MicroTurbine VS Other Gensets

Technology Comparison
Sample Installed Cost
$10,000 $9,000 $8,000 $7,000

$ Per Kw

$6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $-

Initial Investment Data: CA Statewide SGIP Program Statistics through Q4 2007 Microturbine, Recip and Fuel Cell statistics are for Natural Gas Fueled Systems (no biogas projects) Assumptions: NG Systems are CHP and all achieve 80% total efficiency. Comparisons based on EPA data for avg. US Power Plant, avg. US passenger vehicle and 80% NG boiler Gas and Electric Utility rates based on SCE TOU tariff. Microturbines have lower maintenance costs than fuel cells & reciprocating engine systems. CHP systems operate 8,000hrs/yr; wind & solar PV 1,500hrs. Analysis assumes no incentives
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 1

Solar PV

Fuel Cells

Wind

Microturbine

Recip

Technology Comparison
Equivalent Cars Removed (CO2) for 1 MW Project
1,200

1,000

Number of Cars

800

600

400

200

0 Solar PV Wind Recip Fuel Cells Microturbine

Initial Investment Data: CA Statewide SGIP Program Statistics through Q4 2007 Microturbine, Recip and Fuel Cell statistics are for Natural Gas Fueled Systems (no biogas projects) Assumptions: NG Systems are CHP and all achieve 80% total efficiency. Comparisons based on EPA data for avg. US Power Plant, avg. US passenger vehicle and 80% NG boiler Gas and Electric Utility rates based on SCE TOU tariff. Microturbines have lower maintenance costs than fuel cells & reciprocating engine systems. CHP systems operate 8,000hrs/yr; wind & solar PV 1,500hrs. Analysis assumes no incentives
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 2

Technology Comparison
Sample Net Benefit of Ownership Over 10 Years
$4,000 $3,000 $2,000 $1,000 $$ Per kW

Solar PV $(1,000) $(2,000) $(3,000) $(4,000) $(5,000) $(6,000)

Fuel Cells

Wind

Recip CHP

Microturbine CHP

Initial Investment Data: CA Statewide SGIP Program Statistics through Q4 2007 Microturbine, Recip and Fuel Cell statistics are for Natural Gas Fueled Systems (no biogas projects) Assumptions: NG Systems are CHP and all achieve 80% total efficiency. Comparisons based on EPA data for avg. US Power Plant, avg. US passenger vehicle and 80% NG boiler Gas and Electric Utility rates based on SCE TOU tariff. Microturbines have lower maintenance costs than fuel cells & reciprocating engine systems. CHP systems operate 8,000hrs/yr; wind & solar PV 1,500hrs. Analysis assumes no incentives
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 3

Gas Turbine Comparison

40 38 36 34
Capstone C200 Capstone C1000 General Electric GE5-1 (DLN) Siemens SGT-100 Rolls Royce 501-KB7S Solar Turbines Centaur 50 Kaw asaki GPB60D Solar Turbines Centaur 40 OPRA Turbines OP16-3B (DLE) Solar Turbines Saturn 20 Kaw asaki GPB15D Rolls Royce 501-KB5S Solar Turbines Mercury 50

Electrical Efficiency (%)

32
Elliott TA100R

30 28 26 24 22 20 18

Ingersol Rand MT250

Kaw asaki GPB30D

Dresser-Rand KG2-3E

16 14 0 1

Dresser-Rand KG2-3C

Power Output (MW)

Highest Efficiency Less than 5 MW

PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 4

C1000 Efficiency
Capstone C1000 Part Load Efficiency vs. Typical 1 MW Turbine
35

30

Efficiency (%)

25

20

15

Capstone C1000
10

Typical

0 0 200 400 600 800 1000

Power (kW)
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 5

Typical Small Diesel Recip Maintenance

Poor performance for continuous power 4,000 hr max to top end rebuild Engine life less than 15,000 hrs, throw away solution Requires mechanic Small recips cost $1.40 per run hour vs. 15 cents with Capstone Use Economic calculator to show payback
Operating hours

Item Air Filters, Oil Filters, Crankcase Oil, Spark Plugs Top End
Top End Engine
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation

