1. 1 Recovered Energy Generation CHP Waste Heat-to-Power Generation Workshop March 2, 2005 University of California, Irvine ORMAT Technologies, Inc. 980 Greg Street Sparks, NV 89431-6039 USA WWW.ORMAT.COM

2. 2 ORMAT Background Innovative power generation technologies for geothermal and heat energy recovery since 1965 Recognized world leader in the use of organic motive fluids (hydrocarbons) in power generation systems Demonstrated capabilities in design, engineering, manufacturing, installation, financing and operation of power plants Over 750 MW of geothermal and recovered heat power plants have logged 14 million operating turbine-hours, avoided emission of 12x10 6 tons of CO 2 & saved 4x10 6 tons of fuel

3. 3 Fields of Activity RELIABLE REMOTE POWER TRANSALASKA, SINCE 1976 RECOVERED ENERGY GENERATION CANADA, SINCE 1999 UPPER MAHIAO, THE PHILIPPINES, SINCE 1996 GEOTHERMAL POWER PLANTS HEAVY OIL UPGRADER CANADA, SINCE 1999 2380a Trans-Canada Pipeline

4. 4 60 MW Mokai Geothermal Power Plant, New Zealand 2000 125 MW Upper Mahiao Geothermal Power Plant, the Philippines 1996 73 MW Ormesa Geothermal Complex, California Imperial Valley 1987 14 MW Sao Miguel Geothermal Power Plant, Azores Islands 1994, 1998 40 MW Heber Geothermal Power Plant, Imperial County, California, USA, 1992 30 MW Puna Geothermal Power Plant, Big Island, Hawaii 1992

5. 5 ORMAT Technology Organic Rankine Cycle Chimne y Vapor exit Turbine Vapor inlet Controls Burner Condenser Wheel Turbine Alternator Canister Feed Pump Organic fluid Thermostat Fuel inlet Fuel control panel ORMAT Closed Cycle Vapor Turbogenerator OEC Waste Heat Recovery System ORMAT Geothermal Combined Cycle

6. 6 ORMAT ® Energy Converter (OEC) Closed Loop Organic Rankine Cycle Power Generation System Closed: System fully recycles working fluid, with no discharges to the environment Organic: Working fluid is a hydrocarbon or other organic fluid Rankine cycle: Standard power generation cycle used in steam turbines – OEC air cooled condenser smaller and more efficient than steam system

7. 7 Organic Rankine Cycle System Typical Gas Turbine Application

8. 8 Over 250 large OEC units comprising 750 MW Over 3500 small CCVT units installed Oldest units on-line since 1965 (CCVT) & 1984 (OEC) Combined history of more than 16 million operating hours OEC Operating Experience

9. 9 OEC recovered heat applications are a combination of: ORMATs commercially and field-proven OEC turbine technology Thermal oil waste heat recovery systems widely used in the petrochemical industry for decades Marriage of Mature Technologies

10. 10 Qualified Energy Recovery A Green Power Technology No additional fuel consumption Near zero emissions with air cooled ORMAT Energy Converters (OECs) Inside the fence installation on existing sites. No water consumption with closed loop operation No creation or disposal of waste Displaces fossil fuel based energy

11. 11 Entropy Diagrams for Water and Organic Fluid

12. 12 OEC Advantages Over Steam Simpler system No blow down and replacement of working fluid No vacuum pumps or steam ejectors Air cooled Rugged design 1800 RPM turbine, direct connection to generator Outdoor installation typical (even in severe climate) Very low O&M requirements No licensed steam technicians required Packaged modular system – low installed cost

13. 13 OEC Recovered Energy Permitting Issues Inside-the-fence installation simplifies permitting Federal: Self-certification by FERC as a QF, and amendment of industry related permits. State:a) Amend Air Quality Permit for possible fugitive emissions from OEC, b) Inspection of OECs by OSHA, c) Amend permits to include storage of hydrocarbons on site County:a) Building permit for construction, b) County planning permit may require amendment. Other:a) Amend process/safety management manuals

