and direction after the air has passed through
the distorting effect of a turbine’s massive rotating
blades
  This form of ‘reactive control’ is like driving your car by
looking into your rear view mirror
  Yaw misalignments, caused by measuring the distorted
flow, have been measured as high as 30-45 degrees
CFD simula+on shows distorted wind flow in wake of turbine blades  
5
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Wind Turbine Control
Bringing Aerospace Sophistication to the Wind Energy Industry

  Catch the Wind’s Vindicator® LWS uses multiple


eye-safe laser beams to accurately map the wind
before it passes through a turbine’s rotor

  Vindicator® LWS provides wind speed/direction


measurements of undisturbed wind up to 300m in
front of the turbine The hemispherical cup anemometer (original 1846 design) and modern 
turbine applica+ons on the rear of the nacelle 

  Vindicator® LWS measurements are input into a


proprietary control algorithm that allows a turbine to
re-orient before the wind arrives

  Vindicator® LWS allows turbines to capture


maximum available power in turbulent conditions
and minimizes mechanical damage from recurring
misalignment at high wind speeds
Vindicator® LWS uses lasers to look beyond distor+ng affects of turbines’ 
blades and measure wind in front of the turbine 

6
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Vindicator®
Laser Wind Sensor

CTW’s Vindicator® LWS utilizes forward-looking wind sensors to read the


approaching wind and control the wind turbine proactively to enable an
optimal operation
  Aerospace grade laser sensors and
technology
  Fully integrated wind turbine control system

How it Works:
1.  Three laser beams pulse 1000 times per
second
2.  Laser energy reflects off dust particles in the
wind and changes color according to their
velocity
3.  Sensors detect the color change and
calculate wind speed and direction
4.  Measurements are fed into proprietary control Vindicator® LWS mounted on a GE 1.5 MW Wind Turbine
algorithm which outputs signals that can be
entered into a turbine’s existing control
system hardware 7
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Vindicator® LWS
Measurement Accuracy
  Cup anemometers and wind vanes are the most prevalent wind measurement technologies currently available
  Have proven highly effective and reliable for meteorological and wind resource applications
  In undisturbed air conditions, measurements obtained from cup anemometers and wind vanes exhibit almost perfect
correlation with Vindicator ® LWS measurements (R2 > 0.99)
  Cup and sonic anemometers are not suitable for turbine-mounted yaw guidance because the distorting effect of the
turbines’ spinning rotor interferes with their ability to take accurate measurements
  Turbine manufacturers have incorporated mathematical models to compensate for the rotor distortion; but given the random nature of the
distortion (see chart on bottom right), these have proven to be only minimally effective
  Vindicator ® LWS obtains measurements in front of the turbine and is unaffected by the spinning rotor’s distorting effects

Wind Direction Correlation Difference in Wind Direction Measurements When Mounted On Turbine(1)
Sonic Anemometer vs. Vindicator® LWS
R2 = 0.99

Wind Speed Correlation

R2 = 0.99

Sonic Anemometer: after-market ultrasonic device, MEASNET-calibrated, IEC-certified


(1) As measured by a European wind turbine OEM during trial.

Data supplied from independent 3rd party testing


Forward looking, undistorted wind measurements obtained by Vindicator LWS indicate
conducted by Helimax Energy Inc. in April 2010 that turbine’s yaw can be more than 20 degrees misaligned 8
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Vindicator® LWS
Value Proposition

Present Value of Incremental Cash Flows from Vindicator® LWS Installation(1)

Significant additional value exists, but is not incorporated into the above analysis:
  Extended turbine lifetime
  Added value through reduced O&M costs
  Typical O&M costs:
  1 gearbox replacement ~$500,000
  1 main bearing replacement ~$45,000
  1 blade replacement ~$200,000
  1 day (24 hrs) of downtime ~$1,200 - $2,400 in lost revenue per turbine
  1 day crane rental ~$25,00 - 50,000

(1)Assumes 10% increase in power output, PPA price of $65/MW (0.4% annual inflation adjustment, 20 year turbine life, discount 9
rate of 10% © Copyright 2010 Catch the Wind, Inc. All rights reserved.
Field Trials
Nebraska Public Power District

Long Term Vindicator® LWS Field Trial Completed in May 2010 in


Collaboration with Nebraska Public Power District (NPPD)

  Study completed over 7 month time horizon


  Vindicator® LWS mounted on Vestas V82 1.65 MW turbine and integrated into the
turbine’s yaw control system hardware
  Two measures of performance enhancement analyzed:
  Power output performance
  Off-axis load reduction
  Vindicator® LWS and traditional anemometer/wind vane alternated in controlling yaw
motor

