INTEGRATED HYBRID PROPULSION SYSTEMS FOR VEHICLE FERRIES

INTEGRATED HYBRID PROPULSION SYSTEMS FOR VEHICLE FERRIES

SCOPE OF PRESENTATION The Thrustmaster Company Why Hybrid Propulsion Now Thrustmaster Hybrid Capabilities / Aspin Kemp Thrustmaster Assigned Patents Power Management System / Energy Storage System Vehicle Ferries Hybrid Propulsion Concepts Hybrid Propulsion Benefits Vessel Designer Input Thrustmaster Key Contributors 9/13/2018 2

THRUSTMASTER OF TEXAS, INC. LARGEST THRUSTER FACTORY IN THE WORLD MANUFACTURED IN HOUSTON, TEXAS, USA 9/13/2018 3

1984 THRUSTMASTER FOUNDED 1 st Propulsion Unit Ordered by U.S. Army Corps of Engineers 2009 FACTORY Opened largest thruster factory In the world. 18,580 m² 1922 1991 Z-DRIVES Thrustmaster installs its 1 st azimuthing Z-drives on tugs 1988 PORTABLE DYNAMIC POSITIONING 1 ST PDPS installed on treasure hunting vessel; successfully recovers $300M USD in gold 2003 ISO 9001:2000 & ABS Manufacturing Assessment Certification 4

2011 ISO 9001:2008 2012 QUALITY REAFFIRMED Quality assurance program, Zeiss computerized CMM installed. 2015 Inland Towboat Z-Drive Product Line Introduced 1922 1922 1922 1922 2008-2010 GLOBAL SALES & SUPPORT Thrustmaster expands to offices in Dubai, Rotterdam, Brazil, and Singapore. 2018 ISO 9001:2015 2014 WATERJETS Thrustmaster adds waterjets to product lineup. 5

WHY HYBRID PROPULSION NOW Continuing search for more efficient power systems. Reduced emissions IMO Green House Gas Strategy. More efficient equipment available: Prime Movers Multiple fuel options Generators Variable voltage/frequency/rpm control optimized output rates Electric Motors/Generators PM, improved efficiency over operating range High Efficiency Inverters Battery Storage Higher density power sources available Ability to control and select multiple power sources seamlessly Energy Harvesting Software Thrustmaster can reduce the fuel consumption and reduce the vessel emissions by automatically and seamlessly drawing power from the most efficient source. 9/13/2018 6

SPECIFIC ADVANTAGES DIESEL ENGINES US EPA Standards Cut-off point at 600kW / 805HP Below 600kW Tier 3 compliance / Above 600kW Tier 4 compliance required (Oct 2017) 9/13/2018 7

SPECIFIC ADVANTAGES DIESEL ENGINES US EPA Standards Significant Weight and Volume increases with Tier 4 engines Significant Cost increase with Tier 4 engines Tier 4 marine engines require Selective Catalytic Reduction technology 9/13/2018 EXAMPLE OF DIESEL ENGINE WITH SCR 8

SPECIFIC ADVANTAGES VARIABLE SPEED GENSETS Industry Claims: Average fuel saving of 20-50% Reduced emissions as fuel is burned more cleanly Reduced noise and vibration (>6dB) Decreased engine wear - time to overhaul can be doubled Optimum engine sizing. Engine can be sized according to average load requirement, with peak loads requirements supplemented by electrical storage system FIXED SPEED GENSET VARIABLE SPEED GENSET 9/13/2018 9

SPECIFIC ADVANTAGES PM E-MOTORS & GENERATORS Permanent Magnet Technology More compact design / higher efficiency at all motor speeds Efficiency Variable Speed Constant Torque Motor Performance Efficiency vs. Speed 5HP, 184T SyMAX PMAC vs NEMA Premium Induction Speed (RPM) 9/13/2018 10

THRUSTMASTER HYBRID SYSTEMS CAPABILITIES Thrustmaster can supply all the components of a marine hybrid propulsion system for the customer as a fully integrated package. We will integrate the equipment and components to provide a power management system which is seamless to the operator over the total range of power sources. Our system integration capabilities provide one-stop-shop for the customer and reduce their management oversight costs. Thrustmaster patented and proven technologies are utilized to ensure that an efficient power control system is available to the customer. 9/13/2018 11

