Press release: Normandie Hydroliennes receives validation of its LCOE trajectory for its NH1 project and its system: Un Pas de Géant pour l'Industrie.

Cherbourg, September 30, 2024: NORMANDIE HYDROLIENNES, a leading French developer of marine energy projects, today announced the successful conclusion of an independent cost reduction validation study for its flagship NH1 marine energy project and its AR3000 horizontal axis turbine system. After painstaking and comprehensive work, this study confirms a major breakthrough for the marine renewable energy industry, validating a significant cost reduction trajectory for energy production. Following the granting of project development aid to NORMANDIE HYDROLIENNES (NH) by the European Commission, the report commissioned by the European Investment Bank (EIB), presents a comprehensive technical due diligence study focusing on the development of a 12 MW pilot tidal array (NH1) at the Raz Blanchard site off the coast of Normandy. The study validated the potential for reducing the discounted cost of energy (LCoE) for NORMANDIE HYDROLIENNES' tidal stream technology, taking into account both financial aspects and technological advances, thus reinforcing the credibility and viability of their approach. This latest support from the Innovation Fund to NORMANDIE HYDROLIENNES complements the previous support provided by the EIB in 2023 under the NER 300 program, the first of which was aimed at verifying and improving the NH1 financial model. A turning point for tidal power This independent study, validated by the European Investment Bank (EIB), demonstrates that the NH1 farm and its AR3000 technology is not only economically viable, but also has the potential to become a competitive large-scale solution for the global energy transition. With falling costs, tidal power is now positioned as a sustainable and financially attractive alternative to other renewable energy sources. The report confirms that the cost reduction trajectory of their technology is viable, and provides a solid blueprint for the development of tidal power on an industrial scale. These results clearly show that, thanks to their innovative system and initiatives, it is possible to generate sustainable cost reductions while preserving quality and innovation. This success reflects not only their commitment to innovation and performance, but also the soundness of their NH1 project to optimize their future strategies, and offers investors a clear vision of their ability to increase profitability in the medium and long term. The study analyzed the main cost-cutting levers. Thanks to these combined efforts, the anticipated and validated reduction in the LCoE (discounted cost of energy) represents a significant step forward, ensuring the enhanced competitiveness of marine turbines on the energy market. The report concludes that "the LCoE reductions forecast by NORMANDIES HYDROLIENNES are reasonable and, in some cases, conservative ". It goes on to state that "technological and scale changes present promising prospects for the tidal energy industry, with significant cost reductions and increased efficiency ".

"PROTEUS' AR series tidal turbine system and its proposed innovations for the AR3000 system have been verified as key contributors to LCoE reduction."

"This model shows that a significant reduction in the price of electricity compared with existing tidal power tariffs is already achievable in our first NH1 pilot project, which aims to produce for the French grid in 2028," confirms Katia GAUTIER, Project Director of NORMANDIE HDYROLIENNES.

Katia GAUTIER adds: "Today, this detailed verification of our cost reduction claims is essential to strengthen the confidence of stakeholders and investors, and to move forward with our plans for the first commercial multi-hundred MW (NH2) tidal farm in the Raz Blanchard, and the path that would allow us to reach below the European target of €100/MWh once on a GW scale. This study demonstrates the competitiveness of this renewable energy and its long-term potential."

The report also notes that during the detailed assessment, " NORMANDIE HYDROLIENNES maintained a high level of professional conduct, reinforcing its position as a qualified engineering and development company ", with NORMANDIE HYDROLIENNES' " project management skills increasing the likelihood of project success ". This validation confirms their ability to improve the competitiveness of tidal power while maintaining sustainable growth. "In addition, the report validates their choice of technology provider, strategic partner PROTEUS and their AR series tidal turbine system, and the proposed innovations to be integrated into the AR3000 system which have been verified as key contributors to LCoE reduction." Thanks to PROTEUS' expertise and their shared vision, they have been able to achieve decisive milestones in the innovation and technological evolution of the AR range. This collaboration reflects their mutual commitment to transforming and deploying the hydropower sector, while remaining true to their values of innovation and sustainability. Crucial support for the energy transition " These results mark a decisive turning point for our company and for the marine energy industry as a whole. Our project is now ready to enter a new stage of development," says Katia GAUTIER, Project Director. About NORMANDIE HYDROLIENNES The company is developing the NH1 tidal turbine pilot farm, with a rated output of 12MW, in the Raz Blanchard, with the support of EFINOR, NORMANDIE PARTICIPATION and PROTEUS. Winner of the "call for expressions of interest" under the 'Programme d'Investissements d'avenir' in 2015, this project of common interest has today received all the approvals. NH1 continues the Government's strategy in favor of investment, innovation and reindustrialization. This pilot farm will operate 4 AR3000 horizontal axis turbines, the most powerful in the world and the most efficient in commercial operation. Built in Cherbourg, they will produce 36 GWh per year of clean, sustainable and 100% predictable energy for the French national grid, supplying 15,000 inhabitants by early 2028. With a well-defined value chain, the development of the NH1 pilot farm will rely mainly on the know-how of French suppliers, with almost 80% of the project's value and the remaining 20% in Europe, in order to guarantee our energy sovereignty. NORMANDIE HYDROLIENNES' turbine production will mobilize around 400 FTEs (indirect & direct). Latest news If you'd like to be part of their adventure and contribute to the future of clean, renewable marine energy, NORMANDIE HYDROLIENNES is launching a crowdfunding campaign to ensure completion of key work on the NH1 project through to financial close. Join them and log on to the Wiseed platform: https://www.wiseed.com/projet/74991875 Find out more If you'd like more information about NORMANDIE HYDROLIENNES or the NH1 project, please visit their website: www.normandiehydroliennes.fr.