Accelerating Deployment of Cogeneration in Commercial Buildings Peter Ruben Chairman

Bringing Innovation to Co-Generation – Who We Are May-Ruben Thermal Solutions (MRTS) td Calgary based R&D company Developing a patented thermally driven cooling device (termed a BFE) which will use waste heat to provide cooling. Nexus Power Solutions (Nexus) ops Created by MRTS and Dan Cloutier to: Today: Market Combined Heat and Power (CHP) systems with a focus on commercial buildings (under 1 MW). Tomorrow: Market the world’s first cost effective, integrated Combined Cooling Heat and Power device - a BFE CCHP

3 Strategic Partners Ecologix Heating Technologies, Inc. Ontario OEM of heat pumps and air handlers Building commercial prototype Contributing engineering time and fabrication labour DuPont, Delaware Contributing high performance binary fluids. University of Calgary, Alberta Mitacs programs Gas Technology Institute, Illinois GTI is the non-profit research and testing facility of the natural gas utilities industry in North America. Contributing Design and Manufacturing of Fractionating Condenser Helping develop gas utility support

Grid Overloads Increasing Electricity Production Climbs Greater GHG Emissions Planet becomes Hotter A/C Load will climb by 4,000% this century A Self Feeding Cycle 4

One Strategy: More Efficient Electrical Production What if we could reduce the amount of energy wasted in electricity production by 70%? Grid: 32% Efficient A Huge Waste! Thermal power plants produce 76% of all the waste heat in North America.

Bring Generation to Where Waste Heat Can be Used CHP: 80% Efficient Waste Energy drops from 68% to 15-20%

Can we get Wide Spread Deployment of CHP? There is hope: Deloitte: “a tipping point has been passed. Over half of the companies surveyed generate all or part of their own electricity” From 2015 Deloitte Report on U.S. Businesses with 200 employees Surprising trend - In just the past three years, there has been a 67% increase in the number of companies self-generating. CHP – 9% of all companies industrial versus commercial/residential use CHP (second to combined category of wind/solar at 15%)

Needed: Wide Spread CHP Deployment in Buildings But in Canada we are failing badly to implement CHP in the building sector – AB,Ont, only In 2006 there were only 47 CHP units in commercial buildings in all of Canada. According to U.N. Environmental Program Report The building sector produces 30% of global GHG and consumes up to 40% of all energy. GHG from buildings will more than double in the next 20 years. Mitigation of GHG from buildings must be a cornerstone of every national climate change strategy.

What has Prevented Penetration in Commercial Bldngs ? Limiting Factors Lack of Knowledge Regulatory and Utilities Capital Requirements Ability to use the heat CHP can only be truly efficient when the waste heat can be utilized

The Key: Provide Cooling with the Waste Heat 10 But the only incumbent technology to convert heat to cooling, Absorption Chillers, are not cost effective with CHP Commercial Buildings need Cooling more than Heat

Absorption Chiller Heat Pumps Absorption Chillers Can Use Waste Heat, but.. High Capital Cost causes low ROI Difficult to maintain operations Must be water cooled Large Footprint Too heavy for most roofs 11

The BFE Refrigeration Solution 12 Mechanical Compression Many Moving Parts Frequent Maintenance Susceptible to power outages Fluidic Compression No Mechanical Moving Parts Extremely low Maintenance Not susceptible to outages Motor Compressor Boiler Ejector We replace this: With this:

Ejector Refrigeration: A 100-year-old Technology Evaporator Condenser Ejector Heat Out Drive Energy Heat In Boiler 13 Exhaust Inexpensive, Reliable Used in 1920’s – 40s’s to make ice, provide industrial process chilling But Inherently flawed design made for poor efficiency

Ejector Boiler Evaporator Fractionating Condenser Refrigerant Liquid Mixed Binary Gas Ambient Heat In Heat Out Drive Energy (heat) Drive Liquid The Binary Fluid Ejector 14 Pump Separate drive and refrigerant fluids are optimized, resulting in 300% improvement over traditional ejectors.

BFE – Development Project Alpha 2 RT Prototype Batch Test Rig Completed and DuPont binary fluid tested. COP =.73 Design process underway with GTI for fractionating condenser Will run 2 RT prototype in Calgary Sensors /integrated systems distributed systems/smart phone app turn off/on Beta 20 RT Commercial Prototype SDTC approved project Begin design/fabrication of 20 RT Prototype next year – 2.5 year, $2.5 million project. Built in Ontario by Ecologix Will retrofit to an Ener-G CHP system for instrumented field testing

Conclusions The Future Impact on our Environment from growth in A/C loads and emissions related to growth in buildings is of serious concern. Co-generation is a well established technology with good economic incentives that will double the efficiency of electrical production and reduce building emissions. Governments and Utilities need to help deployment of CHP in commercial buildings by removing barriers. The biggest natural barrier, the difficulty of using enough waste heat in buildings can be solved by introduction of a cost effective technology to convert waste heat to cooling. Nexus intends to be the leading commercial building CHP company in Canada. MRTS intends to introduce a waste heat driven BFE cooling system that helps shift cooling loads from the grid and helps expand the deployment of CHP globally.

Peter Ruben, Chairman May-Ruben Technologies Inc. Ph: Questions?