Capstone MicroTurbine™ Energy Solutions

A Presentation by Capstone Turbine Corporation

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Company History

1988 – 1993

1994 – 1996

1997 – 1998

June 29, 2000

2005 – Present

2001 – 2004

• Design And Engineering Of The Microturbine– Receive contracts to develop turbogenerator technology from NASA, Ford, and

Southern California Edison, among others

• Testing Of The Microturbine– Place 37 prototypes in the field in its beta program– First successful road test of a microturbine in a HEV application

• Transition From HEV Application To Stationary Power Generation– Sale of the first commercial microturbine system

• Capstone Goes Public– List on the NASDAQ exchange (ticker: CPST)

• Commercialization Of The Microturbine– C30 and C60 products are launched and operating in the field

• Expansion Of Distribution And Marketing– Open offices in Tokyo, Shanghai, U.K., Milan and Mexico City – Signing channel agreements with U.S. distributors

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• One moving part: TurboGenerator shaft

86 U.S. Technology Patents

Spring

Foil

Shaft

• Air bearings - No oil or grease

• Air cooled - No liquid coolants

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What is a Microturbine?

• In layman's terms, “A miniature jet engine in a case the size of a Sub-Zero refrigerator that runs at 96,000 rpm and generates electricity and heat. It is a total thermal package.”

• Electrical power output: 30 kW to 250 kW range

• Ultra low emissions

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

• Simple/cost effective design

• Low maintenance/high reliability

Combustionchamber

Exhaust output

Recuperator

Fuel injector

Air bearings

Compressor

Generator

Air intake

Cooling fins

Turbine

capstone\Roadshow\Roadshow_WIP_429-3.ppt 6

Inside the MicroTurbine

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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 & Controls

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3rd Party Certification

• UL 2200, stationary engine generator safety standard, and the newly revised National Grid Interconnect standard UL 1741

• International grid interconnect standard IEEE 1547/1747.1

• Approved by New York and California for direct-to-grid interconnection to facilitate ease of installation

• Compliant with NFPA, IEEE519, CE, Canadian UL and other internationally recognized safety standards

• Note: Not all certifications apply to all products.

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Classification Listing of UL 2200 & UL 1741 for Biogas

Biogas-fueled Capstone 30-kW and 65-kW MicroTurbines are the ONLY generators of any type certified to the new classification category for biogas-fueled engine generators

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Market Segments

Hospitals

Hotels Schools

Large Retailers

Oil & Gas

U.S. Gov’t

Landfills Waste Water Plants

Telecom

Digesters

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Microturbines vs Piston Engines

Capstone Microturbines Traditional Piston Engines

Clean emissions CARB 2007 pending Local air permits and exhaust cleanup required

Low-maintenance air bearings High maintenance with 100’s of moving parts

Digitally controlled power electronics External controls without power electronics

Integrated utility protection & synchronizing

Requires external relays & control equipment

Lightweight & small footprint More than twice the weight & footprint

• Better old

photo

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Vertical Applications

Best Value for Onsite

Energy Generation

Best Value for Onsite

Energy Generation

CCHP CHP

Resource Recovery

Secure Power

Best Value for Onsite Energy

Generation

Best Value for Onsite Energy

Generation

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CHP Case Study: Atrium Hotel, Irvine• Three C60-CHPs• Commissioned Oct, 2003• Simple interconnection• No air permit needed

•Capstone CHP heated water for: – Pool, laundry, kitchen, guestrooms and building heating

•180 kW SCE reduced demand/usage

Savings: $10,000/monthSavings: $10,000/month

“It just made sense. Our ROI will be within 1.5 years”

—GM Sheri Blackwood

Atrium Hotel with 211 Rooms

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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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The Solution:– A Capstone microturbine, UL certified for hazardous oil and gas applications– The microturbine runs on onsite unprocessed wellhead

gas which is normally flared, providing a power source to the platform – The microturbine cut maintenance time by ~95%

compared to reciprocating engine generators – The microturbine ran almost non-stop for 25,000

hours before the platform sunk during Hurricane Katrina– Capstone has microturbines running on other platforms

in the Gulf of Mexico, Gulf of Alaska, Bay of Campeche, the North Sea, Mediterranean Sea, and South China Sea

Resource Recovery Case Study: BP Offshore Platform

The Issues:– Provide a reliable power source in

a hazardous oil and gas application on an offshore platform in the Gulf of Mexico

– Recover value from onsite flare gas which is normally lost to the environment

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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 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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Capstone Service Capability

• Capstone PerformancePlus™

Service:A Factory Protection Plan from Capstone Turbine Corporation will keep your system operating to its original designed system efficiency and overall effectiveness.

• Authorized Service Providers:Are factory trained professionals to provide full service capability when needed.

• Capstone Service Network (CSN):Monitors and records key data on the operation and performance of the microturbine(s) upon commissioning on a 24 x 7 bases.

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Capstone’s Commitment to the Environment

• Thousands of Capstone MicroTurbines are installed and operating worldwide.

• Clean, efficient Distributed Generation offers a variety of societal and customer benefits such as reduced fuel consumption; reduced emissions; reduced greenhouse gases; utility grid support; reduced energy costs; and security of power.

• Capstone is a member of the U.S. Environmental Protection Agency’s (EPA) Combined Heat and Power Partnership which is committed to improving the efficiency of the nation’s energy infrastructure and reducing emissions of pollutants and greenhouse gases.

• In accordance with EPA’s CHP Greenhouse Gas Reduction

Report, through 2005, the high efficiency of Capstone

Turbine Corporation’s 203 CHP project(s) resulted in

annual emissions reductions equivalent to: Planting 23,539

acres of forest or Removing the emissions of 15,692

automobiles.