Supply Chain – Global Opportunities Richard Smith, Howden Group

Company relationships Company Overview Company relationships Howden is a subsidiary of Colfax Corporation, as are ESAB and Colfax Fluid Handling. Colfax Fluid Handling ESAB Howden Precision pumps and systems Sales in 2012 – $646m Employees – 2200 Welding and cutting equipment Sales in 2012 – $2,000m Employees – 6900 Fans, heat exchangers and compressors Sales in 2012 – $1,255m Employees in – 4400

History Company origins and development ````` Founded in 1854 by James Howden (1832 – 1913) in Glasgow as a marine engineering firm, designing and building boilers. Moved into the power and other heavy process industries supplying fans and heat exchangers. Increased international presence in the decade 1988 to 1997 through acquisitions. Became part of Colfax in January 2012. Today, a leading global player for heavy industrial air and gas handling equipment.

History Technical pedigree ` Development of the forced draught system with integral air preheat for boilers (1882), dramatically reducing fuel consumption. The commercialisation of screw compressors in the 1940s and development of oil injected screw compressors. Development of the rotary regenerative air preheater in conjunction with Frederik Ljungström of Sweden in the 1920s. Other technical firsts Invention of the ‘Sirocco’ fan with forward curved blades. Invention of the diaphragm compressor by H Corblin. The development of the aerofoil bladed centrifugal fan Built the world’s first commercial flue gas desulphurisation plant (1930’s)

James Howden and Company of Canada Ltd History Canada James Howden and Company of Canada Ltd Scarborough, Nr Toronto (1958 – 1996)

Products and Services Global Acquisitions Over the years Howden has acquired many well known technologies, companies and/or brands in the air and gas handling field. Brand/Company Main country Aerodyne Fans Australia Fantecnic Fans Australia Pitstock Fans Australia Phoenix Fans Australia Powermax Fans Australia Wolf Fans Australia Wheeler Fans Australia Aeolus Brazil Canadian Blower Canada Sheldon Fans Canada Covent Fans Canada Nordisk Fans Denmark Variax Fans Denmark Berry Fans France Burton Corblin Compressors France Periflow® Compressors France Sofrair Blowers France Ventilateurs Neu France Turbowerke Meissen Germany Voith Fans Germany Airtech Fans South Africa Donkin Fans South Africa Majax Fans South Africa Brand/Company Main country Safanco Fans South Africa Tallares Sanchez Luengo (TSL) Spain Stork Fans The Netherlands Ventilatoren Sirocco Howden The Netherlands Thomassen Compressors The Netherlands Aerex Fans United Kingdom Airscrew United Kingdom Carter Fans United Kingdom Davidson Fans United Kingdom Donkin Blowers United Kingdom Engart Fans United Kingdom Godfrey Blowers United Kingdom Howden Sirocco Fans & Heaters United Kingdom James Howden United Kingdom Reavell Centrifugal United Kingdom Sirocco United Kingdom Waller United Kingdom American Blower USA Buffalo Forge USA Joy Green Fans USA Sturtevant Fans USA Westinghouse Fans USA Howden Buffalo USA/UK 6

Products and Services Products High integrity fans, heat exchangers and compressors which demand the highest levels of efficiency, reliability and availability. Centrifugal fan Axial fan Compressor Cooling fan Special and local products Rotary heat exchanger

Markets Sales by Industry and Region Our sales are made throughout the world to key process industries. By industry By region New equipment plus aftermarket 8

Global Commitment & Leadership Clean power generation Future of power generation has not yet evolved Clean & reliable power. About to enter an increasingly expensive period of transition Politicians, economics and public perceptions all not ready. Currently in a period of waiting In need of global commitment & leadership. Climatic pressures continue to increase. Reduced time to act whilst current engineering resource disseminates. Manufacturing businesses need visible global opportunity during transition period

IEA Strategy - Reducing GHG Emissions Global deployment of CCS 2010-50 (MtCO2 annual captured) Power generation is the primary focus for emissions reduction. Other large scale energy intensive industries emit CO2 in large quantities (e.g. cement). Smaller energy intensive industries are likely to switch to clean electricity – additional load for power generation.

