The Story So Far

Checkmate Seaenergy Ltd. holds the exclusive licence to commercialise the patented Anaconda wave energy converter. The company was established in 2007 and currently has a number of engineers working full-time on the development programme. This small team is based at the site of sister company Checkmate Flexible Engineering in Melksham, Wiltshire.

So far the development programme has concentrated on proof-of-concept testing of 1:25 scale models of Anaconda in the wave tank facilities at QinetiQ’s Haslar Marine Technology Park at Gosport in Hampshire.

Three two-week sets of tests have shown conclusively that the Anaconda technology can harness wave energy. To date, two different 1:25 scale power take-off devices have been built and tested. In the first type, the bulges from the rubber tube created two columns of water of different heights. When water flowed from one column to the other, the hydraulic power could be measured. This large device was fixed to the overhead carriage of the wave tank and although it measured the hydraulic power very accurately, it did not represent the free floating device that would ultimately be required.

A new design of a free floating power take off was then developed in March 2009. In this second type of power take-off device, the power is measured by establishing a flow between two rubber accumulators. This allows the power take-off to float freely together with the rubber bulge tube as it would in normal operating conditions.

In parallel with the tank testing at Haslar, the Anaconda team (with support from the Carbon Trust) has been researching and developing the rubber-based technology at the heart of this novel device. Significant progress has been made and the team has established a small experimental water tank at Melksham allowing various scaled-down prototype Anaconda components to be evaluated and tested.

Project Plan

The cost of Checkmate Seaenergy’s development work continues to be borne ultimately, by its founding shareholder. The company intends to launch a fund raising round with financial institutions and independent investors in early 2010. This will allow a full engineering development programme to begin, leading to the commercialisation of the device.
In early 2008 Checkmate Seaenergy was pleased to see Anaconda selected from among several competing wave energy devices to receive financial support from the Carbon Trust’s Marine Energy Accelerator programme. This support has mainly taken the form of consultancy services and has run alongside the technical programme described above. It has also allowed the project to benefit from Carbon Trust’s Incubator scheme which helps start-up companies develop to a state of investment readiness. In our case this has led to the preparation of a detailed and fully costed technology development programme together with a full business plan.

We are particularly pleased with the support from the Carbon Trust. They are a powerful voice in the renewable energy sector, and with the benefit of their support and experience we have been able to push the project forward. You can find out more about their activities at www.carbontrust.co.uk .

Independent Review

Checkmate Seaenergy has chosen to invite a fully independent review of its technology in preparation for the approach to prospective investors. The team feel such a report will give interested investors a realistic and independent assessment of Anaconda’s commercial prospects and will therefore aid the fundraising process. Carbon Trust is supporting this approach and has assisted in the appointment of the leading firm of international consulting engineers Black & Veatch to conduct the study.

Black & Veatch have recently completed a review of Checkmate Seaenergy’s test reports and have suggested that one further short round of tests be conducted. These tests will no longer be concerned with proof of concept as this is now considered proven. They will, however, focus on the power performance of Anaconda leading to a more accurate prediction of the power output of the full scale device. The testing is scheduled for one week during mid October and will enable Black and Veatch to provide a detailed estimate of Anaconda’s cost of energy which will form the basis of our business plan and investment case.

Risk Warning

This communication is issued in the UK by Checkmate Seaenergy Ltd. (“the Company”). This communication is for information purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any shares in Company. No such offer or solicitation will be made except pursuant to a prospectus or information memorandum or other offering document if and when issued by the Company.