The document provides an executive summary for Cal Marine Ltd. that discusses opportunities in wind and water power. For wind power, the global market for wind turbines is growing rapidly due to policies and costs. Cal Marine's floating 10MW wind turbines, called Calmtec generators, use a diffuser technology to increase efficiency. The generators can be placed far offshore and manufactured using a unique strong material. For water, desalination is growing to meet increasing global water demand. The worldwide desalination market has grown to $3.8 billion and is projected to reach $30 billion by 2015. Cal Marine sees an opportunity to address clean water needs with new technologies.

1. CAL MARINE
W O R L D P O W E R & W A T E R
CAL MARINE LIMITED
Executive summary
April 2008
SECTION 1: WIND POWER
INTRODUCTION
The current global market for wind power is huge and growing at an ever increasing rate. Fuelled by
legislation, like the Kyoto Protocol, to curb climate changing pollution, plus the need to decrease the cost of
power for the world’s insatiable demand, wind power is becoming the most favoured and cost effective
means of power generation available. Also, due to rising land costs and limited availability of suitable wind
farm sites, the wind energy market has been heading offshore for several years. Offshore their apparent size
becomes mere specs on the horizon, making the much needed large-scale wind turbines a practical reality.
Current wind farm output has barely touched the world’s energy market potential.
CAL Marine Ltd. with its uniquely designed Calmtec ten megawatt floating wind power generators is
perfectly poised to have a huge impact on this global market.
THE MARKET
According to figures released by the Global Wind Energy Council, GWEC (February 2007), the global wind
power industry installed 8,207 megawatts (MW) in 2004, 11,531 MW in 2005 and 15,197 in 2006; taking
the total global wind energy capacity to 74,223 MW (2006), up from 59,091 MW in 2005.
The countries with the highest total installed capacity are Germany (20,621 MW), Spain (11,615 MW), the
USA (11,603 MW), India (6,270 MW) and Denmark (3,136). Thirteen countries around the world can now
be counted among those with over 1,000 MW of wind capacity, with France and Canada reaching this
threshold in 2006. China and Japan have even greater requirements. It has been determined that Japan would
need at least 12,000 MW sited offshore to secure their network in the case of a sizable earthquake
endangering their Nuclear grid.
China more than doubled its total installed capacity by installing 1,347 MW of wind energy in 2006, a 70%
increase from last year’s figure. This brings China up to 2,604 MW of capacity, making it the sixth largest
market world wide.
The Chinese market was boosted by the country’s new
Renewable Energy Law, which entered into force on 1st of THE GLOBAL WIND POWER INDUSTRY
January 2006. “Thanks to the Renewable Energy law, the • Employs around 150,000 people
Chinese market has grown substantially in 2006, and this growth • Has annual turnover of more than €13
is expected to continue and speed up. According to the list of billion (US$17 billion)
approved projects and those under construction, more than 1,500 • Has been growing at an annual rate of
MW will be installed in 2007. The goal for wind power in China more than 28% for the last 10 years
by the end of 2010 is 5,000 MW, which according to our • Meets the electricity needs of more than
estimations will already be reached well ahead of time,” said Li 25 million households
Junfeng of the Chinese Renewable Energy Industry Association • Is concentrated in Europe, which
accounts for 65% of total capacity and
(CREIA). most of the major turbine manufacturers
• Over 100,000 wind turbines installed
The Queen of England, in a speech to the British Government, today in 50 countries
late November 2003 directed the wind down and closure of • Over 74,000 MW of installed capacity
Nuclear Power Plants in favour of Offshore Wind Turbines and

2. Cal Marine Ltd. – Executive Summary
the British Government has increased the renewable energy from 10% of all electrical energy produced in
the United Kingdom to 15% in 2010 and plans to raise the contribution to 20% by 2020.
Wind power is being taken very seriously by the large Oil Companies too. The South England near-coastline
property rights have already been purchased in order to reserve the near offshore coast for the future
expansion of wind farms.
