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Seed to Circuit: Direct Combustion of Solid Biofuel for Electric Power Generation

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As the world makes important commitments to a future powered with clean renewable energy, solutions utilizing BIOFUEL will play an increasingly important role. Bio energy is energy derived from harnessing the power within biofuel. For the PPS 250, biofuel is a wide variety of organic matter such as wood chips. The PPS 250 can use these fuels with minimal preparation other than chipping or shredding.

Often lost in the conversation about renewable energy, biofuel combined with modern thermodynamic technology, represents a renewable resource that brings diversity to our energy mix and a can play a critical role in transitioning to a clean energy future.

Why Biofuel Energy?

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• 280 kWe Electric (Sized for ~200 Homes or 180,000 Sq Ft of Commercial Space)

+ 2000 gph hot water or 36 Tons of Cooling + 1275 gph hot water

• Based on low cost Automotive, not Exotic Gas Turbine Hardware

• Simple, Historically Proven, Engine Construction; Remainder of Equipment is

Commercially Available

•Standardized Modular/Turnkey Installation: Simplifies Siting, Permitting &

Repositioning to Meet Community Needs

• Produce Power at 21/2 to 71/2¢ per kWe-hr Fully Loaded without Government Subsidy

• Ideal for a Wide Range of Renewable Alternative fuels:

Wood Chips, Bamboo, Refuse Derived Fuel (RFD), Livestock Manures, Miscanthus,

etc. (Pelletization not needed)

• Provides clean efficient means for Direct Combustion

of Carbon Neutral Solid Fuels and Cellulosic Biomass (without the need for a gasifier

or digester)

Finally – Realistic, Practical Renewable Energy:

The PPS 250 Solid Biofuel Powerplant

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37 ft

57 ft

Fuel Loading Hopper

Cyclone Fly Ash Trap

Fuel Storage Bin

Fuel Dryer and

Optional Water

Heater

Fuel Transfer Augers

“Roll Off” Dumpster for Ash

Disposal

Ash Transfer Auger

Combustor and Air Heater

Combined Rotating Unit• Compressor• Expander

• Synchronous Generator• Controls

• Electric Interface

Air or Flue Gas Connector(4 Places)

PPS 250 Solid

Biofuel Powerplant

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1

2

3

1->2 Air is Compressed

2->3 Heat is Added to Compressed Air

3->4 Heated Compressed Air is Expanded to Produce Work

4 Hot Exhaust Provides Pre-Heated Blast Air to Combustor

4

68oF

318oF 888oF

1550oF515oF Air Heater

Solid Fuel

Combustor

Expander

Compressor

Fuel Hopper

Ash Bin1408oF

HOW IT WORKS The PPS 250 Solid Biofuel Powerplant has the Proe Afterburningtm engine at its heart. This engine is based on technology that has been used commercially for over a century but brought into the 21st century with state-of-the art engineering. The engine is unique in that only clean air passes through the engine. Combined with the engine’s simplicity, the result is a rugged engine, ideally suited to solid fuel combustion, having low maintenance costs and low initial capital cost.

View Animated Versions at: http://www.proepowersystems.com/How_It_Works.ppsx and http://www.proepowersystems.com/Engine.htm

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0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09

Wood Chips

Switch Grass

Shredded Paper

Scrap Wood

RDF

Poultry Litter

Miscanthus

Lignite

Horse Manure

Hog Manure

Corn Husks/Stalks

Coconut Shells

Cattle Manure

Bamboo

Arundo

Algae

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10 Yr Electric Cost Using PPS 250 Solid Biofuel Powerplant

($/kW-hr)

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Fuel Agnostic: Economical Production of Electric Power from A Wide Range of Renewable Fuels

Customer Value Proe Power Systems powerplants can produce electricity cost-competitively with the added benefit of not requiring the tremendous capital expense required for large scale plants and long transmission lines. Our powerplants can be placed near users and thus deliver power with minimal transmission loss. The PPS 250 has direct combustion that eliminates the energy losses, cost and complexity of intermediate processes involving digestion, gasification, liquefaction, or steam generation. It also allows a wide range of fuels that can deliver electricity for less than 21/2 to 71/2 US¢/kW-hr; fully loaded and without subsidy. This makes the PPS 250 a more than competitive alternative to other renewable energy sources and even with conventional power produced by coal solutions.

