WIND ENERGY, THE GREEN ECONOMY AND ITS PLAYERS IN THE UNITED STATES OF AMERICA: GERMAN SUCCESS STORIES

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1 WIND ENERGY, THE GREEN ECONOMY AND ITS PLAYERS IN THE UNITED STATES OF AMERICA: GERMAN SUCCESS STORIES Jan Wiedemann Vice President, Consulting Services Managing Director, Houston Office Great Plains & Southwest Wind Industrial Conference, Amarillo, Sept , 2011

2 AHK Network: Locations AHK USA Chicago HQ: 598 Chapters: 360 AHK USA New York HQ: 750 Chapters: 507 AHK USA Atlanta HQ: 795 Chapters: 517 AHK USA Houston Key Aspects: Energy Renewbles Energy-Efficieny

3 AHK USA Services Marktet Research Address Research Benchmarking Market analysis Business Partner Search Business Represent ation Site Selection Export Support Trade Show Support Facilitating Business Relationships Virtual Office Incorporation Business Incubator Infrastructure Analysis Negotiation Support Incentive Acquisition Other Services Career Services Collection Services

4 Facts: The German Wind Market # 3 in Cumulative Capacity (27,213 MW) Leader in Europe Cumulative Capacity 6.2% of the country s power consumption is generated from Wind Energy Top 3 States: Lower Saxony: 6,664 MW Brandenburg: 4,400 MW Saxony-Anhalt: 3,509 MW Compared to: Texas (10,135 MW) Over 14 times the size of Lower Saxony Outlook: In 2011, the German wind industry expects new installations of about 1,800 MW including 300 MW of offshore wind. Germany could host 45,000 MW of onshore and10,000 MW of offshore wind by 2020.

5 Feed-In Tariff as Growth Facilitator January 2009 New EEG takes effect 1991 Adoption of feed-in law (StEG) Jan 1997 Changes in the town and county building codes come into effect March 2001 According to a ruling of the European Court of Justice German remuneration model complies with European competition law April 2000 Law for pre-eminence of renewable energies (EEG) come into effect December 2006: Law for speeding up planning processes for industrial projects comes into effect August 2004 Amendment of the EEG is passed Total capacity in Megawatt

6 Wind Turbine Manufacturers Share of Total U.S. Wind Power Fleet 2010

7 Investment Market USA USA ranks high in the renewable energy country attractiveness indices as of August 2011 (Ernst & Young) # 2 All renewables # 3 in Wind (#2 in Onshore, #4 in Offshore) # 1 in Solar # 2 in Biomass/other # 1 in Geothermal # 6 in Infrastructure Investment in green technologies totaled $ 1.2 billion in 85 deals in Q2 2009, up from $836 million in 59 deals in Q U.S. Imports of Wind Energy Components (estimated in billion US$)

8 FDI Projects in the US

9 German Key Players Turbine Producers with German Background (Exemplary) Suppliers with German Background (Exemplary)

10 OEM: Siemens at a glance Siemens AG Revenue of approximately EUR 76.7 billion ($104.3 billion) 405,000 employees worldwide (2009) 65,000 people in the United States. Siemens Energy Revenue of EUR 25.8 billion (U.S. $35.1 billion) Orders of EUR 30 billion (U.S. $40.83 billion) Profits of EUR 3.3 billion (U.S. $4.49 billion) Siemens is the world s second largest solutions provider to power utilities and industrial customers Over 700,000 MW of power generation equipment installed at more than 3,500 global sites Siemens power generation equipment supplies more than one-third of the nation s electricity and one-fifth of the world s electric power capacity Siemens high-voltage systems helped U.S. utilities increase capacity on existing transmission lines by up to 24 percent Siemens energy management systems help to ensure the continuous reliability of more than one-third of the U.S. and Canadian transmission grid World headquarters in Erlangen, Germany; Americas headquarters in Orlando, Florida Employees worldwide ca. 85,100 Employees in North America ca. 10,000.

11 OEM: Siemens Wind Power Leader in offshore wind and #3 in onshore wind in the U.S. Investment is more than $100 million in wind turbine manufacturing facilities in the U.S. Exceptional Employee Growth One employee in Dec to more than 1,000 employees in the U.S. today Plans are to double that number in the next two to three years. Operations include : Houston-based wind turbine service operation 600,000-square-foot wind turbine blade manufacturing facility in Ft. Madison, Iowa R&D center in Boulder, Colorado 2 gearbox manufacturing sites in Elgin, Illinois Americas headquarters in Orlando, Florida. Wind turbine nacelle assembly facility in Hutchinson, Kansas Largest employer in Fort Madison with nearly 600 people. Siemens is the largest producer of wind turbine gear drives in the world Siemens Energy provides power systems that generate more than one-third of the electricity in the U.S. Siemens employs approximately 12,000 people in the energy sector and 64,000 people overall in the U.S. covering the energy, healthcare and industry sectors.

