Thermax Limited – Corporate PresentationThermax Limited – Corporate Presentation1

Thermax Sustainable Energy Solutions LimitedmCARBON

Existing Barriers Programmes of Activities and Improvements

Rajesh Madiwale

12th Mar 2011

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Thermax Evolution: A Snapshot

• Established in 1966 as

Wanson (India)

• Thermax Private Limited

formed in 1980 and Wanson

(India) merged with Thermax

• Thermax became a public

limited company in 1996

• Featured in the Forbes Asia

list of “Best under a Billion”

companies in 2008

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Thermax Group

• Thermax Sustainable Energy Solutions Ltd.

• Thermax Onsite Energy Solutions Ltd.

• Thermax Engineering Construction Co. Ltd.

• Thermax Instrumentation Ltd.

• Thermax International Ltd. (Mauritius)

• Thermax Europe Ltd. (U.K.)

• Thermax Hong Kong Ltd (Hong Kong)

• Thermax do Brasil-Energiae Equipamentos

Ltd (Brazil)

• Thermax Inc. (U.S.A.)

• Thermax (Zhejiang) Cooling & Heating

Engineering Co. Ltd. (China)

• Danstoker A/S.

• Omnical Kessel & Apparatebau Gmbh

Subsidiaries Joint Ventures

Thermax Limited

• Thermax Babcock & Wilcox

• Thermax SPX Energy Technologies Ltd.

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Our Global Network

4

Thermax Inc. Detroit, USA

Thermax doBrazil Sau Paulo, Brazil

Thermax Europe Ltd. Luton, UK

Thermax Zhejiang Ltd

Thermax Ltd. Nairobi, Kenya

Thermax Ltd. Jebel Ali, UAE

Thermax Ltd. Kuala Lumpur, Malaysia

Thermax Russia

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Our Core Business

Boiler & Heater

• Package boilers• Large capacity power boilers• Thermal oil / water heaters• Energy recovery systems

Turnkey Power Plants

• Solid fuel based• Gas based

combined cycle • Waste heat

recovery based• RE based incl.

Biomass, Bagasse, solar, etc.

• O&M of power plants

Chemicals• Ion exchange resins• Cooling water chemicals• Fireside chemicals• Polyelectrolyte

Water and wastewater• Wastewater & Effluent water treatment systems• Water recycling• Waste management

Enviro•ESP & Bag filters• Scrubbers• Air purification• Retrofit & Revamp

Boilers & Heaters Cooling & Heating Power Generation Chemicals & Water Air Pollution Control

THERMAX

Renewable

Solar• Heating• Cooling

Cooling• Exhaust & Multi-energy

fired chillers• Steam fired chillers• Hot water fired chillers• Direct fired chillers

Heating• Steam/Hot water power

plants• Packaged solid/oil/gas

fired boilers • Fired thermic fluid

heaters• Exhaust waste heat

recovery boilers

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Reliable support for Industry

Our business-to-business

solutions help a broad group of

industries to be energy efficient

and eco-friendlyOil & Gas Steel Automobile

Food Cement Chemicals

Refineries &Petrochemical

PowerGeneration

Textile

Hotels & Commercialcomplexes

Pharma Paper & Pulp

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Recognition for Thermax

• Featured four times in

the Forbes’ list of Asia’s

‘Best under a Billion

Companies’ (2005-’08)

• Listed among the top 100

of India’s most valuable

500 companies

(Business Today ’07)

• Business Standard ‘CEO

of the Year’ (2007-08)

award for Chairperson

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PROPOSAL

• TSESL proposes to use Programmatic CDM to promote use of Clean energy equipments

• Company can create value for a large segment of small customers and accelerate the use of Renewable energy based Equipments as against conventional fossil fuel equipment.

