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Renewable gas in the transportation fuel mix of tomorrow.
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Biogas USA
2010
www.xebecinc.com
Natural and Renewable Gas Focus
Leading manufacturer of natural
and renewable gas systems for
infrastructure development
Natural and renewable gas
as transportation fuel
Create partnerships with gas
utilities, municipalities and the
food & waste industries to
increase our footprint in the
transportation sector
Global presence, with headquarters in Montreal, Canada
Listed on the Toronto Stock Exchange (TSX: XBC)
2
Who we are Market Focus Strategy
www.xebecinc.com
Renewable and Natural Gas Value Chain
3
www.xebecinc.com 4
Biogas upgrading plants
Hydrogen purifiers for hydrogen recovery Distributed small scale natural gas liquefaction
Natural gas dryers for NGV refueling stations
Rapidly growing market
High recovery, high purity, low energy plants
Key Customers: SEMPRA, Montauk Energy, Halla Engineering, Terasen Gas
Growing market
Cost leadership through Chinese manufacturing
Key Customers: Clean Energy, Petrochina, Sinopec, Shell
Evolving market segment
Market-leading performance for small-capacity hydrogen plants
Key Customers: HydroChem,Air Liquide, Linde, Nuvera
Early-stage business opportunity
Compact size
Easy and low-cost to install
Low operating costs
Key Customers: Solensa
Business Segments
www.xebecinc.com
High methane recovery: 96 – 98 %
Competitive power usage: 0.17 – 0.23 kWh/m3
No Heat requirement
One-step Water/C02 removal
Reliable Rotary Valves
High availability of PSA: 99.5%
Easy and Fast Installation
Dry Process Purification Process, i.e.:
No process water /no process water treatment
No waste water/no waste water treatment
No chemicals
No corrosive gas atmosphere
Co-adsorption of CFC’s , VOC’s
Integrated drying/dew point < - 40c
Partial removal of N2 and O2 - increase in calorific value - no addition of N2 or O2
Removal of silicon-compounds as well as higher carbohydrates and halogenated carbohydrates –meet California’s Rule 30
Better overall efficiency
Independent of ambient temperature
No bacterial contamination
Benefits of Xebec’s High BTU Gas Plants
www.xebecinc.com 6
Technology and IP Assets
Pure Innovation™
World-class research and development facility in
Vancouver, Canada
15 years of dedicated development in
gas purification & separation
Ability to simulate, develop and test gas
separation technologies in line with market and
customer requirements
130 patents or applications in
39 patent families worldwide
Ongoing development work on next generation
biogas upgrading technology
Contract Engineering Services for key purification
and separation technologies & projects
Xebec unit installed at
ExxonMobil refinery in 2007
Xebec Technology Center
Natural Gas: The Transportation Fuel Opportunity
www.xebecinc.com 8
Ramping Oil Prices
Energy Security
Climate Change
Greenhouse Gas
Reductions
Governments’
Commitment to
Renewable Energy
Technology
Advancement
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
Nu
mb
er
of
natu
ral
gas v
eh
icle
s
Year
Natural Gas Vehicles (NGV)to grow 600% by 2020 worldwide
Actual to date
Projected
© NGV Global www.iangv.org
Natural Gas as a Transportation Fuel
www.xebecinc.com 9
Asia has been growing at 50%
The EU has seen growth in the NGV market space and is planning for accelerated growth in Germany, Italy, Sweden, Austria, Switzerland, Spain and others
The U.S. and Canada are in the process of introducing favorable legislation, which will lead to significant future growth in the NGV sector
Latin America is continuing to grow its NGV fleets
Africa is seeing good growth
Global Growth for Natural Gas as a Transportation Fuel
Global NGV Growth by Region
0%
10%
20%
30%
40%
50%
60%
AsiaEurope
N.A.L.A.
Africa
Average % NGV growth 2000 to present by region
© NGV Global www.iangv.org
www.xebecinc.com
Growing Support for NGV in North America
U.S. Energy Bill (S 3663)
DOE Clean Cities Program
10
Senate Bill : $3.8 billion for vehicle
purchase rebates (90% of incremental costs for
heavy-duty vehicles)
$500 million proposed for fuelling infrastructure
$2 billion for the manufacturing loan program
U.S. $300 million in funding for 25 projects
Aims to deploy over 9,000 alternative fuel vehicles
and 542 refuelling stations
Funding for approximately 2,300 CNG vehicles and
500 LNG trucks was awarded
Multiple pro NGV measures including:
NGV Fuelling Station
www.xebecinc.com
Heavy Duty Trucks Key to US NGV Market
Heavy Duty Trucks Account for 4% of the Vehicles but Consume 23% of the Fuel
11
40%
4%(9.9 million)
54%
2%
Light Trucks Heavy Trucks Passenger Cars Motorcycles
35%
23%
41%
1%
Light Trucks Heavy Trucks Passenger Cars Motorcycles
Percentage of vehicletypes on the road
Percentage of fuelconsumed by each type of vehicle
Small segment of the transportation sector – Large environmental impact
and Buses and Buses
© Energy Vision www.energy-vision.org
Renewable Gas: An Ultra Clean Transportation Fuel
www.xebecinc.com 13
Fuels will be blended with renewables at an
accelerated rate for industry compliance.
This will drive demand for the biogas
upgrading solutions that Xebec provides.
Renewable Gas
Renewable Fuel
CRG/LRG
Natural Gas
Alternative Fuel
CNG/LNG
In the field of NGV, upgraded biogas,
or renewable gas, is the blending agent of choice
Renewable Fuel Standard II – Biogas identified as ―advanced biofuel‖
European Union - 5% share of renewables in
transport fuel by 2015 and a 10% target by 2020
California - 1 January 2011: Effective date of the
carbon intensity reference values for the Low-
Carbon Fuel Standards (LCFS) determined in
2009 by the California Air Resources Board
(CARB).
