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Member Companies US-China Energy Cooperation Program (ECP) is the commercial implementing arm of US-China clean energy collaboration

ECP is uniquely recognized and supported by both the US and Chinese governments. During their respective state visits in 2009 and 2011, US President Barack Obama and Chinese President Hu Jintao underscored ECP’s vital role in bilateral clean energy cooperation

US government agencies - Department of Commerce (DOC), Department of Energy (DOE) and the US Trade and Development Agency (USTDA)—and Chinese government agencies— National Energy Administration (NEA) and Ministry of Commerce (MOFCOM) signed bilateral MOUs in support of ECP.

ECP Overview

Founding Member General Member

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ECP Economic Indictors(1),(2)

“The U.S.-China Energy Cooperation Program has already taken real steps that have produced a real difference…The innovations that we have developed through the energy cooperation program are the kind of critical immediate innovations that are going to make us take advantage of this extraordinary opportunity that is staring us in the face.”

- US State Secretary John Kerry

ECP Economic Indictors

“Energy cooperation should be “a shining point of US-China relations”

- State Councilor Yang Jiechi

Source:

(1) Based on the publicly available 2012 data of the 2013 ECP memberships.

(2) Jobs refer to global employees of ECP members

Member Companies Being FORTUNE 500 Companies or Industry Leading Players

AnnualRevenueGenerated By ECPMembers

Employeesof ECPMembers

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Mission: Transform the US and China’s ‘traditional energy’ way of life by generating sustained clean energy business and economic growth

- US↔China FDI

- Market Access & Sector Development

- Job Creation

- IPR Protection

ECP Work Scope

leverage resources to achieve business development objectives

pilot sector-based business models

transform and expand existing markets

Develop, Penetrate and Expand Clean

Energy Markets in the

US & China

Objective

Deliverable

Value-add

influence market standards-, regulation- and policy-setting

create and grow new markets

build channels to new customer bases

foster sector-based commercial partnerships

facilitate technology deployment and investment

secure commercial projects through the platform

commercialize game-changing sector-based business development initiatives

create public-private channels to support positive conflict resolution

provide high-level positive exposure for sector-based business development activities

ECP Work Scope

Each working group is designed and built around China’s strategic energy development plan, and includes a good number of member companies, headed by one or two co-chairs

- CC: Clean Coal

- CTF: Clean Transport & Fuel

- DECHP: Decentralized Energy and Combined Cooling, Heat & Power

- EFBD: Energy Efficient Building & Design

- EFI: Energy Finance & Investment

- IEE: Industry Energy Efficiency

- NP: Nuclear Power

- RE: Renewable Energy

- SG: Smart Grid

- SHG: Shale Gas

ECP Support China’s Energy Development Objectives

ECP Support Through Working Groups(1)

Source:

(1) National Energy Administration of the People’s Republic of China

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Clean Transportation and Fuel

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• Strategy & Development Study commissioned at 2011 US-China Strategic and Economic Dialogue to support NEA policy development on aviation biofuel industry.

• Biofuel Inaugural Flight demonstration successfully completed on October 28, 2011.

• Boeing Micro-Algae Research with CAS Qingdao research institute started May 2011.

• Honeywell UOP-PetroChina Renewable Jet Fuel Project Feasibility study completed in 2011. First China Renewable Jet Unit will be installed starting 2015.

Roadmap,Policy

Suggestions

Validate and Demonstrate

Regional Supply

Accelerate,Expand Scale

Establish China’s Sustainable Aviation Biofuel Industry

Strategy & Development Study Inaugural Flight Boeing Micro-Algae Research

Gas feed stream

Gas reception Compression Fermentation Recovery Producttank

Industrial Energy Efficiency

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Gas fermentation technology captures CO-rich gases and converts the carbon to fuels and chemicals

• LanzaTech joint ventures with BaoSteel and ShouGang

• Use LanzaTech technology to produce fuel ethanol from steel mill off-gases

• 2013:

- Total plant runtime: 100+ days

- Successful product recovery of ethanol to 99.8% purity

- Technology ready to scale to commercial post successful completion

of technology milestones at both BaoSteel and ShouGang sites

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Financing & Investment

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Three Chinese Banks Joined Duke Energy’s $ 6 Billion Credit Facility Agreement Objective:

- Build a sustainable exchange mechanism to promote mutual trust and understanding amongst US and Chinese companies, related government bodies, community stakeholders and other interests groups

- Provide decision-making tools for Chinese executives on investment in the US as well as collaborating with US partners on investment in third markets

ChinaUS FDI Engagement Process

In November 2011, Duke Energy signed a $6 billion, five-year credit agreement with 30 financial institutions around the world. 11% of the credit ($ 676 million) is collectively provided by three Chinese banks, which is the highest level of participation a U.S. company has been able to recruit from Chinese banks.

- Bank of China (Agent Level, Top Tier)

- Industrial and Commercial Bank of China (Agent Level, Top Tier)

- China Merchants Bank

Source: Duke Energy

Need assessment

• Identify investment priorities of Chinese companies

• Conduct investment need survey

• Identify preliminary partnerships

Dialogue

• Match-make between potential investors and investment opportunities

• Carry out in-depth project-based dialogue between investment partners

Capacity building

• Provide project-based investment capacity development training and solutions for Chinese investors

ECP Executive Committee

Exercises operational oversight of ECP

Peng Ningke Vice President, Dow Chemical Greater China Co-Chair, ECP Executive Committee

Will Latta Managing Director, LP Amina Co-Chair, ECP Executive Committee

Shi Zhenchun Asia President, Peabody Member, ECP Executive Committee

Tim Collier Vice President and China Managing Director, Westinghouse Member, ECP Executive Committee