Bellevue University Marketing Management

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VALMONT WIND ENERGY, INC. MODULAR TOWER SYSTEMS
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Presentation Overview

• Bigger Machines
• Modular Tower Systems (MTS)
• Transportation Restrictions
• Flexible site Management
• Standardized Transportation Loads
• Cost Benefits and Comparisons

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Is BIGGER always better?

• Larger wind turbines
• 2.5 MW 3 MW w/ 100 meter rotors
• Larger Tower
• 70 100 meters
• 100 200 tons
• Larger Trucks
• Custom heavy haul trailers

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Is BIGGER always better? (Cont.)

• Larger Cranes
• 400 600 ton crawlers with 400 booms
• This all equals more efficient turbines
• But also
• More expensive transportation and installation

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Tower Transportation today

• Over length 85
• Over width 14
• Over height 14
• Over weight 115,000 lbs
• Painted surfaces prone to scratch RUST
• Tower is often an afterthought by the turbine
  manufactures

Base section 80m tower
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TRANSPORTATION

• Conventional 80m Tower
• Over Length / Over Width / Over Height / Over
  Weight
• Cost 60-80K for 500 Miles Transportation
• MTS
• Ships Via Standard Flatbed Trailers
• Cost Savings on Freight 50-70

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MTS Modular Tower Systems

• Broad Market Application
• Mimics Industry Standard Tapered Design
• Increased Bottom Diameter Options
• Conventional Crane Installation
• Low Freight Costs
• Multiple Coating Options
• Simple, Low-Labor Content

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MTS PRIMARY COMPONENTS
PETAL
FRICTION PLATE
T-FLANGES
TRANSITION CASTING
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PETALS

• Allows For Very Large Diameters
• Enables Increased Tower Heights
• Opportunity To Use Lower Strength Steel (A-36)
• Dependent Upon Use Of Bolted Connections
• Can Be Galvanized
• Thickness Range 3/8-1 For Towers Up To
  2.5MW/80m

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FRICTION PLATES

• Bolted Friction Connection
• Excellent Fatigue Characteristics
• Commonly Used in Bridge Construction World Wide
• Allows for Complete Installation from Inside the
  Tower

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T-FLANGES

• Segmented Base Flange Design
• Addresses Freight Field Installation Objectives
• Standard Anchor Bolt Connection to Foundation
• Friction Plate Connection to Tower

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TRANSITION CASTING

• Cast Design
• Solves Geometry Transition Issues
• Mates Seamlessly with Turbine Base Flange
• Most Technically Complex Component of MTS Design

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WIND ENERGY
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WIND ENERGY
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Hub height 65 meters Weight 220.000
lbs Sections 4 Petals per section 4 Standard
trucks 7 First installation December 2nd 2005
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Competitive Advantages

• Standard transportation to site
• 70,000 vs. 16,000 (500 miles)
• Site assembly
• Less than 9,000 per tower
• Tower price FOB factory
• Same or lower than conventional

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Competitive Advantages (Cont.)

• Tower Installation
• 4 sections vs. 3 sections
• Savings are site dependent
• Faster lead time than conventional towers
• Working closely with Developers and Manufactures
  to optimize savings.

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Recent Market Trends

• Surging fossil fuel prices put alternatives in
  the spotlight
• With low volatility, wind is becoming interesting
  to large utilities
• Disruption of the U.S. oil production as a result
  of Hurricane Katrina and Rita has put upward
  pressure on the oil prices

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Recent Market Trends (Cont.)

• Elevated natural gas price and high volatility
  plus political initiatives, should spur broader
  interest for alternative energy among U.S.
  utilities.
• Wind is currently the lowest cost alternative
• Declining interest rates will improve wind energy
  competitiveness further.

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THANK YOU!