Building an Energy Ecosystem

1. Building an Energy Ecosystem

2. Building An Energy Ecosystem

3. Energy Systems Network (ESN) provides project development and coordination for joint ventures and cooperative partnerships between network members who are seeking to bring new energy technologies, products, or applications to market . ESN commercialization projects deliver systems level solutions by drawing on a rich diversity of established and emerging companies and institutions across Indiana and beyond who collectively make up a world-class clean-tech cluster with expertise that span the energy ecosystem. • ESN Board of Directors • Joe Loughrey (chair) – retired Vice-Chairman & President, Cummins Inc. • James E. (Jim) Rogers – Chairman & CEO, Duke Energy • Jeff Owens – President, Delphi Electronics and Safety • Toshihito Tamba – Executive Vice President, ITOCHU Corporation • Charles Gassenheimer – Chairman & CEO, Ener1 Corporation • Mike Hudson – President, I-Power Technologies • John Waters – President & CEO, Bright Automotive • Amory Lovins – Chairman & Chief Scientist, Rocky Mountain Institute • France Cordova – President, Purdue University • Thomas Snyder – President, Ivy Tech Community College • Mark Miles – President & CEO, Central Indiana Corporate Partnership

4. Energy Systems Network (ESN) has established a Technical Advisory Council (TAC) with deep and broad technical knowledge of the clean-tech sector. The TAC provides strategic market and technical counsel to ESN projects. • ESN Technical Advisory Council • Dr. Gerry Wilson – Vannevar Bush Professor of Electrical and Mechanical Engineering; Dean of Engineering 1981-91, Massachusetts Institute of Technology • Dr. Richard O. Buckius – Vice President for Research, Purdue University • Dr. John Wall – CTO, Cummins Inc. • Dr. Jim Lyons – CTO, Novus Energy Partners; Chief Engineer, GE Global Research (retired) • Dr. Bill Wylam – Chief Engineer- Batteries; Director of International Manufacturing, Delco Remy Division of General Motors Corporation (retired) • Dr. Michael Rosenfield, Director Smarter Energy, IBM • Bob Sunada, Chief Strategy Office – Corporate Development Office, ITOCHU Corporation

5. Project Portfolio A cooperative partnership between Cummins, Inc., the Delphi Corporation, Allison Transmission, Inc., Remy International, Inc., and Duke Energy Corporation which seeks to develop a fully integrated hybrid power train systems that use higher performance components and demonstrate next generation plug-in hybrid technology for light, medium, and heavy duty vehicles. Commercial scale pilot of plug-in electric vehicles and smart grid technology working together to demonstrate and energy efficient transportation system solution. The pilot will provdie a model regulatory framework and network architecture needed to take smart grid and plug-in systems to scale. (Partners: Duke Energy, Indianapolis Power & Light, Nissan, Smart USA, Think, Navistar, Bright Automotive, Delphi Corporation, ITOCHU, IBM, EnerDel, Midwest ISO Simon Property Group, Purdue University, and the Rocky Mountain Institute.) Develop a distributed power generation microgrid system to provide scalable power for military and commercial markets including back-up power for renewable energy developments. Accelerated systems testing and evaluation and product demonstration will occur at Naval Surface Warfare Center Crane (Partners: SAIC, Duke Energy, Cummins, Delphi, SolarNet, I-Power, EnerDel, NSWC Crane)

6. Hoosier Heavy Hybrid Partnership is a cooperative effort which seeks to commercialize more cost effective, higher-performance, and better-integrated hybrid vehicle components and systems for light, medium, and heavy duty vehicles. • 100 percent of the increase in transportation fuel consumed in the US since the 1973 Arab Oil Embargo has been due to trucks. Additionally, medium and heavy duty trucks produce significant emissions and often operate in non-attainment zones. • By developing scalable technologies for hybrid components and systems, the partnership will deliver products that dramatically reduce fuel consumption and emissions in order to meet one of America’s greatest challenges.

