I Power Energy Systems BIO Gas Program. DoE & State of Indiana Waste-to-Energy Workshop Peru, Indiana June 6,2006

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1 I Power Energy Systems BIO Gas Program DoE & State of Indiana Waste-to-Energy Workshop Peru, Indiana June 6,2006

2 I POWER ENERGY SYSTEMS The Original Company Was Spun Off From Remy International In 2000 To Explore Other Markets For The Technologies Growing Out Of The Development Of Hybrid Electric Vehicles Stationary and vehicular electrical systems share common electrical components. Hybrid Electric Vehicle Generator Power Electronics Motor Traction Prime mover (engine) Energy storage (Battery) & Energy management Power electronics/inverter Distributed Generation Generator Power Electronics Power out

3 Combustion Air Ventilation Air Emissions Radiated Heat Product Architecture Electric Load Thermal Load Fuel Combined Heat and Power Unit Engine Alternator Heat Recovery Controls System Controls Environment

4 General Motors internal combustion, medium duty 8.1 liter V8 Mass produced medium duty block for optimum life-cycle cost performance. Natural gas fueled engine utilizes proprietary materials and components designed to enable GM s mediumduty block to perform extreme duty (high durability Active fuel system control using Mega-jector and controller for optimizing emissions, provided by EControls. (exclusive use in our market) Proprietary Technologies the core of improved economics

5 Current I Power Applications

6 FLAGSHIP ENTERPRISE CENTER ANDERSON, IN The Flagship Enterprise center is one of Several business incubators and economic development facilitation centers supported by the State of Indiana. It houses the Center of Excellence for Energy Research. Two ENI 85 Units operating in 170KW Multi-Pak mode supply the integrated electric needs of the Enterprise Center

7 Historic Natural Gas Prices $/MMBTU

8 Bio Gas the Emerging Opportunity Landfill Gas Waste Water Treatment Digester Gas Animal Waste Digester Gas

9 THE INTEGRATED ANAEROBIC DIGESTER and POWER SYSTEM FLOW DIAGRAM Electricity for Farm or Sale Anaerobic Digester BIO Gas Liquid Liquid & Solids Separator Heat Hot Water for Farm Cogeneration Unit Byproducts

10 Biogas Chemistry Typical Values Municipal WWTP Industrial Waste Animal Manure Landfill Gas Sludge Digestion Digestion Digestion Methane CH % 60-80% 50-70% 45-60% Carbon Dioxide CO % 20-40% 30-50% 40-55% Water vapor H2O (Saturated) 1-4% 1-4% 1-4% 1-2% Hydrogen Sulfide H2S and 150-3,000 Up to 30,000 Up to 5, ,000 Totally reduced Sulfer TRS ppmv ppmv ppmv ppmv Siloxanes HCSi 10 ppmv negligible negligible 10ppmv Hydrocarbons HC & Hydrogenated negligible negligible negligible <2,500 ppmv Hydrocarbons HCX <100 ppmv Nitrogen N2 <5% negligible <5% <10% Oxtgen O2 <1% negligible <1% <3% Source: DoE & EPRI

11 The Impact of Low Btu Bio Gas CH 4 60% CO 2 40% Efficiency Power Natural Gas 31% 100% BIO Gas 24% 70% Based on test data from a normally aspirated engine operating on simulated BIO Gas and Pipeline Gas.

12 Options Addressing Low Btu Gas Properties Options Standard Cogen Package Modify Engine Internal Configuration Modify Engine Turbocharged Treat Gas to Remove CO2 (+) Standard Production Unit (-) Reduced Power (-) Reduced Fuel Efficiency (+) Partial Power Restoration (-) Cost of Modification (-) Reduced Durability (+) Full Power Restoration (-) Cost of Modification (-) Reduced Durability (+) Full Power Restoration (+) Possible CO2 Capture (-) Cost of Gas Processor

13 PRODUCTION AND DEVELOPMENT TEST CELLS I POWER FACILITIES ARE THE MOST COMPLETE AND MODERN IN THE INDUSTRY TEST CELLS WERE FUNDED VIA COMPANY & A STATE 21 ST CENTURY GRANT.

14 I Power BIO Gas Simulator Rig for Development Testing

15 The I Power BIO Gas R&D Program Internal Engine Mods Test in Process Turbocharged Engine Components in Build Up Chemical-Vortex Gas Conditioner Proposal Submitted Indiana Dairy Demonstration 2 nd Half of 2006

16 Contact Information I POWER ENERGY SYSTEMS, LLC 4640 DR. MARTIN LUTHER KING JR. BLVD. ANDERSON, IN PHONE: FAX: MIKE HUDSON CHAIRMAN AND CEO PHONE: mhudson@ipoweres.com TERRY PAHLS PRESIDENT AND COO PHONE: tpahls@ipoweres.com