chp business cases 110804

CommercialCHP Business Case

RobustEnergy LLC

Microturbine CHP Markets

MTCHPMarkets

Condo

Hotel and Hospitality

Senior FacilitySports (with pool)

Critical Infra-structure

Typical Energy Generation

GENCO Combustion Turbine 30%

Efficient

Heat is exhausted into atmosphere

60-80% Efficient

ECO-Friendly Combined Heat & Power or CHP

Grid Back up Purchases

Hot Water Chiller

Cooling Tower

”

CR200 Capstone Microturbine

High-rise Condominiums

Overview200 kW Capstone TurbineC200 Capstone microturbine withYazaki 38 ton absorption chiller

Annual Savings $25,000

Included: Grid independent capable Heated pool Reduced carbon footprint Improved comfort Lower cost O&M Multi-year contract for low cost

energy prices Like competitive grid price but

better—twice the efficiency

Turtle Creek, Dallas, Texas

Boutique Hotel

Proposed Installation• 1,000 kW Capstone

microturbine• Thermal capture for

heated pool and domestic hot water

• Lease-purchase with guaranteed cost savings on power, heat and ops

Senior Living Center

Advantages• Optimal baseload design

150 kW CHP • Abundant hot water

Displaced 1,000 gal HW tank

• Grid independent• Shelter-in-Place• Long-term cost savings• Third-party operationSource: Northeast CHP Application Center

Sports Complex

Advantages• Replaces pool heater• Produces “waste”

electricity to reduce or eliminate power bills

• Demonstrated savings vs. stand alone heater and grid power

Source: University of Colorado Recreation Center

Critical InfrastructureFacilities CHP Energy Security• Hospitals• Nursing homes• Command / control• Prisons / jails• Police / fire stations• Communication / data

centers• Food prep / storage• Hazardous waste storage• Wastewater treatment

Texas CHP Initiative

www.TexasCHPI.org

CHP: It’s the Law in

Texas 81st

Sessionwww.txsecurepower.org

CHP: It’s the Law in

Texas 82nd

Sessionwww.TexasCHPI.org

Timeline

Upfront Cost

Risk Aversion Matrix

Monthly Payment Lower up front cost Locked-in price CAPEX Price based on market

conditions when installed

Outright Purchase Higher upfront cost Ownership importance OPEX based on planning

criteria

Equipment LeaseCompletely subject to market variationsMay locked-in fixed OPEXPrice market based

Environmental GoalsActively seeking LEED® accreditationPublic relations emphasis in organizationDemands time, energy, effort to commission project

R

isk

Tole

ranc

e

Low

High

High

MTCHP Value Proposition

• Life-cycle costs less than status quo• Long-term financing arrangements– Public/Private Partnership– Lease or Lease Purchase– Energy Savings Performance Contract– PPA / CSA backed debt-equity financing– Tax Incentives (ITC and accelerated depreciation)

• Reduced operations and maintenance costs• Multiple benefits paid by energy savings

• Subject Matter Expertise• Experience• Qualifications• Project Financing• Involvement in Policy• Business Model• Commitment

17

Rich HerweckChief Executive OfficerDirect: 972-979-4737rich@robustenergy.com

Cliff Braddock, CEM, LEED® AP Chief Operating OfficerDirect: 512-627-4748cliff@robustenergy.com

June Dively, CPA, Cr.FA, DABFAChief Financial Officer Direct: 512-261-4152june@robustenergy.com

Bruno RamosAccount ManagerDirect: 832-692-1307bruno@robustenergy.com

Contacts 512-610-2310 www.RobustEnergy.com