End Use Solutions Update Ron Edelstein November 2009

22 Delta Map >Approved States = 24 >Total Available Funding = $26.3 MM Company and Regulatory Approval Filing in Progress

33 GTI End Use Solutions >Develop clean, efficient and cost-effective technology and products that benefit our customers and partners Substantial leveraging of gas industry/ratepayer funding Industrial Processes > Metals, glass, petrochemicals, paper, food, others Power and Steam Generation > Industrial boilers > Engines, turbines, fuel cells Residential/Commercial > Building systems and appliances Transportation/Alt. Fuels > Alternative fuel vehicles & infrastructure > Bio-methane systems

44 Natural Gas Technologies for Homes Smart Energy Grid Real-time Energy Monitor NGV Filling Station Radiant Tubing MicroCHP Tankless/Solar Hybrid Water Heater Gas Heat Pump Solar Thermal Panel Venting Innovations

55 Advanced Space Heating >Condensing Furnaces have a waste water discharge ( ) >Optional humidifiers ( ) have a need for a fresh (ideally purified) water supply Avoid mineral deposits that reduce reliability and life while increasing maintenance costs >Two birds with one stone?

66 Advanced Humidifier & Heat Recovery Current GTI SMP Project >Integrated heat recovery and humidifier for home furnaces >Captures waste heat and (pure) water from natural gas flue gas combustion >No external water supply >Energy savings: 95%+ efficiency >Greater indoor comfort & savings >Improved humidifier reliability without bacteria & deposit and dust issues

77 GTI High Efficiency Gas Packaged Air Conditioner (PAC) Project >Condensing Furnace Specification dealing with Technical issues of secondary heat exchanger & condensate Economic issues of first cost and net operating cost savings >Prototype Field Test over the winter

88 Natural Gas Cooling >Larger absorption or engine-driven chillers provide energy savings in high electric markets Offset peak summer electric demand – potential customer and utility savings >Smaller options Small absorption units (e.g., Robur) Engine-driven heat pumps…build on Japanese products >Integration with solar thermal and waste heat recovery/CHP

99 HOT Water Project Technical Objective >Hybrid Optimized Tankless (HOT) Water Heater >Develop prototype and test a hybrid water heater with best features of tankless and tank- type water heater >Optimize performance, efficiency, and cost >Advanced control strategies and thermal management

10 Low-Power Gas Valve New SMP Project >Industry Need: Deal with the pilot light in a responsible way that does not over burden customers before it is dealt with by others >Value to the Industry >Objective: Develop a safe and reliable low power gas valve that can run battery-operated over the 10-year life of a water heater Non-Powered Powered Pilot light consumes up to 17% of the total annual energy of a non-powered gas water heater, eliminating the pilot light could provide significant energy savings

11 Smart Grid >Electric vs. Natural Gas vs. Energy Grid? How should we use natural gas in a carbon-constrained future? Who will manage energy? >Customers? >Utilities? >Google? >What value can be created with Smart Grid systems? For gas customers Energy savings? CO2 reductions?

12 Carbon Management Information Center Source Energy and Emissions Analysis Tool (

13 Advanced Boiler Technology >Maximizing steam generation efficiency for commercial and industrial boilers 94% fuel to steam efficiency with novel heat and water recovery device 15% carbon emission reduction Ultra low NO x (< 9 ppm) Target: < 2 year payback Multiple field tests underway

14 Transport Membrane Condenser (TMC) >Simultaneously captures waste heat and pure water from combustion products Tubes with nano-porous membrane that selectively removes water by low-pressure- drop capillary condensation >Applicable to many combustion uses Industrial and commercial boilers and steam power plants Industrial drying & humidification processes Home furnace and humidification >Recently licensed to Cannon Boiler Works

15 Submerged Combustion Melter >Developing revolutionary melter for producing industrial materials Various glass products, sodium silicate, waste material recycling (waste fiberglass, electric arc furnace dust vitrification), etc. >Unique submerged combustion process yields major improvement in capital cost, productivity, flexibility, footprint, efficiency >Working with variety of industrial partners >Multiple licensees

16 FlexCHP Power & Steam Package >Fully integrated high- efficiency ultra-clean power and steam package NOx emissions less than 0.07 lb/MWh to comply with strict CA standards Power generator (turbine) Waste heat boiler fed with turbine exhaust gas plus a low emission supplemental burner 85% system efficiency

17 Solar Thermal/Natural Gas Hybrid Energy Systems >Push natural gas equipment above 100% efficiency using hybrid solar thermal/natural gas energy solutions >Reduced-cost domestic hot water and hydronic heating systems for residential and commercial buildings >Higher-temperature concentrated solar thermal for steam generation, absorption cooling, process heating Commercial buildings Industrial plants

18 Renewable Natural Gas End Use >Novel end use bio-methane applications Includes challenging gas quality requirements Gills Onions – Digester to Fuel Cell Quality Methane Linde – Waste Management Biogas to LNG for Vehicles Ft. Lewis – Landfill Gas to Hydrogen

19 Biogas Advantage in Transportation

20 Summary >GTIs End Use efforts focused on: Residential, commercial buildings: >Energy efficiency improvement and CO 2 reduction Industrial competitiveness Combined heat and power systems Alternative transportation fuels and vehicles Renewable energy: >Solar thermal and biomethane >Work collaboratively with energy industry, government partners, manufacturers, and end users Energy EnvironmentEconomy