Turboden ORC technology for the wood industry. 12 Wood technology Conference June , Opatija, Croatia

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Turboden ORC technology for the wood industry 12 Wood technology Conference June 1-2 2015, Opatija, Croatia Doc.: 15-COM.P-12-rev.0 Update: 01/06/2015

Today s topics What the ORC is ORC reference plants District heating Pellet Industry Tri-generation Why Turboden ORC Innovation in ORC 2

What the ORC is Biomass Heat recovery Waste to energy Geothermal electricity heat Turboden designs, develops and maintains turbogenerators based on the Organic Rankine Cycle (ORC), a technology for the combined generation of electric power and heat from various renewable sources, particularly suitable for distributed generation. Solar Turboden solutions from 200 kw to 15 MW electric per single unit 9

Organic Rankine Cycle: Thermodynamics Temperatur e Turbine Electric Energy Generator Heat carrier Entropy Evaporator Pump Pre-heater Cooling medium Condenser The turbogenerator uses the heat carrier (e.g. hot temperature thermal oil) to pre-heat and vaporize a suitable organic working fluid in the evaporator (8 3 4). The organic fluid vapor powers the turbine (4 5), which is directly coupled to the electric generator through an elastic coupling. The exhaust vapor flows through the regenerator (5 9) where it heats the organic liquid (2 8). The vapor is then condensed in the condenser (cooled by the water flow or other) (9 6 1). The organic fluid liquid is finally pumped (1 2) to the regenerator and then to the evaporator, thus completing the sequence of operations in the closed-loop circuit. 11

ORC provides significant advantages as compared to steam Temperature Steam Rankine Cycle Temperature Organic Rankine Cycle (ORC) Thermodynamic features and consequences Operation and maintenance costs High enthalpy drop Superheating needed Risk of blade erosion Entropy Water treatment required Highly skilled personnel needed High pressures and temperatures in the cycle Small enthalpy drop No need to superheat No supercritical pressure No risk of blade erosion Entropy Non-oxidizing working fluid with no corrosion issues Minimum personnel and O&M (1) Completely automatic (2) No blow down Other features Convenient for large plants and high temperatures Low flexibility with significantly lower performances at partial load High flexibility and good performances at partial load High availability (average >98%) Possibility to work at low temperatures (90+ C) (1) Standard maintenance: 2-3 days per year (2) Fast start-stop procedure (ca. 20 min), partial load operation (down to 10% of nominal load) 13

Flexible and automatic One of the key points in the success of ORC technology is the capability to adapt to load variation easily and quickly ORC Partial Load Efficiency ORC Actual Efficiency / ORC Nominal Efficiency Cooling water temperature effect on cycle efficiency Gross electric efficiency Design Point Actual Load / Nominal Load Part load operation down to 10% of nominal load. Mantains 90% of cycle efficiency down to 50% of loading Turboden ORC units automatically adapt the cycle at the ambient temperature variations Water outlet temperature from condenser [ C] 10

How an ORC plant works Biomass furnace Hot streams from industrial processes Gas turbines Internal combustion engines Geothermal source Electric power (or mechanical) Cooling towers Water cooled condensers Air cooled condensers Heat source Direct exchange Heat carrier loop Thermal oil Pressurized water Saturated steam Heat exchanger Organic Rankine Cycle Heat rejection system Thermal users Industrial process District heating Absorption chiller 8

District Heating Networks - schema WITHOUT ORC BIOMASS BIOMASS POWERED BOILER cold water WITH ORC BIOMASS hot water BIOMASS POWERED BOILER HEAT USER Thermal oil ORC Electric power cold water hot water HEAT USER

District Heating Networks reference plant Model: Turboden 10 CHP Split Client: Rinnova Energia Start-up: August 2014 Location: Sospiro - Italy Fuel: Wood chips Electrical production: 999 kwe Thermal use: hospital Thermal power: 4000 kwth Water temperature: 65-85 C Boiler supplier: Uniconfort Context / Special Feature District heating - Hospital thermal user: 9.5 GWh th /year Pellet Plant under construction - Pellet production capacity: 4 t/h