Results:
•  10.7% Increase in Power Output
•  Up to 83% Reduction in Stress on Critical Mechanical Components (1)

Source: SwanTech (independent 3rd party). Based on reduction in stress loading measured by Random Friction Index .Level of stress reduction depends on
(1)
10
specific mechanical component. © Copyright 2010 Catch the Wind, Inc. All rights reserved.
Field Trials
Nebraska Public Power District

Result: 10.7% Increase in Power Output 

Significant Upside Potential Remains:


  Software and control algorithm optimization expected to further enhance performance
  Number of yaw adjustments per period was fixed during initial trial; potential for increased
pace of yaw re-alignment to further bolster performance enhancement

11
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Field Trials
Nebraska Public Power District

Result: Up to 83% Reduction in Stress on Critical Mechanical Components (1)


WITHOUT VINDICATOR WITH VINDICATOR

  Significant potential to boost wind farm IRRs by preventing or delaying replacement of mechanical
components
  1 gearbox replacement ~$500,000
  1 main bearing replacement ~$45,000
  1 blade replacement ~$200,000
  1 day (24 hrs) of downtime ~$1,200 - $2,400 in lost revenue per turbine
  1 day crane rental ~$25,00 - 50,000
Source: SwanTech (independent 3rd party). Based on reduction in stress loading measured by Random Friction Index .Level of stress reduction depends on
(1)

specific mechanical component.


12
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Field Trials

  Field trial underway on Nordex N-60 1.3 MW turbine at Cowley Ridge


  Results expected in December 2010
  Largest wind energy producer in Canada with over 1000 MW operating wind capacity
  30% of Canada's wind energy capacity
Agreement originally with   Another 5,000 MW offshore and onshore capacity in development
Canadian Hydro Developers
  Converting initial trial agreement into commercial proposal for multiple purchase options

  Vindicator® LWS unit installed on an operating Gamesa G8X 2.0MW wind turbine
  Gamesa, a worldwide leading wind turbine manufacturer based in Spain

13
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Collaborative Research Project
National Renewable Energy Laboratory (US Department of Energy)

Joint Evaluation of Vindicator® LWS with National Renewable Energy


Laboratory (NREL) – US Department of Energy’s Primary Wind Research
Lab
  Projected launched in April 2010

  Three year agreement allows for collaborative research


program with a pre-eminent wind research facility
  Optimizing Vindicator® LWS wind speed and direction
measurement capabilities
  Optimizing yaw and pitch control algorithms
  Exploring potential benefits of incorporating Vindicator® LWS
technology into turbine design process
  Catch the Wind has access to any intellectual property rights
stemming from the program

  US DOE has identified increased capacity factors and NREL’s National Wind Technology Center located just south
reduced O&M costs as key drivers of goal to reach 20% of Boulder, Colorado

wind energy by 2030


  Forecast 15% increase in capacity factor is required
  Forecast O&M costs will need to be reduced by 35%
14
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Global Wind Turbine Market
Dynamics Shifting in CTW’s Favor

Source: GWEC Global Wind 2009 Report

  Significant growth expected over next 5 years; however, in many regions, high potential resources have
already been developed
  Vindicator® LWS brings previously marginal sites into an attractive region in terms of return profile
  Typical wind farm IRRs range between 9 – 15%; Vindicator® LWS installation expected to add between 1 – 3 %(1)

  Turbine manufacturers are transitioning towards building larger turbines for better economics
  Vestas V112 3 MW and V120 4.5 MW, Nordex 5M W, Enercon 7.5 MW
  As a fixed cost per turbine, Vindicator® LWS value proposition is highly leveraged to size of turbines
  Increasing durability of mechanical components becomes more important in larger turbines

  Renewable Energy Portfolio Standards are increasingly gaining prominence with Wind Energy as a key
feature
  US Department of Energy has publicly stated a goal of 20% wind power by 2030
(1) Assumes 8-12% increase in power output, PPA price of $65-$80/MW, capacity factor 33%-37%, turbine size 1.5 - 3.0 MW 15
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Industry Adoption
Building Momentum

OEM INTEGRATION

WIND FARM Turbine manufacturers


ADOPTION incorporate Vindicator®
LWS into new turbine
design and manufacturing
Purchase commitments process
VALIDATION
become active from
leading wind farm owners •  Phase II of joint evaluation
and operators completed with major OEM
Independent 3rd party
CERTIFICATION performance •  Discussions currently
•  Contingent purchase
measurements conducted agreement signed with 2 underway with several wind
on customers’ turbines prominent wind farm turbine OEMs for production
Vindicator® LWS obtains operators line installation
certification from •  5 independent 3rd party
•  Negotiations underway
recognized authority evaluations currently
with companies operating
underway
more than 10,000 turbines,
in total 750+ Units Shipped
~5 Units Shipped ~20 Units Shipped 150+ Units Shipped Each Year

