The Emerging Technologies Coordinating CouncilDecember 10, 2012

Tecogen Technology Review

1

Bob PanoraPresident and COO

Outline2

Company Background Key Technology Areas (CA Funded)

Microgrid Enabled CHP Module Commercial Applications

High Efficiency Water Heating (Ilios) Advanced Engine

Advanced Emissions Control System Application to Commercial Products Other Engines

Company Background3

World Energy Use/Opportunity for Efficiency Improvement

4

Basis for Our Products 5

Remote Power Station Power is Inefficient Substantial Improvement (~2X) Possible

if… Power Generation Distributed Power Generation is Staged Second Stage is Applied to Onsite Heating

Product Offering (3 general Areas) Combined Heat and Power (CHP) Air Conditioning High Efficiency Heating (Heat Pump)

Tecogen’s Customer Base

Senior Homes

13%

Industrial15%

Hospitals14%

Schools17%Other

15%

Office Buildings

13%

Multi-Unit Residential

12%

Depart. StoresSports ArenasIce RinkHotelsAthletic Clubs

T

Recn Facility

Hospital

Nursing Home

Hospital

Recn FacilityHospita

l

Govt Lab

Apts

Nursing Home

Recn Facility

College

Recn Facility

Nursing Home

Hospital

School

Apts

Apts

Nursing HomeNursing Home

Hospital

Nursing Home Recn

Facility

Recn Facility

Nursing Home Hospita

l

School

Recn Facility

College

School

Recn Facility

Hospital

College Recn

Facility

Govt (Jail)

Nursing Home

Nursing Home

Hospital

Nursing Home

Nursing Home

Recn Facility

Govt

Office

Industrial

Office Bldg

Govt

Recn Facility

Nursing Home

Apts

Apts

Nursing Home

Recn Facility

School

Apts

Nursing Home

Apts

Apts

Apts

**

* **

*

Nursing Home

(off map:)

(off map:)

(off map:)

College

College

(off map:)

Recn Facility

FACTORY-SERVICED TECOGEN COGEN

MODULES & CHILLERS

IN BAY AREA

TECOGEN Inc. – Many Local Installations & Factory Service

Tecogen Products For CA Market

9

Sample Tecogen InVerde CHP systemCA Funded CHP Module (InVerde)

Development Funded By Pier (CEC) and SoCal Gas Funds

Utilizes Technology From Related Commision Projects CERTS Microgrid Ultra-Low Emissions

Important Features Seamless Transfer in Outage Utility Friendly Certification

UL 1741 Emissions Compliant South

Coast Rule 1110.2 CE Mark for EU

Off-Grid System in NYC

Microgrid Feature11

Demonstrated in Recent NY Outage (Sandy)

400 Unit Condo Operated 5-6 Days Fully Powered

SMUD Headquarters Demo CEC Funded Completely

Seamless Transfer

Advanced Heat Pump Water Heater 12

Incorporates Two CA Funded Technologies Advanced Natural Gas

Engine (CEC Funded) Ultra-Low Emissions

(CEC/SoCal) Important Features

Rule 1110.2 Compliant Peak Efficiency >200% Just Introduced

14

Favorable CHP Conditions

Fuel of Choice - Natural Gas Supply Abundant/ Anticipate

Long-Term Low Price High Product Demand in

Traditional/New Markets Microgrid Capability

Increasingly Important Feature

California Historically Difficult Market

Emissions/Tariff Issues/Interconnection

Positive Development Tecogen Emissions

Breakthrough Sept/Oct 20-Stop Road Show

Pollution Levels Comparable to Fuel Cells

Engine Emissions15

Advanced Emissions System16

2008 Tecogen Was Awarded Research Contract by California Energy Commision and SoCal Gas Goals

System Compliant with Latest SoCal (SCAQMD) Regulations for Distributed Generation (DG)

Back Story Several Years Earlier The District Had Exposed Shortcomings of

the After-treatment Systems for Natural Gas Engines In 2008 Issued New Regulation for DG Technologies (Rule

1110.2) Based on “CARB 2007”

Combined Heat in Power in CA Facing Uncertain Future Compliance of Engine-Base Systems Not Feasible Emerging Technologies Still Constrained by Cost, Other Shortcomings No Viable CHP Option in CA

Project Outcome17

Faced Intractable Problem Price of Very Low NOx is High CO Price of Low CO is High NOx

Final Stages of Project Produced Unexpected Breakthrough

Highly Positive Attributes Easily Commercialized Modest Cost/Design Impact No Significant Performance Penalty Appears Transferable to Other Engines

Before….Low NOx, but non-Compliant CO

18

19

After…Highly Compliant all Pollutants

Company Confidential

Additional Testing

AVL Gmbh (Lake Forest CA) 2.5 Liter Automotive Engine Natural Gas Fueled

Field Test (San Fernando, CA) Standard Tecogen CHP Unit (Retrofitted) 24/7 Application Continuous Sampling

4 Times Per Hour/3 Minutes Source Test (San Fernando, CA)

Licensed Emission Contractor Follow Mandated Process for Permit

Long-term Compliance

0

5

10

15

20

4/1 5/6 6/10 7/15 8/19 9/23 10/28 12/2 1/6 2/10 3/16 4/20 5/25 6/29 8/3

ppm

[@ 15%

O2]

Date

NOx

CO

NOx -CARB Limit

CO -CARB Limit

* w/ 60% Efficiency credit

Performance (8000 hr Source Test)

22

1) Tecogen emissions based upon actual third party source test data2) Fuel Cell emissions from Summary Report - Fuel Cell Emission, CEC Grant PNG-06-002, by University of California Irvine-Subcontract UCI-06-002.3) Stationary engine BACT as defined by SCAQMD.4) Limits represent CARB 2007 emission standard for Distributed Generation with a 60% (HHV) Overall Efficiency credit

0

5

10

15

20

25

30

Tecogen Ultra Fuel Cell Engine BACT

Em

issi

on

s [p

pm

@ 1

5%

O2

]

NOx

CO

CARB CHP NOx Standard4

CARB CHP CO Standard4

70 ppm

23

Why Emissions Are Important

Advanced Tecogen System

From Gas

Boiler

Pollution FromPower Plant

1400

1200

1000

800

600

400

200

From Typical

CHP UnitEPA BACT

0

Annual Po

lluti

on C

reate

d

(lbs/

year)

CO

NOx

600 megawatt-hrs Electricity40.2k Therms Heat

CO n/a

Current Status24

Available in All Tecogen CHP Products (“Ultra" Option)

Successfully Certified in NJ Clean DG Air Permit Exemption

Patent Applications in Process (US/EU/Other) Technology Published in Peer-Reviewed Scientific

Forum Society of Automotive Engineers (SAE)

Up-fit Program to Industrial Water Pumping Engine SoCal Gas/Local Water District

Lake Forest CHP Unit Source Test (Imminent) Milestone Permit (Rule 1110.2)

California–Specific Market Barriers25

26

California Policy and Regulatory Issues

Oct 2012 U.S. Clean Heat and Power Association Forum (DOE) Panel “The California Conundrum– Policy vs. Practice” Highlighting the Dismaying Evolution of CA CHP Policy

Main Points Highly Varied Incentives and Exemptions

Based on Technology Rather Than Neutral Parameters Should Have Technology Neutral Basis (Efficiency, etc.) Rule 21 Certification Not Available For InVerde (Manpower

Constraints) Complexity Burdensome Small Projects Standby/Departing Load Charges

Thank You!27

robert.panora@tecogen.com

Tecogen Inc.

45 First Ave, Waltham MA

781-466-6401