Cogeneration. The Technology of New Generation. Highly Efficient Combined Power, Heat and Cooling production from a single source

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1 Cogeneration The Technology of New Generation Highly Efficient Combined Power, Heat and Cooling production from a single source

2 MORE THAN A CENTURY OF ENGINEERING EXPERIENCE ADI stands for highly-efficient and eco-friendly combined heat and power (CHP) decentralized plants, and together with partners it has more than a century of combined engineering experience. OUR MISSION STATEMENT We believe, that the greatest opportunities are there, where the way has yet not led and the best investments are those, which bring more than the profit to people. We are not a corporation, we follow our own ideas. We invest our energy only there, where it brings permanent added value. OUR STRATEGY Long-term partnership with the client. Transparent approach. Bringing stability and experience of decentralized energy production from Europe to Israel. Innovative solution utilizating the most advanced technologies and know-how. Cooperation with local suppliers and service partners. Saving primary energy and promoting safety in energy sector.

3 SMARTER ENERGY SOLUTIONS WORLDWIDE 17,192 MW, 17,492 UNITS Your power demands are unique and it s our job to build better ways to meet them. 3,338 MW 4,684 units 1,016 MW 1,286 units 4,997 MW 4,882 units 2,152 MW 1,769 units 1,503 MW 1,098 units 4,185 MW 3,707 units WHAT WE DO GET TO UNDERSTAND OUR ADDED VALUE: We own urban heating management plants and supply heat to thousands of households. Each project is assesed individualy according to real needs of clients. We realize the construction of utility networks for major utility companies. We aproach all projects in a holistic way with openened mind. We help to upgrade electric transmition systems by installing the most efficient new technologies such as amourfous distribution transformers. We do heating management reconstructions and modernization using the CHP technology. We realize renewable sources projects. We only use realiable technologies of renowned manufacturers. It is our principle to use only original parts for maintanance and service. We always seek synergy of existing technologies and renewable sources or other existing systems. We develop and invest to unique technologies for a better world. We supply energy efficient lighting for industrial companies and municipalities. We build residential buildings as well as housing for the underprivileged. We maximize profits and minimize costs for clients. The resulting solution is always environmentfriendly. We only provide solutions we would design for our own projects. We have a team of in-house engineers, analysts and energy consultants. We cooperate with regional utility companies and market regulators.

4 ENERGY CONTRACTING No investments - 8 to 30% energy cost savings At our own expense and to fit your needs - we will design, provide, install to your facility and operate the electricity and heating / cooling system, the core of which will be the cogeneration unit. You do not have to invest in a new technology, nor you have to deal with replacing old boilers or overhauling them. Every year, you can achieve savings on electricity, heat / cold costs starting at 8%. We do not directly influence the level of achieved savings - everything depends purely on stock exchange prices of the commodities and specifics of each project. You do not pay any operating costs associated with the operation and maintenance of the technology. You can always withdraw from the contract. You do not pay fines, just a fair amount of related investment costs. WHERE CAN CHP TECHNOLOGY BE USED? Wherever there is a year-round need the CHP systems can be used to generate electricity, heat and/or cold. It can be easily utilized in almost any scenario and placement. Including: Industry Residential areas Institutions and office buildings Hotels and housing complexes Energy centres & Smart grids Hospitals and Military installations Shopping malls Agriculture Kibbutzim Swimming pools and Aqua parks

5 YOU WILL GET HEAT, ELECTRICITY AND REFRIGERATION AT A PRICE LOWER THAN YOU ARE CURRENTLY PAYING. 5benefits NO initial investments NO unnecessary energy costs NO operating expenses NO worries NO monopolies

6 COGENERATION PLANTS RANGE OF APPLICATION Hot water Boilers Cooling Exhaust Gases Electric Power Manufacturing Building Hot water Greenhouses Water Natural Gas Fuel Exchanger water/water Engine Catalytic Converter Heat exchanger Generator Electricity Aftercooler Water F (32-54 C) Exhaust Gas F ( C) Jacket Water & Oil F ( C) Ventilation Air 50 F (10 C) above ambient Steam Cooling CO 2 Hot Water Hot Air District Heating Drying Desalinization Refineries / Oil Institutions WHAT IS CHP? CHP stands for Combined Heat and Power, also known as cogeneration. CHP is on-site gas fired electricity generation that captures the heat that would otherwise be wasted to provide useful thermal energy such as steam or hot water that can be used for space heating, cooling, domestic hot water and industrial processes. CHP can use a variety of fuels, both fossil- and renewable-based. WHAT IS CCHP? Combined Cooling, Heat and Power (CCHP), also known as tri-generation, is an extension of CHP technology and is the most economical and environmentally sound way to generate electricity, heat and cooling, making it the ideal solution for organisations which have significant cooling requirements. While CHP only generates electricity and heat, CCHP energy schemes integrate CHP systems with absorption chillers. Waste heat provides energy to produce chilled water which is then used for cooling. The ratio of the electricity produced to the exhaust heat for the absorption chiller can be varied to meet specific requirements. TRADITIONAL NEW CHP SYSTEM 45% efficient 95% efficient Heat Power Cooling