Q2 – Q4 2010 Q2 2010 – Q2 2011 2011 2012 and Beyond

16
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
BP Wind Energy North America
Final Stage of Customer Validation

Sales agreement signed with BP Wind Energy NA in June 2010, following


the successful completion of the NPPD Field Trial in May 2010

  BP Wind Energy NA is a leading wind farm operator in North


America with over 1200 MW owned or operated
  Fleet includes over 182 Vestas 1.5MW, 100 Clipper Liberty 2.5 MW, 50
Vestas 3 MW turbines in operation – ideal candidates for Vindicator®
LWS application

  Two Vindicator® LWS units purchased initially


  Both units to be installed on in-warranty turbines with approval of
manufacturers
  Successful completion of trial period will trigger an additional order

17
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
enXco
Final Stage of Customer Validation

Sales agreement signed with enXco in July 2010 with a provision for the
purchase of additional Vindicator® LWS upon successful performance
during evaluation period
  enXco owns or operates more than 4000 MW of wind turbines
  1,500 MW are currently off-warranty
  ~200 MW rolling off warranty each year
  500 MW of renewable projects in development and construction each year
  Single Vindicator® LWS unit purchased initially and already installed on a GE 1.5 MW
turbine
  Upon successful completion of an evaluation period, enXco has agreed to purchase
additional units
  Subsidiary of EDF Energies Nouvelles Company, one of the largest wind farm operators in
the world

18
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Sales Pipeline
Wind Turbine Owners and Operators
Initial Additional Contingent and/ Total Turbines
Customer Project Status
Units or Optioned Orders (Owned/Operated)*
NPPD Phase I Test Completed; Phase II In Progress 1 Y C
TransAlta Vindicator Installed & Collecting Data 2 Y A
BP Wind Energy Contract Signed 2 Y A
enXco / EDF Contract Signed 1 Y A
Global Renewable Energy Company Agreed to Terms in Principle 1 Y A
Mid-sized Canadian Utility Agreed to Terms in Principle 1 Y C
Emerging North American Operator Agreed to Terms in Principle 1 Y A
Leading Global Wind Farm Operator Agreed to Terms in Principle 1 Y A
Large North American Energy Company Negotiations Underway 1 Y B
Leading Renewable Energy Company Negotiations Underway 1 Y B
Canadian Renewable Energy Developer Negotiations Underway 1 Y B
Small Global Renewable Energy Developer Negotiations Underway 1 Y B
Total Units 14

Momentum from Operators and IPPs is Transla5ng into Serious Interest from Turbine 
Manufacturers Looking for a Compe55ve Edge 
Wind Turbine Manufacturers
Initial Annual Wind Turbine
Turbine Manufacturer Project Status
Units Production*
Leading Global OEM Sold 1 unit, Initial testing underway, Additional purchases expected early 2011 1 A
Gamesa Phase 1 test completed, Analyzing results 1 A
Leading Global OEM CTW facility visit, Strategic plan in progress 1 A
North American OEM Negotiating collaborative agreement B
European OEM Commercial negotiation in process 1 A
Large Global OEM Collaborating with CTW at customer site & potential others B
Total Units 4
*Wind Turbine Quantity Groups: Group A = 1000+ | Group B = 100-999 | Group C = 1-99 © Copyright 2010 Catch the Wind, Inc. All rights reserved.
Secondary Markets

  Offshore Wind Assessment


  Product: Vindicator® LWS integrated into AXYS Technologies’ WindSentinel
Buoy
  Only laser based wind sensor on the market which can be used on a
floating buoy in both shallow and deep water
  CTW’s proprietary motion offset software accurately adjusts for wave motion
  Replace traditional installed met masts which cost ~ $5 – 10 million
  Guaranteed order for a minimum 47 units over the next 4 years
  Estimated market potential of 200 to 300 units per year

  Onshore Wind Assessment


  Product: Vindicator® LWS
  Natural extension of CTW’s market focus
  Estimated market potential of 200 to 300 units per year

  Other Wind Sensor Market Opportunities


  Products: Racers Edge® LWS and Wind SeekerTM LWS
  Includes government, weather, entertainment and sports verticals
opportunities
20
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Production
Adding Scale and Rationalizing Costs

  Modularized assembly process allows for capital efficiency as


sales and production ramp up

  Current in-house capacity is 8 units a month


  Can be increased to 16 units a month without significant capital
expenditures

  Just in time inventory management limits working capital


investment requirements
  Certain long lead time components will be held in inventory to limit
lead times for Catch the Wind’s customers

