RealEnergy Biogas West, LLC Significant Power Plant Fleet Sale to ArcLight/John Hancock Insurance • RealEnergy Biogas West, LLC • Pre Development ... • Mechanical Commissioning

Confidential: Do Not Reproduce Without Permission

RealEnergy Biogas West, LLC On Farm and Municipal Sites

Renewable Electricity Renewable Transportation CNG Fuel

Natural Fertilizers Pipeline Injected Renewable Gas

Combined Heat and Power

BioGas Developments ~ Primary Onsite Power ~ Microgrids ~ Carbon Negative

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RealEnergy has developed, built, owned and operated more clean onsite power plants than any independent power producer in North America.

•  43 Electric Grid Interconnections •  Reciprocating Natural Gas Engines, Solar PV, MicroTurbines, Microgrids •  Significant Power Plant Fleet Sale to ArcLight/John Hancock Insurance

•  RealEnergy Biogas West, LLC •  Pre Development – Design, Permits, Feedstocks, Finance •  Development – Build, Own, Operate, Transfer

RealExperience

Marriott Hotel Fremont, CA RealEnergy BioGas/Natural Gas PowerPods


RealEnergy Power Plant Developments

Arden Realty, Fountain Valley, CA CalSTRS, San Diego, CA

9325 Skypark, San Diego 9333 & 9339 Genesee, San Diego 701 B Street, San Diego 3111 Camino Del Rio, San Diego 401 B Street, San Diego 4250 / 4275 Executive Square, San Diego 11601 Wilshire, Los Angeles 5200 W. Century, Los Angeles 5161 Lankershim, Hollywood 100 Oceangate, Long Beach 3200 Park Center, Costa Mesa 1819 Ocean Avenue, Santa Monica 8383 Wilshire, Beverly Hills 444 W. Ocean, Long Beach 333 South Anita, Orange

21515 Hawthorne, Torrance 1515 Clay Street, Oakland 455 Golden Gate Avenue, San Francisco 505 Van Ness, San Francisco 46100 Landing Parkway, Fremont 199 Fremont Street, San Francisco 50 Beale Street, San Francisco 595 Market Street, San Francisco Park 80 West, Saddlebrook, New Jersey 17330 Brookhurst, Fountain Valley 5781 Can Allen Way, Carlsbad 13555 Fiji Way, Marina Del Ray 5885 Horton, Emeryville 717 5th Avenue, New York City More upon request…

Transwestern Saddlebrook, NJ

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RealEnergy Developments

State of California San Francisco

Arden Realty, San Diego, CA

Walton/SCS Advisors, Fremont, CA

Arden Realty Beverly Hills, CA

Kor Group Santa Monica, CA

KOR, Marina Del Rey, CA


RealEnergy Developments

RREEF, Carlsbad, CA

CommonWealth Partners San Diego, CA

Arden Realty, San Diego, CA

Arden Realty, Long Beach, CA Arden Realty

Beverly Hills, CA

Ensemble, Long Beach, CA


American Biogas

Public/private cooperation is creating a profitable/prolific biogas industry worldwide and can provide America with:

–  Cheaper, Cleaner, Domestic Fuel –  Constant, Safe and Reliable Renewable Energy –  Sustainable and Organic Fertilizers –  Local Jobs –  Landfill Diversion –  Streamlined Entitlements –  Appropriate and Attainable Standards –  Renewable CHP Serving Microgrids –  Energy Security –  Energy Hedging –  Carbon Destruction –  Leveraging Existing Pipeline Infrastructure –  Energy Risk Management –  Energy Efficiency –  Economic Growth –  A Better Environment


North American Biogas Design Trend

A North American Biogas Plant Design Typical USA NonMunicipal Digester

Digestion/Emissions Modular Above Ground Stirred Tanks, High Efficiency Production and Destruction, High Methane Capture, Ultra Low Emissions

In – Ground Pits or Covered Lagoons, Low Efficiency Production and Destruction, Lower Methane Capture, Higher Emissions

Water Treatment Ultrafiltration/Floculation/Reverse Osmosis producing a concentrated Organic Fertilizer and Clean Water Discharge

None

Feedstock Co – Digestion of High Gas Producing Organics Including Food Waste, Restaurant Grease, Energy Crops (Sorghum)

Digestion of Manure Only

Fertilizer Organic/Sustainable Fertilizer Capture, Filtration, Concentration and Storage

No Fertilizer Concentration

Business Model Built, Owned, Operated by Private Entity, Lowest Life Cycle Cost, High Revenue

Built, Owned and Operated by Farmer, Lowest First Cost, Low Revenue

Revenue Streams Renewable Energy, Tipping Fees, Concentrated Liquid Organic Fertilizer, Soil Amendments, Biomass Landfill Diversion

Renewable Energy


Feedstock & Gas Utilization Flexibility


Modular Design Standards

Mechanical Pretreatment – AD – Biogas Upgrade – Pipeline/CNG Filling – CCHP – Fertilizer Upgrading


Compact and Expandable Layouts


Proven Biogas Products/ Technologies

Leading European Design/Build General Contractor

1,100 Employees 70 Countries Privately Held Formed in 1953

Mechanical Sorting Biological Treatment Dry Digestion Wet Digestion Composting Systems Biogas Treatment/CHP Pipeline Injection Bio-CNG/LNG Stations LNG Trucks & Tanks Refuse Vehicles


Proven Pipeline Injection and CNG Experience

Biogas Vasteras, Sweden


Proven Gas Fueling Infrastructure

Clean Energy is the largest provider of vehicular natural gas for fleets and related turnkey services in North America.

