1. SOLAR ENERGY FOR THE GREEN ECONOMY: IS IT AN EXPENSIVE WASTE OF TIME, OR A SMART STRATEGY? Anders Jepsen, CEO, Heliodynamics, Inc. for the Santa Fe Community College Sustainable Technologies Center 25 June 2008

2. SFCC Green Energy Workshop 25 June 2008- 2 Climate Change - Somebody Else’s Problem? “We will pay for this one way or another. We will pay to reduce greenhouse gas emissions today, or we will pay the price later in military terms.” General Anthony C. Zinni, USMC (Ret.), Former Commander-in-Chief of U.S. Central Command (CENTCOM)

3. SFCC Green Energy Workshop 25 June 2008- 3 Climate Change is an Energy Problem Almost all of it is caused by burning fossil fuel. Most of our energy (electricity, heat and motive power) comes from burning fossil fuels. The fossil fuel industries are firmly entrenched in our way of life.

4. SFCC Green Energy Workshop 25 June 2008- 4 The 21 st Century Energy Challenge An irresistible force:  Rising energy demand to increase the size of the world economy;  China’s demand has required an increase in oil supply. An immovable object:  Not enough growth in energy supply. Result:  Price of oil risen 1200% in a decade;  Price of fuels has doubled in 10 months.

5. SFCC Green Energy Workshop 25 June 2008- 5 6-month natural gas curve

6. SFCC Green Energy Workshop 25 June 2008- 6 Why is supply not keeping pace? -1 Oil:  75% capacity is under control of government monopolies;  Both of the world’s largest oil fields, Saudi Arabia’s giant Ghawar field and Kuwait’s giant Burgan field, are in decline;

7. SFCC Green Energy Workshop 25 June 2008- 7 Why is supply not keeping pace? -2 Natural Gas: More capital investment & time required to develop infrastructure. Coal: Until carbon emission problem is solved, new investment in coal-fired power plants very unlikely.

8. SFCC Green Energy Workshop 25 June 2008- 8 What will balance supply and demand? Reduction in Demand (either by energy conservation or by industries forced to close by energy costs):  Vehicles (oil);  Buildings (coal, gas);  Processes (gas).

9. SFCC Green Energy Workshop 25 June 2008- 9 Whose demand may stabilise price? Countries which subsidise fuels? - No  China;  India;  Most of the M. East. Market economies? - Yes  IF taxes not reduced on motor fuels;  IF technologies offer improved performance.

10. SFCC Green Energy Workshop 25 June 2008- 10 What other options do we have to meet the need for new supply? Other sustainable (renewable) sources of energy:  Biofuels (cellulose, sugar, seed-oil);  Wind;  Solar;  Marine.

11. SFCC Green Energy Workshop 25 June 2008- 11 So, where does HelioDynamics fit into this scenario? We’re a concentrating solar technology company. We make systems to deliver industrial grade heat for solar-powered air conditioning and for other processes that now burn natural gas We make Combined Heat and Power (CHP) systems for both electricity and heat for many different uses.

12. Concentrating Solar So what’s Concentrating Solar? Big area of focus or reflector, small area of receiver Existing systems use the heat to make electricity Solar 2 (tower, decom’d) SEGS (trough, working) Dish Stirling (in dev)

13. How do these Concentrating Solar systems harvest the heat energy? Receivers Tower (molten salt!) from reflecting heliostats heat to steam to turbine electricity Thermal tubes of hot oil – from reflecting troughs heat to steam to turbine electricity Dish Stirling – Stirling engine drives a turbine directly. 25kW per unit.

14. What’s good about these systems? 1)Utility Scale Concentrating systems can and do deliver solar power to the grid 2)Lots of sunny (windy) desert space available But, here’s the down side. 1) The technology needs big systems to work - very costly 2) Big arrays need extra wheeling capacity (power lines) to deliver the power to the grid. 58 395

15. SFCC Green Energy Workshop 25 June 2008- 15 Is there a smaller technology? Yes, indeed! Here’s a simple system: * a linear Fresnel lens, made from * flat plate glass mirrors * laser-cut steel or aluminum structure * a single controller to keep the sun focused, and * makes pv electricity and heat together, or just heat

16. It works just like the big systems - big area of reflectors, small area of receivers How does it make the electricity? The system has the pv cells, modified so they can carry a lot of current, mounted to the underside of the receiver. We cool the pv cells so optimize their performance,and the cooling system harvests the heat That’s Combined Heat and Power! CHP CHP not only uses PV cells to make electricity by concentrating the the sun but also makes heat, at the same time! And, because of its simplicity of design, it can be installed anywhere that the energy is needed. It’s DISTRIBUTABLE!