THRUSTMASTER - ASPIN KEMP ASSOCIATES Thrustmaster of Texas Inc., and Aspin Kemp Associates have an agreement to jointly pursue business prospects in the US ferry market, specifically addressing hybrid ferry opportunities. This alliance between the organizations brings together two companies with many years experience in the marine industry. Both companies have an extensive background in propulsion systems integration. In addition to Thrustmaster capabilities identified previously, AKA has been an industry leader with their XeroPoint Hybrid Technology applications. XeroPoint has been deployed in numerous vessels worldwide in recent years, including the first hybrid tug for Foss Maritime in 2009. XeroPoint comes as full diesel electric and hybrid solution and has proved to outperform full diesel electric in both redundancy and efficiency - with less cost. The systems have been certified by the EPA as a Emissions Reducing Technology, and Class approved for closed bus DP3 operations. The systems feature energy storage ready to allow peak shaving, UPS capabilities, emergency egress and battery only operations. 9/13/2018 12

THRUSTMASTER HYBRID PROPULSION PATENTS 9/13/2018 13

THRUSTMASTER ASSIGNED PATENTS Method & Apparatus for Providing Power to Marine Vessel US Pat. No. 7,980,905 B2 - Describes a system and method for marine vessels to utilize battery power only and generators to provide additional power if needed Method for Operating a Vessel US Pat. No. 8,197,291 B2 - Describes a method for operating a vessel by determining the most efficient source of power available Computer Readable Medium for Operating a Vessel US Pat. No. 8,457,819 B2 - Describes computer instructions which monitor the most efficient power source with which to operate a vessel System for Operating a Vessel US Pat. No. 8,554,398 B2 Describes a system for operating a vessel where multiple power sources can be used 9/13/2018 14

THRUSTMASTER HYBRID PROPULSION PATENTS 9/13/2018 15

THRUSTMASTER HYBRID PROPULSION PATENTS DC SPLIT BUS SIMPLIFIED ONE-LINE 9/13/2018 16

POWER MANAGEMENT SYSTEM Thrustmaster Stored Energy Hybrid Propulsion System Energy Storage System Green Energy (Battery) Storage ESS Management Control System Continuous Variable Battery Control Software Vessel Power Generation High Efficient Diesels Engines Variable Frequency Variable Voltage Emergency Operation Constant Frequency / Voltage Integrated Bus Overload Technology (Anti-Blackout Systems) Power Management System Utilizes Power from the most efficient Source (Genset / ESS / Regeneration) Auto Start/Stop of Vessel Power Generators Real-Time Monitoring of Fuel Savings based on Historical Data Comparison Dynamic Positioning System Controls integrated with Power Management System Alarm and Data Monitoring Record of all Events 9/13/2018 17

POWER MANAGEMENT SYSTEM Thrustmaster Stored Energy Hybrid Propulsion System (cont.) Maintenance Mode Safe Mode for Equipment and Stored Energy System Propulsion Power System High Efficiency Inverters / Rectifiers High Efficiency PM Motors (No magnetizing current required) THRUSTMASTER POWER MANAGEMENT SYSTEM 9/13/2018 18

ENERGY STORAGE SYSTEM Optimized Energy Storage Systems Bi-directional Control Cell-to-Cell Energy Transfer 5-50mV Divergence of Battery Cell Equalization Energy Harvesting & Failure Prediction Software developed Rapid Charge Ability Charge Rates & Battery Life Cycle Prediction Battery Cell Voltage Managers built in Energy Storage System Testing Tested with Loaded Conditions Over 6,833 Full Charge/Discharge Cycles Bi-Directional Regen on to Power Lines Fully Tested 9/13/2018 19

VEHICLE FERRIES Thrustmaster recognizes the growing market potential for Higher Efficiency and Lower Emission propulsion systems on New Build and Upgraded/Refitted Ferries nationwide The traditional prime mover diesel engine, propeller and rudder combination have been successful in the past, but vessel performance can now be significantly enhanced with proven integrated mechanical / electrical systems Thrustmaster can offer the vehicle ferry market sector a fully integrated power and propulsion system which continuously chooses the most efficient energy source and delivers it to the required load Customers will see efficiency improvements in fuel consumption, emission gases, noise and vibration levels, leading to an all-around upgrade to the passenger experience 9/13/2018 20

VEHICLE FERRIES SYSTEM OPTIONS When selecting the propulsion system design for vehicle ferries it is of paramount importance to perform an analysis of the required vessel operations distance, speed, turnaround time, payload capacity, etc. Thrustmaster can work with the project Naval Architects to determine the best system configuration for the application. Some possible system configurations are shown on the following slides: Concept 1 4 x Gensets/PMG, 2 x PMM L-Drive Thrusters, 1 x Battery ESS, Rectifiers, Inverters, VFD s, Pwr Mgmt Sys Concept 2 2 x Gensets/PMG, 2 x PMM L-Drive Thrusters, 2 x Battery ESS, Rectifiers, Inverters, VFD s, Pwr Mgmt Sys Concept 3 3 x Battery ESS, 2 x PMM L-Drive Thrusters, Rectifiers, Inverters, VFD s, Pwr Mgmt Sys 9/13/2018 21

