CNG: ENABLING THE GREEN ECONOMY IN THE CITY OF JOHANNESBURG

September 2016

Private and Confidential © NOVO Energy (Pty) Ltd

COMPANY OVERVIEW

� NOVO is a Energy and Technology Company focussing on:

• Procurement and development of methane rich gas sources

(MRG/NG/Bio/CBM)

• Establishment and ownership of gas infrastructure (CNG & pipe)

• Providing turnkey customer solutions (Industrial & Power & NGV)

Private and Confidential © NOVO Energy (Pty) Ltd

COMPANY OVERVIEW (Cont)

� In partnership with our world leading technology suppliers we can design, implement, operate and maintain the most challenging alternative fuel solutions, using natural gas.

� NOVO has a strong technical team with more than 100 years of cumulative experience in the alternative fuels (CNG & NG) market.

� We build and operate gas re-fuelling facilities and convertvehicles to operate on compressed natural gas.

� In-house expertise responsible for establishment of the NGV business inMozambique comprising of more than 3,000 vehicles and a number ofrefuelling station (mother-daughter stations). Cumulative DispensingStations built to date= 12

� We supply Compressed Natural Gas (CNG) and provide comprehensivefuel solutions to the Transport, Industrial, Commercial, Power andResidential Customers.

� We level 4 BBBEE contributor and has been awarded a Gas TradingLicence from NERSA.

Private and Confidential © NOVO Energy (Pty) Ltd

CoJ – CLIMATE INITIATIVES (1)

DEMAND-SIDE ENERGY USAGE BY SECTOR (2007)

Private and Confidential © NOVO Energy (Pty) Ltd

CoJ – CLIMATE INITIATIVES (2)

CO2 EMISSIONS BY END-USER SECTOR - TONNES (2007)

Private and Confidential © NOVO Energy (Pty) Ltd

CoJ – CLIMATE INITIATIVES (3)

CO2 EMISSIONS BY ENERGY TYPE - TONNES (2007)

Private and Confidential © NOVO Energy (Pty) Ltd

COJ – SUMMARY & CONCLUSION

� The largest energy user sectors are:

• Transport

• Industry & Commerce

• Households

� Largest contributors to emissions:

• Transport

• Industry & Commerce

• Households

� The following fuels are the main contributors:

• Electricity (assume it is coal based)

• Petrol

• Diesel

� Largest possible climate impact:

• Convert Kelvin to natural gas

• Replace ESKOM electricity with carbon neutral and affordable electricity

• Operate as many vehicles as possible on compressed natural gas (CNG)

• Convert new and existing Industry & Commerce to NG• Source: City of Johannesburg State of Energy Report (2008)

Private and Confidential © NOVO Energy (Pty) Ltd

NOVO’S PRESENCE - CoJ

KEW Online Refuelling and Compression Station

• Opening 28 October 2016 to service NGVs

• Built to Supply CNG to 6 hospitals in Gauteng

• Refuelling of fleet vehicles and minibus taxis

• Capacity of 2,400m³/Hr

• Off grid electricity supply (Gas Generators) to improve availability

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NOVO’S PRESENCE - CoJ

Supplying CNG to Industry

• Engine Training Centre

• Bakeries

• Sweet Manufacturers

• Food/Restaurant Suppliers

• Washing Power Manufacturer's

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NOVO’S PRESENCE - CoJ

Natural Gas Vehicles

• Vehicle Testing Support

• Vehicle Conversion

• OEM Consultation

• Project Execution

• Technology Integration

Private and Confidential © NOVO Energy (Pty) Ltd

CNG: ENABLING THE GREEN ECONOMY

Through NOVO Energy’s (private sectors) efforts, CNG provides the

following key benefits towards enabling the Green Economy:

• Permanent employment in the CNG industry (Job Creation & Skills Development)

• Clean Energy (Environmental Protection & Human Health Benefits)

• More Affordable Energy (Economic Growth)

• Fuel Diversity (Resource Protection)

Through our efforts and growth aspirations NOVO Energy is aligned with South Africa’s

sustainable development vision as outlined in the National Framework for Sustainable

Development.

Private and Confidential © NOVO Energy (Pty) Ltd

THANK YOU