Welcome to the EBC Seminar on Massachusetts: Leading the Way on Ocean Management.

WelcomeWelcometo the EBC Seminar onto the EBC Seminar onMassachusetts: Massachusetts:

Leading the Way on Leading the Way on Ocean ManagementOcean Management

www.essgroup.com

EngineersScientistsConsultants

Where do we go from here?

Energy Facilities Development in Massachusetts’ Coastal Ocean

Environments

Moderator: Charlie Natale, President, ESS Group, Inc.

OFFSHORE ENERGY FACILITIES AND THE MASSACHUSETTS COASTAL OCEAN

• Explore the Challenges of Currently Proposed Offshore Energy Facilities Already Under Review

• The Relative Importance of Ocean Management Planning in the Ability to Use the Coastal Ocean as an Important Regional Energy Pathway

• Where Do We Go from Here? CORMA Legislation (June, 2006) Ocean Sanctuaries Act Revisions Chapter 91 / CZM Authority EOEA Oversight and Management

Pathway to the Future?

GUEST PANELIST PARTICIPANTS

• Dennis Duffy Vice President for Governmental and Regulatory Affairs,

EMI / Cape Wind Associates – Offshore Wind Energy

• Rob Bryngelson Vice President, Excelerate Energy LLC, Northeast

Gateway – Deep Water Port Facility

• Dr. Edward Krapels Principal, Anbaric LLC / Neptune Transmission Partners,

Neptune RTS – Interstate Submarine Electric Cable Transmission

• Ralph Child Partner, Environmental Section, Mintz, Levin et al

Duke Energy – Maritimes and Northeast – Gas Pipelines

THE MASSACHUSETTS COASTAL OCEAN’S ROLE IN REGIONAL ENERGY SUPPLY INITIATIVES

1. Energy Generating Facilities Renewable Energy Nuclear Energy

2. Submarine Electric Cable Transmission Facilities Local Distribution Regional / Interstate Energy Transfer

3. Marine-Based Transportation & Fuel Supply Natural Gas Fuel Oil Associated Interstate Commerce

4. Other Uses Telecommunications Sand and Gravel Mining

THE DILEMMA OF REGIONAL ENERGY SUPPLY

1.Fuel Costs Discouraging Investment in New Land-Based Energy Facilities

2.Regional Load Growth Demand Continues (annual Net Energy for Load)

2002 2006

Natural Gas Prices ($ per thousand cubic feet)

$2.20 $13.50

Fuel Oil Prices ($ per barrel) $45.00

$75.00

Gasoline Prices ($ per gallon) $1.50 $3.15

Demand % Change from Previous Year

2002 127,000 GWh

+ .7%

2005 135,000 GWh

+ 2.2%

THE DILEMMA OF REGIONAL ENERGY SUPPLY (cont.)

3. Increasing Cost for Electricity

Costs (Cents / kWh)

2002 9.5 c

2006 12.9 c (forecast)

CAPE WIND OFFSHORE WIND ENERGY PROJECT

CAPE WIND LOCUS MAP

The Northeast GatewayEnergy Bridge™ Deepwater Port

---Project Overview

Presented to

Environmental Business CouncilOcean Management Act Symposium

July 13, 2006

The Northeast GatewayEnergy Bridge™ Deepwater Port

---Project Overview

Presented to

Environmental Business CouncilOcean Management Act Symposium

July 13, 2006

Northeast Gateway Deepwater PortDeepwater Port Project Facts

• Based on Excelerate Energy’s proprietary Energy Bridge shipboard regasification technology

• Port will be located in federal waters roughly 13 miles south-southeast of Gloucester

• A dual-buoy system will be capable of ensuring continuous delivery of natural gas

