1. Energy Efficiency Trade Ally Workshops GTI Super Boiler Advanced Heat Recovery April & May, 2011 Curt Bermel Business Development Manager - R&D curt.bermel@gastechnology.org

2. April & May, 2011 2 2 WHO WE ARE Gas Technology Institute >Leading U.S. research, development, and training organization serving the natural gas industry and energy markets An independent, 501c (3) not-for-profit Serving the Energy Industry Since 1941 > Over 1,000 patents > Nearly 500 products commercialized

3. April & May, 2011 3 3 Super Boiler Background >U.S. industrial and commercial steam boilers Consume over 6 quads of natural gas per year Wide range of steam uses from process steam to space heating >Installed base of steam boilers Largely over 30 years old Average efficiency 76% Typical NOx emissions 85 ppmv Significant potential for improved technology

4. April & May, 2011 4 4 Project Origin & Goals >Super Boiler program Started by DOE and gas industry in 1999 GTI team selected to carry out project >Goals: Maximum efficiency NOx and CO less than 5 ppmv Reduced footprint and weight Cost-effectiveness

5. April & May, 2011 5 5 HEAT RECOVERY Natural gas combustion produces about 18% water from oxidation of H in fuel Water vapor up the stack accounts for 10% of fuel energy input, or 65% of stack loss Key to higher energy efficiency is to recover both sensible and latent heat

6. April & May, 2011 6 6 Heat Recovery: General Approach >Flue gas heat recovery Remove sensible heat with two economizers Remove latent heat with Transport Membrane Condenser (TMC) Suitable for end users with high make-up water usage Fuel in Steam Out Boiler Deaerator/ Make-Up Tank Ambient air LTE HTE Flue gas out TMC Make-up water BFW

7. April & May, 2011 7 7 Preheated air Heat Recovery: Expanded System * >Applications with high condensate return Limited make-up water reduces TMC capacity Recycle water through air heater (AH) Allows for heat recovery even for boilers with high condensate return Fuel in Steam Out Boiler Deaerator/ Make-Up Tank Ambient air LTE HTE Make-up water Flue gas out TMCAH Condensate return BFW *U.S. Patent No. 7,066,396

8. April & May, 2011 8 8 Heat Recovery: TMC Concept * >Transport Membrane Condenser (TMC) Nanoporous ceramic membrane tubes Water vapor permeation via capillary condensation Partial vacuum on shell side Counter-flow configuration Warm humid flue gas in Warm water out to deaerator Cool feed water in Cool dry flue gas out * U.S. Patent No. 6,517,607, 2008 Chicago Innovation Award

9. April & May, 2011 9 9 1 st and 2 nd Generation Membrane Bundles

10. April & May, 2011 10 TMC Version 2.1 in Duct Warm water to deaerator Cool feed water in Warm moist flue gas in Cooler Dryer flue gas out

11. April & May, 2011 11 April & May, 2011 11 Heat Recovery: Alabama Field Demo

12. April & May, 2011 12 April & May, 2011 12 Heat Recovery: Alabama Field Demo

13. April & May, 2011 13 April & May, 2011 13 Heat Recovery: California Field Demo >Clement Pappas & Co. in Ontario CA Heat recovery system (HRS) similar to Alabama site HRS mounted above boiler

14. April & May, 2011 14 TMC Module Nanoporous membrane tubes selectively remove water through low-pressure-drop capillary condensation Extracts pure water molecules from the effluent and with the water comes the latent heat (normally considered low-grade) Applicable to wide range of combustion applications Industrial and commercial boilers Steam power plants, engines and turbines Industrial drying and dewatering processes Transport Membrane Condenser (TMC)

15. April & May, 2011 15 April & May, 2011 15 Heat Recovery: California Baxter BioScience Thousand Oaks, CA October, 2009 Installation

16. April & May, 2011 16 April & May, 2011 16 Oak Ridge National Lab >Accomplished in the demo Installation completed in April 2010; >Data on 100% makeup water application 2 nd generation TMC demonstrated >Measured benefits >~95% efficiency, 50% recovery of water vapor >Integrated boiler/AHRS control panel >1 st 200 psig design

17. April & May, 2011 17 April & May, 2011 17 Richardson Brands Candies >Accomplished in the demo Installation completed in May 2010, expect >Data on very high makeup water application 2 nd generation TMC demonstrated Injection molded end caps = savings > Market influence Verify performance on high makeup systems Verify improved ROI >Measured benefits TBD; expect >~94% efficiency, 40% recovery of water vapor

18. April & May, 2011 18 April & May, 2011 18 Summary >Super Boiler technology proven at five industrial sites >Additional Super Boiler systems contracted >Commercial license agreement for TMC-based heat recovery signed with Cannon Boiler Works >Expanded use of TMC for other applications Utility-scale boilers (working with Alliant and US-DOE) Industrial drying applications Home humidification (two units installed) Non-boiler applications such as in sludge processing

19. April & May, 2011 19 April & May, 2011 19 Other Markets/Projects >Transport Membrane Humidifier Funded by SMP Humidification using products of combustion >12% efficiency increase > TMC for coal-fired power plants Funded by DOE NETL 70% water recovery from exhaust gases Larger bundles >TMC for non-boiler applications Funded by CEC & UTD Scrubbers, dryers, etc. Demo fall 2010 at L&N Costume Cleaners >TMC for Industrial boilers Market need but no funding to date

20. April & May, 2011 20 April & May, 2011 20 Contact Information Curt Bermel (847) 768-0649 Gas Technology Institute curt.bermel@gastechnology.org Chris Giron (724) 335-8541 Cannon Boiler Works sales@cannonboilerworks.com