Energy Solutions Center February18, 2010; Dallas, TX David Cygan; Gas Technology Institute

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1 Hybrid Solutions Energy Solutions Center February18, 2010; Dallas, TX David Cygan; Gas Technology Institute ; 768

2 Gas Technology Institute Addressing Key Issues for the Energy Industry > Contract Research > Program Management > Technical Services > Education and Training > Over 1,000 patents > Nearly 500 products commercialized 2

3 Facilities and Staff Facilities: 18-acre main campus 28 specialized laboratories (280,000 ft 2 ) Pilot scale gasifier Pipe test farm 80 acre drilling test facility (OK) Offices in Washington DC, Houston, Birmingham Flex-Fuel Test Facility Staff of 250: Offices and Labs 70% are scientists and engineers Energy and Environmental Technology Center 3

4 Efforts aligned with the industry value chain SUPPLY DELIVERY CONSUMER Needs Secure, stable, competitive energy supply Expand and maintain infrastructure Improve affordability and applicability Strategic Focus Unconventional gas resources Gasification for alternative supply Safety Pipeline integrity Cost reduction Efficiency Product development and commercialization 4

5 Hybrid Technologies in the Energy Industry >Supply > Gasification > Biomass >Consumer > Water/space heating > Commercial/industry > Boiler > Combined Heat and Power (CHP) and micro CHP 5

6 Gasification Process Particle, Alkali Removal Hydrolysis, Acid Gas Removal Power CHP Fuel Treatment Gasification Trace Removal Synthesis, Upgrading Methanol Alcohols FT Diesel DME Hydrocarbon Reforming Shift Hydrogen Separation H 2 SNG GTI R&D Coal Biomass Coal and Biomass Biomass pretreatment, pyrolysis GTI U-GAS, RENUGAS, GPE bluegas, PWR Compact Gasifier Ultra-Clean GTI Catalysts, Tar Reforming Morphysorb, UCSRP, CrystaSulf (+DO) Ultra-Clean Membranes UCSRP, CrystaSulf-DO Ultra-Clean Catalyst 6

7 Multiple Routes to Renewable Energy From Biomass From Biomass Resource Agriculture Forestry Municipal waste Conversion Thermochemical Gasification Pyrolysis Biochemical Anaerobic digestion Alcohol fermentation Activated waste treatment Gas Cleanup / Upgrading Particles Tar, organics Sulfur NOx CO 2 Use Biopower Electricity Heat CHP Biofuels Methanol Ethanol/DME F-T liquids Pyrolysis liquids Hydrogen Bio-products Many 7

8 Residential Water Heaters... Exported Mobile Homes Large Retailers ~100k OEMs ~300k 4.7M Replacements 3.0M Shipped by Manufacturers 93M 9.3M Plumbers Wholesale 4.2M New Construction 1.2M Source: DOE 2000 Technical Support Document: Energy Efficiency Standards for Consumer Products 8

9 Hybrid Water Heaters 9

10 2010 Hybrid Water Heaters Grand Hall Rinnai A.O. Smith 10

11 2010 Hybrid Water Heaters-Tankless Combo Navien Condensing Tankless + The Heating Box The Heating box is a fully integrated heat transfer control station that takes hot water from one heat source and re-directs it as required to provide hydronic space heating applications and domestic hot water supples 11

12 2010 Hybrid Water Heaters-Tankless Combo Rinnai Condensing Tankless Plus Hydronic Air Handler Rinnai Combi Boiler 12

13 U.S. DOE Annual Energy Outlook >Residential and commercial building 36% total primary energy use 30% total greenhouse gas emissions >65% of energy prime application for solar thermal 46% heating 9% cooling 10% refrigeration >75% of residential and commercial buildings prime candidates for solar thermal 13

14 US Energy Flow 2007 (Quadrillion Btu) Energy from renewable sources less than 7 Quads Source: EIA Annual Energy Review

15 Cyprus Solar Thermal Installations 10,000 9,000 8,000 52,500 Total installed capacity: 86,322 GWth (2005) only flat plate and evacuated tube 7,000 6,000 5,000 GWth ,000 3,000 2,000 1, China USA Turkey Germ rmany Japan Israel Greece Brazil Austria Aust stralia India Italy Spain France

16 Traditional Solar Evacuated Tube Array Temperature Indicator Cold Water Inlet Hot Water Outlet Shutoff Valve B A C Mixing Valve 12V Pump Expansion Tank Air Vent Pressure Relief Valve Temperature Indicator Pressure Indicator Existing Gallon Natural Gas Water Heater 80 Gallon Solar Heat Exchanger Storage Check Valve Isolation Valve Drain 16

17 Hybrid Hot Water 17

18 Hybrid Space Heating 18

19 EQUINOX Heating System > System design Reduce/eliminate major components and cost > Inhibits use > Market growth > Low-cost materials Durability Compatible > Maintain flexibility for installation and improved performance 19

20 20

21 Existing solar thermal focused on opposite ends of spectrum > Most collectors address the low temp market 120F 200F Hot water/heating > Concentrating solar power (CSP) is the other end of range Power generation Troughs, F Central towers, 1200F Large, centralized plant 21