HYBRID PROPULSION VEHICLE FERRY CONCEPT 1 AC/DC RECTIFIER AC/DC RECTIFIER AC/DC RECTIFIER AC/DC RECTIFIER DC BUS DC BUS PM MOTOR BATTERY BANK 1 PM MOTOR L-DRIVE HIGH EFFICENCY THRUSTER PORT VFD HOTEL LOAD HOTEL LOAD L-DRIVE HIGH EFFICENCY THRUSTER 9/13/2018 22 STBD VFD DIESEL ELECTRIC PROPULSION

HYBRID PROPULSION VEHICLE FERRY CONCEPT 1 DIESEL ELECTRIC PROPULSION SYSTEM 2 x Azimuthing Z-Drives w/ Electric Drive 9/13/2018 23

HYBRID PROPULSION VEHICLE FERRY CONCEPT 1 DIESEL ELECTRIC PROPULSION SYSTEM 2 x Azimuthing Z-Drives Electric Drive, Gensets & ESS 9/13/2018 24

HYBRID PROPULSION VEHICLE FERRY CONCEPT 1 HIGH SPEED HYBRID PROPULSION VESSEL ELECTRIC DRIVE WATERJETS with GENSETS & ESS 9/13/2018 25

HYBRID PROPULSION VEHICLE FERRY CONCEPT 2 AC/DC RECTIFIER AC/DC RECTIFIER DC BUS DC BUS BATTERY BANK 1 BATTERY BANK 2 PM MOTOR PM MOTOR L-DRIVE HIGH EFFICENCY THRUSTER PORT VFD HOTEL LOAD HOTEL LOAD L-DRIVE HIGH EFFICENCY THRUSTER 9/13/2018 26 STBD VFD DIESEL ELECTRIC PROPULSION SYSTEM

HYBRID PROPULSION VEHICLE FERRY CONCEPT 3 SHORE POWER TERMINAL A SHORE POWER TERMINAL B EMERG/STANDBY GENSET AC/DC RECTIFIER AC/DC RECTIFIER DC BUS DC BUS BATTERY BANK 1 BATTERY BANK 2 BATTERY BANK 3 PM MOTOR PM MOTOR L-DRIVE HIGH EFFICENCY THRUSTER PORT VFD HOTEL LOAD HOTEL LOAD L-DRIVE HIGH EFFICENCY THRUSTER 9/13/2018 27 STBD VFD DIESEL ELECTRIC PROPULSION SYSTEM

HYBRID PROPULSION VEHICLE FERRY DD & EP 200HP BOOST/ CRUISE E-MOTOR 800HP MAIN ENGINE DIRECT DRIVE WITH ELECTRIC MOTOR BOOST 800HP/600kW DIESEL ENGINE with 200HP/150kW BOOST/CRUISE EMOTOR = 1000HP MAX. POWER WITH EPA TIER 3 ENGINE 9/13/2018 28

HYBRID PROPULSION BENEFITS Lower Combustion Exhaust Gas Emissions Lower Structureborne and Airborne Noise Lower Structural Vibration Reduced Fuel Consumption Simplified Mechanical Systems Location of Prime Movers Design Options Increased Less Maintenance / Maintenance Interval Increases Remote Performance Monitoring Overall OPEX reduction Improved Passenger Experience 9/13/2018 29

INPUT FROM VESSEL DESIGNER To conduct a thorough evaluation, and determine the optimum propulsion system configuration, the following is an initial list of the type of information Thrustmaster would require: Drag resistance (in lbf) of the vessel fully loaded General Arrangement and Machinery Space(s) layouts Operating profile of thrust and vessel speed requirements as function of total time Turn around time of the ferry at point A and B. (Unload, Reload, Ready-to- Depart) Power cost in kwh from power company at points A and B Knowledge of the Owner s emergency planning procedures inclusive of all alternate destinations (if any) so to evaluate the reserve power requirements 9/13/2018 30

THRUSTMASTER KEY CONTRIBUTORS One Single Propulsion System Integrator In-house expertise in Marine Hybrid Propulsion Systems Hybrid Propulsion Patent Holders Proven Power Management System Proven Marine Thruster & Waterjet Manufacturing Made in the USA 9/13/2018 31

STATE OF NORTH CAROLINA DOT OCRACOKE EXPRESS PASSENGER FERRY 4 x DJ170HP THRUSTMASTER WATERJETS DELIVERED TO THE SHIPYARD JUNE 2018 9/13/2018 32

THRUSTMASTER HYBRID PROPULSION THANK YOU FOR YOUR ATTENTION 9/13/2018 33