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Breaking the Cost

Barrier Unless subsidized, conventional “renewable energy” based on wind and solar results in electric power cost exceeding the average cost of the utility grid. We break that cost barrier

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The PPS 250 is a Problem Solver

There are

Thousands of Acres of Waste Wood in the Rockies, from

the U.S. To Canada, because of Pine

Bark Beetle Devastation

800,000

Tons of Poultry Litter

Pollute the Chesapeake

Watershed Every Year

~35% of

Feedstock for Biofuel

Transportation

Fuels is Lignin Waste

37 ft

57 ft

Fuel Loading Hopper

Cyclone Fly Ash Trap

Fuel Storage Bin

Fuel Dryer and

Optional Water

Heater

Fuel Transfer Augers

“Roll Off” Dumpster for Ash

Disposal

Ash Transfer Auger

Combustor and Air Heater

Combined Rotating Unit• Compressor• Expander

• Synchronous Generator• Controls

• Electric Interface

Air or Flue Gas Connector(4 Places)

PPS 250 Solid

Biofuel Powerplant

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Initial Market Opportunity is Over 71/2 X Planned Production

No. of Units Sales

Remote communities, across Canada 1,962 $1,324,350,000

Alaskan remote communities 430 $290,250,000

Poultry / Broilers Canada and US - 10% of market 5,200 $3,510,000,000

Dedicated buildings; Schools, industry, sport complexes, etc 25,400 $17,145,000,000

Chile, and South America 2,000 $1,350,000,000

MW PPS Powerplants for the Mining industry 4,000 $2,700,000,000

M & P Miscanthus and Power FIT projects 1,500 $1,012,500,000

Mexico, Caribbean and Central America 250 $168,750,000

Australia 2,000 $1,350,000,000

42,742 28,850,850,000$

Resorts 550 $371,250,000

Schools 35 $23,625,000

Prisons 5 $3,375,000

Commercial Developments 750 $506,250,000

Condominium Associations 500 $337,500,000

Housing Developments 500 $337,500,000

Others 160 $108,000,000

2,500 1,687,500,000$

Colorado Forest & Energy (CF&E)

Forested United States 4,905 $3,310,875,000

AG United States 2,216 $1,495,800,000

North America Canada 1,815 $1,225,125,000

Subtotal for CF&E 8,936 6,031,800,000$

54,178 36,570,150,000$

Total

Projected Market Size for First 10 Years

EverGreen Energy Corp. First 10 Years

Advanced BioEnergy Solutions (Hawaii)

Subtotal for EverGreen Energy

Subtotal for Advanced BioEnergy Solutions

A large market has already recognized our product’s advantage for use in a wide variety of applications throughout North America and the world. Our 3 marketing partners conservatively estimate being able to make over 50,000 sales in 10 years.

Initial Market Opportunity is Over 71/2 X Planned Production

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Proe Power Systems:

• An Ohio LLC (1574605) and Registered Engineering

Firm (01336)

• Received 2008 “Innovation in Renewable Energy”

Award from Northern Ohio Chapter of the Association

of Energy Engineers for Research in the Direct

Conversion of Biomass

Fuels to Energy

Who We Are

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Who We AreRichard Proeschel, P.E., Chairman and Program Manager

• Registered Professional Engineer (#PE.71779) in Ohio • Founder & Chairman of Proe Power Systems, LLC

• Retired from Boeing/Rockwell after 32 Years as a “Rocket Scientist”• Associate Program Manager for International Space Station Electric Power System

• Test Supervisor for Space Shuttle Fuel Cell and Auxiliary Power Systems• Worked “Mission Evaluation Room” in NASA Houston for Shuttle Development Flights

• Extensive Experience in Computer Modeling of Thermodynamic Systems

• Holds 4 Issued and 4 Pending U.S. Patents • Author of Many Papers in Heat Transfer, Thermodynamics, Rocket Propulsion and Power

• BS in Fluid, Thermal & Aerospace Engineering from Case School of Engineering, Case Western Reserve University

• MS in Systems Management (Management of High Technology Programs & Projects) from Viterbi

School of Engineering, USC• Member of AEE, ASME, National & Ohio Societies of Professional Engineers, Ohio Academy of

Sciences, SAE

R. Michael Ujcich, Chief Investment Officer• Environmental Entrepreneur for 24+ Years

• Commercial Project Site Design and Development With Emphasis on Renewable Energy technologies and Green, Energy Efficient Construction Methods

• Green Energy Ohio Volunteer since 1986

• Renewable Energy Volunteer Consultant with University of Managua in Nicaragua• B.S B.A. in Marketing from John Carroll University

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Proe

Power

Systems

Proe Power Systems, LLC

Contact: Richard Proeschel, PE Chairman & Program Manager 800-315-0084 x600 raproe@proepowersystems.com

www.proepowersystems.com

”Making Thermodynamics a Household Word” ®

Developing Innovative New Technologies for

Energy Independence and Environmental Responsibility