7 GASIFICATION OF ISRAEL GREAT POTENTIAL FOR CHP BASED ENERGY SYSTEMS Due to the fact that less fuel is burned to produce a unit of energy output and the transmission and distribution losses are avoided, CHP reduces emissions of greenhouse gases and other air pollutants. Also CHP does not produce any odor or visible smoke. Gasification of 18 Israel areas will be completed in KEY BENEFITS OF CHP TECHNOLOGY SEVERAL FORMS OF ENERGY FROM A SINGLE SOURCE FOR A LOWER PRICE. You don t need various sources for different energy productions. CHP saves space and work. CUTS ENERGY BILLS CHP can save facilities considerable money on their energy bills due to its high efficiency, and it can provide a hedge against electricity cost increases. SAVES PRIMARY ENERGY CHP requires less fuel to produce a given energy output and avoids transmission and distribution losses that occur when electricity travels over power lines. DECARBONIZES ELECTRICITY, HEAT AND COLD Because less fuel is burned to produce each unit of energy output and because transmission and distribution losses are avoided, CHP reduces emissions of greenhouse gases and other air pollutants. Also CHP does not produce any odor or visible smoke. RELIABILITY BENEFITS Unreliable electricity service represents a quantifiable business, safety, and health risk for some companies and organizations. The total length of the gas distribution network will be 335 km long 3 with consumption of 220 million m of natural gas. Thanks to gasification, the real estate owners and residents will get the possibility to produce elektricity, heat and cold using CHP based system, with significantly lower costs. Extensive gasification of Israel along with the construction of decentralized sources (CHP and CCHP) will bring security increase and stability of electricity supply. Customers will gain better control over their own costs of all energies supply (electricity, heat, cold). DECARBONISING ENERGY CHP means an effective way of decarbonising energy not only for Israel. CHP is a future for transition away from fossil fuels. CHP reduces carbon emissions of electricity supply. CHP decarbonises heat and cold production. CHP reduces environmental footprint of energy production. CHP generates electricity localy to be consumed when needed. CHP helps to balance renewables and thus reduces carbon production. DECENTRALIZES ENERGY PRODUCTION CHP is an on-site resource and is designed for continuous operation even in the event of a disaster or grid disruption. CHP technology is much less limited by geographic specifics. PROMOTES LOCAL ECONOMIC GROWTH Local production of energy and using local resources and manpower promotes economic growth.

8 MICRO AND CHP UNITS CHP engines and gensets range from 50 kwe to 14 MWe The gas engines run on natural gas or biogas. Complete solutions such as container cogeneration power plants or turnkey systems: perfectly matched and ready for immediate deployment. System solutions and components: online controllers, catalytic converters, gas conditioning for biogas systems, heat converter. Plant engineering: planning, configuration, installation, service your one stop shop provider for solutions that are perfectly geared to your needs and individual requirements. Services: We're also there for you after the sale as the availability of a system is a key success factor for its efficiency. That is why you can count on ADI quality in advanced service concepts, particularly in customer service, maintenance and service, logistics, training as well as financing. Micro CHP CHP UNITS kw 200 kw - 14 MW WHAT COMPONENTS MAKE UP AN ADI COGENERATION POWER PLANT? Gas engines to drive the generator Generator for power production Heat exchanger systems for the recovery of heat energy from exhaust, engine waste heat and oil circuits Various electrical switching and control equipment for power distribution and engine management Hydraulic installations for heat distribution