17. And what about the heat? That’s where the real energy savings come in. If you have a use for the heat, the capital cost barrier that has stood in the way of solar power for all these years IS REMOVED. So how can we use the heat? Community power, cooling and heat Hot water for hospitals, labs, industries Drive a Chiller for refrigeration and cooling Hot water for schools and gymnasia What do you need? What do you want?

18. So where does CHP fit in today’s world? Three configurations available: Heat only – receiver has no pv cells, industrial grade heat up to 225 C Electricity only – GaAs cells, 500x conc’n. Coming soon for large energy parks Combined Heat and electric Power (true CHP: Electricity + 90C hot water) (presently limited by pv cell shortage)

19. Some Applications Off grid mobile home park in Napa Valley Food processor Hospital hot water Retirement Community air conditioning Albuquerque airport car rental facility

20. Mobile Home Park: CHP Long term Object: 500 kWe, LEEDS certification, community heating (propane now) and community air conditioning Start with: 10 kWe plus 60 kWtherm Use for heat: air conditioning, winter heating and pasteurization for ag use Local value of the electricity: @$.30 per kWe =$6000yr Local value of the heat: @$4.40/therm =$17,600/yr

21. Food Processor – Refrigeration (and hot water for cleaning) Objective: Refrigeration and hot water Obstacle: CFO, payback Motive: Save $ now Technical: replace 50 tons elect refrig’n plus 1.6MMBTU/hr hot water Value: Replace 116,600 kWe/yr 35,400 therms gas/yr Cost: $700,000, payback 3.5 years

22. Hospital – hot water Objective: hot water Obstacle: payback Motive: hedge against ga$; Look green Size: 1287 kW therm over pkg lot Cost: $1,100,000 Payback: 11 yrs w/ FTC (before gas price increase)

23. Retirement Community – Cooling Objective: Provide A/C cooling to individual units Obstacle: CFO, payback Motive: look green & Hedge against gas $ Size: 450 tons of cooling Cost: $3.4 million Payback: 7 years Incentives: FTC, 5-yr dep’n

24. Albuquerque Airport - CHP System: 30 tons refrigeration (105 kW cooling) equivalent to 35 kWe of electricity plus 13 kWe Site: SunPort car rental Output: 48 kWe (equiv) Cost: $6.00 per watt!

25. SFCC Green Energy Workshop 25 June 2008- 25 Answer(1): We developed a two-axis system using GaAs pv cells and a greater optical concentration – 500 suns Question: So, how did we adapt this technology to bigger, utility-scale systems ?

26. ~7.5m ~4m Azimuth Tracking HD GaAs 2 Axis Concentrator 3-5-5-3 Module Array on ~30m Turntable. Output: 48kWe (DC) Primary Optics : Cradles x15kW/m 2 Secondary optics: Parabola x200 kW/m 2 Tertiary optics: Lens x750 kWm 2 Space Need: 5 acres per MWe Cradles

27. SFCC Green Energy Workshop 25 June 2008- 27 Answer(2): We adapted our HD16.t single-axis system with higher performance fittings on the thermal receiver to generate up to 225C heat. This is hot enough to drive an Organic Rankine Cycle (ORC) 120kWe turbine. and another adaptation…

28. SFCC Green Energy Workshop 25 June 2008- 28 Again, 1 MWe on 5 acres, $6 per watt today, with both electric power and heat! Multiple arrays of HD16.t, yielding heat at 225C Layout of complete system with wood burning backup for extended operation beyond solar hours

29. SFCC Green Energy Workshop 25 June 2008- 29 A LocalGrid Integrated Schematic ORC Turbogenerator Inverter Fuel dryer (opt) Nickel salt battery Chipped woodfuel Sun Customer Service Unit Boiler Biodiesel Generator Sets Biodiesel Solar PV

30. SFCC Green Energy Workshop 25 June 2008- 30 So, a Quick Recap Solar Technology: simple design that’s a candidate for local manufacture (much of it, anyway). Applications:  Solar Powered Air Conditioning  Combined Heat and Power for Commercial/Industrial  Stand-Alone off-grid systems with other renewables  Can be scaled up for grid scale production Solar is becoming cost competitive as well as being green

31. SFCC Green Energy Workshop 25 June 2008- 31 It doesn’t seem like such a waste of time after all! Thank you for your attention Anders Jepsen, CEO HelioDynamics, Inc. 23 Dos Posos Orinda, CA 94563 jepsen@heliodynamics.com tel: 1-925-254-5250