Action Inspect or Replace Inspect

Overhaul Replace
6

500 1,000 1,500

4,000 15,000

Typical Large NG Recip Maintenance

Weekly inspections Many parts and subsystems Requires mechanic 120 hrs planned maintenance per year Typical scheduled/unscheduled maintenance $0.018 to 0.022 / kW-hr
Operating hours

Item Air Filters, Oil Filters, Crankcase Oil, Spark Plugs

Top End Top End Bottom End
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation

Action Inspect or Replace

Inspect Overhaul Overhaul
7

1,000 2,000
1,500 20,000 40,000

Capstone Maintenance
No weekly Inspections No oil change and disposal Inspections do not require mechanic 6 hrs planned maintenance per year Capstone scheduled/unscheduled maintenance $0.015 / kW-hr ~20% lower maintenance costs
Operating hours 8,000 20,000 40,000 Item Air Filter, Igniter, Fuel Filter Injectors, Batteries, Thermocouple Engine and Generator, Injectors, Batteries, Thermocouple
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation

Action Inspect, Replace Replace Exchange

8

Maintenance Costs Additive

Cumulative Maintenance Hours
60 Microturbine Maintenance 50

40

Reciprocating Engine Maintenance

30

20

10

Operating Hours
Assumptions: Scheduled Maintenance Hours Only Microturbine hours based on Capstone C65 Natural Gas Recommended Maintenance Recip hours are oil changes every 2,000 operating hours and top end overhaul at 20,000 hours
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 9

Power Electronics
Simplified electrical interconnection
Negligible fault current contribution Type tested equipment with utilities Built in protective relays
3rd party protective relay may not be required

Auto Synchronization

Most recips do not have

Synchronization equipment included Some smaller recips are seeing the need to ease interconnection Unlikely 500kW recips will use

Preferred by utilities Lower integration costs Fewer regulatory hurdles

PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 10

Certifications
Standard UL/CE/ATEX C1D2 Description Engine Generator Sets Benefit Expedites Installation Approval

UL 1741/IEEE 1547.1

Inverters for Utility Grid Connection

Simplifies Utility Interconnection (e.g. CA Rule 21, NY) Eliminates or simplifies air permitting

CARB

California Air Resources Board DG Standard

Certified and tested as a package, not as individual

components

Fewer regulatory hurdles

PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 11

Emissions Comparison
3

NOx [lb/MWh]

0 Caterpillar DM5442 GE Jenbacher Type 208 Capstone C65

Manufacturer/Model Caterpillar DM5442 60Hz GE Jenbacher Type 208 60Hz Five Capstone C65 50/60Hz

Rating 350kW 335kW 325kW

NOx [lb/MWh] < 63.00 < 1.80 < .17

12

PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation

Air Flow Requirements

Manufacturer/Type Caterpillar DM5438

kW 150 130

Air Flow [SCFM] 13,887 2,930

Two Capstone C65 Grid Connect Microturbines

PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation

13

Power Density and Weight

Model C65 Net power Area (kW) (ft3) 65 16 Density 4.06 Weight 2,471

C200
Cat C3403-SR4B

200
150

64
57.37

3.1
2.61

7,000
9,000

Ingersoll-Rand 250
C1000(1) Caterpillar XQ 1000 Solar Saturn 20(2)

250
1000 910 1210

94.97
240 240 111

2.63
4.17 3.79 10.9

12,000
37,900 39,000 19,800

1. 2.

C1000 package provides inherit redundancy, no other 1 MW package does. Capstone is capable of on-board fuel compression, this would be ancillary for Solar.
PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation 14

Power Density and Weight

10,000 9,000 8,000 7,000

Weight [pounds]

6,000 Caterpillar DM5438 5,000 4,000 3,000 2,000 1,000 Two Capstone C65 Grid Connect Microturbines

0
0 10 20 30 2 Footprint [ft ] 40 50 60

Manufacturer/Type
Caterpillar DM5438 Two Capstone C65 Grid Connect Microturbines

kW
150 130

Footprint [ft2] 57 32

Weight [pounds] 9,000 3,340

15

PROPRIETARY AND CONFIDENTIAL Capstone Turbine Corporation