9 CHP TECHNOLOGY PLACEMENT TURNKEY SYSTEMS ENABLE QUICK AVAILABILITY AT LOW COSTS Spacing & Size depend on particular energy demands and related systems setup. For example, minimum space requirements for the CHP engine in a 1 MW energy centre is 8,5 x 4,4 x 5,2 m (L x W x H). The weight is approx. 19 tons. Some additional space is required for the rest of the designed technology (water treatment, central cooling, transformer, substation, etc.) as well. PERMITTING In case of suitably designed buildings with large enough space for CHP unit, there are no restrictions to the construction or development of buildings or any specific limitations. There are four factors to consider size, weight, noise level and vibration. Dimensions depend on capacity of the unit. Weight starts at 0,5 ton for small units up to tens of tons for the large ones. CHP units meet noise and pollution limits for installation in residential areas, designated building or in residential building itself. The CHP unit is fitted with vibration absorption padding and properly executed design of the facility limits outside noise to as low as 30dB. THE APPEARANCE The facility can have any desired form, if the form meets local regulations for given type of structure and operation. In general, there is not any limitation for outside appearance. Energy centre can fully adopt design style of surrounding buildings or safety requirements such a concrete housing of a shelter type. It can be steel construction, brick based construction, disguised as part of nature or surrounding environment or any combination of above mentioned. As an attractive option the system or set of systems can be located under the ground in a specially constructed technical space. Every CHP facility needs a stack. The height depends on the environment assesment study but in most cases, a stack higher than 10 meters is never required and it can be reduced in most situations by taking various meassures or installing additional accessories within the system. If needed, the stack construction can be also disguised as part of surrounding environment. SYSTEM LOCATED ON A ROOF OF A BUILDING Limit for installation of energy equipment onto a rooftop of a building is the statics and dynamic load of the roof. There has to be an access to the roof from outside for crane or any other means of manipulation that can place the unit onto the rooftop or allow service engineers to conduct service whenever required. SYSTEM LOCATED INSIDE OF A BUILDING The space requirements example - 4m by 2m and height up to 2m for placement of 200kW CHP unit, weighting 3,4 tons. CONTAINERIZED SOLUTION SYSTEM LOCATED OUTSIDE OF A BUILDING Welded steel construction with smooth wall panels and space-saving heat and noise insulation; noise-insulated, air-conditioned control room.

10 CASE STUDY SELECTED REFERENCES Project "3T" - supply of heat and electricity to Municipality in Moravia, northern region, The Czech Republic Eric van den Eynde Greenhouse Greenhouses Ecogen Commercial Caterpillar CHP instalation: 2* 600 kw, 2 * 800 kw, 2 * 999 kw. Maximum electric output of the project (MW e): 4,798 MW e. Maximum heating output of the project (kw th): 5,389 MW th. 3 3 Storage tanks (m ): 523 m. Annual heat supply from CHP units: MWh. th Annual electric supply from CHP units (MWh e): MWh e. Efficiency of the entire project including heat accumulation: approx. 91%. Number of residents supplied by heat = approx On-site power generation providing combined heat and power to a 4-hectare greenhouse. Plainville Electric Products Company Commercial On-site power generation solutions, powered by natural gas using CHP to be completely independent and safe in terms of electricity, heat, cooling supply. Mercedes Benz Industrial ECONOMIC BENEFITS: Lower heat / cold prices for residential areas (savings up to 7 to 10%), Supply of cheaper electricity for companies. The project is located in areas with high unemployment and with low economic performance. The implementation of the project has created more employment opportunities in the region, co-operation with local firms as contractors has been established, local development is being promoted, taxes are paid locally (tax money will remain where it is most needed). The combination chiller/heater units provide 95 percent of the facility's heating and cooling needs. By harnessing this waste heat, the system efficiency is increased from 35 percent to about 70 percent Markham District Energy Utilities 8MW prime power for critical manufacturing line with CHP application, heat exchangers, absorption chillers City of Encina Wastewater Cat CG natural gas generator set installed at Markham District Energy's Birchmount Energy Centre for its combined heat and power (CHP) application. The biogas produced by the water treatment process at the Encina Water Pollution Control Facility fuels four Cat G3516 engine generator sets for renewable energy.

11 ABOUT THE ADI GROUP active development investments We are Czech republic based investment and management group, founded in 1990s. With strong focus on energetics, heating industry and associated activites. We also invest in innovative projects (environment-friendly waste management, production and implementation of highly efficient amorfous distribution transformers to existing electric transmition systems, unique growing methods etc.) and we realize turnkey energetics as well as provide energy services in the form of Energy Contracting and also invest in real estate projects. Our activities also reach into LED lighting field mainly for municipalities and industrial companies. Active Development Investments A.D.I. (Israel) Ltd. Tel Aviv, Israel Ran Shavit Tel.: Active Development Investments a.s. Prague, the Czech republic Martin Hodan Tel.: