1. Rick Meidel Vice-President, Power-Projects ExxonMobil Power & Gas Services Inc July 2005 Cogeneration – Challenges & Opportunities Meeting Cogeneration Targets in the Marketplace

2. 2 Chart 1 - Cogeneration Schematic GENERATOR COMPRESSOR EXPANDER IN LET AIR FUEL COMBUSTOR EXHAUST HEAT RECOVERY STEAM GENERATOR STEAM TO PROCESS CONDENSATE RETURN Gas Turbine HEAT TO PROCESS

3. 3 Chart 2 – Heat Flows / Energy Balances 34 % Electricity 1 % Other 65 % Stack Gas SIMPLE CYCLE 50 % Electricity 2 % Other 20 % Stack Gas 28 % Condensed Steam COMBINED CYCLE 34 % Electricity 2 % Other 18 % Stack Gas 46 % Process Heat COGENERATION

4. 4 Chart 3 - Technology Selection HHV Heat Rate BTU/kWh 11000 10000 7000 ~5000 ~4500 Peaking Traditional CCGT Small Large Cogen Cogen

5. 5 Chart 4 - Power Market Assessments Nuclear / Hydro / Other Low-Cost Coal Cogeneration Gas-Combined Cycle Gas / Oil - Traditional Gas / Oil -Simple Cycle High-Cost Coal Demand Curve

6. 6 Chart 5 - ExxonMobil Cogeneration Growth