CO2 Technologies 2008 2010 2011 2014 Supermarket Warehouse Cold Storage AQUILON TM Chiller AQUILON TM Data Center

As you move your business forward, it is our goal today, to provide you with a better understanding that you do have refrigeration management options.

Planet People Corporate Social Responsibility Balancing needs, nature, profitability and risk……… Achieving Profitability Planet People

Looking Ahead………… A Changing Social Conscience A Changing Corporate Conscience Solutions ……… Good For Business Good For People Good For The Planet

Looking Ahead………… Unpredictable Future? ‘‘To reduce emissions of HFCs, the United States can and will lead both through international diplomacy as well as domestic actions.’’ This proposed rule is part of our domestic commitment to take action now and, by doing so, also supporting efforts to secure a global HFC phasedown. - President Obama’s Climate Action Plan, June 2013 “Our Government is once again taking action to address climate change. We have already taken action on some of the largest sources of emissions in this country, the transportation and electricity generation sectors, and today, building on our record, we are proud to announce that Canada will be taking pre-emptive action to reduce and limit harmful HFC emissions, before they increase.” – The Honourable Leona Aglukkaq, Canadian Minister of the Environment, September 2014

Risk Mitigation – Health & Safety Employees, Environment & The Community You Work In Ammonia has excellent heat transfer capabilities and does not contribute to either ozone layer depletion (ODP) or global warming (GWP) . For this reason it has been well established for many years. In fact, some users are so loyal to ammonia that discussion of any other refrigerant solution receives little consideration. However, risk mitigation strategies, Corporate Social Responsibility, public perception, anticipated new regulations and legislations, and the increasing availability and feasibility of options such as CO2, are changing this landscape. "I own a large inventory of a hazardous chemical refrigerant, stored and operating within the daily work activity of many employees, suppliers and possibly customers. A catastrophic leak of this chemical can seriously injure or kill. What am I going to do to prevent an accident, and who holds responsibility under the law of making it so?"

Reduction of 90% of the NH3 charge Risk Mitigation – Health, & Safety Employees, Environment & The Community You Work In Reduction of 90% of the NH3 charge CO2 provides…….. ……..Town officials urged residents to leave the area Friday morning, fearing that smoke irritants and hazardous materials could cause health risks. Tecumseh fire Chief Doug Pitre says that two holding tanks have been filled with ammonia from the plant, which might have become a hazard if the fire had not been contained………. - Excerpt of CTV news report, July 18, 2014

Future Looking Clearer? Looking Ahead………… Future Looking Clearer? Cap-and-Trade System The Ontario government will move forward with a cap-and-trade system and its carbon pricing system. Proceeds from this program will be directed toward key priorities that will help lower greenhouse gases. There will be an overall emission limit (the cap) on those facilities included in the program, and methods of rewarding companies under this threshold.  Ontario Government – April 2015

So………… What About Carbon Dioxide

History of CO2 Technology that originally emerged in the mid-19th century 1850 : First CO2 refrigeration patent by Alexander Twining (England) 1890 : CO2 is seen as the only “safe” refrigerant Golden age from 1920 to 1930 with system up to 350T, to be phased out in favor of synthetic refrigerants (R-12) In the latter part of the 20th century, scientists began to understand the relationship between synthetic refrigerant usage and the impact to the ozone layer and global warming.   With the signing of the Montreal Protocol, the world’s developed economies focused on restrictions and a planned course of action towards elimination of the Ozone Depletion (ODP) CFC and HCFC synthetics

History of CO2 As a result, CO2 resurfaced in the 1990s 1991 : “Transcritical” patent by Gustav Lorentzen (Norway) 2009 : First appearance of CO2 systems in grocery stores in Canada 2010 : First CO2/NH3 cascade system for distribution centers in Canada (Carnot) 2010 : First Ice rink with (in slab) recirculated CO2 system in North America 2012 : First Ice rink with direct heat recovery CO2 system in North America (Carnot) >2013: Transfer of technology to other refrigeration applications (Carnot) 2013 : First Data center to run a CO2 cooling unit (Carnot AQUILON TM unit) Reliable and proven systems Presence in Europe for over 20 years Presence in Canada for more than 7 years

Securing Their Future – Consumer Goods Forum On refrigeration, the Forum agreed to begin phasing-out hydrofluorocarbon (HFC) refrigerants as of 2015 and replace them with non-HFC refrigerants. X

With a. Ozone Depletion Potential of “0” With a Ozone Depletion Potential of “0” Global Warming Potential of “1” Non Poisonous Non Toxic Non Corrosive………..

