Garrett Smith, PE c: e:

presented by Garrett Smith, PE c: 971.678.6932 e: gsmith@weesys.com to 18 September 2008 Seattle, Washington

4 GE Presenter Name Date 2007

5 GE Presenter Name Date 2030

Agenda Applications CHP & Waste to Energy - Where are Jenbacher engines used and why? Case Studies Project Examples with emphasis on high-efficiency Combined Heat & Power (CHP) and Renewable Energy Applications

Who is GE Jenbacher? 50 th Anniversary 2007 Jenbach, Austria Center for Global Excellence The year 2007 marks the 50th anniversary of GE Jenbacher s exclusive commitment to gas-only engines for power generation. During that time, the Global Center for Excellence in Jenbach, Austria has become the globally recognized clearinghouse for state-of-the-art technologies related to the use of a wide variety of synthetic gases, biogas, landfill gas, sewage gas, coal mine gas, and, of course, natural gas. With over 7,000 global installations including hundreds in the USA, GE Jenbacher remains the worldwide leader in custom, distributed CHP (Combined Heat & Power), high efficiency CoGeneration, renewable bioenergy, and sub-10 MW gas fueled power generation, holding over 38% of global market share.

Why Reciprocating Engines? Still the Most Efficient Prime Movers on Earth: 35-45% Electrical Efficiency Jenbach, Austria Center for Global Excellence Ideal for High Ambient Temperature & High Elevation Projects due to Positive Displacement (Otto Cycle) Relative Immunity to those variables {1/3 of derates associated with Gas Turbines (Brayton Cycle)}

Applications / Markets Industrial & Commercial CHP (distributed cogeneration and trigeneration) Hospital & University (district heating and cooling) Biogas from the Fermentation/Digestion of Organic Wastes (manures, food processing wastes) Landfill Gas Greenhouse CHP Coal Mine Methane Gas Syngas Gasified from biomass, MSW, TDF

Purpose: CHP Recycles Energy RecyclingEnergy.org Fuel Energy is Used Twice : Heat & Power

Energy Utilization Chart http://islandwood.org/img/llnl_energy_chart300.jpg

Cogeneration is Where Ecology & Economics Meet on Common Ground High Electricity Costs (Including Complex Geographical Transmission Constraints) + Increasing/Volatile Natural Gas Pricing Ideal Circumstances for Local, Efficient CHP Solutions that SIMULTANEOUSLY Conserve Resources & Save Money sustainableenergy projects that transcend the Jobs vs. Environment Rhetoric

CHPC or TRI- Generation Heat + Power + Cooling

Combined Heat & Power (CHP): Classic European Energy Model CLEAN. LOCAL. EFFICIENT. SAFE. RELIABLE. PROVEN. QUIET.

Why CHP in the Northwest? Economic Gain from Energy Efficiency 20-30% More Efficient than Gas Turbine Combined Cycle Plants (5,000-6,000 btu/kw-hr vs. 6,500-7,500 btu/kw-hr) Reduction in Air Pollution Displaces Emissions from fuel already being used for stand-alone alone heating in favor of cleaner-burning CHP equipment (40%-60% of CHP fuel requirement is displaced from less efficient Heating ting-only systems) Local Power Generation at the Point of Use Defers Need for New Transmission Lines

Reliability = Value Electrical AND Thermal Redundancy as part of base design, CHP system doubles as emergency generation Grid Connected Operations via FERC Cogeneration Laws Continuous Duty, Globally Proven Machinery with International & Local Support

Numerous Far-Reaching Benefits of Higher Energy Efficiency Reduced Heating Costs For Thermal District Heating Host Businesses (5-25%) Reduced Urban Air Pollution via Cleaner CHP Technologies HIGH QUALITY EMPLOYMENT: Short-Term Construction Jobs Long-Term Operating Careers Increased Gas Distribution Sales by 40% (Bringing Clean Fuel to Point of Use) Zero Capital Cost to Local Utility (if 3 rd Party Owned) For Load Growth Support And Clean, Local, Efficient Power Generation Resource

