Capstone Turbine Corporation

Capstone’s Turbines Enable Reagan Presidential Library Building Expansion to Produce Efficient Energy

April 2008

Capstone Confidential and Proprietary

Project OverviewThe Ronald Reagan Library creates its own energy for electricity, space heating and cooling in arevolutionary way while reducing waste and increasing efficiency. UTC Power and the U.S. Departmentof Energy accomplished this utilizing Capstone Turbines.

• Sixteen 60 kW Capstone Turbines• providing 95 percent of the electricity

• new Air Force One Pavilion and 100,000 sq. ft. Ronald Reagan Library

• total of 960 kW of generating capability

• provides 387 tons of refrigeration for cooling both the library and the pavilion

Capstone Confidential and Proprietary

What is a Capstone Turbine?• In layman's terms, “A miniature

jet engine that runs at speeds up to 96,000 rpm and generates electricity and heat

• Electrical power output: 30 kW to 5MW range

• Highly Reliable• Ultra low emissions• Multiple fuels; natural gas,

propane, diesel, biodiesel, methane/biomass

• Simple/cost effective design• Low maintenance

Combustionchamber

Exhaust output

Recuperator

Fuel injector

Air bearings

Compressor

Generator

Air intake

Cooling fins

Turbine

Capstone Confidential and Proprietary

Spring

Foil

Shaft

• Air bearing technology• One moving part• No coolants, oils or grease

• Flexible and economic technology• Flexible configuration• Lightweight & small footprint• Multi-fuel capability• Cost competitive positioning

• Clean reliable energy• Environmentally friendly operation• Availability and reliability• Minimal scheduled maintenance• Remote monitoring• Protective relay functionality

Capstone’s Turbine

Capstone Confidential and Proprietary

Heat and Power Efficiency

Source: US EPA and US DOE

Average Utility33% efficiency

Average Boiler80% efficiency

120 kWth

60 kWe 150 kWwaste

330 kWfuel

120 kW waste

30 kW waste

180 kW fuel

150 kW fuel

• 80% average total fuel efficiency• 0.14 lb/MWh smog-forming NOx (95% less) • 560 lb/MWh greenhouse gas CO2 (60% less)

• 57% average total fuel efficiency• 3.0 lb/MWh smog-forming NOx • 1,392 lb/MWh greenhouse gas CO2

Traditional Approach Capstone C60-CHP

40 kWwaste

220 kWfuel

60 kWe 120 kWth

Capstone Confidential and Proprietary

Reduced Greenhouse Gas

Capstone website:www.capstoneturbine.com

Sustainability Calculator

1,000kW Equates to:

700 Passenger Cars Removed 730 Acres of Fir Forest Added (or reducing 3,500 tons of CO2 per year)

Capstone Confidential and Proprietary

Market Drivers for CHP

Rising Energy Prices

Grid Capacity Constraints

Power Security

Climate Change

Capstone Confidential and Proprietary

Summary of Project

• Ronald Regan Library Expanding to House Air Force One– Library Dedication – November 1991– Expansion Complete – October 2005

• Utility and Distributed Generation• DG Competitive with Utility Capital Costs• DG Solution Enables Cogeneration

– Power Generation– Cooling for Air Conditioning– Hot Water

• Benefits of Distributed Solution– High Efficiency– Reduced Greenhouse Gas Emissions– Reduced Utility Costs– Project Paid for with Savings

Capstone Confidential and Proprietary

Reason for Expansion• President Reagan’s Vision

– Share Air Force One with Public

– Allow Visitors to Board Plane

– Celebrate Face-to-Face Diplomacy

• Other Exhibits in Air Force One Pavilion– Presidential Motorcade– 1984 Parade Limousine– Active Exhibits Explaining

Achievements

Capstone Confidential and Proprietary

Potential AlternativesNew Pavilion Adds 1MW Demand• Utility Expansion

– High Investment due to Hilltop Venue

• Solar Cells– Only Provides Power

When Sun Shines

• Wind Turbine– Only Provides Power

When Wind Energy Available

• Combined Heat and Power– Best Firm Power Alternative– Reciprocating Engine– Turbine

Capstone Confidential and Proprietary

Selected CHP Option• Continuous Power

– System Operates 24/7

• Reliable Solution– Gross Availability:

97.2% since June 200598% for 2007 & 100% for YTD 2008

• Avoids Costly Utility Upgrade– Reliable Continuous Power not

Possible with Wind or Solar

• High Efficiency– Special Double-Effect UTC Chiller– Total 80% Efficiency System @ ISO

• Small Footprint

• Low Emissions– Meets Strict California Requirements– 1/10th of Reciprocating Solution

Capstone Confidential and Proprietary

Installation• Time Frame

– Shipped - July 2004– Commissioned - April 2005– Dedication - October 2005

• Installation– Concrete Pad and Fence– Gas and Electrical Service– Unit Placement and Connection– Air Conditioning

• Commissioning– Ensure Proper Installation– Configure Units

• Service– Preventive Maintenance– Capstone Factory Protection Plan

Capstone Confidential and Proprietary

Ronald Regan Status• MicroTurbine Plant

– Continuous Power– High Efficiency– High Availability

• Facility Expansion– Air Force One– Museum

• New Educational Programs– Major Holidays– School Tours

• Hosted Several Events– Public Service– Local Businesses– 2008 Republican Debate

Capstone Confidential and Proprietary

Case Study SummaryThe 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 turbines – Three 129-ton absorption chillers – Provides up 1.6 MBTU of hot water

to heat the pavilion

Savings:– Over $300,000 in annual operating

costs

Capstone Confidential and Proprietary

Products

• Capstone product line• C30 = 30KW• C65 = 65KW• C200 = 200KW

• Capstone has pre-engineered packages to 1MW

• C600 = 600KW• C800 = 800KW• C1000 = 1000KW• Controls

Capstone Confidential and Proprietary

Capstone 2008 Solutions

• Added 200 and 1000 kW Solutions• Highest Electrical Efficiency for Gas Turbine <4MW• Price Competitive with Reciprocating CHP Solutions• C1000 Offers:

– High part-load efficiency– Built in redundancy– Integrated package

• Small footprint - 10’ x 30’ ISO• Stackable• Multi-pack to 10MW

• Ultra Low Emissions– 1/10th of best in class reciprocating engine

• Low maintenance– Backed by Capstone Factory Protection Plan

• High Availability– Sites have achieved 99+%

C1000 MicroTurbine System