CO2 Flexible Reliable Safe …..and Environmentally Responsible! provides owners with a solution that is Flexible Reliable Cost Effective Safe …..and Environmentally Responsible!

European Freon Restriction Summary Will be prohibited from January 1st, 2020: Commercial refrigeration with HFC at GWP of 2500 or more Ex.: R404A, … Will be prohibited in 2022: Commercial refrigeration (including sealed) with HFC at GWP of 1500 or more Ex.: R410A/R134A/R422D/R407C, … Commercial refrigeration plant with a capacity of 40kW or more with GWP of 1500 or more (including actual retrofit fluids) Ex.: R134A/R422D/R427A Will be prohibited in 2025: Air conditioning with GWP of 750 or more From 2015 and reducing gradually: The European Commission will allocate quotas to producers and importers of HFCs The HFC production and their entry in the European market : in general, the use of HFCs will be reduced as follows:

Over 80 Systems Installed… Profiles

Arenas & Distribution Centers The problems The problems The vision BEFORE The vision Reduction of 90% of the NH3 charge AFTER Innovation Rigor Passion Innovation Rigor Passion

AQUILON TM – The Future of Data Center Cooling The problems HFCs Leaks Energy Spring 2012 : First meeting between end user and Carnot engineers. November 2013 : The first prototype. The vision Innovation Passion Mohamad Rigor The prototype system function very well. Subsequent to additonal engineering collaboration, the first field unit was installed in August 2014. Innovation Passion Mohamad Rigor

Distribution Centers and Supermarkets

Mitigating Risk…………. Improving ROI… Mitigating Risk…………. Improving ROI….. NH3 / CO2 Hybrid Refrigeration System

NH3 / CO2 Cascade Refrigeration System Business Case Surface: ​​12,000 m2 – 12m high Consumption : 4.563.442 lbs/day (2.069.945 kg/day) Ripening room : 22 Bananas (CO2) 3 Avocados (CO2) 22 bay loading dock The Carnot system : Temperature between 0 and 15oC 512 TR 800 lbs NH3 4500 lbs CO2

NH3 / CO2 Refrigeration system

Technologies Unique to CO2 Hot gas defrost Quick and efficient evaporation No additional energy consumption No heat addition in the system Single pipe CO2 system provides both heating and cooling with no additional requirements for supplemenatry heating.

Heat recovery Designed so that the heat recovery is direct Heat is 8 times greater than traditional systems with intermediate glycol loop combined with ammonia Typical heat reclaim yields hot water at 185F No energy consumption or any additional equipment (pumps, glycol loop, heating, etc.)

New Patented Technologies “Free cooling” Mode Free cooling Mode at all times with outside temperature of 7˚C (nearly 4000 hours per year and up to 14˚C) Ammonia compressors completely stopped Equipment lifecycle cost reduced

CO2 Transcritical Refrigeration System Warehouse Products Cranberry Volume 544 310 kg (1 200 000 lbs) Area 4 180 sq. m (45 000 sq. ft.) Height 12 m (40 ft) Loading dock 4 doors System Refrigerant R744 only (CO2) Capacity 644 kW (183 TR) Temperature - 18˚C (0˚F) Refrigerant charge 1 500 kg (3 300 lbs) Heat recovery Sub-floor Defrost Hot gas

CO2 Transcritical Refrigeration System Benefits No HFCs No NH3 (ammonia) Non-toxic refrigerant No cooling tower : Eliminate water consumption and chemical treatment Reduces piping and insulation sizes by 50% Full heat recovery for building Free cooling mode (thermosyphon) also available Typical installed costs up to 20% less than ammonia

/ (Chillers)

Positively IMPACTS your Environmental STEWARDSHIP in THREE ways Lowers Global Warming Potential by eliminating Freon Lowers Fossil fuel burning through high quality heat reclaim Lower energy consumption reduces power consumption from grid

Positively IMPACTS your BUSINESS in THREE ways Frequently has lower initial cost of installation Frequently has lower lifecycle owning & operating costs Always lowers risk management and increases public perception

Recognition “Best of the Best” Prize 2013 “ASHRAE Best Technology – Industrial facility” Prize 2010 “Cleantech Next10” Prize 2012 “Innovation & Development” Prize 2013 “GreenChill Platine” Certification 2013 “Best of the Best” Prize 2013 “Canmet study” “Prix Energia” Prize 2013 “Development Technology & Innovation” Prize 2012

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