Local CHP is a Low-Cost Resource

BIOCHP: Diagram of a Typical Anaerobic Digestion - Biogas Energy System

Organic Waste Sequestration for Power Generation: Best Worldwide VALUE for GHG Reduction Output Required to reduce 1 Million TPY of CO2 as compared to Coal Fired Boiler/STG Power Generation Method MW Required Installed Cost per MW, NET $ per TN CO2 Reduxn Solar PV 220 $3,500 $0.77 Wind 370 $1,000 $0.37 Nuclear 130 $2,500 $0.33 Combined Cycle Natural Gas 190 $1,000 $0.19 Organic Waste Digestion / Biogas 22 $3,000 $0.07 Copyright Western Energy Systems 2007

# 1 Application: Hospital CHP Location: Suburban Multnomah County Hospital Size: CHP System Size: Emissions Reduction: 1,000 bed 630 kw 3,000 TPY GHG System Design: (1) 0.6 MW GE Jenbacher J312 Natural Gas IC Engines Heat Recovery for Hot & Chilled Water Production Design / Construction Complete 4 / 12 months from funding Financial Transaction: PPA: retail offsets Heat Recovery to offset natural gas purchases Financial Performance $2 Million Installed Cost $0.5 Million Annual Gross Operating Savings 25% IRR NPV (10%, 15 years): $4 Million

# 2 Application: Pharmaceutical CHP Location: Palo Alto, CA Property Size: CHP System Size: Emissions Reduction: 20 Acres 5,600 kw 10,000 TPY GHG System Design: (4) 1.4 MW GE Jenbacher J420 Natural Gas IC Engines Heat Recovery for Hot & Chilled Water Production Design / Construction Complete 4 / 16 months from funding Financial Transaction: Build/Own/Operate/Maintain Services provided 20 year ESCO Agreement No cash or balance sheet commitment by host PPA direct to Host Facility Financial Performance $9 Million NET Installed Cost $5 Million Annual Gross Op. Revenue $3 Million Annual Net Operating Profit 25% IRR NPV (10%, 15 years): $13 Million

# 3 Application: District CHP Knik Arm Kogen Location: Anchorage, AK City Size: 200,000 CHP System Size: 4,800 kw Emissions Reduction: 20,000 TPY GHG System Design: (2) 2.4 MW GE Jenbacher J616 Natural Gas IC Engines Design / Construction Complete 4 / 12 months from funding Financial Transaction: Build/Own/Operate/Maintain Services provided 20 year ESCO Agreement No cash or balance sheet commitment by municipality PPA with ML&P at sub 5,000 btu/kw-hr heat rate for Tolling Financial Performance $6 Million Installed Cost $3 Million Annual Gross Operating Revenue $2 Million Annual Net Operating Profit 31% IRR NPV (10%, 15 years): $9 Million

#4 Application: WASTEWATER TREATMENT PLANT Location: Portland, Oregon Urban Size: 1,000,000 people CHP System Size: 1,700 kw Emissions Reduction: 50,000 TPY GHG System Design: (2) 850 kw GE Jenbacher J316 Filtered Sewage Gas IC Engines Mandated Digester System Design / Construction Complete 8 / 18 months from funding CHP System provides heating to digester tanks Financial Transaction: Project Owned by Municipality along with other WWTP Infrastructure Electricity Savings: Retail Electricity Offset (PGE) Funded via traditional Municipal Bonding Financial Performance $6 Million Installed Cost $2 Million Annual Gross Operating Revenue $1.5 Million Annual Net Operating Profit 26% IRR via 5% Bond Finance NPV (10%, 15 years): $17 Million

# 5 Application: LANDFILL GAS Location: Santa Cruz, CA Urban Size: CHP System Size: Emissions Reduction: 1/4 Million people 2.8 MW 50,000 TPY GHG System Design: (2) 1, 400 kw GE Jenbacher J420 Filtered Landfill Gas IC Engine LFG to Energy Financial Performance $4 Million NET Installed Cost $2 Million Annual Gross Utility Sales $1.5 Million Annual Net Operating Profit 33% IRR NPV (10%, 15 years): $7 Million