A real example of the huge potential for offshore wind turbines in Japan is given in a paper “Potential for
Floating Offshore Wind Energy in Japanese Waters” (A.R. Henderson; R Leutze; T. Fujii May 26-31, 2002).
The paper sites the straights between Honshu and Hokkaido, where 2,275 Calmtec 10MW machines could
be installed to produce the 41.5 million MW-hours of electricity required.
In terms of economic value, the wind energy sector has now become firmly installed as one of the important
players in the energy markets, with the total value of new generating equipment installed in 2006 reaching
€18 billion, or US$23 billion.
“Wind power will significantly reduce CO2 emissions, which is key in the fight against dangerous climate
change,” says Sven Teske, Energy Expert of Greenpeace International. “The required CO2 reduction of one
third by 2020 and half by 2050 can only be achieved if wind power plays a major role in the power sector.
Despite constraints facing supply chains for wind turbines, the annual market for wind power continued to
increase at the staggering rate of 32% following the 2005 record year, in which the market grew by 41%.
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3. Cal Marine Ltd. – Executive Summary
THE CALMTEC GENERATORS
Cal Marine’s “Calmtec” (ten megawatt) offshore
wind turbines, standing 150m (492 feet) above
sea level, are the only large scale wind generators
designed to float while tethered to the seabed.
They can also equally well be supported in
shallower waters on a seabed foundation column.
The unique feature of Calmtec generators is the VERSATILITY: Floating
“Diffuser” – technology originally developed by anchored up to 60 km
offshore or standing
what is now known as Northrop Grumman on the seabed in
Aerospace (and being licensed to CAL Marine) – shallow waters
which has been further improved and developed
by the CAL Marine engineers. The Diffuser is an aerodynamic device, essentially a “shroud” around the
turbine rotor blades, with the small end facing into the wind, creating a low-pressure region, a venturi or
“suction effect” downstream of the turbine (behind the large end). This “suction effect” effectively
accelerates the ambient wind speed into the rotor. The Diffuser significantly increases the effective “power”
of the wind, which results in augmented power extraction of 3 to 4 times the efficiency of a bare turbine
(with no Diffuser). By comparison, conventional (bare) wind turbines have only around 60% of the ambient
wind speed available at the turbine rotor.
With only an 86m [282 ft] diameter turbine inside the Diffuser, the Calmtec turbine is conservatively rated at
10MW. By comparison the largest wind turbine to date produces only 6-7MW, designed and built by
German company Enercon stands on a 135m [443ft] tower with a 127m [416ft] diameter three blade turbine.
Such large power rating presents a huge difficulty for regular offshore “bare” turbines. The installation of
offshore wind turbines are planned up to 10MW by 2010 (OPET
Technology Paper “Towards multi-MW wind turbines” 2004).
However for conventional turbine designs the question of the
feasibility of this size is governed by the huge turbine blade
diameter required. At 10MW the conventional blade diameter
required would be 160m [525 ft]. However blade and composite
material technology is presently stretched to the limits of strength
and weight to achieve the 126m dia. for the 5-6MW machines.
The key to the economics of Calmtec generators lies in their
compact size for a given power output, all made possible by the use
of the Diffuser technology. Thus Calmtec’s advantage at sea due to
the smaller diameter turbine blades necessary to generate the same
rated power as conventional “bare” turbines.
UNIQUE CONSTRUCTION MATERIAL
A key problem encountered by the Grumman team during the development 7.3 m Prototype in NZ
of the original Diffuser design was the economics of suitable materials to
construct turbines of a commercially viable size. The material which
proved to be most cost-effective was ferrocement. However the material
design limitations of
7.3 m Prototype in NZ traditional ferrocement
with modifications
restricted the size of
wind turbine possible.