• Throughput capacity available will range from 400 to over 800 MMcf/d

• Only project that can be in-service by 2007

Northeast Gateway Deepwater PortKey Project Features

3

4

5

21

400 To 800 mmcfdThroughput Capacity

Minimal InfrastructureRequirements

Closed-loopVaporization Only

Minimal Water Usage

Minimal AirEmissions

6

Well Offshore – 12+ miles

90% Reduction in NOx

95% Reduction in Intake98% Reduction in Discharge

Baseload and PeakingCapabilities

Decreased Environmental

Impact

Lower Marine Impact

Away From PopulationAnd Infrastructure

8

Rapid Time to Market

In-Service Targetedfor December 2007

Northeast Gateway isthe optimal solution

for New England

7

Robust Design

Extreme WeatherTolerance

Energy Bridge™System Overview

High Pressure PumpsAnd Vaporizers

Reinforced LNGStorage Tanks

Energy Bridge™Regasification Vessel

TractionWinch

BuoyCompartment

OversizedBoiler

The Energy Bridge™ system

is based on proven

technology used for over a

decade in the harsh North Sea

marine environment

When not in use, the buoy will

remain 80 to 90 feet below the

surface

Northeast Gateway Deepwater Port Application Process and Timeline

• ENFs filed with EOEA March 15, 2005• DWP Application filed with USCG June 13, 2005• Completeness Determination August 18, 2005• Data Request (Clock Stopped) November 18, 2005• Response to Data Request December 2005• Clock Resumption March 29, 2006• DEIS / DEIR Release Date May 19, 2006• DEIS / DEIR Comment Period Ended July 3 / 7, 2006• DEIR Certificate Issued July 7, 2006• Record of Decision (Est.) December 2006• Final License & Related Permits (Est.) 1Q and 2Q 2007• Commencement of Operations (Est.) 4Q 2007

Northeast Gateway Deepwater PortSite Location

Massachusetts: Massachusetts: Leading the Way on Ocean Leading the Way on Ocean

ManagementManagement

Panel MemberPanel Member

Offshore Wind Energy – Dennis Duffy Offshore Wind Energy – Dennis Duffy




Deep Water Port Facilities/LNG – Rob Deep Water Port Facilities/LNG – Rob BryngelsonBryngelson

Massachusetts: Massachusetts: Leading the Way on Ocean ManagementLeading the Way on Ocean Management


Offshore Natural Gas Pipelines – Ralph ChildsOffshore Natural Gas Pipelines – Ralph Childs



Panel MemberPanel MemberOffshore Electric Transmission Offshore Electric Transmission

– – Dr. Edward Krapels Dr. Edward Krapels

Anbaric LLC

Developers of independent electric transmission projects

Responsible Offshore Energy Facilities:

DC Transmission Cables

Ed KrapelsAnbaric LLC

Anbaric LLC 23 Independent transmission development

The Challenge• How to meet Massachusetts' Coastal

electricity demand with minimal environmental impact

• Focus on Boston market:– Aging power plants (New Boston, Salem)– Extremely high cost of building new plants (Mystic)– Overdependence on nat gas;Desire for green

power;– Complex New England transmission system– Shifting regulatory regime


Boston’s Situation

• Overall power adequacy– OK until 2012 or so… – To get new capacity by 2012, development efforts have to start

in 2007

• Cost of building new plants– The next baseload urban power plant likely to cost up to

$2000/kw ($1.2 billion for 600MW facility) compared with $700/kw ($420 million) in more accessible areas

– No one stepping forward to build plant on merchant basis

• Green power– Boston is extremely dependent on LNG… has little “power

portfolio diversity”– Wind development opportunities both north and south of

Boston… with transmission implications


Sub-Sea Transmission

• Sub-sea transmission broadens the power choices of urban areas – The Neptune example:

• Long Island Power Authority award in 2005 to build a sub-sea, 660MW HVDC line to PJM

• LIPA Chairman Rich Kessel announced Neptune would save Long Island ratepayers more than $1 billion in power costs

• The cost of the cable + capacity in PJM + energy savings < cost of gas-fired capacity on Long Island

• Bottom line: Sub-sea transmission from “distant markets” to urban areas can be good for reliability and is economically efficient


Neptune



The Commonwealth’s Proactive Role in the The Commonwealth’s Proactive Role in the Effective Management of Massachusetts Effective Management of Massachusetts

Ocean ResourcesOcean Resources

Senator Robert O’LearySenator Robert O’LearyCommonwealth of MassachusettsCommonwealth of Massachusetts


ManagementManagement Thank you for ParticipatingThank you for Participating

andand

THANKS TO OUR THANKS TO OUR SPONSORSSPONSORS

Welcome to the EBC Seminar on Massachusetts: Leading the Way on Ocean Management.

Documents

excelerate energy llc

energy facilities development

annual net energy

ocean managementwww

project overview

mmcfdonly project

gloucestera dualbuoy

environmental section