Green Boilers: Energy and Carbon Savings

1. Green Boilers:Energy and Carbon Savings September 24, 2013

2. GREFFEN (Green Efficient Energy) Systems • We focus on Public and Private sector organizations • Our products work with client’s existing heating and BMS systems • The M2G is a microprocessor technology which installs in about 3 hours • Commercial boiler applications that use gas and/or oil to heat buildings • Few natural gas energy saving solutions are available in the marketplace

3. GREFFEN’s Technology • Over 4,000 Units installed in Europe • UL Certified in the United States • Certified as an Energy Technology List product in Europe • GREFFEN has U.S. Distribution rights • Customers using our technology include DEFRA (Department Of Environment Food and Rural Affairs), The Royal Mail, Oxford University, Cambridge University and:

4. U.S. Customers • Ford Motor Company Hewlett Packard • Baylor Medical Center Lockheed Martin • Oracle Yahoo! • Michigan State University Wells Fargo • Bell Helicopter/Textron State Street Bank • Mound Road Correctional Facility Michigan Lapeer Correctional Facility • Jackson Correctional Facility Orchard Lake Saint Mary • Palm Terrace – Orange County Atria West – Los Angeles • Mancelona Schools Loyola University • College of Charleston Marist School • Vanguard University University North Carolina Charlotte • Iron Mountain Motorola

5. Internal Revenue Service Sysco Foods • L3 Communications Dow Chemical • Electronic Arts Pfizer • Cymer Carolinas Health Care • Selfridge Air Force Base State University of New York • Cabrini High School Life Technologies • Donaldson Corporation Bronner’s • Sovereign Partners Pilgrim Manor Nursing Home • Guilford Schools Brooks City Base • New Brookside Apartments Berry Center • Fulton County Jail (Georgia) Union Bank • Cypress Fairbanks Schools University of South Carolina • University of Georgia South Carolina Dept. Corrections U.S. Customers

6. Sample of U.S. M2G Installations • Baylor Medical Center - 14% Savings • Donaldson Company, Inc. - Bloomington, Minnesota – 20% • Chicago Public Schools – 17% Savings • University of Texas Dallas, Texas – 14.4% Savings • Yahoo, Northern California – 15.6% Savings • IRS, Georgia – 18.7% Savings • Loyola University, Chicago – 10% • State Street Bank, Boston, Massachusetts – 9.3% Savings • Michigan Department of Corrections - 18% Savings • Sysco Foods, Canton, Michigan – 17% Savings • Bell Helicopter – 12.5% Savings

7. Utility and 3rd Party Testing • Detroit Edison – Mancelona Schools (Year over Year Study) • One year independent study High School = 12.8%, Middle School – 12.1% • Southern California Gas Company • After a year long study recommended for SoCal Gas program • Atmos Energy - Greenville, Texas • Conducted independent measurement at L3 Communications in Texas • Sandia National Labs – Albuquerque, New Mexico • DOE National Laboratory conducting an independent pilot • Gas Technology Institute (GTI) – Chicago, Illinois

8. Hello Frank – I will be approving the files for Mancelona schools this week.  I wanted to let you know the % savings and the incentive that I will be approving in case you have questions before I finalize. Please respond by Friday if you have concerns. Middle – 12.1% savings High – 12.8% savings Payment will be to you in about 4 weeks.  Thank you, Rachel Meck, CEM | Engineer DTE Energy | Your Energy Savings 866-796-0512 Phone |877-607-0744rmeck@franklinenergy.com | YourEnergySavings.com Fax | 248-808-8907 Cell | 313-664-1900 x 70517 Direct

9. CHICAGO, March 21, 2012 - “A lot of technology solutions exist that help owners analyze or plug into automated systems to generate energy savings,” said Joseph Andronaco, Regional Engineering Director for Jones Lang LaSalle. “In the past, such technology was expensive; but now, options with similar functions are available that aren’t cost prohibitive.” For example, several years ago the typical price for boiler controllers was $80,000 with a payback period of five years, Andronaco said. However, technical advances are now allowing owners to invest in simple solutions that offer the same results for a fraction of the price—even as low as between $5,000 and $10,000. Within its management portfolio, Jones Lang LaSalle is regularly using advanced intelligent boiler control software to analyze how quickly and slowly water heats up.The M2G boiler control unit simply screws on to the side of any boiler. It monitors the temperature of the water in the flow and return every 10 seconds. That information is recorded, along with the heat transfer rates at both the first and second stage firings. When a loading demand is made, the M2G system automatically checks the latest data it has stored and decides whether it is more economical to retain first stage firing or to introduce a second stage firing. The result is a substantial fuel reduction during less demanding situations, while ensuring maximum capacity during heavy load periods. It optimizes boiler efficiency, typically resulting in a 20 percent gas reduction and a payback period of eight to12 months. “Small investments that come with big results are wise investments for owners of all types, but especially those of middle-market portfolios where the resources to invest in top-of-the-line automated systems might not be available,” Andronaco said…”

10. What is the M2G Technology?

11. M2G Technology … Microprocessor based technology Reduces natural gas consumption by minimizing boiler dry-cycling

12. M2G Technology … Definition • Dry Cycle – When a boiler fires to compensate for standing losses instead of building heat demand. • Dry Cycle Sequence • Boiler losses heat to surroundings • Water temp. drops below the dead band • Boiler Fires to compensate for heat loss • Boiler turns off after arriving at target temp. Surroundings 70°F Target Temperature 175°F Dead Band (Firing Temp.) 170°F

