INCREASED ON-STREAM TIME

AND EFFICIENCY WITH HYDRAULIC TURBOCHARGER

Presented at Nitrogen+Syngas 2015

Andrea Gains-Germain Director, New Product Development

Copyright 2014

AGENDA

o Company Overview

o Energy Recovery Solution, CO2 Removal in Ammonia Plants

o Advanced Technology: Hydraulic Turbocharger

o Reliability, Availability, Maintainability

o Case Studies

2

Copyright 2014

billion USD annual energy savings

* Based on 5 year average.

Our clients earn

ENERGY RECOVERY TODAY

o NASDAQ: ERII

o Founded in 1992

o HQ in SF Bay Area, CA USA

o Global presence

o Proven technology with 15,000 devices on 7 continents

o Global energy recovery device market leader with 90% market share* in seawater desalination

Company Overview

3

OUR VISION Harness energy from pressure

1.4

Copyright 2014

4

INDUSTRIES SERVED

Reverse osmosis desalination

Seawater

Brackish water

Customers include

GE Water and Process Technologies

Veolia Water

Abengoa

Acciona

Doosan

Acid gas removal

Natural gas processing

LNG

Refinery gases

Crude oil pipelines

Customers include

Conoco Phillips

Saudi Aramco

Energy Transfer Partners

Sinopec

WATER

Company Overview

CO2 removal

Ammonia

Syngas

Hydrogen

Synthetic natural gas

OIL AND GAS CHEMICALS

Copyright 2014

SIMPLE CO2 REMOVAL PROCESS, NO RECOVERY Ammonia Solutions

5

Copyright 2014

SIMPLE CO2 REMOVAL PROCESS WITH RECOVERY

6

Ammonia Solutions

Copyright 2014

ISOBOOST SYSTEM Ammonia Solutions

7

Rich Solvent from Absorber

Rich Solvent To Stripper

Semi-Lean From Stripper

Semi-Lean to Absorber

Controls

Throttle

Bypass

Filtration Module

Auxiliary

GP TURBO

Copyright 2014

Advanced Technology Hydraulic Turbocharger

8

yvind Hagen - Statoil

Copyright 2014

Technology

GP TURBO IS THE CORE OF ISOBOOST HOW IT WORKS

PUMP SIDE IMPELLER

TURBINE SIDE IMPELLER

HIGH PRESSURE SEMI-LEAN

LOW PRESSURE SEMI-LEAN

LOW PRESSURE RICH

HIGH PRESSURE RICH

Copyright 2014

10

THRUST BEARING

CENTER BEARING

PUMP IMPELLER

TURBINE IMPELLER

PUMP VOLUTE

TURBINE VOLUTE

Note: Turbine nozzle and auxiliary turbine nozzle is not shown in this view

High Pressure Semi-Lean Solvent

Low Pressure Semi-Lean Solvent

Low Pressure Rich Solvent

Thrust and center bearings are process fluid lubricated.

No shaft seals.

Technology

THE GP TURBO

Copyright 2014

SIMPLICITY AND TURNDOWN CAPABILITY PATENTED MULTI-NOZZLE TURBINE

11

Replaceable Volute Insert

Replaceable Nozzle Insert Auxiliary

Nozzle

Custom Designed High Efficiency

Reaction Turbine Runner

316L / CF3M For Sour Environments

Technology

Copyright 2014

Reliability, Availability, Maintainability

12

HIGHEST RELIABILITY

o No shafts exiting the casing

o No shaft seals, no seal leaks possible

o No seal support systems

o Rotating assembly (RA) is a single moving part

o No alignment required

o Bearings are self-lubricated by process fluid

o No oil lubrication systems

o RA speed is unconstrained and self regulating

o Very low vibration

o Always at Best Efficiency Point (BEP) within operating range 10 YEAR MEAN TIME TO FAILURE

Copyright 2014

Reliability, Availability, Maintainability

13

yvind Hagen - Statoil

Copyright 2014

GP TURBO FAILURE RATE

OREDA Category Oreda CRT Mean Failure Rate ( per 10^6 hours)

