Western Regional Boiler Association 2014 Key Considerations for Project Success

Red Lion Inn, Port Angeles, WA, 12 March 2014 2 PROPRIETARY & CONFIDENTIAL 3 PROPRIETARY & CONFIDENTIAL FSE ENERGY OVERVIEW

• Founded in 1935 • Headquartered in Covington, LA with facilities in; Cumming, GA, Vacherie, LA and Dallas, TX • Solutions, equipment, & services are market tested, proven, and referencable. • Consistently provides bankable ROI to the industry. • Delivered over 150 full projects to utility and industrial clients since 1935. • Technology neutral and specialized experience allows a client-centric approach to all engagements. • Provides full turn-key solutions from our in-house teams, and work as needed past integration points. • An in-house knowledge repository arms our project managers with the best practices, processes, vendors and solutions to ensure every project is delivered on-time and on-budget.

4 PROPRIETARY & CONFIDENTIAL PARTIAL CLIENT LIST

• ABENGOA • CROWN ZELLERBACH • JEANERETTE SUGAR COOP • RACELAND RAW SUGAR • AGRILECTRIC • DYNEGY MIDSTREAM • JOHN ZINK • RENTECH • ANDAHUASI SUGAR CORP SERVICES • LAFA • RIO GRANDE VALLEY • ANHEISER BUSCH • DTE ENERGY • LAFOURCHE SUGARS SUGAR GROWERS • ARKEL INTERNATIONAL • ENVIVA • LANCE • SAVOIE INDUSTRIES • ASPEN POWER, LLC • ENXCO • LANGDALE FOREST • SHEARERS • AZUCARERA EL PALMAR • FLETCHER SMITH, LTD PRODUCTS • SPREKELS SUGAR • BEAR ISLAND PAPER • FORT JAMES • LULU-WESTFIELD • ST. MARTIN SUGAR • BOISIE CASCADE COMPANY CORPORATION • LUMMUS-CREST, INC COOPERATIVE • CAJUN SUGAR COOP • FLORIDA CRYSTALS • M.A. PATOUT & SONS • ST. MARY SUGAR • CALDWELL SUGAR • FLUOR DANIELS • MACMILLAN BLOEDEL, INC COOPERATIVE COOPERATIVE • GAYLORD CONTAINER • THE NEWARK GROUP • STERLING SUGARS • CGI • GEORGIA PACIFIC • NIPPON PAPER • THE BABCOCK & WILCOX • CINCLARE CENTRAL • GLENWOOD COOPERATIVE • NOVI ENERGY COMPANY FACTORY • HACIENDA JUAN VINAS • OKEELANTA CORP • THOMPSON RIVER COGEN • COLONIAL SUGARS • HEAT & CONTROL • POET DESIGN • TRADEWINDS • COMPANIA AZUCARERA • HOLLY SUGAR • PROCTER & GAMBLE CORPORATION TRES VALLES CORPORATION • PROPAL PRODUCTORES DE • TRUS JOINT CORPORATION • COMSTOCK CANADA • INGENIO CURTIS PAPELES • VALDEZ SUGAR • CORA TEXAS • J WRAY & NEPHEW, LTD • PSI MIDSTREAM • WEYERHAEUSER

5 PROPRIETARY & CONFIDENTIAL

INDUSTRIES SERVED

FSE Energy solutions are applicable for the below industries

Ethanol Bio-Fuel Gasification Liquefied Natural Gas Process Waste Pulp & Paper Petrochemical Recycling Timber Power Sewage Wood Pelleting Refining Waste to Energy Wood Torrefaction MSW

Edible Oils Asphalt Breweries Oil Cement Dairies Palm Oil Steel Food Industry Textile Rice Sugar

6 PROPRIETARY & CONFIDENTIAL GLOBAL CLIENT DISTRIBUTION

7 PROPRIETARY & CONFIDENTIAL Relevant Issues

SOME KEY CONSIDERATIONS FOR PROJECT SUCCESS Developer / Owner must understand and be able to manage the RISK of:

• Scale or Nature of Decision Driving the Project • The Market (it is the ENERGY market) • Political and Regulatory Framework which includes; Permitting (Environmental, Plant Siting, Zoning), Energy or Sustainability Mandates, and Public Sentiment • Fuel Supply and Logistics • Counter Party including all Suppliers and Off Taker(s) • Financial Partners, both Debt and Equity, which includes Surety Requirements • Commercial Considerations including Cost and Revenue per MWh or mmBTU, Technology, Construction and Project Management • Legal or Country Risk (includes political and payment risk as well as import / export risk) 9 PROPRIETARY & CONFIDENTIAL

SOME KEY CONSIDERATIONS FOR PROJECT SUCCESS Developer / Owner must understand and be able to manage the RISK of:

