DEED builds on-site electric power plants for the high- priced, power-short Chinese market. Dalian, Liaoning Province, China 2007 D alian E ast E nergy D evelopment, Ltd. ©Transition Energy
DEED, Ltd. Chinese Market Context Power costs industry more than in U.S. Shortages continue in many provinces. Waste heat recovery market > 1,500 MW. Adding 1 GW of coal-fired power per week!
DEED, Ltd. DEED’s Business Product: Waste energy recovery Market: Cement, metallurgy Business model: BOOT Profitability: >30% IRR Finance needed: $3M equity to complete 6.7 MW $20M equity to complete 172 MW
DEED, Ltd. Summary of Business Plan n Commissioned two plants in April 2007 n To complete 25 MW by December 2007 n To build 175 MW by October 2008 n To generate 5 MT CERs through 2012
DEED, Ltd. William Chandler Tang Jin Quan DEED China’s Waste Recovery Power Generation Leader Wang Yanjia Han Zhong Huan Jin Jiaman
DEED, Ltd. Team TANG Jin Quan Chairman and CEO, Dalian East Energy Development Harbin Institute of Technology B.S., Pioneered the first waste heat recovery power generation plants in China. Designed over 30 heat recovery systems, and has built and operated 6 plants. William CHANDLER President, Transition Energy Holding Company Harvard MPA, Thirty-three years of energy experience. Created energy centers in six countries, including China, where he has worked since He has designed, arranged financing for, and implemented nearly $1 billion in energy- efficiency investments worldwide. WANG Yanjia Chief Scientist, Transition Energy Holding Company Tsinghua University, Professor of Energy and Environment. Consults with World Bank, OECD, IEA, Energy Foundation, Blue Moon Fund. JIN Jiaman GEI Shareholder, Director for CDM Processes Executive Director, Global Environmental Institute (a private, Chinese NGO) Advisors n John Gibbons, Two-term Science Advisor to President Clinton n Phil Samper, former President of Sun Microsystems n Zhou Dadi, Emeritus Director of Energy Research Institute
DEED, Ltd. Dalian East JV Partner A Chinese Engineering and Marketing Leader 100% Private 57 staff - 38 Engineers - 8 Senior Engineers - 3 PhDs 2005 Revenues $20M Projects in a dozen provinces Designed 550 MW Built 72 MW 89 MW under contract Experienced also in metals, MSW, biomass, and methane
DEED, Ltd. Offices Projects DEED, Ltd.
Shanghai Wan An n 2.5 MW n Built 2002 n Heat recovery n Design by Tang Jin Quan Design Experience
DEED, Ltd. Fujian Long Yan Fu Long n 6 MW (turn key) n Built 2005 Design-Build Experience Hubei Ge Zhou Ba n 12 MW (turn key) n Built 2003
DEED, Ltd. Design-Build Experience Jin Mao n 15 MW (turn key) n Built 2004
DEED, Ltd. DEED Holding, 41% of CJV Equity Cayman Islands Cooperative JV DEED Ltd. Dalian, Liaoning Province, China Dalian East 42% Equity Dalian, China Strategic Investor Equity Construction Contract Carbon Trader GEI 17% Equity Passive ERPA Cement Plants PPA, CERs Finance, design, construction Finance/design/ construction Common Stock PPA and/or CERs Mixed Equity/Debt Overall Structure
DEED, Ltd. GEI Does CDM work under contract to CJV Receives dividends from the CJV Who Does What? Dalian East Designs, builds plants under turnkey contract with CJV Receives dividends from CJV DEED Holding Raises foreign capital Places debt & equity with CJV Receives P&I, dividends from CJV Cooperative JV DEED Ltd. Markets Receives investment Does customer DD Manages construction contracts Collects payments Pays P&I Distributes dividends Customers Make fixed payments (pays O&M) or metered payments (no O&M) Receives CER payments