All Critical Failures 28.1

Removed

Ext Process Leakage 3.8

Ext Utility Leakage 3.2

Fail to Start on Demand 3.5

Vibration 3.8

Other 0.3

GP Turbo Estimated Mean

Failure Rate (per 10^6 hours) 13.4

GB Turbo MTTF in Years

Conversion 8.6

Reliability, Availability, Maintainability

14

Two Sources for GP Turbo Failure Rate 1. Empirical: Field

installed turbo data (359 large turbos operating in desal 1996-2013, MTTF 10 years)

2. Calculated: Fidelis calculation based on OREDA database analysis

Copyright 2014

PUMP FAILURE RATE

o API 610 Multi-Stage Centrifugal Pump MTTF 2.9 Years

o Empirical: Source for Pump and Component Data: OREDA, Offshore and Onshore Reliability Database. Data from

o Theoretical: Reliability Prediction Procedures for Mechanical Equipment

Reliability, Availability, Maintainability

15

Pump Component Base Failure Rate Assumptions

Mechanical Seals

Shaft

Bearings L10=25,000 hours

Casing

Fluid Driver

Copyright 2014

STUDY RESULTS Reliability, Availability, Maintainability

16

Case No. Case Name Average System

Availability Average Pump Maintenance

Costs over 20 Years

i. Base Case, 3x50 centrifugal pumps

99.61% $4,333,842

ii. 3x50 with IsoBoost 99.84% $2,211,695

Production Loss Sensitivity

Copyright 2014

$-

$50,000

$100,000

$150,000

$200,000

$250,000

3x50 Configuration 3x50 Configuration with IsoBoost

An

nu

al M

ain

ten

ance

Co

sts

Main Pumps Standby Pump IsoBoost

MAINTENANCE COSTS REDUCED BY 49%

17

HIGH PRESSURE PUMPS (2X)

HIGH PRESSURE PUMP (1X)

-49%

Reliability, Availability, Maintainability

~6000 gpm amine gas treating plant, 3x50 configuration, API multi-stage centrifugal high pressure pumps, electric drivers.

Copyright 2014

99.50% 99.60% 99.70% 99.80% 99.90% 100.00%

Plant Availability

IMPROVED AVAILABILITY Reliability, Availability, Maintainability

18

Increase Availability Reduce Risk

~6000 gpm amine gas treating plant, 3x50 configuration,, API multi-stage centrifugal high pressure pumps, electric drivers.

With IsoBoost

Without IsoBoost

Copyright 2014

Oil and Gas Installations

19

yvind Hagen - Statoil

Copyright 2014

CASE STUDY: ENERGY TRANSFER

20

Case Studies

Challenge: client sought to cut carbon emissions due to new state emissions requirements

Solution: IsoBoost Technology (GP Turbo) installed in 2008

o Amine flow rate of 700 GPM; output of 90 million cubic feet of natural gas per day

Results: Client is saving substantial power costs and reducing emissions

o Six consecutive years of operation with virtually no maintenance

o Cost Savings: $155,000 USD / year

o Energy Savings: 1,550 MWh

o CO2 Reduction per year: 1069 tons* *EPA government emissions calculator

Copyright 2014

CASE STUDY: ENERGY TRANSFER

21

Case Studies

Challenge: client sought to reduce energy consumption at the Songnan Natural Gas Plant in northeast China

o Solution: IsoBoost Technology (GP Turbo) installed in 2010 on two amine trains

o Amine flow rate of 1300 GPM/train

o ~40 million cubic meters of natural gas per day

o Result:

o Cost Savings: USD $1,000,000 / year

o Energy Savings: 25% of total electric power consumption*

o CO2 reduction per year: 2,874 metric tons**

*General Manager Songnan Gas Plant, Sinopec

**EPA government emissions calculator

Copyright 2014

Case Study 1000 MTPD Ammonia Plant

Retrofit

22

yvind Hagen - Statoil

Copyright 2014

23

107 JA

107 JAT

107 JLA

107 JC (standby)

IsoBoost

M

Steam In

Steam Out

FV 41B/C

FV43A

107 JB

107 JBT

107 JLB

Steam In

Steam Out

FV41A

FV 43B/C

Rich. Solvent to 102 EA

Semi-Lean Solvent from 1104 E

Rich. Solvent to 102 EB

Semi-Lean Solvent to 101 E

Rich Solvent from 101 E

1

9

2 3

7

5

10

12

14

11

13

17

18

8

FCV (New)

