Lancaster Wind Systems
1108 – 5 Street
Nisku, AB.
T9E 8B6
780-979-9965
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Wind Energy has major flaws
•Not a replacement for other sources of energy as it is not predictable or reliable.
•Low Capture rate of Wind Energy
•Wind Power requires a power backup when the wind is not blowing.
•Low Revenue
LWS has solved the problem that Wind Energy cannot be captured efficiently
and can not generate power when the wind does not blow. In effect we can
control the wind!
The LWS technology:
•Stores Wind energy for use anytime
•Increases energy capture efficiency
•Ensures energy is available all the time and effectively controls the wind energy
•Supplies modern reliable power as it is stored and available on demand
The LWS Wind Energy System invented in Alberta is the next generation in Wind
Energy System technology!
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• Can’t serve as a base load, need storage
• Low capture rate ~ 30-35%
•29 Wind Farms in Alberta of varying capacity (Total 900MWHR)
3
66%
70%
•LWS Wind Energy System 2.55MWHR
•9585 Ton GHG Reduction/year
•66% Efficiency
60%
50%
LWS Wind Energy
40%
32%
34%
30%
•MacGrath Wind Farm 30MWHR
• 55073 Ton GHG Reduction/year
Macgrath Wind Farm
•32% Efficiency
System
Chin Chute Wind
Farm
20%
10%
•Chin Chute Wind Farm 30MWHR
•58327 Ton GHG reduction / year
•34% Efficiency
0%
Wind Farm Efficiency
The LWS Energy System is TWICE as efficient than current wind farms!
Date Source:
Chin Chute GHG Offset Report February 2011
Macgrath GHG Offset Report February 2011
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• Stores Wind energy for use anytime
• Increases energy capture efficiency
• Ensures energy is available all the time and
effectively controls the wind energy
Fluid flow of
hydraulic oil
Nitrogen flow
• Invented in Alberta
• Step change innovation
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Taber Project
The LWS energy system will be implemented in the Taber area of Alberta.
•Three wind turbines 2.55MWHR, 1100HP capacity (no generators)
•Six Hydraulic Pumps
•Two miles of 48” and Qty 3- 34” pipe for storage
•Storage potential of 1.2 MWHR in Four hours or 4.8 MWHR
•Compensator Transformers
•Nine Compression
•Twelve Decompression
•Two Nitrogen Boosters
•Eight 300 kVA generators
•Eight Hydraulic Motors
•One Cryogen Unit (N2 production)
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7
•LWS Wind Energy System
•2.55MWHR
•$11.6 Million(2011)
•95850 tons /10 Years
•$121.50/ton
$144.08
$145.00
$140.00
$135.00
$130.00
$125.85
LWS Wind Energy System
Chin Chute Wind Farm
$125.00
$121.51
Macgrath Wind Farm
$120.00
•Chin Chute Wind Farm
•30MWHR
•$60M(2006)
•$73M(2011 Dollars)
•583270 /10 years
•$125.85/ton
$115.00
•MacGrath Wind Farm
•30MWHR
•$48M(2004)
Cost per ton of GHG Reduction -10 Years
•$79M(2011 Dollars)
•550730 /10 Years
•$144.08/ton
LWS believes that based on economies of scale and adding additional
Wind Turbines they can further decrease the cost per ton
$110.00
Inflation based on http://www.economica.ca/cpi_ab.htm for Alberta
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•The proposed project can generate 2.55MWHR
•Create a GHG reduction of 9585 tonnes of CO2 per year. Over the next ten
years the total GHG Reduction would be 95,850 tons.
•The project life is expected to be greater than 20 years and the addition of more
turbines and generators can also increase this reduction.
•LWS System is DOUBLE the efficiency of current Wind Farms in Alberta in the
creation of GHG reductions.
•Lowest cost of GHG reduction per ton as compared to Wind Farms in Alberta
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•Williams Engineering Canada staff completed the Environment Canada
Verification Training using ISO14064 , Part 2 and 3. Williams Engineering is
involved in tracking an monitoring projects in British Columbia and was
involved in the design and operation of gas and fuel fired boilers for more
than 30 years in both British Columbia and Alberta
“Based on the proponents assurance that GHG emissions reduction from the
project activity will be 9585 tonnes CO2e per year, it is our opinion that there
is a reasonable level of assurance that the project will meet, or exceed, the
stated emission reductions according to the ISO14064 , Part 3 Standards”
“It is accepted that the emissions reductions from March 1, 2012 to February
28, 2017 should meet or exceed 47, 825 tonnes CO2e“- Assurance Statement
Williams Engineering Report February 23, 2011
•This amounts to 95850 tonnes CO2e over 10 years.
