1. Recycling Waste Energy August 18, 2007 Presentation to Senator Reid by Energy Recycling Industries Presenter: Thomas R. Casten Chairman, Recycled Energy Development, LLC

2. Presentation Summary  Energy efficiency gains stalled in 1960  Recycling waste energy can reduce US CO 2 by 10 to 20% and save $70 billion per year  The provisions in the House Energy Bill would spur energy recycling  The Ask: How can our companies help these provisions become law?

3. The Last Seven Presidents Pledged Energy Independence But energy imports rose during every administration Conventional Approaches Have Not Worked

4. 47 years of 33% efficiency.

5. Conventional Electric System Efficiency Since 1960 Pollution Fuel 100 units Power Plant = 67 units Waste Energy 33 units Electricity End User Waste Heat Transmission Line Losses 3 units (9.0%)

6. Remote Generation Waste (66%)  Insert Craig Plume picture to illustrate waste heat

7. Local Generation Recycles Heat To Industrial Plant (85% efficiency)

8. Local Generation with Energy Recycling  Reduces power costs, greenhouse gas emissions and fossil fuel use  Avoids transmission capital and line losses  Helps host industry with lower steam costs and/or new revenue from sale of waste energy – makes host more competitive

9. Estimated U.S. Potential to Recycle Waste Energy ( Million MWh per Year)  2005 fossil electric generation: 2,633  Waste Energy Recycling potential From Industrial waste energy 450 From Industrial waste energy 450 From new CHP plants 900 From new CHP plants 900  Total Energy Recycling potential: 1,350 % of US fossil central generation: 51% % of US fossil central generation: 51%  Drop total U.S. CO 2 emissions: 10% to 20%  Societal savings per year in billions: $70

10. Companies at this Breakfast Specialize in Recycling Waste Energy  We create useful energy by recycling: Exhaust heat from any industrial process or power generation Exhaust heat from any industrial process or power generation Industrial tail gas that would otherwise be flared, incinerated or vented, Industrial tail gas that would otherwise be flared, incinerated or vented, Pressure drop in any gas Pressure drop in any gas  We develop new local combined heat and power plants (CHP) that recycle byproduct heat to displace boiler fuel of thermal users

11. 95 MW Recycled from Coke Production

12. Click on the map to begin the Google Earth Video

13. Identified Recycled Energy Prospects in Nevada Data Source: EPA’s National Emissions Inventory

14. Ormat 5 MW Energy Recycling System 4,000 to 6,000 Megawatts wasted at US gas compressor stations

15. Local Generation Plants we have built that recycle waste heat Denmark Electric Efficiency

16. A Convenient Truth: Energy Recycling Can Profitably Reduce CO 2  US can reduce CO 2 emissions by 10% to 20% and save $70 billion per year recycling waste energy with proven technology  Congress can induce Energy Recycling: Share societal savings Share societal savings Removing barriers to local generation Removing barriers to local generation  House Energy Bill 3221, Subtitles E and G would achieve these goals  How can we help Energy Recycling provisions become law?

17. Thank you for your leadership and for considering support of energy recycling