# 6 Application: FISH PROCESSING WASTE Location: Dutch Harbor, Alaska Waste Quantity: CHP System Size: Emissions Reduction: 10,000 TPY including Nets 1.5 MW 150,000 TPY GHG via offset diesel power generation System Design: (2) 1 MW GE Jenbacher J320 Filtered Syngas IC Engines Graveson Energy Management Thermal Cracking Gasification Modules Financial Transaction: Build/Own/Operate/Maintain service provided by New York-based Company 20 year MSW Tipping Fee Arrangement with Borough No cash commitment by host town PPA via local utility (City of Unalaska) Cogeneration Host: Adjacent Fishing Port Financial Performance $8 Million NET Installed Cost $4.5 Million Annual Gross Operating Revenue $3.5 Million Annual Net Operating Profit 45% IRR NPV (10%, 15 years): $22 Million

#7 Application: MSW & TDF Conversion Location: Fairbanks, Alaska Urban Size: CHP System Size: Fuel Input: Emissions Reduction: 100,000 people 9.5 MW 80,000 TPY (200 TPD) 150,000 TPY GHG System Design: (4) 2,388 kw GE Jenbacher J620 Filtered Syngas IC Engines Graveson Energy Management (GEM) Thermal Cracking Gasification Modules Financial Transaction: Build/Own/Operate/Maintain service provided by New York-based Company (Emerald Power Corporation) 20 year MSW Tipping Fee Arrangement with Borough No cash commitment by host PPA via local utility (Golden Valley Electric Association) REC & GHG Credits via Brokerage Agt Cogeneration Host: Adjacent Wood Products Mill Financial Performance $29 Million NET Installed Cost $8 Million Annual Gross Operating Revenue $6 Million Annual Net Operating Profit 22% IRR NPV (10%, 15 years): $46 Million

#8 Application: Beverage Processing Waste Location: Southern California Wastewater Flow: COD: CHP System Size: Fuel Input: Emissions Reduction: 1.25 MGD 60,000 lb/dy 1 MW Brewery Waste 50,000 TPY GHG System Design: (2) 540 kw GE Jenbacher J312 Filtered Syngas IC Engines UASB Anaerobic Digestion System High Rate: HRT ~ 12 hours Financial Transaction: Turnkey Service provided by CA-based Company PPA via local utility (So Cal Edison) REC & GHG Credits via Brokerage Agt Cogeneration Host: Brewery Operation Financial Performance $8 Million NET Project Installed Cost $3 Million Annual Gross Operating Revenue/Savings $2.5 Million Annual Net Operating Profit 24% IRR NPV (10%, 15 years): $16 Million

#9 Application: Tire Derived Fuel Location: Burns, Oregon Fuel Input: Power Plant Size: Emissions Reduction: 4 MM Tires/Year 10 MW 500,000 TPY GHG System Design: (5) 2.2 MW GE Jenbacher J620 Syngas-Fueled IC Engines Financial Transaction: BOOM Service provided by NY-based Company PPA via regional utility Reduced Disposal Costs WHILE Making Energy v. Landfilling Cogeneration Host: adjacent manufacturing businesses Financial Performance $22 Million NET Project Installed Cost $7 Million Annual Gross Operating Revenue $6 Million Annual Net Operating Profit 27% IRR NPV (10%, 15 years): $38 Million

#10 Application: Urban District CHP Location: Portland, Oregon Fuel Input: Power Plant Size: Emissions Reduction: Natural Gas 6 MW 60,000 TPY GHG System Design: (2) 3 MW GE Jenbacher J620 IC Engines with complete Engine Block + Exhaust Heat Recovery for Heating / Cooling Financial Transaction: QF Power Sales to Short & Constrained Utility REC & GHG Credits via Brokerage Agt Cogeneration Host: Urban Tenants (Industrial, Commercial, Residential) Financial Performance $7 Million NET Project Installed Cost $2 Million Annual Gross Operating Revenue/Savings $1.5Million Annual Net Operating Profit 17% IRR NPV (10%, 15 years): $11 Million

