ENERGY RECOVERY ASSOCIATES PurGas™ RENEWABLE SOURCE PIPELINE METHANE presented by 6 th. Annual LMOP Conference Washington, DC, January 6-7, 2003

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 2 MAKING MONEY FROM LANDFILL GAS THE PurGas™ WAY –Economical –Simple and quick to install –No new air permit required –Profitable –Available now

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 3 WHAT IN THE WORLD IS HAPPENING? –In 2000, spot market prices for natural gas quadrupled and peaked at $8.72/MMBtu then dropped to below $2.00/MMBtu. –In 2002, prices sky-rocketed again doubling at a time when demand was seasonally low. –Gas prices are predicted to take another upward shift in 2003 and stay there for at least 36 to 48 months (Source: Energy Business Watch).

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 4 WHAT IN THE WORLD IS HAPPENING?

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 5 WHAT IN THE WORLD IS HAPPENING? –US supplies are predicted to show a 1.00 Tcf short-fall next year –Total natural gas consumption is projected to increase from an estimated 22.8 Tcf in 2000 to 35.0 Tcf per year in 2020 sources: Energy Business Watch, Energy Information Administration. –Demand will increase as more power plants come on line

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 6 Washington, DC New Orleans San Francisco, CA January 9-10 January January WHAT IN THE WORLD IS HAPPENING? Presents an exclusive 2 day seminar on: The Coming Natural Gas Crisis and How It Will Transform the Energy Industry Chicago, ILWashington, DCNew OrleansSan Francisco, CA December 16-17January 9-10January 15-16January 22-23

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 7 WHAT IS THE ANSWER? –Gas prices competitive with current Henry Hub prices! –Stable, guaranteed gas prices over the long term (10 yrs)! –Green gas – which means it will be a preference of many companies with renewable portfolio requirements including the US Government! SOUNDS TOO GOOD TO BE TRUE? PurGas™ CAN DELIVER THIS TO YOU !

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 8 A PurGas™ ride WHAT DO CONSUMERS WANT? Another roller-coaster ride OR

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 9 ENERGY RECOVERY ASSOCIATES –Energy Recovery Associates (ERA) can deliver pipeline quality green gas from landfill gas using the PurGas™ process. –ERA has associated with The Wittemann Company to design, build, and guarantee the PurGas™ system using the MEDAL (Air Liquide) membrane –NETL is also cooperating with ERA in the development and commercialization of this process.

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 10  In-house design, and fabrication capability –Wittemann fabricates all process equipment at their 60,000 sq.ft. manufacturing facility in Palm Coast, Florida. –World leader for 128 years in the design and manufacture of systems for the recovery of carbon dioxide and gas purification

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 11 PurGas™ PURIFICATION PROCESS  Low pressure MEDAL membrane  Skid Mounted Equipment  Distribution or transmission pipeline injection  Qualifies as “green” gas  Can be used as fuel to generate renewable energy Typical skid mounted process equipment

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 12 PIPELINE GAS FROM PurGas™ PurGas™produces pipeline quality gas by removing contaminents in a four step process: PurGas™ produces pipeline quality gas by removing contaminents in a four step process: Step 1 compresses gas and removes H 2 S Step 2 removes water and impurities Step 3 removes carbon dioxide Step 4 compresses gas to pipeline pressure

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 13 PIPELINE GAS FROM PurGas –The product gas contains minimum 97% methane, 3% other (carbon dioxide, oxygen and nitrogen), depending upon feed gas –HHV of 960+ Btu/cubic foot –All impurities removed and disposed of or incinerated

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 14 PROCESS FLOW – LFG PURIFICATION

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 15 HOW MUCH ENERGY CAN BE PRODUCED?  Can produce approximately 50% more electrical power due to plant efficiency as against on-site generation HOWEVER  Can produce approximately 3 times more electrical power if mixed 50/50 with other fuel

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 16 HOW MUCH ENERGY CAN BE PRODUCED? –Excess gas does no have to be flared with the PurGas™ system; we just add more membranes to take the additional flow of landfill gas. –This has the potential of making the PurGas™ system 4 times as valuable as far as energy generation is concerned than on-site generation.

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 17 SOUNDS TOO GOOD TO BE TRUE? –Gas prices lower than current Henry Hub prices! –Stable and guaranteed gas prices over the long term! –Green gas – which means it will be a preference of many companies with renewable portfolio requirements including the US Government!

PurGas™ RENEWABLE SOURCE PIPELINE METHANE 18 SOUNDS TOO GOOD TO BE TRUE? Energy Recovery Associates welcomes inquiries from landfill owners, developers, and gas customers regarding the PurGas™ system Visit us at Booth # 18