1. DISTRICT HEATING: AN OVERVIEW PRESENTED BY: NIELSEN SYSTEMS APRIL 8, 2011

2. AGENDA Introduction and Definition Typical Heat Balance at a Landfill Gas Power Plant Examples of District Heating Systems Opportunities at West Carleton and Carp Road Region Summary

3. Definition What is District Heating? – Heating of a group of facilities within a geographic location from one central source, as opposed to individual heating sources for each facility – Typically, district heating makes use of large centralized plants with extensive piping distribution networks – Recently the trend has been to use smaller, more efficient district heating systems which incorporate cutting edge technologies to recover and reuse otherwise wasted energy

4. Definition How does District Heating work? – A centralized heat recovery or generation facility is connected to a group of end users by a network of distribution piping – The energy transported from the central facility to the end user may be in the form of low temperature hot water, high temperature hot water or steam

5. Definition Why does District Heating make sense? – A district heating system which is driven by waste heat may potentially result in lower energy costs to end users connected to the system – Any system which is powered by waste heat is not subject to fuel cost fluctuations – The world’s most cost-effective untapped renewable energy source is waste heat, and currently very little of heat by-products have been resourced as a secondary energy – A more advanced waste heat recovery/district heating system has the opportunity to generate electricity, reducing electrical costs to the end users while reducing greenhouse gas emissions – Cost sharing and CO2 credits can help reduce the overall cost of waste heat to power equipment

6. Typical Heat Balance: Landfill Gas Plant THE PLANT ONLY EFFECTIVELY USES 36.8% OF THE ENERGY GOING INTO IT! WASTE, HEAT AND MECHANICAL LOSSES 63.2% ELECTRICITY 36.8% FUEL IN 100%

7. Where does all the waste heat go? FUEL IN 100% EXHAUST GASES 32.8% HEAT LOSS 3.6% MECHANICAL LOSS 1.3% ELECTRICITY 36.8% JACKET WATER SYSTEM 25.5% ATMOSPHERE

8. Where does all the waste heat go? There is an enormous opportunity for capture on the wasted heat from the plant: EXHAUST GAS32.8% JACKET WATER25.5% TOTAL ENERGY AVAILABLE TO BE CAPTURED 58.3%

9. EXHAUST GAS LOSS 10% Typical Heat Balance with Heat Recovery FUEL IN 100% MECHANICAL LOSS 1.3% ELECTRICITY 36.8% JACKET WATER HOT WATER OR STEAM TO/FROM DISTRICT HEATING SYSTEM 22.8% HEAT LOSS 3.6% HOT WATER TO/FROM DISTRICT HEATING SYSTEM 25.5%

10. Typical Heat Balance with Heat Recovery With heat recovery measures in place, the balance of input energy being used efficiently increases enormously: ELECTRICITY36.8% JACKET WATER RECOVERY25.5% EXHAUST GAS RECOVERY22.8% TOTAL EFFICIENCY 85.1% THAT’S AN INCREASE OF 48.3%!

11. DISTRICT HEATING SYSTEM EXAMPLES

12. District Heating Example: Vancouver In 2003, Maxim Power was chosen to provide a district heating system to the city of Vancouver landfill which included: – Construction of compressors and condensate removal systems at the Landfill blower/flare station – Construction of a 2.5 kilometre pipeline from the Landfill to CanAgro's greenhouses south of the Landfill – Construction of a power station including 5.55 MW of generating capacity using three Cat 3532 generators (reciprocating engines) – Use of the hot water from the engines to provide 100,000 GJ per year of heat to CanAgro's greenhouses

13. Case Study: Vancouver Landfill

14. District Heating Example using ORC turbine technology A major energy developer has an innovative, industrial waste-heat recovery system that is dramatically increasing the efficiency and output of a 7.2 MW biogas power plant in the eastern Slovenian town of Lendava They use an Organic Rankine Cycle (ORC) waste-heat recovery system for gas engines The extra thermal power is used to produce steam, which in turn generates enough electricity to support 300 nearby European homes without using additional fuel ORC systems like this one generally offer enhanced energy efficiency by utilizing organic fluids that have lower boiling points than water to create steam for electricity generation

15. West Carleton Landfill Opportunities Introduce a district heating system to increase efficiency on energy inputs Provide heat to nearby commercial facilities which allows an opportunity for end users to produce their own electricity using processes such as Organic Rankin Cycle (ORC) turbines The energy recovered from waste heat streams could increase net energy output for the existing landfill gas power plant

16. Carp Road Regional Opportunities

19. Summary Waste heat to power is an energy source with zero input fuel costs The advantages are electrical savings, but the process also displaces fossil fuel electrical production, and hence, reduces CO2 emissions New technologies allow for use of low temperature hot water to produce electricity for end users connected to a district heating system End users on a district heating system making use of ORC turbine technology can also recover enough heat to offset space heating requirements in addition to generating their own electricity

20. QUESTIONS?