1. San Diego, CA March 22, 2013 Black River Generation – Retrofit Project Biomass Power Association Annual Conference

2. Fast Facts Inside the fence at U.S. Army installation Fort Drum, near Watertown, NY 60 MW generating capacity Idled coal-burning facility Purchased by ReEnergy December 2011 Selected to sell RECs through 10-year contract with NYSERDA Supported by local governments with PILOT 2

3. Fast Facts Priority project of North Country Regional Economic Development Council, which approved $30M tax-exempt bond volume cap Site visits by Governor Cuomo and Assistant Secretary of Army Hammack Eligible for 1603 grant program Partnered with SUNY ESF in USDA grant to commercialize shrub willow project Goal to secure PPA with Army for 100% of Fort Drums energy needs 3

4. Economic Benefits 178 construction jobs 33 full-time jobs at facility Approximately 145 jobs in the forest Additional spin-off jobs 4

5. Environmental Benefits Reduced emissions compared to prior use New cooling tower to reduce water use and thermal discharge into Black River Reduce limestone usage SFI fiber sourcing certification 5

6. Fuel Supply $11 million/year in green wood purchases Expansion of innovative equipment leasing program Integration of alternative fuels 6

7. Retrofit $34 million invested Commenced Summer 2012 General Contractor: Cianbro Corporation Daily on-site head count as high as 190 7

8. Retrofit: New Fuel Receiving/Handling Equipment 8

9. Retrofit: Construction of Cooling Tower 9 Addition of the Cooling Tower Reduces withdrawal from the Black River From 30,000gpm to <5,000gpm Reduces thermal discharge back to river Reduces environmental footprint Less disruptive to local ecosystem

10. Retrofit: Control Room Upgrades 10 $1.5 million DCS upgrade Latest technology – Invensys/Foxboro DCS System More centralized control of entire facility Updated trending and monitoring systems

11. Retrofit: Boilers 11 Three Pyropower/Ahlstrom circulating fluidized bed boilers Upgraded emission controls Upgraded flue gas path Upgraded bottom ash system Addition of vortex finders in CFBs Complete overhaul of entire unit and all associated auxiliary components

12. Retrofit: Turbine Generator 12 Complete overhaul of unit and all associated auxiliary components

13. Retrofit: Site Work 13 Previous delivery of coal fuel was by rail Deliveries of biomass by truck New signal light to be installed to improve traffic flow New roadways New weigh system

14. 14 Existing coal bins modified to accept biomass wood chips Center screw reclaimer system inside modified coal bins New drag cain conveyor and rotary valve feed system Retrofit: Fuel Feed System

15. 15 Timetable Fuel deliveries began in February Boiler tests to begin week of March 25 th Commercial operations in late April

16. 16 Thank You