John PurcellLeeco Steel, VP Wind DivisionLeecosteel.com

AMM Steel Long Products ConferenceChicago, Illinois

Where is Opportunity Knocking? Long Products Ride Like the Wind.

Thursday, October 13, 11:30 - 12:30

Leeco Steel

● A leading provider of carbon, alloy and heat treated steel plate products

● We operate facilities in six states and one in Monterrey, Mexico

● We serve major plate consuming industries including wind tower, yellow goods, mining, tank, railcar, defense among many other industries

● We recognized a growth market in Wind in 2004 and in 2005, we created a group to focus solely on this industry

Leeco Steel

● We have seen our wind sales revenue grow 30 fold since 2005

● We have served more than12 major turbine OEMs and placed steel at over 20 tower fabrication locations in the US, Canada, Mexico, Asia and Europe

● We have been an active business member of AWEA since 2006. We now serve on AWEA's Legislative Committee and its Manufacturing Working Group to help shape industry policy and grow the manufacturing of wind components in America

U.S. Wind Power Capacity Installations by Quarter

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2008 2009 2010 2011

1Q

2Q

3Q

4Q

Cap

acity

(MW

)

» 1Q 2011: More than 1,110 MW completed, more than double the capacity brought online in 1Q 2010

Source: AWEA 3Q 2010 Market Report

U.S. Wind Power Capacity Installed in 2010 (MW)

Source: AWEA 3Q 2010 Market Report

» 38 U.S. states have utility-scale wind installations.

» 14 states have more than 1,000 MW installed.

» Top states for new installations in 2010 were: Texas, Illinois, California, South Dakota and Minnesota, installing ~400 to 700 MW each.

U.S. Wind Power Capacity Under Construction

» More than 5,600 MW remain under construction at the end of 1Q 2011, even after over 1,100 MW of completions in 1Q 2011.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

Win

d C

apac

ity, M

W

New Under Construction in QuarterAll Under Construction in QuarterCompleted Capacity in Quarter

Source: AWEA 3Q 2010 Market Report

Regional Installation & Construction Activity

Source: AWEA 3Q 2010 Market Report – Members Only

U.S. Annual and Cumulative Wind Power Capacity Growth (Utility-Scale Wind)

U.S. Annual and Cumulative Wind Power Capacity Growth (Utility-Scale

Wind)

» The wind industry installed 5,116 MW in the U.S. in 2010

» 15% growth in 2010

» Total U.S. wind installations stand at 40,181 MW

» Average annual growth for the past five years was 35 %

Source: AWEA, U.S. Wind Industry Annual Report, Year Ending 2010

Wind has captured 35% of all new generating capacity in America since 2007

Percent of New Installed Capacity (in MW), 2007-2010

• New wind capacity represented 26% of all new capacity installed in 2010.

• Wind remained the second largest source of new installed capacity, second to natural gas at 40%.

• All new renewable capacity combined represented nearly 33% in 2010.

• Over the past 4 years combined, wind represented 35% of all new generating capacity installed.

Data Source: AWEA, EIA, SEIA, SNL

Near-Term Transmission Line Activity

» Near-term transmission projects, if all completed, would project enough transmission capacity to carry another 29,000 MW of wind capacity in the next few years.

Source: AWEA, U.S. Wind Industry Annual Report Year Ending 2010

WIND ENERGY SUPPLY CHAINGrowing and American Industry

Basic Supply Chain

Raw Materials Suppliers

Component Suppliers

Major Component Suppliers

Turbine Manufacturers

Turbine Manufacturers create a ripple effect down the supply chain, creating even more jobs indirectly than at their facilities

Fundamentals of Wind Power

Rotor

Nacelle

Tower

Turbine subsystems include:

• A rotor, or blades, which convert the wind's energy into rotational shaft energy•A nacelle (enclosure) containing a drive train, usually including a gearbox and a generator•A tower, to support the rotor and drive train; and electronic equipment such as controls, electrical cables, ground support equipment, and interconnection equipment.

Inside a Nacelle

59.6

80

This picture shows a Vestas 80-meter diameter, 2-MW wind turbine superimposed on a Boeing 747 jumbo jet

80 m.

59.6 m.

How Big is a 2-MW Wind Turbine?

Towers:TowersLaddersLifts

Rotor:HubNose ConeBlades

• Composites• Blade Core

Pitch MechanismsDrivesBrakesRotary Union

Nacelle:Nacelle CoverNacelle BaseHeat exchangerControllersGeneratorPower electronicsLubricantsFiltrationInsulationGearboxPumpDrivetrainCeramicsShaft

Foundation:RebarConcreteCasings

Other:TransformersBolts/fastenersWirePaints and coatingsLightingLighting protectionSteel working/machiningCommunication DevicesControl & condition monitoring equipmentElectrical Interface & electrical connectionBatteriesBearingsBrakes

There are over 8,000 components in a turbine, including:Turbine Components

Domestically Manufactured Components

Domestically Mfg Components

Inported Components

2005

2008

~25% domestic components~2,500 MW installed ~50% domestic components

~10,000 MW installed

Domestically Mfg Components

Inported Components

There has been a dramatic shift towards domestic manufacturing for wind turbine components

2009

Major Facility Locations

• Producing majority of towers and blades domestically

• Growing domestic nacelle assembly; new facility announcements will double assembly facilities

• Starting to develop a supply chain for high-value internals

Source: AWEA Annual Market Report 2009

Wind is One of the Fastest Growing Sources of U.S. Manufacturing Jobs

» At the end of 2010, there were over 400 manufacturing facilities online making wind-related products.

» The online facilities span 43 states

All Online Wind-Related Manufacturing Facilities

Source: AWEA Annual Market Report 2009

Wind Turbine Manufacturers’ Share of 2010 U.S. Wind Power Installations

Source: AWEA, U.S. Wind Industry Annual Report Year Ending 2010

Wind Turbines Installed Annually by Turbine Manufacturing

Manufacturers diversifying over time

Source: AWEA, U.S. Wind Industry Annual Report Year Ending 2010

U.S. Wind Industry Employed 85,000 in 2010

Source: AWEA, U.S. Wind Industry Annual Report, Year Ending 2009

Wind-Related Jobs in 2010

Source: AWEA, U.S. Wind Industry Annual Report, Year Ending 2009

Job Projections Under 20% Report

• Over 500,000 total jobs would be supported by the wind industry

• In 2009, wind industry employed 85,000

Source: U.S. DOE, 20% Wind Energy by 2030

America’s Wind Energy Supply is Inexhaustible> 40,000 MW today: On & Offshore wind resource potential could electrify the nation 13 X

Onshore WindResource:

>10,450,000 MW

Offshore Wind Resource:

>4,150,000 MW

Wind Power Offers Price Stability

• Known pricing can offer hedge against fuel price volatility risk

• Electricity from wind is inflation-proof once wind farm is operating

• Zero-emissions profile of wind helps hedge again carbon price risk

Wind Power Offers Fuel Diversity

• Domestic energy source• Inexhaustible supply• Complement to natural gas

• Wind has variable generation output, but no fuel cost and a stable price over the life of the project

• Natural gas has stable generation output, but volatile cost due to fuel input

20% Wind Energy by 2030Bush Administration Report Identifies the Path

• U.S. Department of Energy:“The U.S. possesses sufficient and affordable wind resources to obtain at least 20% of its electricity from wind by the year 2030.”

John PurcellLeeco Steel, VP Wind DivisionLeecosteel.com

AMM Steel Long Products ConferenceWhere is Opportunity Knocking?

Long Products Ride Like the Wind. Thursday, October 13, 11:30 - 12:30

Chicago, Illinois