14. 14 Turbine is single casing, multi-stage axial unit, with impulse- design blading, directly coupled to the generator shaft Turbine designed and optimized to operate with the organic vapors. No gearbox required. Mechanical shaft seal prevents leakage of working fluid into the atmosphere or lube oil. The generator is a synchronous, air-cooled (with inlet filter), three-phase machine, brushless and weather protected NEMA II specifications, 13.8kV or 4.16kV and 60 Hz Single or dual shaft extension(s) with turbine directly coupled Turbine-Generator Description

15. Organic Vapor Turbine Assembly Heat Exchangers Workshop CNC Measurement CNC Machining 1476 Manufacturing

16. 16 Continuous Improvement of Turbine Efficiency TURBINE EFFICIENCY % REPRESENTATIVE PROJECTS YEAR OF FIRST USE 72Steamboat1984 75Ormesa1985 78Puna1989 83Heber1993 84Rotokawa1996 88Olkaria2000 2483

17. 17 ORMAT SELECTED ENERGY RECOVERY PROJECTS PROJECT NAME LOCATNMWYEARORMAT ROLEOWNER OPERATOR Neptune GasLuouisiana USA 4.0 MW2004EPC equipment for recovery of heat from turbine exhaust Enterprise Partners LLC. Heidelberger Cement Germany1.5 MW1999Design/supply of equipment for recovery of heat from clinker cooler Heidelberger Cement Gold CreekCanada6.5 MW1999Design/supply of equipment for recovery of heat from gas turbine exhaust Maxim Energy MinakamiJapan600 KW1998Design/Supply of equipment for recovery of heat from MSW Incinerator Ishikawajima Hanyoki Service TG2 KawerauNew Zealand 3.5 MW1993Design/Supply of equipment for recovery of heat from Paper Process Bay of Plenty Electric Power Board Shijiazhuang Heating & Power China1.3 MW1993Design/Supply of equipment for recovery of heat from MSW Incinerator Shaijiazhuang Thermal Power Gas Company

18. 18 2337 6.5 MW ORMAT ® Energy Converter at a Gas Compressor Station along the TransCanada Pipeline, in Gold Creek, Canada, since 1999 1.5 MW ORMAT ® Energy Converter clinker cooler heat recovery system at HeidelbergCement AG, in Lengfurt, Germany, since 1999 Reliable Power From Waste Heat 500 to 6500 kW units in Canada, Germany, Japan, Spain, China and USA

19. 19 Typical Pipeline Compressor Station

20. 6.5 MW ORMAT POWER PLANT GOLD CREEK COMPRESSOR STATION TRANSCANADA PIPELINE 1502

21. 21 2337 Enterprise Products – Neptune Plant

22. 22 OEC in Cement Plant

23. 23 OEC at Heidelberg Cement Lengfurt, Germany Summary Operating Experience On completion of the first year of operations the following was noted Availability over 98% Generating 17% more power than defined under design conditions Operation & maintenance costs are negligible - required spares $3000 & motive fluid loss of 0% No additional staff needed for operation of the system

24. 24 Costs And Configuration Capital installed costs for ORMAT OEC facilities is approximately $1,800 - $2,000/kW net Example: 5.46 MW Gross/4.81 MW Net at design conditions System is matched with exhaust heat source for optimum utilization and operational flexibility Operating costs based on experience are extremely low- less than 0.2 cents per Kwh

25. 25 Economics Economics vary by application Heat source utilization Physical configuration Value of power generated Approximately $30/MWh power over 15 year project life

26. 26 Conclusions Proven, mature, reliable technology Economically attractive compared to other new sources of power Significant environmental benefits Many existing industrial heat sources and new CHP applications Market is responding to opportunity

27. 27 www 2335 visit our website: www.ormat.com