Ice Energy Overview SMARTENERGY September 2010 Proprietary & Confidential Company Overview • Advanced storage technology for the utility industry • Cost-effective solution uniquely addresses $40 billion US market segment • $115MM supply agreement signed with SCPPA • Currently in transition from development stage to operating company 2 Proprietary & Confidential Utilities Were First to Deliver Ice Only The Delivery Mechanism Has ChangedChanged 3 Proprietary & Confidential Ice Bear® 30 Description • The Ice Bear is an advanced energy storage device installed on commercial buildings • Highest roundtrip efficiency rating in the energy storage market of 1:1 • Lowest risk form of energy storage: highly distributed, no heavy metals, no toxic chemicals • Proven technology with 5+ million hours in the field, successfully trialed by over 24 utilities • Cost effective for utilities, stores cheap off-peak grid power at night on buildings bypassing daytime grid constraints and high priced peak power • See our video at http://www.ice-energy.com/technology/icebear/overview.html Ice Bear • Daily Ice Bear cycle: Energy Storage mode 10 hours to full charge ~ 3.5 KW, 35 KWh Ice is the energy storage medium Energy Delivery mode 6 hours to fully discharge ~ 6 KW, 35 KWh Scheduled daily noon – 6pm Dispatched by utility as needed No change in behavior 4 Proprietary & Confidential Temperature Drives Load • Peak is perfectly Typical System Load (May – Sept) AEP-Ohio System Load aligned with the Ice 100% Bear’s storage 90% discharge 80% 70% 60% 50% 40% Percentage On Peak On Percentage 30% 20% Average Ambient (F) 10% Avg. OAT 47.00 76.00 0% 8500 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 MW 5 Proprietary & Confidential Balancing Building Load 6 Proprietary & Confidential Increasing System Efficiency 7 Proprietary & Confidential Large US Addressable Market US Electricity Utility Commercial Segment Revenue: $139B Addressable Market of Commercial 20,000MW = A/C Load: A/C Load: $40 billion market $28B opportunity Served by 70,000MW+ of generation 8 Proprietary & Confidential Global Market Opportunity MARKET POTENTIAL FOR ENERGY STORAGE - ~$600 BN+ OVER NEXT 10-12 YEARS (GWh) ($bn) 160,000 240 140,000 210 120,000 180 100,000 150 80,000 120 60,000 90 40,000 60 20,000 30 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Solar (GWh) Wind (GWh) Total WW GWh Energy Storage TAM ($bn) ___________________________ Source: Wall Street research, World Wind Association and EPIA. 9 Proprietary & Confidential Compelling Utility Value Proposition Deferred Distribution System CapEx Reliable Reduced Energy & Capacity Volatility Resource (Weather Hedge) SmartGrid Renewables Controllable Enabling Asset Carbon / NOx Reduction 10 Proprietary & Confidential Ice Energy vs. Batteries - Benefits • Ice Storage does not offer these battery features: Backup power, Frequency Regulation, or UPS • But, directly or indirectly, Ice storage offers Storage Benefits Values Values from Sandia Report 2010-0815 ($/kW) T&D Deferral, 90 th percentile 759-1079 Electric Energy Time Shift 400 - 700 Electric Supply Capacity 359 - 710 Renewable Energy Time shift 233-389 Wind Generation Grid Integration 100 - 782 Load Following 600-1000 Voltage Support / PF 400 Transmission congestion relief 31 - 141 11 Proprietary & Confidential Cost-effective Solution MOU Levelized Cost Comparison (2009 In-Service) G 400 rid Pa rity 350 Solar PV* Peaking Gas Plant 300 250 200 Ice Energy $ $ / MWh 150 Baseload Gas Plant 100 50 Coal Plant Cost-Effective 0 0 100 200 300 400 500 600 700 800 ___________________________ $ / kW-Yr Source: California Energy Commission, Ice Energy. 12 Proprietary & Confidential Beneficial Ecosystem Utilities Benefit Green Collar Jobs Consumers Benefit (Building owners, Ratepayers) 13 Proprietary & Confidential Strong Technology Position Patents Cool Data Architecture • US • SmartGrid Scorecard Rating 13 issued / 18 pending 90 of 100 • Global Highest rating ever awarded by EnerNex 16 issued or granted / 20 pending in 15 countries • SCADA Architecture • Coverage in two core areas: • Equipment health Refrigeration management Control 14 Proprietary & Confidential Pioneering Energy Storage Project SCPPA Ice Energy Project • Joint powers authority with 11 municipal • $115 million, 53.3MW supply agreement utilities and 1 irrigation district • United States’ first cost-effective, utility- • $4.4 billion in annual revenues scale, distributed energy storage project • 8,800 megawatt peak demand Offsets enough peak power demand • Delivers electricity to ~2 million customers to serve equivalent of 10,000 homes over 7,000 square miles • Separate maintenance contracts 15 Proprietary & Confidential Capital Efficient • $5MM capital investment supports $180MM in sales Heat Exchanger Water Pump Compressor Tank Refrigerant Management System Condensing Coil Cool Data Controller Refrigerant Pump 16 Proprietary & Confidential Experienced Team Management Team Board of Directors / Investors • Frank Ramirez CEO • Joseph Gorman Chairman, Independent • John McGee COO • John Breckenridge Good Energies • David Schwarzbach CFO • Tom Cain Sail Venture Partners • Brian Parsonnet CTO • Vic Fazio Independent • Greg Tropsa EVP, Bus. Dev. • Michael Feldman Goldman Sachs • Mike Hopkins EVP, Legal • Steve Herman Energy Capital Partners • Joe Desmond EVP, Marketing • Pete Higgins Second Avenue Partners • David Nemtzow EVP Policy • Trent Kososki Energy Capital Partners • Pete Labbat Energy Capital Partners • Tony Shizari Fortress • Investors: 17 THANK YOU Proprietary & Confidential Ice Energy Storage vs. Batteries: Cost Cost Factor Batteries Ice Bear (E.g. NaS, Lithium Ion) Turnkey Installed Cost >$4,500/kW $2,200/kW $600-$3,000/kWh $360/kWh Expected Life 8-10yrs (?) 25 years Maintenance 2% of capital / yr Optional agreement: $325/unit/yr Performance level guarantee Roundtrip Efficiency 75%-89% 99-120% (leveraging site night/day temp HazMat? Yes Nodiff.) Fleet Control Through NO; Under YES; Operational history SCADA development 19 19.