Sawmills Electric power TRUNKS SELECTION BARKING BIOMASS POWERED BOILER bark sawdust Thermal oil PROCESSING ORC cold water PRODUCT PACKAGING DRYING hot water

Sawmills reference plant Model: Turboden 18 CHP Split Client: Vrbovsko Eko Energija d.o.o. Start-up: August 2015 Location: Vrbovsko - Croatia Fuel: Wood chips Electrical production: 1862 kwe Thermal use: timber drying kilns Thermal power: 7800 kwth Water temperature: 60-90 C Boiler supplier: Polytechnik Context / Special Feature Timber drying kilns - capacity: 3.6 t/h 30.000 t/year

Wood Pellet Production - schema BIOMASS POWERED BOILER Thermal oil ORC Electric power cold water TRUNKS PELLET READY TO BE PACKAGED BARKING CHIPPING AIR COOLING/ DEDUSTING Pellet MILLING SELECTION/ SORTING PELLET MAKING PRESS Suitable granulometry UR 40% hot water UR < 13% BELT DRYER DEDUSTING/ SELECTION/ REFINING 12

Wood Pellet Production reference plant Model: Turboden 10 CHP Split Client: Pelet Grupa d.o.o. Start-up: February 2014 Location: Novska - Croatia Fuel: Wood chips Electrical production: 999 kwe Thermal use: drying belt in pelletisation process Thermal power: 4000 kwth Water temperature: 60-80 C Boiler supplier: Kohlbach Context / Special Feature Pellet production process - Max pellet production: 6t/h - Hot water to dry saw from 50% to 10% Application Pellet - Biomass boiler: 6 kwth - Cogeneration with ORC: 4 kwth 999 kwe (brut); 950 kwe (net) - Pellet system supplier: Kahl 13

CCHP Combined Cooling Heating Power BIOMASS BIOMASS POWERED BOILER Thermal oil cold water hot water ELECTRIC POWER DISTRICT HEATING USE IN PUBLIC BUILDING, HOTEL, ORC cold water ABSORPTION CHILLER COOLING SYSTEM Large public buildings airports, shopping centers, etc. - can exploit hot water 24/7!

CCHP Combined Cooling Heating Power reference plant Context / Special Feature Heathrow - London main airport The airport achieving the Carbon Trust Standard Company Space Area: 20 000 m2, 100 000 m3 Thermal power: 75% heat and 25% to chiller Thermal usage: heat and cooling to Terminals T2a and T2b and heat only to Terminal T5 Reason for Tri-generation: biomass-fuelled combined cooling and heating (CCHP) power plant, reducing the building s carbon footprint of the airport overall, by at least 40 percent, by using renewable sources of energy. Specificity CCHP - Fuel: biomass - Type of biomass: waste clean wood - Boiler supplier: VAS - Thermal oil boiler capacity: 9,790 kw - Cogeneration through ORC - Cooling power produced by chiller - Chiller supplier: HETCo Energy management due to: Photovoltaic Solar panels, rain water harvesting system reuses 85% of all the rainwater that falls on the Terminal 5 site, recycling or composting 70% of its waste by 2020. ORC characteristics Model: Turboden 18 CHP Split Client: Morgan Sindall plc Start-up: May 2014 Location: Heathrow, London, UK Electric power generated: 1,862 kw Thermal power application: space heating/cooling Thermal power generated: 7,851 kw Water temperature: 55-95 C

Turboden Reference Plants in Croatia PANA - Turopolje Startup 2015 ORC 10 CHP Split Power 999 kwe Water temp. 60 80 C Description Sawmill Pelet Groupa - Novska Startup 2014 ORC 10 CHP Split Power 999 kwe Water temp. 60 80 C Description Pellet production plant Vrboscsko Eko Energija - Vrbovsko Startup 2015 ORC 18 CHP Split Power 1862 kwe Water temp. 60 90 C Description Timber drying kilns Spin Valis - Pozega Startup 2015 ORC 14 CHP Split Power 1450 kwe Water temp. 60 80 C Description Sawmill / wood drying Lika Energo Eko - Ubdina Startup 2012 ORC 10 CHP Split Power 999 kwe Water temp. 60 80 C Description Pellet production plant

