Principle Power and Partners Inaugurate the first Portuguese Offshore Wind Turbine

18 June 2012

Aguçadoura, PT, June 18, 2012 - Principle Power, Energias de Portugal, Repsol, A. Silva Matos (ASM), Vestas Wind Systems A/S and InovCapital are pleased to announce the inauguration of Portugal's first offshore wind turbine on June 16th, 2012. The turbine is installed on an innovative floating foundation called the WindFloat. In addition to being the first offshore wind turbine in Portugal, this is the first offshore wind turbine to be installed without the use of any heavy lift vessels or piling equipment at sea. All final assembly, installation, and pre-commissioning of the turbine and substructure took place on land in a controlled environment. The complete system was then wet-towed offshore using simple tug vessels.

The WindFloat is equipped with a Vestas v80 2.0MW turbine capable of producing enough electricity for 1,300 households. The system is located 5km off the coast of Aguçadoura, Portugal, and has already produced in excess of 1.7 GWh. The WindFloat ushers in a new era in the offshore wind industry permitting utilities to target the highest quality wind resources, independent of water depth. In addition, projects can realize significant cost and risk reductions as a result of the onshore fabrication and commissioning scheme.

The successful installation and ongoing operations of the WindFloat in Portugal is the result of hard work and foresight on part of the WindPlus joint venture, comprised of EDP, Repsol, Principle Power, ASM, Vestas Wind Systems A/S, and InovCapital including a subsidy from the Innovation Support Fund (Fundo de Apoio à Inovação – FAI). Additionally, over 60 other European suppliers, 40 of them Portuguese, supplied key components to the project. Repsol has recently joined the Windplus JV as a significant shareholder bringing additional offshore experience and operational capabilities to the project team.

The WindFloat has already endured a harsh winter environment in the open Atlantic, having withstood waves of up to 15 meters at the close of 2011. The system performed remarkably and within predictions anticipated using sophisticated design tools. Further, power production figures support the joint venture's vision of the WindFloat's significant and game-changing role in the global offshore wind market.

The WindFloat and subsequent Portuguese offshore projects represent a great industrial opportunity for Portugal. The country's existing infrastructure, such as shipyards, could be adapted to support an offshore industry with tremendous domestic and global growth potential.

Through this first project we have demonstrated and proven the WindFloat technology. The entire system was fabricated using domestic resources, suppliers and infrastructure. Since its connection to the grid, the WindFloat has delivered an energy profile far better than that of local onshore wind installations.

With Repsol entering the joint venture, Windplus is now in a position to advance the next phase of the project calling for a 25+ MW pre-commercial array of turbines. With possible support from the EC NER300 funding scheme this second phase of the project would prove the scalability of the WindFloat design and the intrinsic opportunities to reduce the cost of offshore wind deployments while creating an entirely new industrial base in Portugal.

Alla Weinstein
President & CEO of Principle Power

Through WindFloat, EDP has once again demonstrated its clear capacity for foresight and its excellence in execution. Not only does this technology make EDP a focus of attention in the international offshore market, it also represents a milestone in the exploitation of endogenous resources, reduction of dependence on foreign imports and potential utilisation of the Portuguese maritime cluster, with positive impacts on employment and exports.

António Mexia

Repsol's involvement as a new shareholder in Windplus is part of our offshore wind energy business development strategy, a sector in which Repsol has a significant presence in the United Kingdom, with a pipeline of over 1,000 MW which Repsol Nuevas Energías UK, Repsol's British subsidiary, is developing in the sea off the coast of Scotland. We see the WindFloat technology as unique and pioneering. Its most outstanding characteristic is the fact that the whole structure, including the turbine, can be built and/or assembled on land and then transported to the operation site by a simple tug. This means major savings in costs and risks compared to other technologies. We are convinced that by joining Windplus at the start of the critical phase of demonstrating and validating the technology, we will be giving the project a substantial boost by contributing all of Repsol's technological potential. We are confident that in the near future this technology will enable us to develop offshore wind generation projects in areas with high wind resources without the present restriction of the depth of the seabed, to which the platforms on which the turbines are currently installed have to be anchored. We are convinced that Windplus is a winning technology and we are actively working together to prove this.

