The World Leader in Clean Small Turbine Energy

Generation

CenterPoint EnergyApril 9, 2008

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What is a Capstone turbine?

• In layman's terms, “A miniature jet engine that runs at speeds up to 96,000 rpm and generates electricity and heat.

• Electrical power output: 30 kW to 5MW range

• Highly Reliable

• Ultra low emissions

• Multiple fuels; natural gas, propane, diesel, biodiesel, methane/biomass

• Simple/cost effective design

• Low maintenance

Combustionchamber

Exhaust output

Recuperator

Fuel injector

Air bearings

Compressor

Generator

Air intake

Cooling fins

Turbine

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• One moving part: TurboGenerator shaft

95 U.S. Technology Patents

Spring

Foil

Shaft

• Air bearings - No oil or grease

• Air cooled - No liquid coolants

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Inverter Based Electronics

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Regulated DC Bus

Regulated DC Bus

Engine Control Module •All digital DSP control•Controls turbine operation•Wide speed control range•Sensorless generator control•Small and lightweight•Built in dynamic brake•Built in system power supply•Air cooled

Battery Control Module•All digital DSP control•Transient power control•Bi-directional power control•Manages battery charge/health•Air cooled

Load Control Module•All digital DSP control•Built in neutral•Built in protective relays•Built in synchronization•Built in paralleling capability•Grid Connect or Stand Alone•No transformer required•100 kVA rating•Air cooled•IEEE 519 compliant•UL 1741 certified•NY & CA state certified for direct-to-grid interconnection

4th-Generation Power Electronics

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MultiPac

• Standalone– Island Mode– Up to 30 Units

• Grid Connect– Parallel to grid

or other source

– Unlimited Units

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Products

• Capstone product line

• C30 = 30KW

• C65 = 65KW

• C200 = 200KW

• Capstone has pre-engineered packages to 1MW

• C600 = 600KW

• C800 = 800KW

• C1000 = 1000KW

• Controls

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Company Highlights• Capstone is the world leader in small turbine power

generation • 20 Years building turbines

• Over 4,500 units shipped

• Over 18 million hours of operation

• Proven technology with customer demonstrated availability and reliability

• MTBF of 13,000+ hours for the C65

• MTBF of 15,200+ hours for the C30

• More than 50 distributors worldwide

• Factory Remanufacturing program

• Factory Protection Plans (FPP)• Supported by Authorized distributors

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Market Drivers for CHP

Rising Energy Prices

Grid Capacity Constraints

Power Security

Climate Change

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Gas Turbine Comparison

Highest Efficiency Less than 4 MWHighest Efficiency Less than 4 MW

Gas Turbine Comparison (Product Data Sheets, January 2008)

Solar Turbines Mercury 50

Kawasaki GPB30D

Dresser-Rand KG2-3E

Capstone C200 Capstone C1000

Siemens SGT-100

Ingersol Rand MT250

Elliott TA100R

Rolls Royce 501-KB5S

Kawasaki GPB15D

OPRA Turbines OP16-3B (DLE)

Solar Turbines Saturn 20

Solar Turbines Centaur 40

Solar Turbines Centaur 50Kawasaki GPB60D

Rolls Royce 501-KB7S

Dresser-Rand KG2-3C

General Electric GE5-1 (DLN)

Capstone C30

Capstone C65

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30

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0 1 2 3 4 5 6

Power Output (MW)

Ele

ctri

cal E

ffic

ien

cy

(%

)

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C1000 ISO Efficiency

High Part Load EfficiencyHigh Part Load Efficiency

0

5

10

15

20

25

30

35

0 100 200 300 400 500 600 700 800 900 1000

Power (kW)

Eff

icie

nc

y (

%)

Load Share Efficiency

Typical Turbine Efficiency

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Fuel Flexibility• C30 & C65

• Natural gas

• Low BTU gas down to 325 BTU/Cu. Ft

• LPG

• Liquid fuels• Diesel

• Kerosene

• Bio Diesel

• Jet fuel

• C200• Natural Gas

• Low BTU gas

• LPG

• Liquid fuels in 2009

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Vertical Applications

Best Value for Onsite Energy

Generation

Best Value for Onsite Energy

Generation

Secure Power

CCHP

ResourceRecovery

CHP

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Market Segments

Hospitals

Hotels Schools

Large Retailers

Resource Recovery

U.S. Gov’t

Landfills Waste Water Plants

Telecom

Digesters

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Microturbines vs Piston Engines

