Presented to: DOE/CETC Ottawa 2005 Bob Bechtold Harbec Plastics, Inc. Microturbine Applications - …4 Years of Experience later… Ottawa, Canada 2005 Presented to: DOE/CETC Ottawa 2005 Bob Bechtold Harbec Plastics, Inc.

Organization Project Manager - Bob Bechtold, Harbec Plastics Funding Partners - HSBC plus 3 economic development lenders Engineer - Bruce Keeley, Energy Concepts Engineering Project Plan Vs Actual dates: Equipment Delivery- Plan 6-2000 Actual 6-2000 This was after 2 other companies failed to be able to deliver as promised and more than one year was wasted System Commissioned- Plan 7-2000 Actual 9-2000 This was because of other components in the system that were not delivered on time Monitoring Underway- Plan basic system monitoring 9-2000 Current real time monitoring and internet presentation 11-2004 Real time reporting Historical data Work in progress

Harbec CHP Schematic

Harbec CHP Website www.northerndevelopment.com

Harbec Site Photos

CHP Improvements from NYSERDA Grant

In Retrospect with 100% Hindsight We would have built the project with 15 turbines instead of 25 with expansion potential to handle future business growth. We would have purchased different brand of heat exchangers. We would not have purchased gas compressors. Initially we thought it was a mistake to put the turbines inside of the building but since we learned to control ambient heat, we generally agree that being inside has advantages in the Northern climates.

Project Cost Table in US$ Item Actual Cost Hindsight Cost 25 microturbines 30 kW each c. $800,000 c. $500,000 200/100 ton Chiller & Heat Exchangers c. $200,000 c. $250,000 Electromechanical, Engineering, Proj.Mgr. c. $100,000 c. $ 80,000 TOTALS c. $1,100,000 c. $880,000

Electrical Performance Hours of operation to December 31, 2004 541,000 total microturbine hours (=21,600/turbine avr.) Maximum hours of operation on one unit is 27,500 Average Electrical Performance 20-24% Power Delivered to Load/LHV Fuel Estimated Parasitic Losses in kW 50 kW Cooling mode 18 kW Heating mode Power Quality Report on any Power Quality Tests Done or Issues found No power quality issues when in stand alone mode Only power quality issues that exist in grid connect mode are those that come from Utility Power Source

Thermal Performance Thermal Output measured in kW(MMBtu/hr) 200,000 Btu/hr per unit per hour recovered Average water return temperatures and Delta T across HX 100* F to 200* F with 15* Delta T (new heat exchanger) 100* F to 170*F with 10* Delta T (old heat exchanger) CHP Efficiency( we suggest the use of HHV) 70% Total not recondensing Expected Peak Total System Efficiency 70% until we get associated with low grade heat user (Intensive Ag, etc. then 80 to 90 % is believed to be obtainable) (Electrical + Thermal) state which fuel heating value used Due to high gas cost we have developed price point relative to cost of gas and cost of electricity currently $7.85 per DThm. So for the last 4 months we have been thermal load following. Cooling system performance COP About 0.5 Coefficient Of Performance

Emission Performance Report on any emission testing done. Unable to test emissions and it’s not required NOx,CO, THC in ppm and gm/kWh NOx = 9 ppm .223 gm/kWh published CO = 40 ppm .603 gm/kWh “ HC = 9 ppm .078 gm/kWh “ Are emissions in line with equipment suppliers estimates? Unable to answer

O&M Performance Availability? Due to redundancy, we never have a time when our generating system is down due to equipment failure What would be the current estimate of annual O&M costs excluding (including) major hot end replacement in total annual US$ and c/kWh? 2 Year Extended Warranty is c.$65,000 total and covers all parts for all 25 turbines

Institutional Experience Due to low emissions, no EPA/DEC permits were required. We were required to use certified Mechanical Contractors and a P.E. Our electrical interconnection was simple as Capstone turbines were approved by utility, but gas connection was very difficult. Utility would only allow 20 psi. even though 55 to 60 was available. This added significantly to project cost due to need for three 10 hp gas compressors.

Supplier Support General Information that would be useful to suppliers in regard to product support: All our equipment suppliers have been reasonable and fair except for one which was our original heat exchanger manufacturer. That product has now been replaced by a superior one and we no longer deal with the original company. Adequacy of Technical Support and factory after sales support: We sent all (4) of our servicing technicians to be certified by Capstone. We have been able to provide 100% of our actual maintenance as a result with occasional phone assistance. Supply and Costs of Spare parts: We currently have an annual parts warranty which covers all microturbine parts. Warranty Issues: Our original microturbine warranty was extended to over 3 years due to unique and mutually beneficial learning opportunity.

General Experience What areas need to be improved for future installations? Better control of ambient cabinet air on indoor applications Better sealing dampers to prevent blow back of hot exhaust Single unit dispatching capability What is the opinion of the future market opportunities? We think that the microturbine offers a potential for low maintenance, reliable, environmentally friendly CHP. Experience has shown us that everything works best in Grid Connect with no load following and no Dispatching Are there any R&D or development areas that should be looked at? We think that efforts should be made to increase operating electrical efficiency and that alternatives to use waste heat better should be developed to offer customers a more complete solution. Potentials like Rankine Cycle, Hot Oil Heat Exchangers, etc. to enhance opportunities to take thermal potential to process requirements and other beneficial applications. We would also like to see efforts toward using Hythane as a minimum or full hydrogen if possible to encourage renewable energy hybrid systems as hydrogen could be an excellent energy storage medium to allow renewable energy to be dispatchable.

Future Directions and Developments

Q & A ? Thank You. Bob Bechtold bxb@harbec.com Harbec Plastics, Inc. 369 Route 104 Ontario, NY 14519 bxb@harbec.com www.harbec.com 1-888-521-4416 Fax 1-585-265-1306