Recycling Waste Energy August 18, 2007

Presentation to Senator Reid by Energy Recycling

Industries

Presenter: Thomas R. CastenChairman, Recycled Energy Development, LLC

Presentation SummaryPresentation Summary

Energy efficiency gains stalled in 1960Energy efficiency gains stalled in 1960 Recycling waste energyRecycling waste energy can reduce can reduce

US COUS CO22 by 10 to 20% and save $70 by 10 to 20% and save $70 billion per year billion per year

The provisions in the House Energy The provisions in the House Energy Bill would spur Bill would spur energy recyclingenergy recycling

The Ask: How can our companies help The Ask: How can our companies help these provisions become law?these provisions become law?

The Last Seven Presidents The Last Seven Presidents Pledged Energy IndependencePledged Energy Independence

But energy imports rose during every But energy imports rose during every administrationadministration

Conventional Conventional Approaches Have Not Approaches Have Not

WorkedWorked

US Electric Efficiency,1900-2005

0%

5%

10%

15%

20%

25%

30%

35%

Year

% E

ffic

ienc

y

Primary Efficiency, Delivered Electricity Final Efficiency raw energy to useful work

47 years of 33% efficiency.

Conventional Electric System Conventional Electric System Efficiency Since 1960 Efficiency Since 1960

Pollution

Fuel

100 units

Power Plant

=

67 units Waste Energy

33 units Electricity

End User

Waste HeatTransmission Line Losses

3 units (9.0%)

Remote Generation Waste (66%)Remote Generation Waste (66%)

Insert Craig Plume picture to illustrate Insert Craig Plume picture to illustrate waste heatwaste heat

Local Generation Recycles Heat To Local Generation Recycles Heat To Industrial Plant (85% efficiency)Industrial Plant (85% efficiency)

Local Generation with Local Generation with Energy Energy RecyclingRecycling

Reduces power costs, greenhouse gas Reduces power costs, greenhouse gas emissions and fossil fuel use emissions and fossil fuel use

Avoids transmission capital and line Avoids transmission capital and line losseslosses

Helps host industry with lower steam Helps host industry with lower steam costs and/or new revenue from sale of costs and/or new revenue from sale of waste energy – makes host more waste energy – makes host more competitivecompetitive

Estimated U.S. Potential to Estimated U.S. Potential to Recycle Recycle Waste EnergyWaste Energy ( Million MWh per Year)( Million MWh per Year)

2005 fossil electric generation: 2,6332005 fossil electric generation: 2,633

Waste Energy RecyclingWaste Energy Recycling potentialpotential From Industrial waste energyFrom Industrial waste energy 450450 From new CHP plantsFrom new CHP plants 900900

TotalTotal Energy RecyclingEnergy Recycling potential: 1,350potential: 1,350 % of US fossil central generation: % of US fossil central generation: 51%51%

Drop total U.S. CODrop total U.S. CO2 2 emissions: 10% to 20%emissions: 10% to 20%

Societal savings per year in billions: $70Societal savings per year in billions: $70

Companies at this Breakfast Specialize Companies at this Breakfast Specialize in Recycling Waste Energyin Recycling Waste Energy

We create useful energy by We create useful energy by recyclingrecycling:: Exhaust heat from any industrial process or power Exhaust heat from any industrial process or power

generation generation Industrial tail gas that would otherwise be flared, Industrial tail gas that would otherwise be flared,

incinerated or vented, incinerated or vented, Pressure drop in any gas Pressure drop in any gas

We develop new local combined heat and We develop new local combined heat and power plants (CHP) that power plants (CHP) that recyclerecycle byproduct byproduct heat to displace boiler fuel of thermal usersheat to displace boiler fuel of thermal users

95 MW 95 MW RecycledRecycled from Coke Production from Coke Production

Click on the map to begin the Google Earth Video

Identified Identified Recycled EnergyRecycled Energy Prospects in NevadaProspects in Nevada

Data Source: EPA’s National Emissions Inventory

Ormat 5 MW Energy Recycling SystemOrmat 5 MW Energy Recycling System

**

WHOH

Diverter

OEC

Gas Turbine Enclosure

Original Stack/ Silencer *

*

WHOH

Diverter

OEC

Gas Turbine Enclosure

Original Stack/ Silencer

4,000 to 6,000 Megawatts wasted at US gas compressor stations

US Electric Efficiency,1900-2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Year

% E

ffic

ien

cy

Primary Efficiency, Delivered Electricity Final Efficiency raw energy to useful work

Local Generation Plants we have built that recycle waste heat

Denmark Electric Efficiency

A Convenient Truth:A Convenient Truth:Energy Recycling Can Profitably Reduce COEnergy Recycling Can Profitably Reduce CO22 US can reduce COUS can reduce CO22 emissions by 10% to 20% emissions by 10% to 20%

and save $70 billion per year and save $70 billion per year recycling waste recycling waste energy energy with proven technologywith proven technology

Congress can induce Congress can induce Energy Recycling:Energy Recycling: Share societal savingsShare societal savings Removing barriers to local generationRemoving barriers to local generation

House Energy Bill 3221, Subtitles E and G would House Energy Bill 3221, Subtitles E and G would achieve these goalsachieve these goals

How can we help How can we help Energy RecyclingEnergy Recycling provisions provisions become law?become law?

Thank you for your leadership and for considering

support of energy recycling