About Turboden Turboden is a leading European company in development and production of ORC (Organic Rankine Cycle) turbogenerators. This state of the art equipment generates heat and power from renewable sources and heat recovery in industrial processes. The company was founded in 1980 in Milan by Mario Gaia, Associate Professor at Politecnico di Milano, teaching Thermodynamics, Renewable Energy and specifically studying ORC systems. At present Prof. Gaia is Honorary Chairman. A number of his former students are key persons in the Company and the whole Company is permeated by innovative and research oriented spirit. Turboden has always had a single mission: to design ORC turbogenerators for the production of heat and electrical power from renewable sources, while constantly striving to implement ORC technical solutions. In 2009, Turboden became part of UTC Corp., a worldwide leader in development, production and service for aero engines, aerospace drive systems and power generation gas turbines, to develop ORC solutions from renewable sources and waste heat worldwide. In 2013 UTC exits the power market forming strategic alliance with Mitsubishi Heavy Industries. In 2013 Mitsubishi Heavy Industries acquires from UTC Pratt & Whitney Power Systems (now PW Power Systems, Inc.) and the affiliate Turboden. Today Turboden S.r.l. and PW Power Systems, Inc. are MHI group companies to provide a wider range of products and services for thermal power generation systems. In 2013 Turboden s Quality Management System gets certified to ISO 2

35 Years of Experience 2013 - MHI acquires the majority of Turboden. Italian shareholders stay in charge of management 1980 - Founded by Mario Gaia, professor at Politecnico di Milano 1998 First ORC biomass plant in Switzerland (300 kw) 2000 s - ORC biomass plants in Europe Today - Over 300 plants in the world, 240 in operation, 200 employees, 100 M turnover (2012) 1990 s First ORC projects in solar, geothermal and heat recovery applications 2009 - United Technologies Corp. (UTC) acquires the majority of Turboden s quotas. PW Power Systems supports Turboden in new markets beyond Europe. 100 plants sold 3

Turboden a Group Company of MHI Energy & Environment the largest segment of MHI over $12 billion (in fiscal 2013) Mitsubishi Heavy Industries is one of the world's leading heavy machinery manufacturers, with consolidated sales of over $32 billion (in fiscal 2013). Foundation July 7, 1884 Energy & Environment Providing optimal solutions in the energy-related fields of thermal power, nuclear energy and renewable energy in different environmental areas and for chemical plants & other industrial infrastructures elements. Commercial Aviation & Transport Systems Delivering advanced land, sea and air transportation systems, including civilian aircraft, commercial ships and transit networks. Machinery, Equipment & Infrastructure Providing a wide range of products that form the foundation of industrial development, such as machine tools, material handling, construction machinery, air-conditioning and refrigeration systems. Integrated Defense & Space Systems Providing advanced land, sea and air defense systems, including naval ships, defense aircraft, launch vehicles and special vehicles, as well as space-related services. 5

Turboden ORC Plants in the World 20

Innovation in Biomass Application Regulatory changes EU regulation ask Member States to adapt their incentives for renewables: The feed in tariff should be awarded only to plant below 500kW, Plant within 1 MWe should benefit of a feed in premium additional to the electric energy sell price to the electric grid Larger plant should participate to bid process to receive feed in premium Turboden is working to provide performing solutions in a cost effective way also for 300kWe and 500kWe ORC CHP plants. Solution Direct Exchange between biomass combustion exhausts and ORC working fluid Targets Reduce initial investment avoiding thermal oil circuit Reduce building and civil works with outdoor solution Reduce plant self consumption (no thermal oil pump consumption) and increasing overall plant efficiency Make a better business plan! Status First reference plant in biomass under construction (expected startup Dec. 2015) Available from 2016

Thank you for your attention Francesco Campana Business developer francesco.campana@turboden.it +39 335 6876370 Doc.: 15-COM.P-12-rev.0 Update: 01/06/2015