Esa Muukka, CEO, Nivos Corporation 22.9.2016

@NivosOywww.nivos.fi

How to Turn Waste Heat Into Profit Case: Yandex Datacenter Recovery of Waste Heat

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Background: Need toRe-Engineer Business

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Collapsed Electricity PriceWhy would an enterprice in a market economy invest in something that generates revenues only after decades if not even then

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Area price FinlandNord Pool Spot Nasdaq forward curve Mkonline base scenario

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Tax on Natural Gas

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District Heating production was built on natural gasSubstantial tax rise forced to find other solutions for district heating

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SERVICE PROVIDERS OPERATORS

Source: 3M

Profound Change in the Energy Market

What is our role in the future? Where can we deliver best customer value?

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Most Important• Meaning of learning• Technology transfer• Responsibility

We have a genuine will to find innovative and tailored solutions based on customer needs – for the customer

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• Secure power supply • Own 110 kV regional grid

• Two separate 110 kV lines from the national grid (red line)

• Third 110 kV line 2018 (yellow line)

• Fast and secure fiber network

• Water utility

More than heating

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Distric Heating Network in Mäntsälä The Load-Duration Curve

Yandex 2nd phase

Yandex 1st phase

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Yandex Datacenter in Mäntsälä

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Cooling and Heat Recovery At present not optimized for heat recovery

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Heat Recovery Plant

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Technical Data (1st phase)• Heat production 3,6 MW

• Replaces 50% of the annual natural gas consumption• Reduces CO2-emissions 40% on annual level• Equivalent to heating of 1000 single family houses• Investment app. 2,5 M€ + the connection line to city centre app. 1M€

• Nominal Power input 1,2 MW• COP: Between 4 and 2,7 depending on the drive

situation e.g. ambient temperature

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Significant positive impact• We buy heat from Yandex based on normal commercial terms

• Reduced carbondioxide emissions • First phase -40% less CO2-emissions,

this corresponds to the objective EU set for emission reductions in 2030 • Second phase -90 %,

district heating will be almost CO2-emission free in Mäntsälä

• District heating is more competitive

• In the future only peak heat load is covered with natural/bio gas or wood pellets

• Yandex 2nd phaze is more optimized also from the heat recovery perspective, leading to even better heat recovery and higher output temperature

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2015 The Winner of the Heat Pump City of the Year Award (EHPA European Heat Pump Association)

2016 The Winner of Finnish Climate Action of the Year (Finnish Energy sustainability forum )

Awardwinning co-operation

@NivosOy www.nivos.fi