“In the opinion of Williams Engineering Canada, the proponents Project
Plan Document and the assertions within, are fair and reasonable” Williams Engineering Report February 23, 2011
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•The market for LWS technology that continues to grow and in fact doubles every 3
years which is unheard of in any other industry.
•Wind power supplies approximately 1.1% of Canada's electricity demand, with 99 wind
farms representing approximately 3,249 MW of generating capacity
•It is predicted wind energy that would reach a capacity of 55,000 MW by 2025, meeting
20% of the country’s energy needs.
•LWS technology is positioned to capture a large portion if not all the
current market.
• A 20% share of the current Canadian market would increase the GHG
offsets from a total of 1.3 million tons(35% efficiency) to over 2.4 million
tons using LWS technology (66% efficiency)
1. http://www.canwea.ca/farms/index_e.php
2. http://www.canwea.ca/images/uploads/File/Windvision_summary_e.pdf
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•As mention another problem faced by wind turbines is the low revenue generated by them.
LWS has solved this problem!
•Current Wind Farms are price takers. That is, they bid into the market at $0.00 and accept the
settlement price at the end of the hour.
•Installation of the LWS or retrofitting an existing farm would allow the wind producer to sell
energy into the market when they want.
•Pool Prices over a one-year period (August 1, 2008 to July 31, 2009) were analysed and during
that period, there were 126 instances where Pool Prices were in excess of $500 per MWHR.
The average hourly Pool Price was $54.31 MWHR.
•LWS can take advantage of high Pool Prices using the stored energy generating
substantial additional revenue.
•Rather then sell Energy at a few cents a Wind Farm with the LWS system can sell when
demand is at its peek at up to $500 per MWHR. This is why LWS believe all Wind Farms
will desire this technology!
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LWS will ensure that the applicability criteria, identification of sources and and
quantification methodologies for this Project will be determined in accordance
with the Alberta Offset System Quantification Protocol for Wind Powered
Electricity Generation (AENV, 2008).
GHG emission reductions are calculated following the Alberta Quantification
Protocol for Wind-Powered Electricity Generation (March 2008).
Offset Project Reports will be produced yearly which outline the activities and
procedures and provides a detailed description of the project’s adherence to
the requirements of the quantification protocol and demonstrate that:
1. The metering of net electricity production must be made at a point
downstream of both generation and any storage system, typically to where
generated electricity is connected to its loads; and
2. The quantification of reductions achieved by the Project is based on actual
measurement and monitoring as indicated by the proper application of this
protocol.
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•5 Months Engineering Design
•6 Months Procurement
•9 months –Construction and
Testing
The Taber project has a 14 month schedule from project start.
14
LWS plans to seek the required funding over and
above the CCEMC grant from private investors
LWS currently does have written commitment
letters for non-specific amounts of funding.
In addition, many companies and investors
including Enbridge have expressed interest and
instructed LWS that on receipt of CCEMC funding
they may be prepared considering offering
additional or new investment or bridge financing.
Funding
LWS Funding
Private Investors and Financing
CCEMC Funding
Total Project Cost
Total
$ 7,062,624.13
$ 7,062,624.13
$ 14,125,248.25
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The LWS management and Team have over 200 Years of combined experience and are
experts in the fields of Project Management, Wind Energy, Oil and Gas technology and
fabrication
The management team includes Professional Engineers(P.Eng), Program Management
Professionals (PMP), Certified Engineering Technologists (CET) and Chartered
Accountants(CGA) all experts in there fields.
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Lancaster 3 Wind Turbine with Storage
Description
Lancaster Wind Systems Inc.
Total Cost
Unit Cost
Qty
Project Start-up Expenses
LWS Wind Turbine with Hydraulic Pump (2.55 MW)
3
$
620,000.00 $
1,860,000.00
Foundation
3
$
70,000.00 $
210,000.00
Rent
Hydraulic Pumps
6
$
150,000.00 $
900,000.00
Legal Fees
Share Issuance
Compensator/Transformer
Compression
De-compression
Nitrogen boosters
Salaries
9
$
12 $
2
$
40,102.38 $
40,102.38 $
42,425.00 $
360,921.44
481,228.56
84,850.00
12,000.00 $
96,000.00
$
35,000.00 $
280,000.00
$
200,000.00 $
200,000.00
55,000.00 $
55,000.00
$
8
Hydraulic Motors
8
Vales piping, control, header etc.
