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Stirling Energy Systems, Inc.

Creating a. brighter future. for humanity through. SOLAR ENERGY. Stirling Energy Systems, Inc. Orange County Business Council March 10, 2009. Introduction to SES. About SES. Overview

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Stirling Energy Systems, Inc.

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  1. Creating a brighter future for humanity through SOLAR ENERGY Stirling Energy Systems, Inc. Orange County Business CouncilMarch 10, 2009

  2. Introduction to SES

  3. About SES Overview • SES acquired the world’s most efficient solar technology, the McDonnell Douglas solar Dish Stirling system, developed at a cost of $400 million by McDonnell Douglas, U.S. DOE & Kockums of Sweden • SES develops central station solar electric plants and sells electricity through Power Purchase Agreements with leading utility companies • SES will sell equipment for turn-key solar thermal Dish Stirling electrical power plants

  4. SES & NTR Partnership Strategic Partners • SES founded in 1996, based in Phoenix, Arizona • SES has outstanding technical expertise in solar energy development • NTR invested $100 million in April 2008 and continues provide millions in funding, as well as excellent proficiency in large scale infrastructure and renewable energy • Together SES and NTR are capable of building the world’s largest and most efficient solar generating facilities

  5. Technology Overview

  6. Power Conversion Unit (PCU) PCU Boom Azimuth Drive Elevation Drive Main Beam Mirror Facet Box Trusses Dish Controller(inside pedestal) Pedestal SES Solar Dish Assembly Hydrogen Storage

  7. The SES Solar Dish Assembly SunCatcher is modular for ease of assembly and maintenance p Penetrator

  8. Stirling Engine Radiator Stirling Engine Radiator Fan Fan Receiver Receiver Frame Frame Controls Controls Power Conversion Unit (PCU)

  9. Stirling Engine

  10. Significant Competitive Advantages vs. Other Solar Technologies • 2 - 3x more efficient at producing grid-quality electricity. We hold the world’s record for efficiency at 31.25% (Converts 31.25% of the energy that hits our mirrors into grid quality electric power). • Requires approximately one-half of the raw materials and cost of a solar power plant of equal output. • Uses <1% of water used by other CSP • Modular system and high availability • More flexible siting • Lower startup costs • Targeted for utility-scale power SunCatcher Efficiency vs. Other Solar Source: Southern California Edison and Sandia National Laboratories Efficiency is key to SES’ cost-competitiveness

  11. Phased Commercialization

  12. High Volume, Low Cost Manufacturing Model • Projected cost reductions are based on a learning curve approach widely used in industry • SES is leveraging potential strategic partners and key suppliers to transform hand-built units into a high performance, low-cost product • Detroit high-performance engine manufacturer will build Stirling engine • Cost Reduction Drivers: • Economies of scale • Automation • Simplify product / reduce number of parts • Off-the-shelf components • Simplify assembly $ / kW Production Rate The SunCatcher is like a “funny-shaped” automobile

  13. Pathway to Commercialization “PATHWAY” “Bridging the Gap” “Commercialization” Past… Today “Technology” • Goals • US & International markets • Supply chain—US based with global reach • Ultra-low cost systems • High-volume manufacturing • Advanced systems Starting Point • 20-year history • Development units • Model power plant • 6 systems • SES supply chain • Commercialization Program • Product commercialization • Supply chain development • Development projects • Model power plant • Company infrastructure Commercialization program is the pathway to fulfilling production contracts

  14. SES Model Power Plant Operating at Sandia • Located at the National Solar Thermal Test Facility (NSTTF) at DOE’s Sandia labs. – partners for more than 10 years. We are putting 150,000 watts into the Kirkland, AFB power grid. • Proving ground & showcase • On-Going system testing • Performance • Reliability • Systems Integration • Augmented SES with Sandia scientists & engineers

  15. El Centro Plant SES Solar Two

  16. Solar Two Plant • Imperial Valley site designed for 750 MW, enough energy for approximately 500,000 homes • 30,000 Solar Dish Stirling systems • 20-year Power Purchase Agreement with SDG&E up to 900 MW • Sited on 650,000 acres at Plaster City, 10 miles west of El Centro • Construction scheduled for 2010 – 2014 • SDG&E and SCE contracts support supply chain sustainability

  17. Schedule and Process • Application For Certification filed with the California Energy Commission June 30, 2008 • Memorandum of Understanding with CEC and Bureau of Land Management • State and federal approvals required • Estimated approval 12 to 16 months • Construction Spring 2010

  18. Jobs and Cost • Total cost to build plant is approximately $1 billion • Construction jobs will range from 300 to 700 during four years • Solar Two will create more than 160 new full-time jobs to operate solar generating facility • Local job impact will be even greater with multiplier effect

  19. Additional Benefits • Stirling Energy will emit no greenhouse gasses and displace tons of harmful emissions from old power plants in San Diego • Stirling will enhance economic development, spark solar energy generation and produce millions of dollars of new revenues for the County of Imperial • Solar Two will require only 33 acre-feet of water to generating 750 megawatts of clean solar energy

  20. Solar Generating Facility

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