One trash truck running on biomethane offsets emissions from 325 vehicles.

In Sweden, over half the gas used in its 11,500 CNG vehicles is biogas.

“It’s cheap, clean and domestic…”

T. Boone Pickens


Streamlined Permitting – Programmatic EIR

Biogas Wien – Vienna, Austria

A Successful Vienna Experience Engineered for California Requirements

_______________________

Two California Program Environmental Impact Report Technical Advisory Groups (TAG’s):

•  CalRecycle

•  Central Valley Regional Water Quality Control Board

________________________

“If you can build this biogas plant in California, your golden”.

– Dr. Karl Longley ScD., P.E.

Board Chair California Regional Water Quality Control Board


Plant Investment Highlights

•  Profit from Biogas Plants at dairies, food processors, WWTP and transfer stations in California generating a 15+% pre tax unlevered IRR to the project

•  Produce and sell biomethane and electricity, natural fertilizers and soil nutrients, renewable fuels, carbon offsets, renewable energy credits and charge organic tipping fees

•  Maximize Federal, State and utility incentives and tax credits to reduce equity and debt

•  Maximum $200,000 for Pre-Development at each site


Biogas Plant Pre-Development Phase

•  Preliminary Design, Mass and Energy Balance •  Preliminary Financial Projections •  Preliminary Permitting Flow & Schedule •  Inventory, Fermentation & Nutrient Testing of Regional Organic Supplies •  Energy/REC/Carbon/Tipping/Fertilizer Revenue Projection and Terms Matrix •  Detailed Budgets for Design, Formation, Construction & Operation •  Incentive and Debt Facility Source and Terms Matrix •  Project Schedule •  Final Financial Projections with Risk/Contingency Analysis •  Executive Summary and Detailed Project Description

Executable Agreements •  Site Lease/Licensing and Services Agreement •  Lead Design and Construction Management Agreements •  General Contractor Agreements •  Lender Documents and Equity Operating/Management Agreements


Biogas Plant Development Phase

•  Design and Construction Contract Formation & Administration •  Biomass Supply/BioProduct Offtake Contract Formation & Administration •  Finalize Permits/Tariffs

•  Project Management Office Implementation •  Budgeting, Scheduling, Auditing and Business Analysis •  Public Relationship Management •  Cost Controls •  Delay, Disruption, Impact and Acceleration Analysis

•  Mechanical Commissioning •  Biological Commissioning •  Performance Testing and Guarantee Milestones •  Operation & Maintenance •  Ongoing Biomass Supply and BioProducts Marketing


Biogas Plant Standard Agreements

•  Owner and Architect/Engineer (OAA) •  Owner-General Contractor Agreement (OGC) •  Land Lease/Purchase Energy & Services Agreement (LESA) •  Biomass Supply Agreements (BSA) •  Power Purchase Agreement (PPA) •  Electric Interconnection Agreement (EIA) •  Incentive Reservation Agreement (IRA) •  Loan Commitment Agreement (LCA) •  Soil Amendment Sales Agreement (SAS) •  Fertilizer Sales Agreement (FSA) •  Carbon Credit Capture Offset Agreements (CCA) •  Renewable Energy Credit Transfer (RECT) •  Operating Agreement, Management Agreement (OA, MA)


RealEnergy Biogas Plant – Rickreall, LLC (OR)

Transaction Overview

Issuer: RealEnergy BW, LLC Location: On Farm Project Size: 55,000 tpy Feedstock: Animal Waste, Sorghum, FOG

Project Cost: $14M Debt: $ 7M State Bonds Grant: $ 3M State Energy Program ITC: $ 3M Cash in Lieu


RealEnergy Biogas Plant - Sacramento, LLC


Issuer: RealEnergy BW, LLC Location: In City Project Size: 60,000 tpy Feedstock: MSW, Food Waste, FOG

Project Cost: $26M Debt: $13M State Bonds ITC: $ 8M Tax Credits


RealEnergy Biogas Plant - Fremont, LLC





RealEnergy Biogas Plant - Napa, LLC



WWTP Irrigated Sorghum Grape Pomace



RealEnergyBiogas-BearMountainRoad,LLC


Issuer: RealEnergy BW, LLC Location: On Farm Project Size: 240,000 tpy Feedstock: Animal Waste, Food Waste,

Ag Waste, Sorghum

Project Cost: $82M Debt: $41M State Bonds ITC: $25M Tax Credits


For More Information

Kevin D. Best Chief Executive Officer RealEnergy, LLC 6712 Washington Street Yountville, California 94599

Phone: 707 944 2400 x109 Fax: 707 944 2470 Cellular: 707 426 3300

[email protected] www.realenergy.com

Bechtel Headquarters San Francisco, California 1000 kW System

BioEnergy Developments ~ Primary Onsite Power ~ Microgrids ~ Carbon Negative