1. End Use Solutions Update Ron Edelstein November 2009 ron.edelstein@gastechnology.org

2. 22 Delta Map >Approved States = 24 >Total Available Funding = $26.3 MM Company and Regulatory Approval Filing in Progress

3. 33 GTI End Use Solutions >Develop clean, efficient and cost-effective technology and products that benefit our customers and partners Substantial leveraging of gas industry/ratepayer funding Industrial Processes > Metals, glass, petrochemicals, paper, food, others Power and Steam Generation > Industrial boilers > Engines, turbines, fuel cells Residential/Commercial > Building systems and appliances Transportation/Alt. Fuels > Alternative fuel vehicles & infrastructure > Bio-methane systems

4. 44 Natural Gas Technologies for Homes Smart Energy Grid Real-time Energy Monitor NGV Filling Station Radiant Tubing MicroCHP Tankless/Solar Hybrid Water Heater Gas Heat Pump Solar Thermal Panel Venting Innovations

5. 55 Advanced Space Heating >Condensing Furnaces have a waste water discharge ( ) >Optional humidifiers ( ) have a need for a fresh (ideally purified) water supply Avoid mineral deposits that reduce reliability and life while increasing maintenance costs >Two birds with one stone?

6. 66 Advanced Humidifier & Heat Recovery Current GTI SMP Project >Integrated heat recovery and humidifier for home furnaces >Captures waste heat and (pure) water from natural gas flue gas combustion >No external water supply >Energy savings: 95%+ efficiency >Greater indoor comfort & savings >Improved humidifier reliability without bacteria & deposit and dust issues

7. 77 GTI High Efficiency Gas Packaged Air Conditioner (PAC) Project >Condensing Furnace Specification dealing with Technical issues of secondary heat exchanger & condensate Economic issues of first cost and net operating cost savings >Prototype Field Test over the 2010-2011 winter

8. 88 Natural Gas Cooling >Larger absorption or engine-driven chillers provide energy savings in high electric markets Offset peak summer electric demand – potential customer and utility savings >Smaller options Small absorption units (e.g., Robur) Engine-driven heat pumps…build on Japanese products >Integration with solar thermal and waste heat recovery/CHP http://www.gasairconditioning.org

9. 99 HOT Water Project Technical Objective >Hybrid Optimized Tankless (HOT) Water Heater >Develop prototype and test a hybrid water heater with best features of tankless and tank- type water heater >Optimize performance, efficiency, and cost >Advanced control strategies and thermal management

10. 10 Low-Power Gas Valve New SMP Project >Industry Need: Deal with the pilot light in a responsible way that does not over burden customers before it is dealt with by others >Value to the Industry >Objective: Develop a safe and reliable low power gas valve that can run battery-operated over the 10-year life of a water heater Non-Powered Powered Pilot light consumes up to 17% of the total annual energy of a non-powered gas water heater, eliminating the pilot light could provide significant energy savings

11. 11 Smart Grid >Electric vs. Natural Gas vs. Energy Grid? How should we use natural gas in a carbon-constrained future? Who will manage energy? >Customers? >Utilities? >Google? >What value can be created with Smart Grid systems? For gas customers Energy savings? CO2 reductions?

12. 12 Carbon Management Information Center Source Energy and Emissions Analysis Tool (www.cmictools.com)

13. 13 Advanced Boiler Technology >Maximizing steam generation efficiency for commercial and industrial boilers 94% fuel to steam efficiency with novel heat and water recovery device 15% carbon emission reduction Ultra low NO x (< 9 ppm) Target: < 2 year payback Multiple field tests underway

14. 14 Transport Membrane Condenser (TMC) >Simultaneously captures waste heat and pure water from combustion products Tubes with nano-porous membrane that selectively removes water by low-pressure- drop capillary condensation >Applicable to many combustion uses Industrial and commercial boilers and steam power plants Industrial drying & humidification processes Home furnace and humidification >Recently licensed to Cannon Boiler Works

15. 15 Submerged Combustion Melter >Developing revolutionary melter for producing industrial materials Various glass products, sodium silicate, waste material recycling (waste fiberglass, electric arc furnace dust vitrification), etc. >Unique submerged combustion process yields major improvement in capital cost, productivity, flexibility, footprint, efficiency >Working with variety of industrial partners >Multiple licensees

16. 16 FlexCHP Power & Steam Package >Fully integrated high- efficiency ultra-clean power and steam package NOx emissions less than 0.07 lb/MWh to comply with strict CA standards Power generator (turbine) Waste heat boiler fed with turbine exhaust gas plus a low emission supplemental burner 85% system efficiency

17. 17 Solar Thermal/Natural Gas Hybrid Energy Systems >Push natural gas equipment above 100% efficiency using hybrid solar thermal/natural gas energy solutions >Reduced-cost domestic hot water and hydronic heating systems for residential and commercial buildings >Higher-temperature concentrated solar thermal for steam generation, absorption cooling, process heating Commercial buildings Industrial plants

18. 18 Renewable Natural Gas End Use >Novel end use bio-methane applications Includes challenging gas quality requirements Gills Onions – Digester to Fuel Cell Quality Methane Linde – Waste Management Biogas to LNG for Vehicles Ft. Lewis – Landfill Gas to Hydrogen

19. 19 Biogas Advantage in Transportation

20. 20 Summary >GTIs End Use efforts focused on: Residential, commercial buildings: >Energy efficiency improvement and CO 2 reduction Industrial competitiveness Combined heat and power systems Alternative transportation fuels and vehicles Renewable energy: >Solar thermal and biomethane >Work collaboratively with energy industry, government partners, manufacturers, and end users Energy EnvironmentEconomy