Creating Opportunity Proactive globally Fossil Fuel power Generation can’t be replaced overnight! Howden already active for transitional CCS Involved with several confidential technology developments partnerships. Active members of organisations: GCCSI, CCSA, EPPSA etc Equipment provided for Worldwide CCS Project demonstrations: Karlshamn Gas Fired CCGT with PC Sweden Ferrybridge Conventional Coal Fired with PC UK Donguaan IGCC China Hua Dian Conventional Coal Fired with PC China Kemper County IGCC (585MW) USA Six Howden 7000HP Coal drying Fans Six Howden 900HP Coal Mill Feed Fans One Howden 1630HP Combustor Air Fan One Howden 450HP Stack Gas blower One Howden 3100HP Cooling Air Blower Eight Howden 4000HP refrigeration Screw compressors.

Next Generation Carbon Capture Objective - Reducing energy intensity aBsorption > > > > aDsorption Development of adsorbent technologies and materials Pressure Swing Adsorbents Temperature Swing Adsorbents Light Swing Adsorbents Adsorbent variants include zeolites, activated carbon and metal organic frameworks (MOFs) >>> Structured adsorbents

Next Generation CCGT +CCS Howden Collaboration with InvenTys and Doosan Power Systems RAM (Rotary Adsorption Machine)

ETI - NGCT2 Project Formally announced 11th October 2012 by Ed Davey

ETI - NGCT2 Project Project Background Project commissioned and funded by the Energy Technologies Institute Develop and prove Next Generation CCS technology for application on CCGT plant Potential to make a substantial reduction in Capital and Operating costs Readiness to catch the wave of CCS implementation in CCGT’s expected 2020s Consortium brings together 4 international engineering companies Inventys Thermal Technologies Process inventors and adsorption specialists Howden Group Manufacturer of rotary regenerative heaters Doosan Power Systems Experienced EPC contractor & system integrator MAST Carbon International Developer of innovative activated carbon material Process is based on using InvenTys’ patented VeloxothermTM technology Phase 1 : 12 month, laboratory-based project at InvenTys facility in Vancouver

ETI - NGCT2 Project Project Progress Performance testing of activated carbon sorbent structures continues Appropriate adsorption characteristics, chemical and mechanical properties are being demonstrated. Test data has confirmed the predictive capabilities of Inventys’ process models. Doosan and Howden utilising data for preliminary specification and design of a full scale CCGT plant Test work moving to a12-bed rotating Process Demonstration Unit (PDU) V-100 Rotary Adsorption Machine (RAM) now in Canada Designed and manufactured by Howden, installed at InvenTys Sufficient sorbent structures need to be manufactured to fill an annulus In collaboration, Howden and Inventys are designing alternative rotor sealing systems which will be tested and compared in the RAM

ETI - NGCT2 Project Future Activities RAM modifications to suit the optimised VeloxothermTM process Doosan to complete process integration for full scale plant based on InvenTys’ process data validated by the VTS and PDU tests Inventys to update the Techno Economic Analysis for CCGT plant Final test work is to be completed on the RAM using simulated flue gas verifying first step up in scale from bench to prototype plant Preparation and submission of proposal for Phase 2 of the project 5 MWe stand alone demonstration plant Embrace potential additional partners Timely CCS Community engagement and commercial promotion: - Achievements and Potential Benefits Not a chemical plant Reduced costs and ground space Adsorbent material – safe disposal Speed of “Roll-Out”

Supply Chain – Global Opportunities Positioned to globally benefit from development of existing technology Howden Technology is owned and developed under Howden Group, providing Howden Business Units with central support and control. Design & Manufacture Performance & Selection Supply Chain (Global and Local) Howden Quality Manufacturing facilities and aftermarket support is strategically positioned. Sales Offices provide flexibility to respond to changing markets. Information gathering of market changes and technology developments at local level provide a broader global perspective. Power generation WILL change toward a balance of “clean” technologies and the market - as with everything - today is a global opportunity.

Supply Chain – Global Opportunities Innovation, Development, Commercialisation, and Deployment Matching and applying new technologies into established markets, using adaptations of proven machinery and systems, can dramatically reduce the risk, costs and timescales – especially pilot and demonstration stages. The Veloxotherm™ process has the potential of significant advantages Complexity and size Energy Demand Speed of “roll out” Canada has an appetite for EOR Commercial demand in absence of CO2 emission legislation Medium scale development ground InvenTys location being Vancouver – ideally situated to support Together as part of a consortium, the Veloxotherm™ technology has the solid foundations of a Global Customer Service and Supply Chain with flexibility to maximise benefit of both commercial and legislation driven CCUS opportunity.

Howden Global                        Old Govan Road,           Renfrew, PA4 8XJ United Kingdom     Richard P. Smith B.Sc. Eng Business Development Manager - Emerging Processes Email: richard.smith@howden.com DDL  :   +44 (0)1246 599912 MOB :  +44 (0)7775 858957