1. The UK’s Renewable Industry Accelerator
Advancing Renewable Energy

2. The Birth of a Global Industrial Economic Opportunity
Since privatisation in the 1980’s, our competitive market and system of independent
regulation has delivered reliable, affordable electricity. It is crucial for the UK’s
international competitiveness and economic development that this continues, however,
we face a number of unprecedented challenges in the coming decades:
Security of supply is threatened: Decarbonisation is essential:
Over the next 10 years we will lose around a quarter (20GW) of The UK must start its transformation to a low carbon economy
our existing generation capacity as our old, more polluting plants immediately if we are to meet our 15% renewable energy target
close. With likely demand set to double over the same period by 2020 and 80% by 2050. To put us on the latter trajectory,
our electricity demand will exceed generation capability and we power sector emissions need to be largely decarbonised by
will face an increasing likelihood of blackouts. 2030.
The Government Renewable Energy Roadmap: Innovate to reduce cost and accelerate deployment:
The challenges of decarbonisation and security of supply will A rapid scale up in technology innovation is required to levelise
need to be met through a combination of measures. The the cost of producing renewable electricity and accelerate
Government have listed *8 technologies that will be developed deployment to meet our obligations. However market failure,
to produce 90% of the renewable energy we need for 2020. technology reliability and performance certainty has led to risk
aversion amongst investors.
Images provided courtesy of Ocean Harvesting Ltd
Transition Requires Innovation Needs De-Risking To Gain Investment
*Technologies include – onshore wind, offshore wind, marine energy, biomass (electricity & heat), ground
& air source heat pumps, renewable transport
Advancing Renewable Energy

3. Narec Group Provides a Seamless Industry Solution
Our mission is to reduce financial risk and provide capital in order to accelerate the
deployment timeframe of renewable technology and reduce the cost per megawatt hour
*
Images provided courtesy of Narec
Images provided courtesy of Narec
Understanding Risk & Knowledge Transfer
Technologies Narec provides Narec’s Narec Capital Narec Capital Robust, cost
are selected ‘highly processes provides a introduces early effective
for testing accelerated evolve & range of stage capital to technologies
Lifetime testing’ underpin specialist risk support are rapidly
and specialised industry mitigation promising launched into
development certification solutions technologies project status
standards and projects
* Narec Capital is a joint venture between Ashberg Ltd (a fully regulated FSA company) and Narec Advancing Renewable Energy

4. Narec World Leading Facilities
Testing, Development & Validation
• Narec is recognised in the renewable energy industry
as one of the lead centres of excellence worldwide for
Initiate Cost Benefit
offshore wind technology development.
Full
• Narec major clients in Europe, Asia Pacific and the UK. project
• Strategic enabler for Round 3
• Allows manufacturers to de-risk through
• Narec has R&D collaborations in more than 10 100MW -
£300M+
demonstration
Blyth Offshore • Compliments onshore assets to ensure
countries. Demonstrator technology works
£18M+
• Income from lease of sites & services
develop
• Create data set to support insurance
• In 2010, Narec was ment
phase
wrappers
appointed Technology
Project Fujin • Strategic enabler for Round 3
Advisor to The Crown • Allows manufacturers to de-risk through test
15MW Drive train £45M +
Estate in relation to & demonstration
test rig • Part of strategic set of test rigs
the Offshore Wind
Round 3 programme. • Strategic enabler for wave & tidal
Project Nautilus deployment
• By end of 2012, 3MW Drive train £16M • Allows manufacturers to de-risk through test
& demonstration
Narec will have the test rig • Part of strategic set of test rigs
largest onshore • Strategic enabler for Round 3
• Allows manufacturers to de-risk through test
physical asset base in Blade Test II £18.5M
& demonstration
the world constructed • Part of strategic set of test rigs
at a cost of more than Infrastructure £7.5M • Enabler for all of the above projects
£130m.
Narec 100m Blade Test Facility
Narec 3MW Capacity Turbine Drive Train Test Facility
Narec 100m Blade Test Facility
Advancing Renewable Energy

5. Narec Capital
Business Proposition & Key Future Partners
De-risking Renewable Projects and Technologies to Increase Capital Flow
Specialist Financial Risk Capital Markets Incubation &
Consultancy Mitigation Commercialisation
• Technical DD • Risk analysis • Capital Raising • Technology
• Project • Extended • Debt and Equity Validation
Management Warranty Structuring • Incubation
Oversight • Broking • M&A • Commercial
• Strategy • Specialist • Due Diligence Strategy
• Simulation underwriting • Listing • Grant Application
• Knowledge • Smart Asset • Refinancing • Management
Transfer Management • Operational • Discretionary
• Training and • Forensic Audit Restructuring Portfolio
Search
De-risking Capital Flow
Advancing Renewable Energy