12 OEM: Siemens Facilities Ft. Madison, Iowa Initially 311,000 square feet (2007); expansion in 2008 to nearly 600,000 square feet Largest employer in Fort Madison with nearly 600 employees (topfive employer in Lee County) Production: IntegralBlade wind turbine blades for 2.3-MW wind turbines; average output 16 blades/week in FY 2008; 36 blades/week (April 2010) Job multiplier In addition to the 600 Siemens jobs in Fort Madison, more than 350 indirect jobs have been created by Siemens presence in Lee County. Over $20 million total investment $3.4 million incentive Hutchinson, Kansas Land: 108 acres Building: 300,000 square feet Production: Initially, production of nacelles and hubs for 2.3-MW wind turbines. The production capacity is planned at 1,500 MW per year by The first wind turbine nacelles are scheduled in December Workforce: More than 400 jobs at full capacity (2012) Over $50 million total investment $4.33 million incentive

13 OEM: Siemens Portfolio Siemens Integral Blade The blade is manufactured in a single operation, using a closed process invented by Siemens No glue joints between spars and shells, no weak points, no easy access for water or lightning Combining superior strength with excellent power and noise performance Receptors on Integral Blade provide superior lighting protection

14 OEM: Siemens Wind Locations

15 OEM: Nordex at a glance 26 years experience Headquartered in Germany (Hamburg) Exceptional revenue growth track record and strong future growth potential 2010 Revenue: 1,007 million / US$ 1,359 million* 2,504 employees as of Dec 2010 Main production sites in Germany (Rostock), USA (Jonesboro) and China (Dongying, Yinchuan) Total installations as of Dec 2010: >6,500 MW / > 4,421 wind turbines

16 OEM: Nordex Locations Chicago Hamburg Kolding Uppsala Rostock Yinchuan Jonesboro Beijing Manchester Dongying Lisbon Barcelona Paris Rome Istanbul Warsaw Headquarters Production Sites Branches Countries / Regions with main service activities

17 OEM: Nordex North America Bear Creek 2.5 MW Power County 45 MW Elk Wind 42.5 MW Shirley 20 MW Chicago, IL Highland MW Cedar Creek 150 MW Roth Rock 50 MW Palm Springs 9 MW Jonesboro, AR

18 OEM: Nordex USA US headquarters in Chicago, IL (September, 2008) Product focus: N90, N100 & N117 First major project (62.5 MW) in 2008/2009, followed by three projects in 2010 totaling 220 MW Investment: ~ US$ 100 million (42% nacelle, 58% blades) Projected headcount by end of 2011 ~ 270; > 700 by end of 2014 Organizational set-up in the US with over 950 years of wind industry experience: Engineering Procurement & Supply Chain Production Project Management Service Health & Safety Sales Project Development

19 SC: Beckmann Volmer at a glance Manufacturer of major steel components for wind turbines Formed in 1995 Over 6 years experience Headquartered in Germany (Rheine) Over 655 employees Worldwide Presence 60 million EUR annual sales

20 SC: BV Locations

21 SC: Beckmann Volmer USA US headquarters in Osceola, Arkansas Production Start Feb 2012 Investment: ~ US$ 12 million Further projected Investment: ~ US$ 7.5 million Projected headcount by end of 2012 ~ 300; > 500 after 2 nd investment 6500 sqm facility Main areas serviced include: Manufacturing Supply Distribution

22 SC: Zarges USA ZARGES Aluminum Systems, LLC Design/manufacture wind tower internal systems Serve North American, Canadian, Central and South American Markets Headquarters in Amarillo, Texas Opened business office downtown Amarillo (Feb 09) Optimal wind belt location $ 5 million USD facility Located in CenterPort Business Park 8.5 acres (+ 5 acres) in AEDC Industrial Park Manufacturing/Distribution Center 40% Manufacturing / 60% Distribution 80,000 sq ft building (designed for add-on) Higher-skilled/paying jobs (i.e., welding, robotics) Approximately 100 employees in first 2-3 years

23 SC: Zarges - Products Service Lift Climbing ladder including wall mountings Fall arrester system Modular Aluminum platform system (standardisation) Modular railings Traversing bridges Tower access stairway Electrical equipment Entrance door Service doors, railings and platforms Electrical Lamps, auxilliary power

24 Export Initiative Launched by the German Parliament in 2002 and operated by the Federal Ministry of Economics and Technology Main objectives: to stimulate the acceptance of renewable energies in other countries, to showcase Germany s technical and business expertise in the field of renewable energies, to provide comprehensive support to SMEs as they tap foreign markets,

25 Former Events 3 rd German American Energy Conference (May 2011, Germany) To showcase the US-market potential and new technologies in renewable energies as well as energy and climate policies Speakers included:» Honorary Mr. Philip D. Murphy, Ambassador of the United States in Germany» Mr. Heidi VanGenderen, Director of National and Regional Outreach, American Council on Renewable Energy (ACORE) 3rd German American Wind Energy Conference (June 2011, Texas) To explore the market potential for wind energy in Texas as well as identify challenges for an ongoing wind boom in Texas such as grid integration. Speakers included:» Dr. Stephan Barth - ForWind- Center for Wind Energy Research» Mr. Randall Swisher - Former Executive Director, American Wind Energy Association (AWEA) Other upcoming Events: Solar Power International 2011 (10/17 10/20, California) Solar Power International is North America s largest, most comprehensive solar power conference and exposition.

26 Join The Tower Conference: October 3-4, 2011, Houston TOWER : Texas Offshore Wind Energy Roundtable- Conference This year's program: state of the industry globally and locally turbine showcases, installation ports & infrastructure offshore wind law environmental issues finance & insurance topics. Speakers include: Chris Hart, Offshore Wind Manager, US Department of Energy Keynote Luncheon with Commissioner Jerry Patterson of the Texas General Land Office

27 Contact Jan Christoph Wiedemann Direct: (832) Fax: (713) URL :