7. ARRA HHH Grant Wins 7

8. First of its kind commercial scale pilot of plug-in electric vehicles (PEVs) and smart grid technology working together to demonstrate a transportation energy system solution for the Indianapolis area • The pilot will span the service territories of two regulated utilities and will include the development of a model regulatory framework and network architecture needed to take smart grid and plug-in systems to scale • Our plug-in ecosystem will provide an optimal test bed for accelerating the commercialization of plug-in technologies on the vehicle side, grid side, and in-between. • The Indianapolis area is an ideal location for Project Plug-IN because it is approximately 20 miles from all suburbs to the city center (ideal for current battery range) and has no mass transit system . Moreover, Indianapolis is hosting the 2012 Super Bowl where our plug-in ecosystem can be showcased on a global scale.

9. Vehicle side focused on multiple PEV platforms Nissan Leaf Think City Smart EV Navistar eStar • Incorporate multiple PEV (i.e. PHEV, EV) vehicle platforms across the light, medium, and heavy duty spectrum (MD and HD may require HEV systems only) • Achieve a critical mass of plug-in vehicles for 2010 demonstration (100+ vehicles) • Provide an optimal test bed for demo systems or to prove out related plug-in technologies/applications including smart-charging, wireless communication between the vehicle and grid, and two-way vehicle-to-grid power flow. • Generate sustained consumer interest through corporate and political support as well as public outreach and education • Focus will be on safety and performance to ensure a positive customer experience • Partners bring a broad expertise including batteries and battery management systems, power electronics, communications systems and expertise, and system integration skills that will enable them to monitor/oversee PEV performance

10. Deployed Vehicles* Phase 1 100 Q209 – Q1'11 Phase 2 1,000 Q2'11 - Q3'12 Phase 3 4,000 Q4'12 - Q4'13 Project Plug-IN will have multiple phases beginning summer 2009 Deployment Goals • 240V grid charging at select locations (150- 250 sites) • Advanced data collection and modeling systems developed • Pilot “Smart Charge” customer offering with time of use charge tariff • Plug-IN Support internet portal for consumers and partners to exchanged information Utility Partner Demo/Pilot • Plug-In @ Home Smart Charge deployed • More robust modeling, integrated software, and a data on transaction settlement • Initial commercial sales of PEV products • “Smart Charge” customer offering with time of use charge tariff expanded • Multiple commercial PEV products for sale in Indy MSA • Greater penetration of Smart Grid and Smart Charge installations/adoption • Suite of systems applications developed to optimize Smart Grid, vehicle performance, and customer experience * Utility partner demonstration/pilot will span Phase 1 and 2 of Project Plug-IN *Vehicles include OEM PEV commercial products and HEV to PEV conversions 10 10

11. Integrated Micro-grid: Resource Energy Efficiency Network • DoD is 56% of Federal Government’s energy consumption with more than 3.8 billion kilowatt-hours of electricity annually. 2008’s Defense Science Board Task Force directs that all DoD installations be able to operate independently from the macro grid when needed. • MicroGreen will integrate the entire spectrum of capabilities needed to generate, store & manage intelligent power employing alternative and convention power technologies for fixed, mobile, and emergency needs using a micro-grid as the scalable delivery platform • The collaborative nature of this partnership will deliver turn-key style solutions for defense and commercial markets that provides three strategic advantage • seamless integration • scalable, replicable, and customizable solution up to 10 megawatts • cost effective 11

12. Phase 1 of MicroGreen provides essence for micro-grid design and capabilities M G H ICRO RID UB Bi - D C Hybrid Electric direction Vehicle inverter AC Local Power Micro - grid AC Biomass Limestone Source D C Fuel Cells Cave Inverters AC Wind Turbines D C Solar Photovoltaic Phase 1 DC BUS • 1MW capacity • 35Kw of solar • Biomass inputs for liquid syn fuel and methane gas • Pig offal • Brush • 2nd WW Treatment • Landfill • Greater efficiency through waste heat recovery • “Islanding” capability for critical assets • Deployable and mobile capabilities explored 480 V/3 Phase 480 V/3 Phase Load Inverters 480 V/3 Phase Gas, Air, Battery Ultra or Water System Capacitor Storage E S NERGY TORAGE Phase 1 Source: Internal company documents 12

13. Phase 1 • 1MW capacity • 35Kw of solar • Biomass inputs for liquid syn fuel and methane gas • Pig offal • Brush • 2nd WW Treatment • Landfill • Greater efficiency through waste heat recovery • “Islanding” capability for critical assets • Deployable and mobile capabilities explored 13