6. Specialist Consultancy
Knowledge & Market Insight
Narec Capital provides an end to end suite of consultancy services to mitigate risks and raise capital across the full range of renewable energy
markets and associated supply chains, including: wind; wave; tidal; solar; and bio products. These services are also offered to enabling fields such
as distributed energy; energy efficiency, energy storage and low carbon vehicles utilising collaborations with the national technology assets at
Narec and other Centres of Renewable Excellence.
Bespoke consultancy services can be applied by Clients at key project milestones between market entry and financial close. Narec Capital values
long-term Client relationships, where the application of our risk mitigation, capital raising and incubation services lead to shared interest in building
sustainable value. Ad hoc technical due diligence can be facilitated to support third party fund raising, post event loss adjusting claims and investor
assurance.
Commercialisation Strategy and Market Project Development Oversight Technical Due Diligence
Entry
• Provide bespoke due
diligence for renewable
energy projects and
technologies for all key
project stakeholders
• Commercialisation workshops to develop • Professional project management oversight • Leverage Narec’s 120
first class technical propositions into on all aspects of renewable energy project specialist engineers to
market leading commercial propositions development work with insurers,
• Market insight and positioning proposals • Advice on key milestones in order to investors and industry
• Matchmaking service to create partnerships enhance consortium profile and capital participants
and collaborations raising
Business and Supply Chain Modelling Resources and Recruitment
• Develop cutting edge business models to • Develop bespoke specific client training
exploit rapid growth opportunities packages with accredited training partners
• A powerful modelling capability using 3D • Provide expert search and selection so that
visualisation to solve and communicate skilled resource can be rapidly identified
complex logistics, supply chain and and deployed
deployment decisions
Advancing Renewable Energy

7. Financial Risk Mitigation
Risk as a Function of Asset Base Utilisation
Test
Key
Assets & Corporates
Projects
Clients
Financial Risk
Mitigation
Products Services
Data
Co
Narec Capital Risk
‘Smart’ Wind Warranty
Asset
Management
Solutions Specialist Underwriting MGA
Broking (2013)
(2011)
L
Forensic
Audit Partnership
• Co-broking
• Facility Broking
• Joint Product
Partnership services and Development
product development
In conjunction with an array of partner insurers
Advancing Renewable Energy

8. Capital Markets
Incubated Companies & Large Scale Financing Initiatives
Narec Capital uses its relationship with its parent company Ashberg Ltd (a fully regulated financial services company), to conduct corporate
finance activity. With its centre of operations in London, Narec Capital has access to a range of investors from business angels to banks and
pension funds. Our staff have over 130 years of capital markets experience with a strong track record of execution. Ashberg also provides a link
to emerging markets with senior advisors based in both Africa and India.
Aquamarine Power Narec Solar
Image provided courtesy of Narec Solar
• Narec sweat equity in Round 1 • Up to £5m investment
financing • Narec spinout
• Narec developed power take off • Niche product
• Tested at Narec dry dock • Fully commercialised with
established client base
Kinetic Traction Jack Up Vessels Bio Fuel
• £2m investment
• Narec developed IP • £350m investment • Large UK Biorefinery
• Commercial model in use • Guaranteed contracts • £60m - £350m
• Consortium build • Premier offshore operators • Exclusive to Narec Capital
Advancing Renewable Energy

9. Incubation & Commercialisation
Exploiting Strategic Early Stage, High Value, Rapid Return Opportunities
Narec Capitals ‘engineering led’ Incubator focuses on technologies that advance deployment time frames and reduce the cost per MW/H of
renewable technologies:
Early Stage Design Commercial Prototype
Multiple deals evaluated:
Market Demand
Disruptive Technology Commercialisation:
Robust Business Models Trade Sale
‘Promising’ technologies funded:
VC
Advanced Renewable Deployment portfolio
IPO
open market
Insurance wrapper
Image provided courtesy of Idermar
Image provided courtesy of Idermar
TRL 1-3
Industry
10 weeks 1-2 years 1 year
Assessment &
Academia Management TRL 3 4 5 6 7 8 9 +2
Decision years sales
Entry Point
Narec IP
Engineering Validation &
Development Accreditation
Grant / Public Funding
Technical Due Diligence Advancing Renewable Energy

10. Covering the Full Industry Spectrum
Technology Meets Capital
Entrepreneurs /
Utilities SMEs
Developers
OEMs /
Integrators
Supply Chain
Ports
Financial
Institutions
Governments /
SWFs
National Grid
Manufacturers
Wealthy Families
& Business Angels
Advancing Renewable Energy

11. International Connectivity
Academic & Industry Alliances
Advancing Renewable Energy

12. Example of Spanish/UK Offshore
Marine Technology Development
and Commercialisation project
• Client: Idermar Meteo based at I.H Cantabria
• Proposition : Floating offshore meteorological station
 Idermar introduced to Narec Capital at the UKTI British Embassy Madrid
Offshore Wind Supply Chain event 26th October 2010
 Idermar clearly have a market leading technical proposition
 Idermar needed support with their commercialisation strategy
 Narec Capital are engaged to undertake the following:
1. Commercialisation workshop
2. Technical due diligence & independent validation and verification
3. Provide a broad insurance solution
4. Capital fund raising for the next stage of Idermars evolvement
Narec Capital is providing a Seamless Idermar Solution
Advancing Renewable Energy