Pricing Walkthrough Confidential Property of Proton Power, Inc. 487 Sam Rayburn Parkway Lenoir City, Tennessee 37771 Tel: (865) 376-9002 Fax: (865) 376-1802 www.protonpowerinc.com

Pricing Strategy New, superior technology Little significant competition Good cost structure Some incentives available Sold at C-level typically Therefore, price for the value we offer Margins set highest on PPI equipment Mark-ups much lower on non-PPI equipment

Final Proposal / Contract Proposal Process Rough Budget Number Budget Proposal Final Proposal / Contract

Rough Budget Number

Budget Proposal Need project information workbook filled out Timing: Days

Final Proposal / Contract Due diligence done by PPI to put good estimate together Probably involves site visit PPI gets quotes from contractors Timing: Weeks

System Components Biomass Handling & Storage CHyP Units Biochar Removal System Power Generation / Synthetic Fuels Equipment Controls Facilities Miscellaneous Dust Collection System Integration Etc.

Biomass Handling System Primary Grinding Secondary Grinding Magnetic Separator Storage Biomass Conveying Bin Hoppers Magnetic Separator

Primary Grinding Tub Grinder Wood Chipper Takes large pieces of biomass and reduces to 5”-8” Reduces large pieces of biomass to size that can be fed into secondary grinding device

Secondary Grinding Hammermill Grinder Reduces 5”-8” chip into 12mm or smaller chip Reduces biomas to size necessary to be fed into CHyP system

Storage Drag Rake System Silo For use with smaller systems Biomass stall that feeds biomass into system with the use of an automated rake system For use with larger installations 30’D x 98’H silo with metering auger Silo storage also requires use of Truck Dump Pit and Bucket Elevator

Storage Drag Rake System Silo

Storage Truck Dump Pit Bucket Elevator

Biomass Conveying Biomass conveying system moves biomass through system Includes mixing auger to supplement water into biomass For larger systems, multiple biomass conveyers may need to be incorporated

Bin Hoppers Two primary functions: Act as a storage buffer for biomass Meter biomass into the CHyP system at appropriate rate Bin Hoppers are used in conjunction with Drag Rake Systems If multiple Drag Rake Systems are being used, each Drag Rake System requires a Bin Hopper

Magnetic Separator Removes metallic substances from biomass supply Important to ensure that biomass does not contain metal particulates that could cause damage to the CHyP unit

CHyP Subsystem CHyP Gasifier Pneumatic System Gas Storage Bladder

CHyP Gasifiers CHyP units are produced in four different sizes 250kW 500kW 1000kW 2000kW Units are sca;ed to meet necessary project size Each CHyP system requires an Airlock device

Pneumatic System Consists of Nitrogen Generation equipment and Air Compressor Nitrogen is used to operate various valves on CHyP system Valves used to release biochar from reaction chamber Valve to direct gas flow

Gas Storage Bladder Storage Bladder has many important functions Acts as storage to address fluctuations in gas demand Compresses gas to necessary level to feed into gensets

Biochar Removal System Biochar is removed using water-cooled, auger conveyer system Biochar is removed through one of two systems Supersac Removal System Tractor Trailer Removal System

Biochar Removal Options Supersac Removal System Tractor Trailer Removal System Ideal for smaller systems Biochar is conveyed into a bin hopper, where it is then loaded into supersacs Ideal for larger systems Bicohar is conveyed directly into tractor trailer Biochar is then transported for disposal

Natural Gas Power Generation The syngas is fed into a modified Natural Gas Genset The Gensets are de-rated because the syngas does not have the energy value of Natural Gas Syngas has a composition of 40% H2, 40% CO Genset option has capability of utilizing heat recapture Can have option for water capture, but only makes sense if you can use the heat, too

Diesel Supplementation Syngas is fed directly into the carburetor of a Diesel Genset Syngas displaces up to 70% of diesel fuel being used by Genset Provides best financial returns of all systems

Synthetic Fuels The syngas is used to treat the bio-oil that is also produced from the CHyP units PPI prices in all of the components for the Synthetic Fuels system including: Hydrotreating equipment Hydrocracking equipment Distillation Fuel Storage Transfer Station Pumping, piping

Hydrogen Production The syngas is run through a PSA system to remove all of the components of the syngas that is not Hydrogen The remaining Hydrogen gas is then fed into storage system or can be fed into fuel cell system

Controls Price in System Controls to ensure all system components are operating in sync

Facilities Unless otherwise directed, PPI prices in facilities for: Biomass handling equipment CHyP units Gensets (including concrete pads) Hydroprocessing equipment

Additional System Components Dust collection Utility Interconnection Diverters Cyclone Commissioning and Training System Integration

Utility Interconnection PPI provides the equipment necessary, such as switchgears, to connect into the grid

Dust Collection Dust collection is an important component of the overall system Dust collectors remove finite particles from the system Dust collection is placed at the following stations Biomass reduction Biomass storage CHyP units Biochar removal area

Diverters & Cyclones Diverters Cyclone Uses to direct biomass throughout the conveying system Cyclone Necessary if using secondary grinding equipment

Commissioning and Training Electricity production plant Standard 7 days of commissioning and training Synthetic Fuels Additional commissioning and training for hydroprocessing equipment

Additional Considerations System Integration Necessary if integrating new system with previously existing or outside components Freight Dependent upon location of installation Contingency Dependent upon knowledge of installation

Sample 5MW Electricity Palnt

Sample 50,000 lpd Synthetic Fuels Plant