This has been overcome
by CAL Marine by
using the world’s
strongest construction
material. This is a
unique ferrocement
derivative called “Pre-
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4. Cal Marine Ltd. – Executive Summary
cast, High Tensile Wire Reinforced Fibrous Ferro-Cement", or simply “HT Ferro”. HT Ferro was originally
invented in New Zealand over thirty years ago by internationally reputable structural engineer, the late
Douglas Alexander of Alexander and Associates (now Robert Alexander [the son] and Associates). HT
Ferro is a precision moulded material originally developed as a replacement for steel plates in the
manufacture of marine vessels. This material has been further developed over the last twenty years and
proved vastly superior to traditional ferrocement with three times the flexural strength of mild steel plate
(weight for weight). The 7m dia. prototype Diffuser wind generator was constructed in New Zealand using
this remarkable material.
Because the marine environment is its natural habitat, the HT Ferro structure requires virtually zero
maintenance, a huge cost saving consideration in offshore wind turbines. HT Ferro technology has already
been well proven in the construction of large LCV’s, seagoing barges, floating wharves and fishing vessels
both domestically and internationally. CAL Marine has the exclusive world wide technology rights for the
use of HT Ferro in this product.
MANUFACTURING
The manufacturing and assembly of the Calmtec HT Ferro components will be undertaken in massive
dockside production facilities. The Diffuser, support column and mainframe submersible hull sub assemblies
will be assembled on an adjacent floating dock. The components will be craned onto the floating dock by
large gantry cranes mounted in the factory and on the floating dock.
When complete the Diffuser, column and its attendant mainframe will be assembled horizontally and built
up on flotation collars. They will be fitted with the rotor assembly and generating drive train ready for
delivery. Once complete the floating dock will be submerged and the Calmtec unit lying horizontally will be
towed clear of the dock as a fully floating vessel. Both floating and seabed foundation machines can be
towed to their final destination singly or as a sea-train by ocean going tugs (also built from HT Ferro).
Standing the Calmtec machines upright to their vertical position is simply a matter of deflating the flotation
collar supporting the very heavy keel ballast, the ballast cylinder will slowly sink and the unit will become
vertical. The only remaining tasks then being anchoring to the seabed via heavy anchor chains and
connecting the power cable to the under-sea network. The seabed foundation models are delivered to the site
as above utilising a detachable ballast so as to rotate the machine to the vertical and secure the machine’s 25
metre diameter support column to pre-placed foundation piles in the seabed.
Initially, the plan is for three plants rolling out over 5 years, starting construction in the last half of 2008. It
is planned to set up the first manufacturing plant in Ivory Coast (which is strategically located to the markets
of Africa and the Mediterranean). The next in Asia and then South America. Then further expansion into
Europe, with more plants planned around the world. The first plant commences production in three years, at
the end of 2011, reaching full production in 2013. The second plant will commence production beginning
2012 and reach full production in 2014. The third plant will commence production beginning 2013, with full
output by end of 2015. At full production, each plant will require approximately 20,000 employees, and be
capable of producing one hundred and eighty (180) of the 20MW Calmtec units per annum (two every 3
working days). Once all three plants are at full output, total production will be 540 units per annum.
PERFORMANCE
The graph next page shows the difference in performance between the Diffuser augmented Calmtec
machines and conventional “bare” wind turbines (this standard curve is referred to as the “Betz” curve).
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5. Cal Marine Ltd. – Executive Summary
Graph Showing Electrical Power Output Measured Against Wind Speed
12.0 Optimum maximum wind
speed where CALMTEC
can be slewed (turned)
away from the wind. It will
withstand much higher
10.0 wind speeds if desired.
Betz (Conventional Wind Turbine)
CALMTEC 10MW
Electrical Power Output (MW)
8.0
6.0
4.0
Optimum Wind Speed Range
2.0
-
- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
Average Constant Wind Speed (m/s)
INSURANCE
International insurance underwriters have made preliminary assessments of the cost of insurance premiums
for Calmtec machines. The premiums have worked out at one quarter of the cost of conventional turbines.