22 There are many uses for heat across the temperature spectrum Flat Plate & Conventional Evacuated Tube Trough Non- Evacuated Tube Trough Evacuated Tube Linear Fresnel Power Tower 122ºF 212ºF 392ºF 572ºF 1200ºF Paper finishing Cooking Industrial drying 2e absorption chilling Boiler feed water Mining Industrial hot water High temperature thermoelectric (wet cooling) Low temperature thermoelectric (dry cooling) Domestic hot water 22

23 Technology best in class >Combination of Vacuum tube collector Non imaging optical concentrator >Increasing portfolio Absorber technology High volume manufacturing 23

24 Test Loop NASA Research Center 24

25 GTI Test Facilities 25

26 Collector Performance Enables Multiple Attractive Applications Attractive Applications > Air conditioning o and space heating Absorption chillers Thermally driven air conditioning units > Most units currently driven by gas Can drive the more efficient double effect chillers > Commercial scale hot water Around 212F sterilization, cleaning > Dual fired > Industrial process heat Drying, food prep, mining, dairy, boiler feedwater > Other Desalination 26

27 Absorption Chilling > Only non-tracking collector that can drive a 2E chiller 302F minimum input temp 1.3 COP vs. 0.7 for 1E > Growing EU AC market primed for solar chilling Sunny Spain and Italy are 68% of ~$6B cooling market Factors driving solar thermal chilling aso also present in US > High energy prices > Efficiency awareness > Incentives/mandates mill m2 cooled European AC Market Trend ES IT FR DE

28 Commercial HW and Space Heating > Tremendous potential Although market has been lower temp commercial space poised for take off New Spanish mandate for solar thermal > 30 70% requirement > Suited for Northern climates/limited it roof space Vacuum fewer losses Higher temperature suitable for longer distances (district heat) Greater efficiency less collector area MWth 14,000 12,000 10,000 8, ,000 4,000 2,000 0 Collector capacity by type in 10 leading countries (2005) 47,250 China 18,845 USA Turkey Germany Japan Flat plate Evacuated tube Plastic collector Australia Israel Greecee Austria Brazil 28

29 Combination Systems > 400F can be split many ways Absorption chiller High temperature water/steam Cross-selling opportunities > Combi-system ideal for healthcare sector Need for high temp water/steam > Cleaning, sterilization Thermal chiller permits smaller backup generator 29

30 Target Application Water Heating > Commercial Lodging g About 53,500 lodging properties in the U.S. > 4.1 million rooms about gal of water per room per day 79% of all lodging facilities use centralized hot water heating systems > Potential > Standard tank type: 52% > Central boiler type: 37% To provide just 1% of the total t boiler capacity by solar thermal would require about 1 million m 2 of collectors 30

31 Target Application Water Heating > Commercial Hospitals Hospitals among the most energy intensive commercial buildings in the U.S. > 2.5 times the energy intensity of commercial office buildings (in 2007) > Total energy consumption for health care buildings 258 trillion Btu In 2007: hospitals spent > $5 billion on energy About 5,810* hospitals operating in the U.S. (new 2008 number: about 8,000) > About 1,900* are local, state, or federal facilities More than 57% (based on floor space) of all health care buildings use natural gas for water heating and space heating > Central boilers is the primary space heating equipment * EEA, Characterization of the U.S. Industrial/Commercial boiler population, May

32 Boiler Background > U.S. industrial and commercial steam boilers Consume over 6 quads of natural gas per year Wide range of steam uses from process steam to space heating > Installed base of steam boilers 75% are over 30 years old Average efficiency 76% Typical NOx emissions 85 ppmv Significant potential for improved technology 32

33 Advanced Boiler Technology >Maximizing steam generation efficiency for commercial and industrial boilers 94% fuel to steam efficiency i with novel heat and water recovery device 15% carbon emission reduction Ultra low NO x (sub 9 ppmv) Target: < 2 year payback Multiple field tests underway 33

34 There is a Need to Develop... >Integrated CHP packages that match A power generator (turbine) A low emission supplemental burner A waste heat user (boiler) >To improve energy efficiency and meet clean air requirements >An advanced burner Very low emissions... even with high-temperature turbine exhaust gas ( F) as an oxidant 34

35 ULN Supplemental Burner 7.06 million Btu/h STEG NOx 5.0 vppm Stack NOx 2.4 vppm 35

36 FlexCHP-65 System 36

37 warm-air system Features 95% AFUE efficient warm-air air furnace 1.2 kw generator Benefits Enhanced comfort Lower energy bills Electrical power to critical circuits it in grid failures Backup power Green technology Reduced greenhouse gas emissions 37

38 Transforming GTI into a company that solves the most important problems facing our industry, a company that truly makes a difference in the marketplace. gy g 38

39 Appendix 39

40 Expanding Energy Supply GTI s work in coalbed methane has helped to add this resource to the U.S. energy portfolio More than 40 years of experience in developing coal and biomass gasification systems 40

41 Reducing Energy Delivery Costs Nearly every directional drilling system on the market has GTI technology in it Plastic pipe performance testing, installation guides, field-failure catalog 41

42 Improving Energy Efficiency Major role in the development of advanced high- efficiency commercial food service equipment The Lennox Pulse Combustion Furnace boosted residential furnace efficiency from 50-60% to 94% in the early 1980 s 42

43 Developing Clean Energy Over 65 patents on high-efficiency, low-no x burners and systems to control emissions More than 40 years of experience in advanced hydrogen technologies Over 80 U.S. patents on fuel cell technology 43