• TSESL the coordinating and managing entity for the PoA

• TSESL has developed a unique online monitoring system to monitor all the performance parameters of the equipments under the PoA

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PoA for Biomass based heat generation systems in India

• Programmatic Proposal for small users

• Small and medium users untouched by the benefits of CDM

• Lack of knowledge ,manpower ,technology and cost of

transaction of CDM

• Aggregating CDM benefits will help switch a large number of

users to green technology

• “a no risk” program for benefit of this segment

• IT at the forefront to address issues of risk for all

stake holders

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TSESL PROGRAMMATIC CDM STRATEGY

TSESL immediate proposal is to develop the following Programmatic CDM

TSESL hopes to accelerate and promote the use of Renewable energy

To create sustainable energy solutions with customers

for reducing GHG emissions through innovative

deployment of value added services across

the product life cycle.

EQUIPMENT NUMBERS No of CERs

/AnnumBIOMASS HEAT 150 1.1 Million

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Programmatic CDM For Biomass Heat Equipments

TSESLProgrammatic

CDMCME

Remote monitoring of Projects by TSESL

DOE Validation

CDM EB

PoAs Development

DOE Verification

CER

BUYER

%

MONITORING

CDM EBUNFCCC Bonn

%

%

%

%

CER

CER

€

€

€

€

€

€

€

€

€

€

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Ist INDUSTRIAL CDM PoA REGISTERED BY UNFCCC

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Strengths of Biomass heat generation systems PoA

• High quality engineering and technical capabilities

• Customer connect for entire life cycle of the project activity

• 100% Remote performance monitoring system for high level service support

• mCarbon GHG monitoring web software for transparent MRV

• Well established systems and procedures as per ISO 9000

• All India network for distribution and service

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Physical Model of Biomass Boiler Installation 6TPH

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100 % online mCarbon™ web monitoring software and web site

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Typical size of each Heat generation Project Activity

• Equipment output - Steam or Heat

• Average Capacity Tons per Hour - 6 TPH

• No of hrs of operation - 8000 hrs

• Average Load - 75%

• Average expected CERs per annum - 6000 CERs

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Existing Barriers for PoAs implementation

• Liability due to Erroneous inclusion clause

• Validation and Verification of CPAs by one DOE

• Expansion of PoAs after registration in LDC countries & countries covered under EB 55 Annex 12 loan scheme

• Approval from HCA for each CPA under a PoA

• Baseline fuel should be conservatively declared by UNFCCC for LDC countries

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Liability due to Erroneous inclusion clause

• The CPA is identified as erroneous inclusion up to first Issuance of CERs ie Within 6 mths after 1st issuance or 1 year from inclusion whichever is later then the DOE has to take the liability of the CPA.

• A DOE, that has not performed validation, registration, inclusion or verification functions with regard to this PoA shall conduct the review referred to in paragraph 9, by assessing a random sample of 10% of all CPAs currently included and submitting a report to Board within eight weeks.

Proposal

• CPA which have passed the 1 year from inclusion and 6 months after 1st issuance should be cleared from the sample check and not be reopened for sample revalidation.

• Only those CPAs which are within 1 year and the 6 mths from issuance time line should be considered to be taken as a sample for check

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Suggestions for improvement

• Expansion of PoAs after registration in LDC countries & countries covered under EB 55 Annex 12 loan scheme

Proposal – The registered PoA should be allowed expansion in LDC countries by taking a sample case CPA and get the same approved by having an HCA approval for that host country and a DOE inclusion

• A DOE shall request issuance for all CPAs included in the PoA during the specified monitoring period .The monitoring period must be consecutive.(EB 55 Annex 38 pg 8 clause 37 and 39)

Proposal - DOE should be allowed to submit request for issuance for any CPAs verified and monitored during the specified monitoring period,should not be mandatory to monitor and verify all the CPAs in one lot A separate DOE may be allowed to submit request for issuance within 3 months or a DOE may be allowed to request for issuance within 3 months for different CPAs

Should not be mandatory for consecutive periods

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Suggestions for improvement

• DOE performing the validation currently is not able to perform verification activity for the same PoA.

Proposal – DOE performing the Validation and inclusion of PoAs may be allowed to complete the verification process for completion of activity

• Approval from HCA for each CPA under a PoA

Proposal -

HCA approval should not be mandatory for CPAs under a registered PoA as in a PoA the project could be included prior to actual start or commissioning of the Project.

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