2030 Target year set by the U.S. Department of
Energy to displace 30 %
of gasoline demand (2004 levels) in the United
States with renewables.
Renewable Gas in Transportation Segment
www.xebecinc.com 14
U.S. DOE estimates 25% of all diesel fuel could be replaced by renewable gas
Impact of Blending on GHG Emissions
Source: DENA – German Energy Agency
www.xebecinc.com
Value of Biomethane
Wholesale
price 8.3¢/kWhversus
MPR feed-in
tariff at
2.3¢/kWh
2020 gas futures
market priceversus
proposed
production tax
credit of
$4.27/MMBtu
s.306 & h.r. 1158
CNG market value
if diesel is $2.70
per gallon
$8.49
~$6.30
$20.67
$10.81 $10.57
Electricity Pipeline CNG
Value of Biomethane Products per MMBtu
www.xebecinc.com
Value of Biomethane — forecast for 2020
$0
$20
$40
$60
$80
$100
$120
2005 2010 2015 2020
Fuel prices expected to
climb through 2020
Electricity & gas prices to
remain flat through 2020
Source: “Annual Energy Outlook 2010”, Energy Information Agency
$8.49
~$6.30
$20.67
$10.81 $10.57
Electricity Pipeline CNG
Value of Biomethane Products per MMBtu
www.xebecinc.com
$20.67
$10.81 $10.57
$31.83
Electricity Pipeline CNG
Value of Biomethane Products per MMBtu
2010
2020+54%
Value of Biomethane — forecast for 2020
$0
$20
$40
$60
$80
$100
$120
2005 2010 2015 2020
Fuel prices expected to
climb through 2020
Electricity & gas prices to
remain flat through 2020
Source: “Annual Energy Outlook 2010”, Energy Information Agency
www.xebecinc.com
The Renewable Gas Opportunity
18
Rapidly growing market for biogas upgrading,
as utilities make room for it in their portfolio of
renewables
Strong global demand, with Asia leading the way
Attractive government incentives are being prepared
Going forward, as the NGV market picks up
speed, we expect demand for renewable gas to
increase significantly as a result of blending
requirements and economics
Long-term macro trend that supports our business
in the renewable gas segment
Superior environmental benefits
Strong economic profile
Government incentives, including renewable fuel
standards and other legislative measures
Strong global demand for
solutions that Xebec provides
www.xebecinc.com
Project Location Biogas Source End-Use
2006 - 2009
Scenic View Dairy MI, US Digester Pipeline
Rumpke Landfill OH, US Landfill Pipeline
Widnau Switzerland Digester Pipeline
Lavigny Farm Switzerland Digester Pipeline
UNH NH, US Landfill Turbine
SKS Austria Digester CNG
Swiss Farmer Switzerland Digester Pipeline
STEP Switzerland Digester Pipeline
Hilarides Dairy CA, US Digester CNG
Daesung Seoul, Korea Landfill CNG/LNG
SKS Austria Digester CNG
2010 - YTD
Sempra Energy CA, US Waste Water Pipeline
Halla Engineering Seoul, Korea Digester CNG
SKS Austria MSW Pipeline
SKS Austria MSW Pipeline
SKS Austria Waste Water CNG
Verdemobil France MSW CNG
WELtec China Agricultural Digester CNG
Huimiing China Landfill CNG
Terasen Gas Canada Landfill Pipeline
PT Indo Raya Indonesia Chemical Plant Pipeline
Renewable Gas Installations
Extensive experience in the biogas segment
gained through multiple, successful
international projects
19
From 2006 to 2009 only about 30% of Xebec’s
upgrading projects were for renewable gas to
transportation fuel
In 2010 about 60% of Xebec’s upgrading
projects will be for renewable gas to
transportation fuel
Case Studies
www.xebecinc.com 21
Location: Southern California, US
Developer: Gas Utility
Biogas Feed: Waste Water Plant
Raw Biogas: 58% CH4
~360 Nm3/h
End-use: Test/Pipeline
Pipeline Operator: Southern California Gas
Order date: 2010
Case Study – Waste Water Treatment Plant
www.xebecinc.com 22
Location: Seoul, South Korea
Developer: Halla Environmental
Biogas Feed: Food Waste Digester
Raw Biogas: 60% CH4
~650 Nm3/h
End-use: CNG for Refuse Trucks
Order date: 2010
Case Study – Mixed Waste-to-CNG
www.xebecinc.com 23
Location: British Columbia, Canada
Developer: Terasen Gas
Biogas Feed: Landfill at Salmon Arm
Raw Biogas: 58% CH4
~700 Nm3/h
End-use: Household Heating and
Cooking for ~300 Homes
Customer: Terasen Gas Inc.
Order date: 2010
Case Study – Landfill Gas to Heating & Cooking
www.xebecinc.com
Conclusions
Strong macro trends support renewable gas in transportation (GHG reduction, increased use of renewables in transport and energy)
Strong economics for renewable gas in transportation (most money for the gas)
Increased demand forecast for renewable gas in transportation (as NGVs increase)
Increased interest from Gas Utilities in renewable gas (Green Gas – renewable content)
Increased interest from Gas Utilities & exploration companies in NGV vehicles and refuelling infrastructure (as NGV population increases)
Reduced cost forecast for upgrading technology (equipment is getting cheaper and more reliable)
24
Compact integrated Xebec
upgrading skid
Source: “Annual Energy Outlook 2010” Energy Information Agency
IMPORTANT
Make the right investment decision
today when comparing electricity to
upgrading projects