• Scale or Nature of Decision Driving the Project • The Market (it is the ENERGY market) • Political and Regulatory Framework which includes; Permitting (Environmental, Plant Siting, Zoning), Energy or Sustainability Mandates, and Public Sentiment • Fuel Supply and Logistics • Counter Party including all Suppliers and Off Taker(s) • Financial Partners, both Debt and Equity, which includes Surety Requirements • Commercial Considerations including Cost and Revenue per MWh or mmBTU, Technology, Construction and Project Management • Legal or Country Risk (includes political and payment risk as well as import / export risk) 10 PROPRIETARY & CONFIDENTIAL

FUEL OPTION CONSIDERATIONS Based on the planned fuel source there may be one or more combustion options which are appropriate.

Stoker BFB CFB Agricultural waste (bagasse, stover, rice hulls) x x x Bagasse x x x Bark x x x Biomass x x x Coal x x x Landfill gas x x x Dedicated energy crops (sawgrass, bamboo, eucalyptus) x x Natural gas x x x Oil x x x Paper mill sludge x x x

11 PROPRIETARY & CONFIDENTIAL FUEL OPTIONS CONSIDERATIONS CON’T

Stoker BFB CFB Peat x x x Process wastes (furniture manufacturing, construcon & x x x demolion) Poultry lier x Recycled paper facility sludge x x x Petroleum Coke x Sewage sludge x x Syrup from ethanol facilies with high alkali contents x x x Syrup from ethanol facilies with low alkali contents x x Tire-derived fuels x x x Wood waste (forestry, pulp and paper) x x x

12 PROPRIETARY & CONFIDENTIAL ENGINEERING CAPABILITY CONSIDERATIONS

• Mechanical • ASME code calculations • Design work • AutoCAD & Bently AutoPlant software • 2D drawings & 3D modeling • Installation & erection drawings • Project management & scheduling • Finite element analysis • Custom designed material handling equipment • Feasibility studies with capital costs estimates

13 PROPRIETARY & CONFIDENTIAL ENGINEERING CAPABILITY CONSIDERATIONS (2)

• Instrumentation • Piping and instrumentation drawings • SAMA logic diagrams • PLC / Loop diagrams • Operator workstation designs and options • HMI Graphic Displays • Civil • Surveying • Grading • Foundation load diagrams • Foundation reaction calculations • Foundation design

14 PROPRIETARY & CONFIDENTIAL ENGINEERING CAPABILITY CONSIDERATIONS (3)

• Structural • Member size & column design • Full design of structural layouts for all equipment • Electrical • Full service system design • Motor control center & room design • Cable tray routing & layout design • Standard electrical diagrams • CFD Analysis • Furnace configuration • SNCR location • OFA system design

15 PROPRIETARY & CONFIDENTIAL CONSTRUCTION CAPABILITY CONSIDERATIONS

• Greenfield projects • Brownfield projects • General maintenance & construction • Emergency & scheduled outages • Modifications & upgrades • Onsite equipment rebuilds • Vessel repair & replacement

16 PROPRIETARY & CONFIDENTIAL FABRICATION CONSIDERATIONS ASME boiler & pressure vessel code and non-code manufacturing & repair facilities with extensive history • ASME certified “S” & “U” • National board certified “R” • Manufacturing capabilities include all that falls under ASME Section I & Section VIII code. • Material Fabrication Capability that includes: • Carbon • Stainless Steel • Hastelloy • Iconel • Nickel • Monel • Others

17 PROPRIETARY & CONFIDENTIAL

Relevant Case Studies

POET DESIGN & CONSTRUCTION POET delivers a turn-key development, design, engineering, construction, management and marketing services for a network of 23 ethanol plants in 7 states. • Field erected membrane wall boiler currently in operation • Chancellor, SD • Scope of work included; Design, Fabrication, Construction • Fuels Fired; Wood Waste, Landfill Gas, Syrup • System Outputs; 150,000 PPH steam, 650 PSIG, 700 degrees F

19 PROPRIETARY & CONFIDENTIAL • NOVEC Energy Production, Halifax County Biomass • Field erected membrane wall boiler currently in operation. • South Boston, VA • Scope of work included; Engineering, Design, Fabrication, Procurement and Construction of Boiler Island, “Chute to Stack” • Fuels Fired; Biomass, Slash • System Outputs 49.9 MW, 400,000 PPH steam, 1515 PSIG, 955 degrees F

