Technology and Business Overview, Tecogen Inc. April 12, 2010

The Emerging Technologies Coordinating CouncilDecember 10, 2012

Tecogen Technology Review1Bob PanoraPresident and COOOutline2Company BackgroundKey Technology Areas (CA Funded)Microgrid Enabled CHP ModuleCommercial ApplicationsHigh Efficiency Water Heating (Ilios) Advanced Engine Advanced Emissions Control SystemApplication to Commercial Products Other Engines

Company Background3World Energy Use/Opportunity for Efficiency Improvement4

Basis for Our Products 5Remote Power Station Power is InefficientSubstantial Improvement (~2X) Possible ifPower Generation DistributedPower Generation is StagedSecond Stage is Applied to Onsite HeatingProduct Offering (3 general Areas)Combined Heat and Power (CHP)Air ConditioningHigh Efficiency Heating (Heat Pump)Combined Heat & Power

Electricity outThermal out100.0%30.4%59.8%TOTAL EFFICIENCY> 90.2% (LHV basis)> 80.0% (HHV basis)Natural Gas6Tecogens Customer BaseDepart. StoresSports ArenasIce RinkHotelsAthletic Clubs

1TRecn FacilityHospitalNursing HomeHospitalRecn FacilityHospitalGovt LabAptsNursing HomeRecn FacilityCollegeRecn FacilityNursing HomeHospitalSchoolAptsAptsNursing HomeNursing HomeHospitalNursing HomeRecn FacilityRecn FacilityNursing HomeHospitalSchoolRecn FacilityCollegeSchoolRecn FacilityHospitalCollegeRecn FacilityGovt (Jail)Nursing HomeNursing HomeHospitalNursing HomeNursing HomeRecn FacilityGovtOfficeIndustrialOffice BldgGovtRecn FacilityNursing HomeAptsAptsNursing HomeRecn FacilitySchoolAptsNursing HomeAptsAptsApts******Nursing Home

(off map:)6/12(off map:)(off map:)CollegeCollege(off map:)Recn FacilityFACTORY-SERVICED TECOGEN COGEN MODULES & CHILLERSIN BAY AREA

TECOGEN Inc. Many Local Installations & Factory Service8Tecogen Products For CA Market9

Sample Tecogen InVerde CHP system

CA Funded CHP Module (InVerde)Development Funded By Pier (CEC) and SoCal Gas FundsUtilizes Technology From Related Commision ProjectsCERTS MicrogridUltra-Low Emissions Important FeaturesSeamless Transfer in OutageUtility Friendly Certification UL 1741Emissions Compliant South Coast Rule 1110.2CE Mark for EU

Off-Grid System in NYC

Microgrid Feature11Demonstrated in Recent NY Outage (Sandy)400 Unit Condo Operated 5-6 DaysFully PoweredSMUD Headquarters DemoCEC FundedCompletely Seamless Transfer

Advanced Heat Pump Water Heater 12Incorporates Two CA Funded TechnologiesAdvanced Natural Gas Engine (CEC Funded)Ultra-Low Emissions (CEC/SoCal)Important FeaturesRule 1110.2 CompliantPeak Efficiency >200%Just Introduced

Gas Engine-Driven Chillers

Incorporates Ultra Low Emissions Technology Important FeaturesIncludes Heat Recovery Most Application (Mechanical CHP)Sidesteps Utility IssuesInterconnection PermitMitigates All Electric Tariff Charges Including DemandStandby/Departing LoadMost Favorable Economics

Sacramento Capital Extension Building

13Favorable CHP ConditionsFuel of Choice - Natural GasSupply Abundant/ Anticipate Long-Term Low PriceHigh Product Demand in Traditional/New MarketsMicrogrid Capability Increasingly Important Feature

CaliforniaHistorically Difficult MarketEmissions/Tariff Issues/InterconnectionPositive DevelopmentTecogen Emissions BreakthroughSept/Oct 20-Stop Road Show

14

Pollution Levels Comparable to Fuel CellsEngine Emissions15

Advanced Emissions System162008 Tecogen Was Awarded Research Contract by California Energy Commision and SoCal Gas GoalsSystem 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 2007Combined Heat in Power in CA Facing Uncertain FutureCompliance of Engine-Base Systems Not FeasibleEmerging Technologies Still Constrained by Cost, Other ShortcomingsNo Viable CHP Option in CAProject Outcome17Faced Intractable ProblemPrice of Very Low NOx is High COPrice of Low CO is High NOxFinal Stages of Project Produced Unexpected BreakthroughHighly Positive AttributesEasily Commercialized Modest Cost/Design ImpactNo Significant Performance PenaltyAppears Transferable to Other Engines

Before.Low NOx, but non-Compliant CO18

AfterHighly Compliant all Pollutants19Company Confidential

Additional TestingAVL Gmbh (Lake Forest CA)2.5 Liter Automotive EngineNatural Gas Fueled Field Test (San Fernando, CA) Standard Tecogen CHP Unit (Retrofitted)24/7 Application Continuous Sampling4 Times Per Hour/3 MinutesSource Test (San Fernando, CA)Licensed Emission ContractorFollow Mandated Process for PermitLong-term Compliance

* w/ 60% Efficiency creditPerformance (8000 hr Source Test)221) 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

Why Emissions Are Important23Advanced Tecogen SystemFrom Gas BoilerPollution FromPower Plant140012001000800600400200From Typical CHP UnitEPA BACT0Annual Pollution Created (lbs/year)CONOx600 megawatt-hrs Electricity40.2k Therms HeatCO n/aCurrent Status24Available in All Tecogen CHP Products (Ultra" Option)Successfully Certified in NJ Clean DGAir Permit ExemptionPatent Applications in Process (US/EU/Other)Technology Published in Peer-Reviewed Scientific ForumSociety of Automotive Engineers (SAE)Up-fit Program to Industrial Water Pumping EngineSoCal Gas/Local Water DistrictLake Forest CHP Unit Source Test (Imminent) Milestone Permit (Rule 1110.2)

CaliforniaSpecific Market Barriers25California Policy and Regulatory Issues 26Oct 2012 U.S. Clean Heat and Power Association Forum (DOE)Panel The California Conundrum Policy vs. PracticeHighlighting the Dismaying Evolution of CA CHP PolicyMain PointsHighly Varied Incentives and Exemptions Based on Technology Rather Than Neutral ParametersShould Have Technology Neutral Basis (Efficiency, etc.)Rule 21 Certification Not Available For InVerde (Manpower Constraints)Complexity Burdensome Small ProjectsStandby/Departing Load Charges

Thank You!27robert.panora@tecogen.comTecogen Inc.45 First Ave, Waltham MA781-466-6401