1
Building and other structures
1
$
$64,000
$50,000
$104,648
Consultants
$689,900
Computers
$25,000
Travel
$50,000
Office Supplies and Furniture
Electrical Generator, 300 kVA
$750,000
Insurance
Stationary, Brochure, and Catalog
Utilities
Total Start-up Expenses
$15,000
$100,000
$5,000
$25,000
$1,878,548
Project Start-up Assets
Sub Total $
4,528,000.00
Land Lease
10 year and Lease w/ expansion
Construction Costs
1
$
Total Assets
$9,559,000
$2,687,700
$12,246,700
600,000.00 $
600,000.00
Sub Total $
600,000.00
1,600,000.00 $
1,600,000.00
Start-up Expenses to Fund
2,400,000.00 $
2,400,000.00
Start-up Assets to Fund
$12,246,700
Sub Total $
4,000,000.00
Total Funding Required
$14,125,248
Storage Pipe, 2 mile length
High pressure, 48" O.D., 2 miles, 1440 psi maximum
Equipment Purchases
Total Requirem ents
$12,246,700
Project Start-up Funding
1
Low pressure, 3 @ 34" O.D.2 miles, 800 psi maximum 1
$
$
$1,878,548
Project Assets
Non-cash Assets from Start-up
$12,246,700
Total Assets
$12,246,700
431,000.000 $
431,000.00
Sub Total $
431,000.00
Startup Costs
$
1,878,548.25
Private Investor
Construction Costs
$
2,687,700.00
Grant Funding
TOTAL COSTS $
14,125,248.25
Cyrogen unit
1
$
Project Liabilities and Capital
Project Capital
Total Planned Investment
Project Total Funding Required
$7,062,624
$7,062,624
$14,125,248
$14,125,248
17
•As this is a design (R&D) and implementation project a combination of Cost Engineering
and Cost estimating was required. The cost estimates were prepared using qualitative
cost drivers like quality, complexity, material, and manufacturing processes.
Contingency
•30% of the capital budget for the cost of construction and engineering which standard
practice shows that this should range form 15-25% in this industry, minimum 5% above
the norm.
•The capital budget total is $2,867,700 based of the equipment costs of $9,559,000.
Minimum $478,000 as contingency @5%.
•Allowed for $689,900 for consultants to ensure that risks can be managed through
technical knowledge.
•Assumed 2 miles of storage is required which is very liberal and we believe the during
final design the storage requirement can be reduced as efficiency are realized which will
reduce the amount of volume (storage) required and therefore substantial reducing this
cost driver which could be alternative used in other areas.
•The storage is based on a cost of $4,000,000. A linear cost by each foot of install pipe
and the cost of each foot of pipe. In LWS initial designs calculations we believe that the
project requires 1.8 miles of storage which allows us a 10% contingency of $400,000
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The LWS Energy Storage solution though complex, uses proven existing process
and techniques familiar in the Oil field sector of Alberta.
Estimates from those companies and individuals familiar with this field such as Hyduke, TNT Engineering, Willow Glen
Engineering, and Fortress Engineering
As the quality of this project is regulated by many regulator boards this played a major factor in the cost of the project
and factored into all estimates and costs based on oil field industry standards. LWS approached many companies for
project materials and manufacturing:
CRC Energy Services
Electric Generators
Hagglunds of Sweden and Toronto, Ontario,
Supply the large prime-mover pumps in e nacelle.
Acciona of Spain in Chicago, Illinois.
Supplying skeletal wind turbine, bare nacelle, bare tower
Corvet Construction of Red Deer, Alberta
The installation and construction of pipeline
Wainbee of Edmonton, Alberta
Denison gold cups, hydraulic motors to drive the generators.
RHK of Edmonton, Alberta
Manufacturer of the compensator transformer for metallurgy and
warranties.
National Oilwell- Varco of Houston, Texas and Edmonton,
Alberta.
Manifolds, pulsation dampers, cryogen and accumulators
Hydac International Corp. of Edmonton, Alberta
Installation, control systems, firing mechanism, flow controls,
hydraulic and nitrogen safety procedures.
Commercial Solutions of Nisku, Alberta
Mechanical thrust bearings and pillow blocks
Construction Company Medicine Hat and Lethbridge, AB
Rebar, cement, attach bolt and foundation infrastructure
19
LWS maintains that, Costs don't just happen, and with a pro-active approach toward costs, and use of
key resources including accountants and certified project managers ensures these costs are identified and
mitigated.
LWS has three primary objectives for the Taber Project:
• Produce predicted GHG reduction.