GREENHOUSE GAS REDUCTIONS
Using standard UK Industry calculations every unit of electricity generated by wind turbines displaces a unit
of electricity produced by a power station burning fossil fuel. This is a generally accepted fact used by many
organisations including Governments in their environmental calculations.
KEY ADVANTAGES
The key advantages of the CAL Marine Ltd. Calmtec wind power generators can be summarised as follows:
Ÿ Specifically designed as seagoing generators - the only multi-MW turbines capable of floating in deep
ocean waters. Finding suitable land and locations, along with noise and aesthetic considerations are no
longer an issue.
Ÿ Large output generators (10MW), means CAL Marine does not need to produce huge annual volumes to
be highly competitive.
Ÿ Virtually zero maintenance of the structure by utilising the uniquely strong and durable HT Ferro
material.
Ÿ Manufacturing in low cost locations like Indonesia and Mexico is hugely cost beneficial.
Ÿ Rated full production level will be capable of producing two Calmtec machines every 3 working days
from each plant – meaning exceptionally fast production rates.
Ÿ Substantial profits due to smart application of advanced technologies in both design and materials.
Ÿ This product sets Cal Marine way ahead of any competition.
Ÿ The world wind power market is huge and requires power NOW.
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6. Cal Marine Ltd. – Executive Summary
SECTION 2: WATER
INTRODUCTION
One of the most pressing problems our planet faces today is providing sufficient clean drinking water for the
world’s growing population. About three billion people have no direct access to clean potable (drinkable)
water.
A prime cause of the global water concern is the ever-increasing world population. According to the World
Bank, world-wide demand for water is doubling every 21 years, more in some regions. Current water supply
systems cannot hope to keep pace with demand.
Also since 1900, there has been a six-fold increase in water use for only a two-fold increase in population
size. This reflects greater water usage associated with rising standards of living. It also reflects potentially
unsustainable levels of irrigated agriculture. World population has reached six billion and United Nation's
projections indicate nine billion by 2050.
Meanwhile many countries suffer accelerating desertification. Water quality is deteriorating in many areas of
the developing world as population increases and salinity caused by industrial farming and over-extraction
rises. About 95 percent of the world's cities still dump raw sewage into their waters.
A technological solution that many believe will provide ample supplies of additional water resources is
desalination of sea water. The United States, once the world leader in such research, has abdicated its role to
Saudi Arabia, Israel and Japan. There are approximately 12,500 desalination plants in 120 nations in the
world, 60 percent of them in the Middle East.
THE MARKET
SOME FACTS ABOUT WATER
Worldwide, the market volume has soared from $2.5
Ÿ The majority of the earth’s water, 97%, is salt water
billion in 2002 to $3.8 billion in 2005, with a growth found in the oceans.
rate of over 15% per annum. The market worldwide Ÿ Of the remaining 3%, which is fresh water, only 1%
should reach nearly $30 billion by 2015. A dramatic is usable, from lakes, rivers and aquifers.
increase is expected in new technologies and small Ÿ The other 2% is locked away in glaciers.
systems applications in Asia and in particular in Ÿ 90% of planet's fresh water is used by global
China. industry.
Ÿ By the year 2030, two-thirds of the world’s
population will be suffering from severe water
In terms of the geographical breakdown of the market, shortages.
the regions of the Middle East clearly dominate the Ÿ Almost one quarter of the world's population lives
demand (over 50% of the market share), followed by less than 25 km from the coast, making seawater
one of the main sources of freshwater in the near
Asia-Pacific, America, and Europe that share about future.
10% of the market respectively.
The two main market drivers are increasing water shortages and technology driven cost reduction.
