World Energy Council North American and Latin America & Caribbean Bi-regional Forum: 2008 “Energy and Water”

World Energy CouncilNorth American and Latin America & CaribbeanBi-regional Forum: 2008 “Energy and Water” Hybrid Water and Power Plants Ron Wood President & CEO (Retired) B&V Energy Black & Veatch Corporation November 3, 2008

Global Water Stress Is Spreading … Adequate Supply Water Scarcity • Impacting Industrial Growth as water is diverted for consumer use • Traditionally Power and Water Providers are separate entities • Combined Power and Water operations offers opportunities Source: GWI 2007 RRW-WEC 2008 Forum

… with growing water awareness in the U.S. … RRW-WEC 2008 Forum

… and Mega City Growth by 2015 will be substantial. RRW-WEC 2008 Forum

Hybrid Water and Power Plants (HWPPs) Offer an Optimum Solution in some Situations … • Water Scarcity Often Exists in Regions where Seawater or Brackish Water is Available and New Electric Power Generating Capacity is Needed. • Thermal Desalination has been Widely Applied for Many Years to Produce Potable Water from Seawater. • Multi Stage Flash Evaporation (MSF) • Multi Effect Distillation (MED) • Membrane Technology has Become the Preferred Desalination Process for Many Applications. • Combining Thermal and Membrane Technologies is an Important Step Toward Lowering Costs. RRW-WEC 2008 Forum

Thermal Desalination Has Been Widely Applied for Many Years … Conceptual Diagram of a Combustion Turbine Coupled With a Thermal Desalination Plant ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

… and Membrane Desalination Has Become a Preferred Application in Some Locations … Conceptual Diagram of a Combined Cycle Powerand SWRO Desalination Plant ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

… but a Hybrid Water and Power Plant Incorporating Both Thermal and Membrane Desalination Offers Significant Optimization Opportunities. Conceptual Diagram of a Combustion Turbine Coupled With a Hybrid Desalination (MED / RO) Plant ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

Black & Veatch Has Developed an Improved MED Process that can be combined … • Incorporates Lower Grade Heat Sources Into Energy Balance for Desalination System • Reduces the Amount of Higher Grade, Higher Value Energy Input • Has All Benefits of Traditional Thermal and Hybrid Systems Plus Improved Efficiency ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

… with the GE LMS100 in an optimized hybrid water and power project (HWPP). Conceptual Diagram of a GE LMS100 Combustion Turbine Coupled With an Innovative Hybrid Desalination (MED / RO) Plant ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

Simple Cycle Exhaust MS6001FA Inlet System Variable BleedValve (VBV) System GT Driver Package Air-to-Water Heat Exchanger CoolingTower Intercooler Piping &Expansion Bellows Dual RatedGenerator GE LMS 100 Combustion Turbine ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

LMS100 Flexible Power Basin 1 Basin 2 Texas • Features of flexibility • Unparalleled simple-cycle efficiency • 10-minute starts to full power • High part-power efficiency • Hot day performance • Load following and cycling capabilities without maintenance penalties Argentina RRW-WEC 2008 Forum

LMS100® HWPP™ Reference Plant Overview SWRO HRSG MED LMS100 Steam Turbine Generator Set GSU Gas Compressors Incorporates GE’s LMS100, membrane desalination and Black & Veatch’s innovative MEDi process ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

Water Production vs Time Of Day Water Production 150 6.0 5.0 100 4.0 Electricity Power Production, MW Water Production Rate, mgd 3.0 Power to Grid 50 2.0 1.0 0 0.0 1 4 7 10 13 16 19 22 Time of Day The HWPP Compliments the Electric Demand Cycle While Maintaining Higher Efficiency the Entire 24-Hour Period and … Hybrid Plant Design Advantages • Operational Flexibility – Match Power Dispatch Needs and Meet Water Requirements Throughout Day • Turbines Are Run at Near Optimum Efficiency Entire 24-Hour Period Achieving Lowest Possible Power and Water Production Cost • Two Income Streams – Dispatched Power and Treated Water • Provides a Better Solution for Industry and Municipals ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

…Water and Electric Production Can Each Be Varied to Achieve Hourly, Daily, and Seasonal Requirements While Maintaining High Efficiency • High Thermal Desalination When Electric Demand Is at Highest Level • High Membrane Desalination When Electric Demand Is at Lowest Level • Enables Sale of Electricity During “Peaks” and R/O Production of Water When Electricity Has Lower Value Hybrid Plant Design Advantages Water Production vs Time Of Day Total Water 6.0 5.0 4.0 MED-I Output Water Production Rate, mgd 3.0 2.0 SWRO Output 1.0 0.0 1 4 7 10 13 16 19 22 Time of Day ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

The B&V Innovation Significantly Improves Desalination Capabilities of the LMS100 Hybrid Desalination Plant … • Innovation Nearly Doubles Water Output (5.5 mgd vs 3.0 mgd) • Water Cost Lowered Through Innovation by ~25% Against Traditional MED Systems With Same Water Production • Innovation Increases CTG MW Output by ~2% Due to Reduced Temperature from the intercooler ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

The HWPP with B&V’s Innovation Provides Cost Advantages Over Other Technologies … Relative Water and Power Production Costs 8.00 7.80 LMS100 MED-TVC, 5.5 mgd (Traditional) 7.60 7.40 7.20 Power Costs, c/kWh 7.00 6.80 1x1 LMS100 MED-I, 5.5 mgd (B&V Innovation) 6.60 6.40 1x1 LMS100 SWRO, 5.5 mgd 6.20 6.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Water Costs, $/1000 gal Note: Costs are for illustration of the relative comparison. Actual water and power costs depend upon the specific project design including the variability of location and construction costs. ©Black & Veatch. All rights reserved. RRW-WEC 2008 Forum

Summary • Global demand for electric power and fresh water projects is large and growing. • There is a close relationship between power generation and fresh water production from desalination. • Hybrid Water and Power Projects (HWPPs) incorporating both thermal and membrane desalination processes provide highly optimized solutions for water and power projects. RRW-WEC 2008 Forum

Summary (Cont’d) • The GE LMS 100 combustion turbine is extremely well suited to hybrid applications. • The LMS 100 HWPP is a very efficient hybrid design and may offer cost advantages in certain applications. RRW-WEC 2008 Forum

World Energy Council North American and Latin America & Caribbean Bi-regional Forum: 2008 “Energy and Water”