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2 Peak Electricity is Expensive On-peak: 2-6 times more expensive than off-peak Demand charge: 50% of commercial energy bill Building cooling is the primary driver for high prices

3 Current Toolbox Insufficient

4 NETenergy Solution Thermal battery to shift demand and peak shaving Patented material (Phase change composite) Integrates into the Smart Grid Optimal temperature for rooftop air conditioners Black Ice Technology No additional cooling equipment and does not degrade

5 How it Works Charging Discharging Existing AC Unit NETenergy TES Battery Small Commercial Building 1. AC runs at night 2. Thermal 3. Thermal battery cools when prices and battery building when prices demand are low becomes fully and demand are high charged

6 Proven Prototype Prototype Testing Complete Today 2H 2016 Full Scale Prototype Development and HVAC Integration w/ DOE 1H 2017 Prototype Testing at DOE facility and product refinement Commercial Development Bench scale prototype 2H 2017

7 Intellectual Property Patents granted: Technology, manufacturing, optimization of phase change composite material UL Certified: Military, stationary, aerospace Patent filed: Smart grid integration for use in heating and cooling applications

8 Unlock New Value Streams Load Shifting (Ice Storage) Peak Shaving (NETenergy) $17,000 Installed Cost 30 Cooling Tons Required (105 kwh) Payback in 5 to 7 years Low ROI (10% and less) $9,000 Incremental Cost 14 Cooling Tons Required (50 kwh) Payback in 2 to 3 years High ROI (30% and more)

9 Unit Economics Unit Profit Building Owner Savings Gross Margin 30% ROI Simple Payback Unit Revenue $9,000 COGS $6,300 Incremental cost over standard HVAC unit COGS includes material, labor and transportation costs % 2-3 years HVAC Compressor Savings $2,000 Utility Rebates $5,316 Yearly Electricity Savings $1,269 HVAC unit savings from smaller compressor Utility rebates per peak kw reduction Electricity savings includes demand charge reduction and TOU arbitrage

10 $3.4 Billion Annual Market Opportunity Two Million Commercial Buildings w/ Rooftop AC Units 1 50% of Buildings Have High Demand Charges 2 Five Air Conditioner Units Per Building Average 3 Five Million Potential Replacements 330,000 AC Units Replaced Yearly (15 year replacement cycle 4 ) 45,000 AC Units For New Construction 5 $9,000 Per Unit Incremental Revenue $3.4 Billion Annual Potential Market DOE Building Stock GTM Research Minnesota Dept. of Commerce Division of Energy Resources ASHRAE estimate for 15 year replacement cycle NETenergy estimate based on DOE building stock report

11 Growth and Exit Strategy Initial Target Customer Growth Customer Exit Strategy Retail Chains Utility Distributed Storage Strategic Partner 100 s of sites per customer Similar building designs and consumption patterns Can aggregate savings across buildings in territory 1,000 s of sites per utility Peaker plant and T&D upgrade deferral $50 million or more in revenue for a single contract Provides sustainable competitive advantage Increases efficiency of HVAC units Opens new market opportunities for partner

12 Competition Product NETenergy Ice Energy Li-Ion (Tesla) System cost (Installed) - $/kwh $< $160 $500 System cost for small commercial peak shaving Cost effective for peak shaving? Cost effective for small commercial? Demand response ability? Use standard rooftop air conditioner chillers? Performance doesn t decrease over time $9,000 $17,000 $25,000 ü û û ü û û ü û ü ü û - ü ü û *Analysis for peak shaving of a quick service restaurant in Southern Cal Edison territory.

13 Experienced Team Said Al-Hallaj Founder and CEO CEO All Cell Tech Professor Chemical Engineering UIC All Cell Partners Mike Pintar COO Chicago Booth MBA 7 years Utility IT experience Siddique Khateeb R&D Lead MS Chemical Engineering - IIT 10 Years R&D Experience Hussein Armouti IT Lead Former CTO XALT Energy Project Lead Abu Dhabi Smart Meter

14 Funding Current $700k Seed $1M $250k Wells Fargo IN 2 Winner $250k IT Development $100k $40k $30k Pritzker Prize Winner Clean Energy Challenge 2 nd Place New Venture Challenge International Copper Association $300k $250k System Development Business Development $280k Other competitions and grants $200k Legal, Overhead

15 Thank You

16 Advisors Martin Eberhard Tesla Hal Stillman Intl. Copper Association George Crabtree Argonne National Labs Co-Founder First CEO of Tesla, currently venture advisor at Mayfield Fund Director Technology Transfer, Investor in start-ups for 20+ years Senior Scientist Winner of U of C award for distinguished performance twice Richard Cundiff Townsend Capital Mark Johnson Schneider Electric COO Investor in energy companies, helped launch XALT Energy Smart City Lead DOE, Johnson Controls, Energy Startups

17 Thermal Energy Storage Market Dynamics Energy prices vary significantly throughout the day. Consumption prices are often 2-6 times more expensive during the day than during the night. Demand charges are very high (Often 50% or more of the electricity bill). Utilities spend billions of dollars per year to maintain and build peaker power plants. Air conditioners use the most energy when prices are highest and when demand is the greatest.

18 SCE Utility Contracts California is requiring 1.3 GW of grid energy storage by Nov 2014, SCE announced the following contracts for 261 MW in energy storage. Energy storage contracts are worth $522 million. (Assuming market prices of $2,064 / kwh) Company Project MW Contracts NRG Energy Efficiency Onsite Energy Corporation Energy Efficiency Sterling Analytics LLC Energy Efficiency NRG Demand Response 75 7 SunPower Corp. Behind-the-Meter Renewable 44 4 Ice Energy Holdings, Inc. Behind-the-Meter Thermal Energy Storage Advanced Microgrid Solutions Behind-the-Meter BaXery Energy Storage 50 4 Stem Behind-the-Meter BaXery Energy Storage 85 2 AES In-Front-of-Meter BaXery Energy Storage AES Combined Cycle Gas Fired Generation Stanton Energy Reliability Center Peaking Gas Fired Generation 98 1 Onsite Energy Corporation Energy Efficiency 6 6 SunPower Corp. Behind-the-Meter Renewable 6 2 NRG Energy, Inc. In-Front-of-Meter BaXery Energy Storage NRG Energy, Inc. Peaking Gas Fired Generation Total Energy Storage

19 Energy Storage Initiatives

20 Technical Comparison System Li-ion AGM Lead Acid NETenergy TES Ice-Bear 30 Gravimetric Energy Density (Wh/kg) > Maximum Power (W/kg) Volumetric Energy Density (Wh/Lit) > Maximum Power (W/Lit) N/A Efficiency (%) % $/kwh < Cycles > 10,000 > 10,000 Calendar Life (yrs) >15 >15 Weight N/A N/A 2500 lbs 5400 lbs Size N/A N/A 6 x 5 x 3 8 x 5 x4