José Luis Bernal Catalan
Repsol New Energy Director

Vestas has pioneered the wind industry and is continuously striving to find new ways of lowering the cost of energy in relation to offshore wind and to increase the business case certainty for our customers. Therefore, joining forces with EDP on the WindFloat project was an obvious opportunity for us and one which was even more interesting given the fact that it involved working with one of the leading energy companies in the world and further developing the strong partnership we have with EDP.
In relation to offshore wind, floating foundations are one of the solutions with the highest potential for harvesting wind in deeper waters and the WindFloat project was a highly interesting possibility for us to help explore this area within offshore wind. We have been working in close collaboration with EDP and Principle Power on the project and we are very pleased with the successful integration of the turbine and the WindFloat platform. It has been an interesting and valuable experience and we are proud of the satisfactory results achieved so far.

Ditlev Engel
CEO of Vestas

The WindFloat Project is seen by the ASM Group as a unique opportunity for the Portuguese industry and economy to show all its tradition of competitiveness and competence in the development of suitable solutions for the exploration of renewable energy sources. The innovative aspect of the solution for deep waters, together with the maturity of wind energy, makes this project a real catalysis for the development of the Economy of the Sea, in Portugal.

The ASM Group is proud to be the manufacture of the first platform, positioning itself as one of the first players worldwide supplying this kind of offshore structures, reinforcing the Group long term strategy having the Offshore Wind Power as one of the main vectors of its sustainable growth.

Adelino Costa Matos
CEO of A. Silva Matos

About Principle Power
Principle Power,, is a US technology developer based in Seattle, WA, focused on the offshore wind energy market. Principle Power's enabling product, a floating wind turbine support structure called WindFloat, provides for siting of offshore wind turbines in water depths greater than 50m, thus exploiting the world's highest capacity wind resources. Offshore wind installations in these water depths have not been feasible, to date, due to economic and technological limitations.

About EDP
EDP-Energias de Portugal SA is a vertically integrated public utility services company focused on the generation, distribution and sale of electricity and gas. It is currently present in 13 geographical regions and has over 12,000 employees. EDP is developing the largest hydroelectric energy production project in Europe and is the third largest promoter of wind energy in the world. For the second year running, EDP was elected the top electricity company in the world in the Dow Jones Sustainability Index.

About Repsol
Repsol is an integrated oil and gas company with presence in more than thirty countries, employing over 23,000 people. Repsol is present along the whole energy value chain, including exploration, production, refining, transport, chemicals, retail sales and new types of energy. The company is the market-leader in refining and marketing in Spain, the third-largest private LPG distributor in the world, and one of the world's leading liquefied natural gas (LNG) marketers The New Energy business unit is in charge of identifying opportunities, promoting projects and leading business initiatives in areas such as bioenergy and renewable energies. Repsol supports these new initiatives, which contribute to a more diversified vision of the future in energy.

About Vestas
Every single day, Vestas wind turbines deliver clean energy that supports the global fight against climate change. Wind power from Vestas' more than 46,000 wind turbines currently reduces carbon emissions by approximately 55 million tons of CO2 every year, while at the same time building energy security and independence. Today, Vestas has delivered wind energy in 69 countries, providing jobs for over 20,000 passionate people at our service and project sites, research facilities, factories and offices all over the world. With 66.9 per cent more megawatts installed than our closest competitor and more than 50,000 MW of cumulative installed capacity worldwide, Vestas is the world leader in wind energy.

About A. Silva Matos
A. Silva Matos (ASM) is a Portuguese Industrial Group, Family owned, resulting in more than 30 years of work, ambition and innovation. Currently composed by 17 companies, ASM operates mainly in the supply of steel equipments for Oil&Gas, Transport and Renewable Energy sectors, globally. With several industrial plants and always focused in the highest Quality parameters, the ASM Group is recognized by its clients as a reference partner and supplier.

About Inovcapital
InovCapital is the Portuguese Ministry of the Economy and Employment's main venture capital company. It supports entrepreneurship and SMEs in the areas of innovation and internationalisation.