  As sales ramp up, production and assembly will be transferred to


an established contract manufacturer to maximize economies of
scale
  Production agreement in place with BreconRidge – leading fiber optic
contract manufacturer

  Production process redesign to be completed in Q2 2011


  Production costs will be cut by 35% as products are developed
specifically for turbine application rather than all-purpose beta units
  Faster lead times
  Component miniaturization from Racers Edge ® LWS and Wind
SeekerTM LWS products will be recycled into Vindicator® LWS
21
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Use of Proceeds
Transitioning into Vindicator® LWS Commercialization

Item Amount Notes

  Manufacturing process and product redesign


estimated to decrease unit costs by 35%
Development and
$4.7 MM   Focus has shifted to software optimization
Operational Engineering and streamlining production process

General Corporate
$3.4 MM   General corporate purposes
Purposes
  Ongoing and projected field trials and
finalizing 3rd party validation
Technical Customer
$1.2 MM   Initial sales require extensive involvement
Support
from Catch the Wind as unit is calibrated and
optimized for different turbines

  Incremental additions to manufacturing and


Capital Expenditures $0.7 MM measuring equipment

Total $10.0 MM

22
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Technology Partner
Optical Air Data Systems, LLC

Catch the Wind has an ongoing technology licensing and outsourcing


agreement with Optical Air Data Systems, LLC – the parent company it
spun off from in 2008

  Optical Air Data Systems, LLC (OADS):


  Award winning defense contractor and leader in the high power fiber-optic laser business with
additional expertise in Doppler LIDAR
  Recognized small-business defense contractor for the US government
  As a private business, OADS benefits from many government funding programs which have allowed it to
develop considerable in-house technological and manufacturing capabilities
  $70 MM invested in developing the underlying technology and infrastructure
  Purpose-built OADS facility includes optics and electronics laboratories, environmental and dust test
chambers, linked computer design and fabrication, a full prototype machine shop, and a laser collimation
range
  Comprehensive ability to design, develop, test and produce compact laser range finders, LIDARs, and
Doppler LIDAR wind measurement systems internally
  OADS possesses a world-class team of laser physicists, optical and electronics engineers,
mathematicians and software engineers, and supporting technical staff

23
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Management Team

Phil Rogers Former Director of Special Projects, Lockheed Martin Skunk Works
President & CEO 21 years experience as a defense contractor for the US government

Robin Roge Previously Controller for Government Micro Resources.


Acting CFO 25 years experience in audit, accounting and tax services

Previously Associate General Counsel, Corporate Securities at the Federal


Claudia Jaques Home Loan Mortgage Corporation (Freddie Mac);
VP General Counsel 14 years of corporate and securities law experience

Previously Major Program Manager at the Naval Air Systems Command,


William Fetzer Consultant with Northrop Grumman, Litton PRC, Rockwell Collins Intl.
VP Business Development 10 years business development experience

Previously VP Production at ITF Optical Technologies, VP Operations with SDP


Daniel Lacroix Components
VP Manufacturing 20 years high technology manufacturing experience

24
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Board of Directors

David Garman Former U.S. Under Secretary of Energy


Director Assistant Secretary for Energy Efficiency and Renewable Energy.

Christopher Lowe CFO of Noble Environmental Power


Director Extensive experience in the energy sector, including wind energy

Marty Crotty CEO of Upwind Solutions


Director Former President of AES Wind Generation
Extensive renewable energy sector experience

Phil Rogers President and CEO of Catch the Wind, Inc.


Director 20 years experience as a defense contractor for the US government
Former Director of Special Projects, Lockheed Martin Skunk Works

Alisa Rogers
Director Co-Founder of Catch the Wind, Inc. and President of Optical Air Data Systems
Aerospace engineer and former Project Manager at Lockheed Martin

25
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Catch the Wind
Market Information

Ticker Symbol CTW-V

Exchange TSX Venture Exchange

Share Price
Current(1) $0.48
52 Week Low $0.37
52 Week High $3.00

Average Daily Volume 29,000


Jacob Securities
National Bank Financial
Analyst Coverage Mackie Research Capital
Dundee Securities

Shares Outstanding 57.5 MM

Fully Diluted 64.1 MM

Market Capitalization $27.6 MM

Holders Institutions – 46%


Insiders – 44%
Retail – 10%
26
(1) Current as of October 25th, 2010
© Copyright 2010 Catch the Wind, Inc. All rights reserved.
Investor Contact

Claudia Jaques
VP General Counsel
Catch the Wind, Inc.
cjaques@catchthewindinc.com
(703) 393-0754

27
© Copyright 2010 Catch the Wind, Inc. All rights reserved.

You might also like