20 PROPRIETARY & CONFIDENTIAL PROPAL PRODUCTORA DE PAPELES Founded in 1957 in Columbia under the name of PULPACO, Propal Productora de Papeles offers a global class of pulp and paper products to the world-wide market, with emphasis in the Andean region. • Field erected membrane wall boiler operating in Yumbo, Columbia • Scope of work included; Engineering, Design, Fabrication, Procurement and Construction of Boiler Island • Fuels Fired; Coal & Bagasse • System Outputs; 250,000 PPH steam, 650 PSIG, 700 degrees F

21 PROPRIETARY & CONFIDENTIAL RIO GRANDE VALLEY SUGAR GROWERS

RGVSG, located in Santa Rosa, TX, is a member-owned cooperative comprised of over 126 growers in a three- county area and is one of the top 10 producers of raw sugar in the United States. • Cogeneration plant currently in operation in Santa Rosa, TX • Scope of work included; Design, Engineering, Fabrication, Construction, Project Management • Fuels Fired; Bagasse • System Outputs; 300,000 PPH steam, 650 PSIG, 700 degrees F

22 PROPRIETARY & CONFIDENTIAL ASPEN POWER Aspen Power LLC exists as the cleanest biomass fired power producing plant within the state of Texas. The plant is a 100% wood- fired plant.

• 57 MW field erected plant; Plant currently in bankruptcy • Scope of work included; Engineering, Design, Fabrication, Construction, Balance of Plant • Fuels Fired; Wood Waste • System Outputs, 463,000 PPH steam, 1250 PSIG, 950 degrees F

23 PROPRIETARY & CONFIDENTIAL US SALT US Salt, located in Watkins Glen, NY, over its 100 plus year history has emerged as one of the leading salt companies in the world and continues to establish new industry standards for product purity, QA, packaging & customer service.

• Reconstruction of an existing B&W boiler, currently in operation • Watkins Glen, NY • Scope of work includes, Construction • Fuels Fired; Wood Waste, Natural Gas • System Outputs; 150,000 PPH steam, 750 PSIG, 700 degrees F

24 PROPRIETARY & CONFIDENTIAL

FLORIDA CRYSTALS Florida Crystals is a leading domestic sugar producer. The Ingenio San Nicolas project and the Central Ramona being among the latest Cogeneration Plants. • Vera Cruz, Mexico & Dominica Republic • Scope of work (San Nicolas) included, Design, Engineering, Fabrication and General Contractor for Balance of Plant work including 2 8.5 MW TG Sets and the fuel handling system, water treatment, deaerators, and feedwater systems. • Fuels Fired; Bagasse • System Outputs; 250,000 PPH steam, 850 PSIG, 850 degrees F

25 PROPRIETARY & CONFIDENTIAL NIPPON PAPER GROUP Nippon Paper is the largest paper producer in Japan. • Operational; Port Angeles, WA • Scope of work included; Engineering, Design, Fabrication, Procurement, Construction and Balance of Plant with the associated piping, condensing economizer, TG Building, TG installation, offices, control room, motor control center, and the electrical design supply and installation • Fuels Fired; Wood Waste; Paper Sludge • System Outputs; 225,000 PPH steam, 1100 PSIG, 900 degrees F

26 PROPRIETARY & CONFIDENTIAL ABENGOA Abengoa is a leader in the development of No photo available new technologies for the production of biofuels and chemical bio-products and the sustainability of raw materials, dedicating a large quantity of resources into research work. • Currently in Start up • Hugoton, KS • Scope of work included; Engineering, Design, Fabrication, Procurement & Construction • Fuels Fired; Agricultural Residue Biomass • System Outputs; 325,000 PPH steam, 920 PSIG, 750 degrees F

27 PROPRIETARY & CONFIDENTIAL EDF ENERGY RENEWABLES EDF Renewables is a key renewable No photo available energy supplier. They are committed to developing their own assets and partnerships to meet the renewable energy obligations, and the customer demand for renewable energy.

• Allendale & Dorchester Counties, SC • Scope of work included; Engineering, Design, Fabrication, Procurement and Construction of Boiler, Substantial additional work on T&M Basis • Fuels Fired; Woody Biomass • System Outputs; 22 MW, 176,000 PPH steam, 1300 PSIG, 965 degrees F

28 PROPRIETARY & CONFIDENTIAL

THANK YOU FOR YOUR TIME

Marvin S Burchfield Bo Thibaut VP Solid Fuel Business Unit Chief Executive Officer P: +1.985.867.9150 P: +1.985.867.9150 C: +1.407.808.5186 C: +1.985.807.6220 [email protected] [email protected]

Jason Garner Chris Culpepper, P.E. VP Engineering VP Business Development P: +1.985.867.9150 P: +1.985.867.9150 C: +1.501.538.3377 C: +1.404-580-6169 [email protected] [email protected]

30 PROPRIETARY & CONFIDENTIAL Thank You!