#11 Application: Biomass Gasification Location: Rural Alaska Fuel Input: Power Plant Size: Emissions Reduction: 15 TPD woody biomass 500 kw 25,000 TPY GHG diesel power generation offsets System Design: 500kW GE Jenbacher J316 IC Engine for Woodgas Operation with gas filtration and contaminant knockout controls Proven European biomass gasification technology Biomass Engineering, Ltd. (UK) with over 17 operating plants Financial Transaction: Offset Power Purchases from Diesel Driven Power Plants REC & GHG Credits via Brokerage Agt Cogeneration Host: District Heating Jobs and Revenues from Biomass Collection and Plant Operations STAY LOCAL in RURAL ALASKA Financial Performance $3.5 Million NET Project Installed Cost post State Grant $2.5 Million Annual Gross Operating Revenue/Savings $2 Million Annual Net Operating Profit 38% IRR NPV (10%, 15 years): $9 Million

# 12 Application: Resort CHP Location: Northern California Resort Size: CHP System Size: Emissions Reduction: 85 Acres 2,800 kw 5,000 TPY GHG System Design: (2) 1.4 MW GE Jenbacher J420 Natural Gas IC Engines Heat Recovery for Hot Water Production Design / Construction Complete 4 / 12 months from funding Financial Transaction: Build/Own/Operate/Maintain Services provided 20 year ESCO Agreement No cash or balance sheet commitment by host PPA direct to Host Facility Financial Performance $7 Million NET Installed Cost $3.25 Million Annual Gross Op. Revenue $2.5 Million Annual Net Operating Profit 27% IRR NPV (10%, 15 years): $13 Million

# 13 Application: DAIRY Location: Willamette Valley Dairy Size: CHP System Size: Digester Capacity: Imported Organic Waste: Emissions Reduction: 2,500 Head (Holstein Cows) 1 MW 75,000 gpd 15,000 gpd (regional substrates) 25,000 TPY GHG System Design: (1) 1 MW GE Jenbacher J320 Filtered Biogas IC Engines Washington Manure Processing + German Digester Fiber Processing by ORGANIX FibeRite (w/ PolyFlex / AgBag) to exceed OR & CA In Vessel System Requirements Design / Construction Complete 4 / 9 months from funding Financial Transaction: Build/Own/Operate/Maintain Services provided 20 year Animal Waste & Land Lease Agreement No cash or balance sheet commitment by host dairy Fiber Sales under Long Term Agreement with ORGANIX PPA via FERC QF with PGE REC & GHG Credits via Brokerage Agt State DoE Business Energy Tax Credit Pass-Thru Cash Rebate Financial Performance $3.5 Million NET Installed Cost (post BETC) $2 Million Annual Gross Operating Revenue $1.5 Million Annual Net Operating Profit 31% IRR NPV (10%, 15 years): $9 Million

# 14 Application: LANDFILL GAS (HYBRID) Location: LA Basin Urban Size: CNG System Size: CHP System Size: Fuel Input: Emissions Reduction: 7 Million people 5,000 GPD for Public Transit 1 MW for parasitic energy loads 3 Million TPY (8,500 TPD) 50,000 TPY GHG (CHP System Offset) System Design: (1) 1,060 kw GE Jenbacher J320 Filtered Landfill Gas IC Engine Provides Parasitic Electrical & Thermal Energy to on-site CNG Processing Facility CHP Financial Performance $2 Million NET Installed Cost $800 Thousand Annual Gross Utility Savings $700 Thousand Annual Net Operating Profit 33% IRR NPV (10%, 15 years): $6 Million

- Thank You for Your Attention Power Generation using GE Jenbacher Engines Represents the Future of Industrial & Socially Responsible Energy Solutions for the Whole World