Ann: Presentation to Jefferies Global Clean Tech , page-8

re: Ann: Presentation to Jefferies Global Cle...
At some early point in the design the question would have been addressed, "What is the optimum size for CETO buoyant actuator?" Factors considered would have been, wave height likely to be encountered, water depth required to maintain such waves, forces on components, and most of all distance from shore since fluid pressure lines must be kept short to reduce friction losses, etc. From their prototypes MO developed computer models and then further versions through continuous R&D. The end result is the present optimum CETO 3 size. The point to be made is that this is unlikely to change no matter where in the world they are to be deployed. (There could possibly be some minor evolutionary changes in shape of the buoy.) If large scale power is required by EDF, or any client, then this is obtained by large scale array farms.

The power out per unit depends on the wave height of course. The present test site is not very deep, at about the minimum required, and from what I remember from an earlier contour map, it is even in a slight hollow. It could be that this particular site may not always sustain the best wave heights and therefore OM may have meant, "For where we are putting it, I will be happy to get 100kW output." Note that to get the design output of 180kW the wave height has only to increase by 34% which it will quite easily at times. He may also have meant, "...... during the month of testing" (Feb. in summer conditions). I don't think OM was downgrading his own device, Acees. I'm quite optimistic about CETO functioning.

CWE's regard for its shareholders and its comprehension of how to generate publicity are very different matters. Even if the timing of the SPP might appear to be 3 months early in the scheme of things, there is one good reason for having it now. SPPs are allowed only once per year and CWE thinks it a waste of a year if it doesn't raise any capital in 2010. It will want another lot in 2011. Yes, it should have thrown the 7m buoy into the water two weeks ago regardless, even if there was nothing attached besides the tether. The SP would have soared and the SPP price could be discounted to 15c instead.

Juke