13. M2G Technology … Real Building Demand vs. Dry Cycling • Monitors and logs the return water temperature to determine if building demand is real • Also, monitors and logs supply temperature to determine the heat transfer and to avoid condensation issues in the boiler • Temperatures are recorded every 10 seconds and the boiler is released if there is a true heat demand present

14. Heavy Load ºF 165 165 165 163 160 158 156 156 Light Load – Standing loss or “false” call ºF 165 163 163 162 162 161 161 160 160 160 160 158 156 154 153 151 149 BMS and M2G will fire the boiler here at the set point BMS will fire the boiler here at the set point M2G might fire the boiler here at the same set point saving 4 minutes, but will probably delay longer To here… …or even here M2G response to loading demand (boiler return water temperatures - by minute)

15. M2G Technology … • Safeguards • The M2G will allow the boiler to fire if: • The boiler has been held off by the M2G by more than 15 minutes • The supply temperature drops more than 8°C (14.4°F) • The return temperature drops more than 3°C (5.4°F) • A real call for heat is detected • The M2G collects data every 10 seconds • AdditionalSafeguards • The M2G will not turn off a running boiler • The M2G will not turn on a boiler • The M2G fails closed to insure boiler operations are not affected • Opto-isolators insure circuits are only monitored and not charged

16. M2G Technology … Installation • Compatible with existing controls and operations • Building Management Systems (BMS) • Outdoor Temperature Reset • Lead/Lag Controls • Does NOT require any breaking of water lines • Minimal installation time (~3 Hours) • No maintenance required – “Set and Forget”

17. Laboratory Verification • Gas Technology Institute – Chicago, Illinois • Energy Systems Laboratory – College Station, Texas

18. Gas Technology Institute Test Setup • Designed and built a model to simulate a building’s heating and cooling loads • Winter thermal loads from a Chicago Public School were used in the simulation • The thermal load profiles were attained from the Department of Energy for use with EnergyPlus

19. Gas Technology Institute Results • The initial laboratory testing was positive and the results are being forwarded to the member utilities • GTI wants to expand to field testing of the M2G

20. Energy Systems LaboratoryTexas A&M University Test Setup • M2Gs were installed at the Cypress Ridge High School in Houston, Texas • The Energy Systems Laboratory (ESL) monitored the boiler from November 16, 2010 through December 22, 2010 with the M2G alternating day-on/day-off

21. Energy Systems LaboratoryTexas A&M University Results • ESL observed a 21% reduction in gas consumption with the M2G • Data was normalized using heating degree days • There was no significant change in the interior temperature

22. RIVERSIDE ENERGY EFFICIENCY LABORATORY ENERGY SYSTEMS LABORATORY TEXAS ENGINEERING EXPERIMENT STATION TEXAS A&M UNIVERSITY January 24, 2011 Mr. Felix Lopez SECO “On November 17, 2010 I was present for the M2G installations in Houston. At the conclusion of the 30 day test period, I received the test data from the pilot locations and have verified the energy savings of the M2G. The M2G boiler sequencing controller produced an average savings in natural gas of approximately 21% over the pilot period and demonstrated a viable energy saving technology for the school district. The return on investment for the M2G was approximately 11 months.” Dr. Michael Pate Director, Riverside Energy Efficiency Laboratory Energy Systems Laboratory Texas A&M University College Station, Texas 979-458-2264

23. University of Georgia • M2Gs are installed at the Center for Applied Genetic Technologies • Preliminary results have been presented to UGA

24. Pilot Methodology • Data loggers and Timers were install along with the M2G • The data loggers are placed on the boiler’s fuel valve to monitor boiler run-time and cycling • The timer bypasses the M2G every other day to provide a comparison of boiler’s run-time and cycling behavior with and without the M2G • Bypassing the M2G on a alternating 24 hour basis minimizes confounding factors such as weather as well as changes made within the building or to the boiler system

25. University of GeorgiaCenter for Applied Genetic Technologies

26. UGA Preliminary Results • Pilot commenced on March 28, 2013 and concluded May 6, 2013

27. UGA Boiler Cycling

28. No Effect On Comfort Level

29. Ford Motor Company • M2G pilots were carried out at Ford Motor Company • October 1, 2011 – November 30, 2011 • Fairlane Plaza North (290 Town Center, Dearborn, MI)

30. Fairlane Plaza North

31. Ford Pilot Results • Pilot commenced on October 1, 2011 and concluded November 30, 2011

32. Ford Pilot Results

33. Carolinas Health Care System – Mt. Holly

34. Carolinas HealthCare - Mt. Holly Results • Pilot commenced on May 14, 2012 and concluded July 2, 2012

35. M2G Customer Year-Over-Year Analysis • Used actual customer year-over-year metered/billing data • Compared normalized gas consumption before and after the M2G’s installation • Normalization was done using heating degree days

36. Internal Revenue Service Atlanta Distribution Center

37. Internal Revenue Service

38. Wells FargoBuilding D

39. Wells FargoBuilding D Notes: During the pilot analysis leaking reheat valves were found The energy savings do NOT include the savings generated by fixing the reheat valves There was a 35,000 sq. ft. building addition during the M2Gs’ first year

40. Controlling cycling behavior provides significant savings Laboratory testing has verified the M2G’s savings M2G customers have documented strong year-over-year savings Greffen offers a green solution that addresses customer’s energy and carbon emissions challenges The M2G offers natural gas energy savings, an aggressive price-point and installs in three hours Summary