1. Saving with renewable energy Presentation to North East Bioresources and Renewables January 2014

2. Company overview Gaia Heat offers heat/CHP solutions to its industrial customers, with complete management from design through to operations and maintenance Management team with proven track record of managing, growing and selling businesses in the energy and renewable sectors Founded in 2012 First major contract signed end 2012

3. Renewable Heat Incentive The Renewable Heat Incentive (RHI) is a Government scheme to provide financial incentives to non-domestic renewable heat generators in order to provide low carbon heating solutions. The support is granted from commissioning date and is priced to provide a 12% return over the 20 year life RHI is established to deliver 12% of UK heating from renewable sources Under the RHI, the heat is to be used for heating a space, heating liquid or for carrying out a process within a building. Typical examples of heating are: heating room space through radiators, storage tanks, distillation, process heating, providing cooling in conjunction with absorption chillers, chemical processing, drying, other manufacturing processes

4. Fossil Fuel cost forecast The Department of Energy and Climate Change forecasts the oil price will increase by more than 100% in the next 20 years from 2010. Gas supply to large industry consumers in the UK is 30 days interruptible per year in order to protect the domestic market demand. Shale gas may temper the gas price rise, however US-style reduction unlikely according to experts. Many questions about the environmental impact of shale gas exploration so will take more time Carbon cost will be at £30 per tonne by 2020 (a 150% increase) and it is set to rise further after that.

5. Reduce energy cost by provision of renewable sustainable heat, cooling and power replacing fossil fuels through the supply, installation and operation of Biomass Boilers Gaia Heat will: Take care of Planning and Environmental approvals Construct and install the Biomass Boilers Own the Biomass Boilers, designed to heat requirements Take care of (and pay) all Biomass fuel supply for the contract term Contract on a fixed or variable priced heat off-take basis Take care of all operations and maintenance obligations How we win business

6. Customer Benefits Infinite IRR as no boiler capital requirements from customers Reduced energy cost Reduced Carbon taxes Reduced Carbon emissions Environmentally friendly marketing Free utility redundancy One stop shop concept Gaia Heat is responsible for everything relating to the biomass boilers on your site, including biomass supply.

7. Typical boilers Boiler can be branded with customer logo Typical boiler <1MW

8. RHI Mechanism Managed by OFGEM ESERVE; preliminary accreditation to each unit over 200kW. Payments made by OFGEM on a quarterly basis from metered output. Structured tariff to reflect boiler size and variations in usage Accreditation Grandfathered at commissioning and then indexed by RPI

9. UK RHI applications

10. Project delivery parameters Industrial processing plant Required Steam (IP), fully stand alone, 24/7 operation To achieve Energy cost and Carbon emission reduction, Energy independence Results Free utility redundancy No investment in boiler equipment by customer Reduction of Carbon footprint by 20,000 tonne per year Reduction in energy cost by at least 30% against current energy source

11. Site development

12. Lessons learned Hesitation in market towards biomass projects due to reputation Relationships with the local planning office and EA are important After Spain, general distrust towards long-term subsidies Fuel supply is key to making project viable Nobody wants to go first and too many cowboys out there Takes more time to convert leads to contract than anticipated, by us and DECC/OFGEM Visiting a working plant makes all the difference