WATTS Vertical Farm Tower (VFT)

New, more efficient, and potentially disruptive wind technology that can lead to the realization of

renewable distributed generation

and an operating cost that

may not require support from subsidies.

The Market
Worldwide market demand for new wind turbines is exploding. App. $50 billion in 2008 and significant growth for the foreseeable future. Prices increasing dramatically (+$2 million per MW) Order backlog exceeds two years.

Watts VFT Competitive Advantages

ATTRIBUTE More Power in Smaller Land Footprint (10 1 ratio) Captures High Altitude Winds (+400 feet) Shrouded Turbine Captures Wind More Effectively Each Level Yaws to Maximize Directional Wind Shear More Geographical Areas for Distributed Generation Smaller Components for Supply Chain Flexibility Direct-drive Generators (no gear boxes) Built-in Crane (no large cranes necessary) Reduced Danger to Birds and Bats WATTS VFT YES YES YES YES YES YES YES YES YES Competitor NO NO NO NO NO NO NO NO NO

Bottom line impact: Lower cost per kWh of energy produced

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Competitive Advantage

More Power in a Smaller Footprint

WATTS VFT Design: 20 Shrouded TTMon a Single 800 to 1,200 Foot Tower s 10 12 MW of Electricity on Each Tower Less Than 10 acres of Land per Tower

Open-Air Design: 30 100 Acres of Land per MW (ground effect & wake loss) Average 1.5 MW per Tower Land Use for 10 MW Averages 300 1,000 Acres

Competitive Advantage

Site Flexibility for Distributed Generation

WATTS VFT Design: Potential to Harvest Winds up to 1,200 Feet Class 6 Winds in Class 3 Zones Each TTM Yaws to Maximize Efficient Capture of Wind Open-Air Design: Struggle to Access Wind Above 400 feet Lose Efficiency When Hit with Winds from Different Directions

Competitive Advantage

Supply Chain Flexibility

WATTS VFT Design: Small Blades, Generators and Related Parts Hundreds of Existing Vendors (for manufacturing parts) Global/Regional Distribution of Potential Vendors

Open-Air Design: Specialty Blades Expensive Composites and Materials Large Gear Boxes (180:1 ratio) Large Generators and Specialty Forgings Small Vendor Base

Competitive Advantage

Ease of Construction & Maintenance

WATTS VFT Design: Pre-assembled Components Shipped by Standard Rail and Trucks Final Assembly Uses Built-in Crane Built-in elevator for Ongoing Maintenance Majority of System in Operation for Major Maintenance Longer Life and Service Open-Air Design: New Roads Needed for Construction Large Cranes Needed in Short Supply and Expensive Total Shutdown of Plant Required for Major Maintenance 20-year (maximum) Decommissioning

Formation Stage
Set Up and Fund Corporate Entity File for Patents Build Full Computer Model of Turbine Module Recruit Advisory Board including former U.S. Secretary of Energy, Spence Abraham Construct Full Business Development Plan

Prototype Stage
Complete Mechanical Design Contract with Prototype Product & Installation Vendors Build 50 Meter Tower with One TTM Complete VFT Performance Model Build Relationships with Wind Farm Dev. Expand International IP Protection Identify Vendors and Strategic Partners

TH BO

ED ET PL OM C

Southfield, MI Office
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Production Stage
Production Readiness Phase ($15 Million)
Increase Staff to Include Engineering Project Manager, Mechanical

Engineer and CFO Analyze TTM in More Detailed CFD Model Reduce TTM Weight (FEA) Optimize Materials and Flow Channel Shape Maximize Blade Design Stress Analyze and Price Guide Towers to 1,200 Plan and Match Production to Assembly and Construction Processes Advance VFT Control System Software Build Production Version for Wind Testing Solicit Provisional Purchase Orders for First Full Tower(s)

Commercialization Phase ($25 50 Million)

Construct 1st 800 ft. VFT Gain Certification for VFT Meet Qualifications Necessary to Fill Pending Purchase Orders

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