Capstone Microturbines Traditional Piston Engines

Ultra low emissions Local air permits and exhaust cleanup required

Low maintenance – Six hours per year High maintenance – Oil changes, Coolant, Spark plugs

On board digital electronics External controls without power electronics

Integrated utility protection & synchronizing Requires external relays & control equipment

Lightweight & small footprint More than twice the weight & footprint

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CCHP Case Study:Ronald Reagan Presidential Library and Museum The Issues:

– Overcome potential power supply issues and rolling blackouts

– Keep exhibit building containing retired Air Force One jet cool, comfortable, and well lit

The Solution:– 16 C60 microturbines running on clean-

burning natural gas supply 95% of the facility’s electricity

– Three 129-ton direct exhaust-fired absorption chillers create 387 tons of refrigeration for cooling

– Exhaust from the microturbines provide hot water to heat the pavilion

Savings:– Over $300,000 in annual operating

costs– $823,156 incentive reduced installation

cost 30%

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C1000 CHP

• C1000

• Cooling towers

• Absorption chillers

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Hybrid Electric Vehicle Case Study:DesignLine / Hybrid Buses

The Issues:• Run low emission vehicles in

densely populated areas• Increase fleet efficiency• Reduce maintenance• Improve reliability

The Solution:• The buses' Capstone turbine generates electricity to

charge batteries, which run electric motors. The batteries are charged overnight and the turbine system recharges them when operating.

• The vehicles are fitted with remote monitoring which means Designline engineers can talk to the on-board computers monitoring performance and carry out diagnostic checking.

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Secure Power Case Study:Boeing Data / Telecom System

The Issues:– Protect data and phone networks

and equipment from grid outages– Minimize noise and vibration– Allow minimal environmental impact

The Solution:– A Capstone C30 microturbine was installed in a pre-

existing enclosure near the building’s loading dock– The natural gas powered microturbine provides

electric power 24x7 to the network and equipment– The microturbine ensures uninterrupted service in the

event of a grid power outage– The Capstone technology was preferred over UPS

batteries and genset engines due to their noise, emissions and vibrations

The Capstone C30 demonstrates its small footprint on site at Boeing.

Installation was simple, with the turbine placed in an existing enclosure.

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Green Building Case Study:Oregon Health & Science University

• 16 Story 400,000 SF medical facility

• Grand Opening January 19, 2007• Five C60-IHCP’s• Units provide 300kW of power

and building heating

U.S. Green Building Council awardedPlatinum LEED certification

– The highest level of certification granted

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Case 1: One-MW vs Grid• 1 MW of Generation

– Grid: National, So. Cal, ConEd

– 16x C65 Standard

– 16x C65 CARB

• 8,000 hours of operation• Full Power and Standard

conditions

0

15

30

45

60

75

90

Year 1 Year 5 Year 10

To

ns

of

NO

x

National Avg

S. California

ConEd

C65 Std Pkg

C65 CARB

Source: http://www.epa.gov/cleanenergy/powerprofiler.htm

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Case 1: One-MW of NG• 1 MW of ICE Generation

– Jenbacher J320-C86 (1.06 MW)

– 16x C65 Standard

– 16x C65 CARB

• 8,000 hours of operation• Full Power and Standard

conditions

0

10

20

30

40

50

60

70

80

Year 1 Year 5 Year 10

To

ns

of

NO

x

0

50

100

150

200

250

300

350

To

ns

of

CO

NOX - JenbacherNOX - C65 Std PkgNOX - C65 CARBCO - JenbacherCO - C65 Std PkgCO - C65 CARB

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Case 2: 500 kW on Diesel #2• 500 kW of ICE Generation

– 17x C30 Liquid (510 kW)– Caterpillar C18 (500 kW)– Cummins QSK23 (570 kW)

• 8,000 hours of operation• Full Power and Standard

conditions

0

100

200

300

400

500

600

700

Year 1 Year 5 Year 10

To

ns

of

NO

x

0

20

40

60

80

To

ns

of

CO

NOX - C30 LiqNOX - CatNOX - CumminsCO - C30 LiqCO - CatCO - Cummins

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• Jim Crouse, EVP Sales & Marketing

• (818) 407-3634

• Doug Demaret, Sales Manager

• (818) 407-3638

• Jason Klovski, Inside Sales

• (818 734-5464