Recovered Energy Generation CHP Waste Heat-to-Power Generation Workshop March 2, 2005 University of California, Irvine ORMAT Technologies, Inc. 980 Greg Street Sparks, NV 89431-6039 USA www.ormat.com

Recovered Energy Generation (REG) Recovery of residual waste heat energy with conversion to commercial grade electrical power Economical, practical conversion of heat energy into electrical energy Use of various “heat engines” governed by the laws of thermodynamics Second Law of Thermodynamics, heat engine efficiency is limited by the difference in the temperature of the heat source and the surroundings

Cogeneration CHP (Sequential use of energy) Power Generation Heat to Process Fuel Combustion Topping Power Generation Heat to Process Fuel Combustion Bottoming Power Generation Mechanical Work Fuel Combustion Heat to Process Bottoming Power Generation Mechanical Work Fuel Combustion Bottoming?

Recovered Energy Generation (REG) Target Criteria Temperature of the heat source and cooling medium Total available heat State of heat source medium (Gas, Liquid, Condensable) Corrosive or erosive nature of heat source Consistency of heat source Low local demand for heat energy Demand for electrical power (Internal, External) Site specific requirements (Space, existing power distribution, value of generated power, cooling medium)

Heat Sources for Recovered Energy Generation Industrial and Process Plants Cement, Glass, Petrochem, Mineral Processing, Pulp & Paper, Metals et al Process Streams Gases; >400F (204C) Liquids; >200F (93C) LP Steam (condensable vapors); any

Heat Sources for Recovered Energy Generation Combustion Gases Combustion Turbine Exhaust Gas Pipeline Compressor Stations Gas Processing Plants Cogeneration (CHP) Internal combustion engines

Heat Sources for Recovered Energy Generation Combustion Gases Incinerators Biomass Municipal waste Thermal Oxidizers Flares Nuclear Waste?

ORMAT® Energy Converters (OEC) Typical Applications of Recovered Energy 1 Application 2 Application 3 Application 4 Application 5 Application 6 Application 7 Heat Stream Type Chemical Plant Oil Refinery Pulp and Paper Mill Petrochemical Plant Cement Plant Clinker Cooler Diesel Generators Gas Turbine Bottoming Location Hot Water Liquid Diesel Oil Condensing Low Pressure Steam Condensing Hydrocarbons (Top Vapors) Exhaust Gases Charged Air Exhaust Gases Flow Rate (tons/hr) 320 156 13 85 196 203.8 198.5 295 Temperature Inlet (oC) 95 184 105 104 275 365 172 463 Temperature Outlet (oC) 70 80 80 85 125 110 106 92 Air Cooled Condensers Air Cooled Condensers Cooling Water: Flow Rate (Tons/hr) 750 700 1000 1000 1600 Design Point Ambient Design Point Ambient Inlet Temp. oC 10 20 13.5 27 28 Temperature 11oC Temperature 2oC Outlet Temp. oC 20 30 20 37 37 OEC Net Output to Grid - kW 700 1070 930 780 1200 2950 5825 1032

US REG Market Potential Organic Rankine Cycle Bottoming on Combustion Powered Compressors

US REG Market Potential Organic Rankine Cycle Bottoming on Gas Turbine Powered Compressors Over 1,400 simple cycle gas turbines for gas compression at more than 600 stations 10,000,000 installed hp @ 30% efficiency 932 MWe recovered energy potential 189 MCFD usage of natural gas avoidable 11,000 tCO2e/day of GHG could be offset

US REG Market Potential Organic Rankine Cycle Bottoming on Cement Plants Over 230 Cement kilns with 116 Cement Plant Locations Average power production capacity of 4.5 MW from each kiln 500 MWe recovered energy potential 10,000 tCO2e/day of GHG could be offset

Qualified Energy Recovery A “Green” Power Technology NEVADA: AB 429 accepts “Qualified Energy Recovery” from non electrical generating sources such as mining processes, as eligible for RPS NORTH DAKOTA: Pipeline Compressor GT Exhaust Gas Energy Recovery Is “eligible for green tags or green energy sales” SOUTH DAKOTA: “Consider these projects as renewable energy resources” OTHERS: Under Consideration in Many States

Economics Economics vary by application Heat source utilization Physical configuration Value of power generated Capital cost O & M cost Return horizon

Waste Heat-to-Power Applications CHP Applications Geothermal Power Plants Resource Recovery: Biomass Heat Recovery - Pipelines Industrial Waste Heat Recovery Heat Recovery – Gas Plant 1473

Conclusions Proven, mature, reliable technology Economically attractive compared to other new sources of power Significant environmental benefits Many existing opportunities in energy intensive industries, many potential new CHP and DG applications Market is responding to opportunity