• Demonstrate that the LWS can increase the capacity of an existing Wind Energy Facility.
• Demonstrate the ability of LWS to arbitrage the Alberta Electricity Energy Market.
STRENGTHS:
•Over 200 years of combined experience in LWS management Team including PMP’s, P. Eng, CGA’s.
•Currently producing Scale model to reduce project risk
•Completed Land Use Agreement for Taber Project
WEAKNESSES:
•Technical risk based on new design on large scale
OPPORTUNITIES:
•Increase Efficiency of design
•Lower costs during design and recapture contingency
•Increase GHG Reduction
•Massive Market adoption potential
•Increased efficiency for other Renewable Energy solutions such as solar power
THREATS:
•Financial risk if unable to raise capital funding to complete project
20
LWS continues to move the project forward and continues to reduce risk thru the
building and testing of scale models. This will ensure that the Taber project is the lowest
technical risk possible.
Original bench model
Proof fit Model (April 2011)
Taber Project
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•The wind sector in 2009 was a $70 billion USD market
•Wind power showed a growth rate of 31.7%, the highest rate since 2001 and
doubles every three years.
•Export of technology to the rest of Canada and Globally
•Alberta Manufacturing opportunities for components to the rest of Canada and
Globally.
•The wind sector employed 550,000 persons worldwide. In the year 2012, the
wind industry is expected to offer 1 million jobs.
•Increase in jobs and additional revenue to Alberta and enhance communities and
increase the quality of life and capacity-building through the training of highly
skilled personnel in Wind Energy.
•Based on this massive market the LWS technology could put Alberta at an
advantage to lead this technology
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•Alberta Technology that can be exported globally
•Huge global market requiring energy storage solution
•Increase efficiency of Wind Farms DOUBLE current solutions
•Lowest cost per ton GHG reduction as compared to current wind Farms
•Increase Wind Energy Revenue by selling Energy when its needed
•Over 200 Years of Experience in management team
•Supplies modern reliable power as it is stored and available on demand
•Technology not limited to Wind Energy. Can be used with other Renewable
energy sources
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LWS Wind Energy system consists of multiple parts:
The LWS Wind Turbine
The Compression Side –Compensator Transformers –Second Closed Loop System
 Energy Storage
The Decompressions side –Compensator Transformers –Third Closed Loop System
Storage Bypass -to be used when storage is not required and energy can be put right on
the grid. The Bypass includes 4 Generators and 4 Hydraulic pumps
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LWS wind turbine is different from the current wind turbines as it has no generators in the nacelle. The LWS
nacelle has dual hydraulic pumps are connected to the blades shaft on the nacelle in order to generate
hydraulic pressure.
•46% lighter due to generator not in nacelle
•Built in crane for Maintenance -7 tons
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At ground level, the Hydraulic High Pressure line from the nacelle is connected to one side of the
Compensator transformer. As the High Pressure line injects fluid into the ‘primary’ end of the hydraulic
cylinder, the driving force of the fluid pushes the piston to the other side of the hydraulic cylinder compressing
the nitrogen. Low Pressure fluid is returned to the nacelle.
26
There are two storage transmission lines in the storage system the High Pressure transmission line and
the other is the Low Pressure transmission line.
The storage required is based on the number of hours the generators will operate without wind. At 1.2
MW, 4 hours of operation, the stored nitrogen at 1440 psi is 113,300 cu.ft., this pressure and volume will
be regulated to 540 psi and injected into the decompression CT nitrogen cylinders which will be exhausted
and stored in the low pressure pipelne (188,500 cu.ft.,540 max.psi).
27
The regulated High Pressure nitrogen from the transmission line is injected into the cylinders. The force created
by the gas moves the piston to the other end of the cylinder compressing hydraulic fluid which then flows into
the hydraulic motors. This back and forth movement of the pistons provides steady supply of pressurized fluid
to the hydraulic motors which are coupled to the generators that produce electric power which is the final part of
the LWS wind energy solution.
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Lancaster Wind Systems plans to start the “Taber Project” to begin in May of 2011 were
a full operational energy producing system will be built in the Taber area of Alberta. The
project includes three wind turbines, 1100HP (x 3) capacity, with a power producing
potential of 1.2 MW in Four hours or 4.8 MWHrs along with two miles of 48” and Qty 334” pipe for storage will be installed.
At the electric power production end, eight 300 kVA synchronous +/- 0.9 pf generators
will be installed. There will be four for the storage and four additional for direct bypass
when storage is at full and power can be used without storage.
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