In short, desalination plants are poised to become a more popular way to obtain potable water for cities and
business. The growing desalination plant market offers many opportunities, mainly concentrated in the
Middle East, Asia and Northern and Central America. Steady opportunities for highly efficient small and
medium-sized facilities are also anticipated in Europe. The expectations of renewable energy-based
equipment are high, particularly to answer the needs of emerging countries.
Coupling the unique Calmtec wind power generators with this state-of-the-art desalination system, CAL
Marine is perfectly poised to have a significant impact on this huge global market.
DESALINATION
Desalination is the process of purifying sea water (or brackish water) to drinkable water. The first large scale
desalination facilities began in the Middle East following World War II due to the necessity of fresh water.
The popularity of water desalination increased in the 1960s when the reliability of the reverse osmosis
membrane was proven.
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7. Cal Marine Ltd. – Executive Summary
Worldwide, only 1% of drinking water is produced by desalination. Currently, reverse osmosis is one of the
most popular and economical methods of desalination - accounting for around 40% of the world’s
desalinated water.
THE ENERCON SYSTEM
The Enercon desalination system from Germany used by CAL Marine is based on the principle of reverse
osmosis (RO). In this process pressurised seawater flows over a membrane. The structure of the membrane
retains the dissolved salts allowing water to permeate - separating into pure drinking water and brine. The
feed water first flows through filters and a UV-disinfection system to an innovative energy recovery system.
The drinking water leaves the system, while the brine, still under pressure, flows back to the energy recovery
system to support the process.
Normally only about 25% of the energy in the reverse osmosis process is used
to produce drinking water, so without a recovery method, about 75% of the
energy goes to waste. The Enercon energy recovery system used is 30% more
efficient, consuming very little power with extraordinary efficiency.
Unlike conventional desalination plants, the Enercon seawater desalination
system has no fixed operating point. The water production can range between
12.5 % and 100% of the nominal capacity by adjusting the recovery system
speed.
This has two main advantages: operation is possible with a fluctuating energy
supply, and output can be flexibly adjusted to water demand without shutting
down the plant.
CAL MARINE LIMITED DIRECTORS
Dennis J. Paul – President and Director: Dennis has a lifetime of business experience in the world markets
and has originated numerous successful business concepts, products and inventions. He is currently the
owner and joint owner of a number of vital advanced technologies and his creations and inventions have
been accepted and marketed all over the world in large numbers. Users include most of the world’s major
airports, hotel, motel and restaurant chains, including McDonald’s worldwide. His early career included
being the first to start car leasing in New Zealand, being a supervisor for a major Insurance Company,
Metropolitan Life, operating the busiest Entertainment Agency in NZ, touring shows and publishing
Wotzon, the most successful Entertainment magazine of its day. Apart from New Zealand, Dennis has
worked and lived in the USA and Australia and has led some very successful marketing promotions
including one in which a world sales record was broken. In Hollywood, California Dennis was responsible
for providing many entertainers for the International market as well as the local US Casinos. He was also the
International Representative of the American Inventors League. He is the Founder and creator of the soon to
be launched Accumulated Credit Exchange (ACE), the President and Director of CAL Marine Ltd. and co-
director of Construction Advanced Limited (holder of the HT Ferro world rights). Dennis is included in the
current 2006-2007 America’s WHO’s WHO Registry of Outstanding Professionals.
Miles P. Fox – Director of Project Management: Miles led the development of the HT Ferro Diffuser
System. He has been working with the Alexander Engineering team for a number of years and watched over
the early pioneering of the HT Ferro material. He supervised the installation of the production plant and
selected and trained staff to assist in the manufacture of the 7 metre (V7) prototype wind generator and also
managed the construction of the site works where the V7 was assembled. He also supervised and managed
the Consulting Engineers comprising the Engineering Team for both the V7 and the V56-3.5MW. He was
Technical Director of the development team. He is the Director of Project Management of Cal Marine Ltd.
and co-director of Construction Advanced Limited (holder of the HT Ferro world rights).
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