6

4

16

15

107C (Standby)

107A

PRT-A

PRT-B

107B

Semi-Lean Solvent to 101 E

Semi-Lean Solvent from 1104 E

Rich Solvent to 102 EA

Steam In

Steam Out

Steam In

Steam Out

Rich Solvent from 101 E

Rich Solvent to 102 EB

IsoBoost

(Standby)

Copyright 2014

24

IsoBoost Feed Pump, 107 JA

107JAT

HP Circulation Pump, 107 JC

M

FV 43B/C

IsoBoost Feed Pump, 107JB

107JBT

FV 41B/C

Rich. Solvent to 102 EA

Semi-Lean Solvent from 1104 E

Rich. Solvent to 102 EB

Semi-Lean Solvent to 101 E

8

10

14

12

18

19

4

17

IsoBoost B

IsoBoost A

Rich Solvent from 101 E

1

2

5

3

6

7

9

11

1516 Pump out Pump in

Pump out Pump in

Turbine in Turbine out

Turbine in Turbine out

13

FV 41A

FV 43A

Semi-Lean Solvent to 101 E

Rich Solvent from 101 E

Semi-Lean Solvent from

1104 E

Rich Solvent to 102 EA

Rich Solvent to 102 EB

107C (Standby)

IsoBoost A

IsoBoost B

107B

107A

Copyright 2014

25

RESULTS

958 m3/hr 958 m3/hr 958 m3/hr

1215 m3/hr 1215 m3/hr 1215 m3/hr

28.0 kg/cm2 28.0 kg/cm2 28.0 kg/cm2

6.2 kg/cm2 6.2 kg/cm2 6.2 kg/cm2

Pump flow 479 m3/hr 479 m3/hr

Pump suction pressure 1.7 kg/cm2 10.0 kg/cm2

Pump discharge pressure 28.0 kg/cm2 28.0 kg/cm2

Turbine flow 889 m3/hr 608 m3/hr

Turbine suction pressure 28.0 kg/cm2 28.0 kg/cm2

Turbine discharge pressure 6.2 kg/cm2 6.2 kg/cm2

Flow 958 m3/hr 479 m3/hr 958 m3/hr

Suction pressure 1.70 kg/cm2 1.70 kg/cm2 1.70 kg/cm2

Discharge pressure 28 kg/cm2 28.0 kg/cm2 10.0 kg/cm2

7.4 Tm/hr 5.5 Tm/hr 4.8 Tm/hr

20.0 Euro/Tm 20.0 Euro/Tm 20.0 Euro/Tm

339,700 Euro/ Yr 464,248 Euro/ Yr

HP SL Sol. Pump 107A/B

Option 2: 2 IsoBoost +

107A, 107B, 107C standby

CASE 2

Annual Cost of Steam

TOTAL STEAM CONSUMPTION

1,296,480 956,780

CASE 1

Cost of Steam

CASE 0

Current: 107A/B with

PRT, 107C standby

HP SL Sol. Pumps 107A/B

Option 1 : IsoBoost + 107A

with PRT, 107C standby

832,232

Annual Savings

Semi-Lean Flow from Stripper

HP SL Sol. Pump 107AHP Semi-Lean Turbine Driven Pump

Rich Pressure from Absorber

IsoBoost

Rich Flow from Absorber

Stripper Pressure

Copyright 2014

IN SUMMARY

o Hydraulic turbochargers are designed for optimal energy recovery

o ~20% additional savings compared to systems using recovery technologies

o $300K- $3M typical annual additional savings

o Increased impact if no hydraulic recovery utilized

o $1.5M $5M typical annual savings

o Highly reliable system provides additional benefits

o 3.5X long on-stream time

o 49% less maintenance cost

o Reduced risk of production impact

26

Copyright 2014

27

Copyright 2014

CASE STUDY: CONOCO PHILLIPS

28

Case Studies

Challenge: client sought to reduce carbon footprint and cut energy costs

Solution: IsoBoost to be installed in 2015

o Amine flow rate 475 GPM

Results: Client will save substantial power costs and reduce carbon footprint

o Cost Savings: $120,000 USD / year

o Energy Savings: ~10% total plant electric power savings 1489 MWh / year

o CO2 reduction per year: 1,021 metric tons*

* EPA government emissions calculator

C