Italgen - Italcementi Group AIT BAHA Project Concentrating Solar Power Plant Morocco Ait Baha, Morocco

Italgen - Italcementi Group Project rationale 2 Italgen Strategic Guidelines ▶ Enlarging the installed generation capacity ▶ Balancing the sources mix from RE ▶ Pioneering new Business Models ▶ Spreading Sustainable Development culture ▶ Enlarging the installed generation capacity ▶ Balancing the sources mix from RE ▶ Pioneering new Business Models ▶ Spreading Sustainable Development culture Ait Baha project consists in the realization of a concentrated solar power (CSP) plant having the aim of validating the expected performance and checking the potential for additional and new applications inside the Group.

Italgen - Italcementi Group 3 Contents CSP plants overview Project description Final remarks

Italgen - Italcementi Group 4 CSP plants consist of two main parts: ▶ one that concentrate (focus) the sunlight using mirrors and convert it into high-temperature heat and ▶ another that converts the heat energy into electricity. All CSP technological approaches require large areas for solar radiation collection. Concentrating Solar Power (CSP) plants generate electricity utilizing the solar energy Source: Technology Roadmap CSP IEA 2010

Italgen - Italcementi Group Concentrating solar technologies exist in four common forms Source: Energy Week - MIP - F. Frattini Parabolic troughs Linear parabolic concentrators where sunlight is concentrated onto a receiver placed in the trough’s focal line. Parabolic dishes Concentrate the sunlight on a receiver placed in the focal point above the centre of the dish. Solar towers Use thousands of small reflectors to concentrate the sunlight on a central receiver placed at the top of a fixed tower. Fresnel reflectors Parallel rows of mirrors flat or slightly curved to reflect the sun’s rays onto a downward facing linear receiver. 5

Italgen - Italcementi Group 6 We are installing a solution completely different from the traditional... Mirrors Structure Frame Heat Transfer Fluid Heat Storage Flexible pneumatic Precast fiber reinforced concrete Air Gravel of basalt Rigid Metal Synthetic oil, molten salt Molten salt TRADITIONAL TECHNOLOGY

Italgen - Italcementi Group 7 …with the scope to validate the performance of each single component Mirrors Structure Frame Heat Transfer Fluid Heat Storage ▶ concentrate more sun light ▶ easy to manufacture, transport and install ▶ concentrate more sun light ▶ easy to manufacture, transport and install ▶ guarantee the right mirror shape ▶ predominant use of local available materials ▶ guarantee the right mirror shape ▶ predominant use of local available materials ▶ temperatures well above 600°C ▶ air is non-toxic and for free ▶ no dangerous or flammable fluids used ▶ temperatures well above 600°C ▶ air is non-toxic and for free ▶ no dangerous or flammable fluids used ▶ higher flexibility of power modulation Higher thermodynamic efficiency Lower generation cost

Italgen - Italcementi Group 8 Contents CSP plants overview Project description Final remarks

Italgen - Italcementi Group  Among ITC Group available sites, we have identified Ait Baha (Morocco) as the best opportunity in terms of land availability, solar irradiation and already existing infrastructures.  The pilot plant consists of 3 solar modules and a new heat exchanger integrated in the existing cogeneration system. 9 First, we identified the most suitable location and dimensioned the plant… ▶ 2.5 hectares of occupied land ▶ 3 solar modules (216 x 11 meters) ▶ 6,055 m 2 of total reflecting surface (less than a football field) ▶ 6,400 MWh of net thermal production ▶ 1,000 MWh of gross electric production ▶ Less than 1 m 3 /day of water consumption (300 m 3 /year) Project Main Data Project Main Data ▶ Land optimization (MWh/m 2 ) ▶ Maintenance (€/MWh) ▶ Efficiency (%) ▶ Dispatchability level (heq/y) ▶ Production (MWh/y) ▶ Water Consumption (m 3 /y) K.P.I.

Italgen - Italcementi Group The heat captured through the solar modules will be added to the one recovered by the thermal oil circulating in close contact with the waste heat of the kiln hot gases. Existing Cogeneration System New CSP plant 10

Italgen - Italcementi Group 11 Overview of the factory with the solar field Solar collectors

Italgen - Italcementi Group 12 Solar modules view from west Hot air pipeline Solar collectors

Italgen - Italcementi Group 13 Hot air pipeline CSP modules and hot air pipelines

Italgen - Italcementi Group Existing generator building and new heat exchanger 14 Hot air pipeline Thermal oil pipeline Turbogenerator building Heat exchanger

Italgen - Italcementi Group Contents 15 CSP plants overview Project description Final remarks

Italgen - Italcementi Group Final Remarks Next year Italgen will add to its portfolio the first CSP pilot plant, being in the position to record data and make comparisons with technologies already exploited. Technological Maturity Timing ▶ CapEx (M€/MW): ▶ Capacity Factor (h/y): 1,300-3,000 ▶ LCOE (€/MWh): ▶ Profitability (IRR%): Wind ▶ CapEx (M€/MW): ▶ Capacity Factor (h/y): 1,000-2,000 ▶ LCOE (€/MWh): ▶ Profitability (IRR%): up to incentive scheme PV ▶ CapEx (M€/MW): ▶ Capacity Factor (h/y): 3,000-5,000 ▶ LCOE (€/MWh):60-65 ▶ Profitability (IRR%): Hydro ▶ CapEx (M€/MW): ▶ Capacity Factor (h/y): 1,800-8,000 ▶ LCOE (€/MWh): ▶ Profitability (IRR%): n.a. CSP LCOE: Levelized Cost of Energy Source: Bloomberg New Energy Finance 16