November 2013

Thermal Matrix Energy Storage (TMES)

Kelvins TMES technology can safely and cost effectively use and/or store for later use off-peak electrical energy in the form of high-quality thermal energy (TMES CLEAN HEATTM)

TMES Operational Model

Electrical Grid
Steam Generation Power Plants Off-Peak Wind Generation Excess Baseload Generation

TMES
Thermal Matrix Energy Storage

Supply Thermal Heat

Industrial Thermal Processes

Where is The Pain?

The Coal-fired Power Industry is facing GHG emission regulations threatening the early retirement of billion dollars of assets and re-licencing challenges Alberta and its Oil Sands Industry is under pressure to further reduce its environmental impact and GHG intensity Gas-Fired Power Plants need higher efficiency, lower emissions and greater operating flexibility options to compete

Emitters in Urban Areas under increasing pressure to improve air quality

Renewables Growth Threatened once capacity approaches 20% of total supply due to unpredictable and variable output profile impacting grid integrity
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Primary Value Proposition

For Power Plant, Oil Sands & Industrial Thermal Users:
Reduces fossil fuel use and therefore GHGs Lowers onsite emissions Enhances permitting/relicensing applications Can Reduce fuel costs Reduces inefficiencies related to ramping and cycling Offers direct integration to renewable energy
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Promotes Renewable Energy Development

Helps balance energy supply and demand Act as a sponge for excess renewable energy Increases value of off-peak energy Allows renewable energy to displace fossil fuel usage
If you ever are going to have renewables, which are intermittent in nature, move above a certain pretty limited percentage say, 20% of the [electrical] supply, you are going to need mind-blowing advances in terms of storage capacity. Bill Gates
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Customer/Partner Targets
Coal-fired power plants Combined cycle and co-generation gas power plants SAGD heavy oil and bitumen producers & upgraders Gas treatment and petrochemical plants Desalination plants District heating plants Nuclear plants Thermal solar generators
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TMES Storage Schematic

Electrical Resistance Heater Rods Electrical Energy Input Thermal Insulation Graphite Block Containment Vessel TMES Gas Flow Steam or Oil Flow

Mixing Valve
TMES Gas Circulator Condensate, LP Steam, or Thermal Oil Hot Thermal Oil, LP or HP/SH Steam

TMES Heat Storage Module

Application Specific Heat Exchanger

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TMES Storage Attributes

High density storage due to high heat (up to 2500K) Proprietary gas mixture to circulate the heat Scalable from 1 MWh to 100+ GWh thermal Independent control of input rate, size of storage, and output rate Efficient conversion ratio (>95% conversion to thermal energy) Low loss rate (target <8% thermal losses per month) Environmentally friendly (non-corrosive, non-toxic, common materials) Geographical independent (locate anywhere) Small footprint (1.0 GWh would fit in a supermarket store-size facility)
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Low Risk Technology

Graphite is a proven high-heat storage medium
Used by NASA in space program Abundant supply not under the controlled of foreign governments Mined as graphite or manufactured from coal Extremely high sublimation point in inert gas: 3925K (6600F) 20 year+ lifespan

No major moving parts No toxic elements Retrofits into existing power and industrial thermal Onsite assembly
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Higher Temperature Size Advantage

1500K
200 MW-hr thermal storage modules Core dimensions - excluding insulation

TMES
Thermal Matrix Energy Storage

2000K

TMES
Thermal Matrix Energy Storage
21 ft x 20 ft dia 320 mT $50-$60/kWh

2500K TMES
14 ft x 20 ft dia 225 mT $30-$40/kWh
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41 ft x 20 ft dia 570 mT $150-$175/kWh

Energy Storage Landscape

BATTERIES - Electrical, not large scale; distribution grid application; resource limited FLYWHEELS - Electrical, limited storage capacity; voltage regulation CAES - Electrical large-scale; geographically dependent; hydrocarbon use PUMPED HYDRO - Electrical large-scale; geographically dependent; THERMAL SALTS - Low temperature, size constraint; thermal solar application

No other technology can deliver high-density, high-temperature CLEAN HEAT

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Example TMES Storage Application

Representation TMES installed at an existing 900 MW Power Plant

Highlights:
Assume 50% annual Capacity factor
10.8 GWh output daily

2.8 GWh(th) of TMES Storage

14 200 MWh modules (27 x 26) Cost: ~ $250 million

Provides 100 MW(e) for 10 hours

Avoids Burning 12 MMscf of Natural Gas or 2,000 BBls of Crude Oil daily
Saves $24,000 in natural gas or $120,000 in oil
Assumes: $5/MMBtu gas, $100/Bbl oil and $15/MWh energy onto TMES

Reduces ~600 mT of CO2/day

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Estimated GHG Reductions 300 MW Coal Plant

Plant Nameplate Output Average Capacity Factor Average Daily Output 300 70% 5,040 MWh mT MWh Million MW

Average Plant Efficiency

Daily Coal Use Replacement target % Coal with Clean Heat Amount of TMES Clean Heat required Estimated cost of TMES installation

30%
2870 20% 2,000 $150

Estimated annual GHG reductions

600,000

mT

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Estimated GHG Reductions 10,000 BPD SAGD Plant

Plant nameplate output Average capacity factor Average daily output 200 95% 4,560 MMBtu(th) MMBtu/day MMscf/d MW-hr mT/year million
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MMBtu(th)

Average plant efficiency

Daily natural gas use Replacement target % with Clean Heat Natural gas reduced Amount of TMES required to meet target Estimated annual GHG reductions Cost of TMES installation

85%
5,360 50% 2.67 800 320,000 $60

180+ Years of Proven Experience

Kevin Gilchrist, (President): founding partner publicly-traded Pristine Power established to develop power generation projects throughout Canada; bought out in 2010 Steve Parker, CA, CPA, (Chief Corporate & Financial Officer) has helped execute multiple early stage financings totalling over $30 million for start-ups in Canada and the U.S. George Lynch, (Chief Technology Officer): Caltech grad and retired Hewlett Packard executive, led HP team that commercialized HPs large format inkjet printers into a world class product line

Tony Pietsch, (Chief Innovation Officer): Caltech grad and founder, has a lifetime experience in mastering theoretical, complex innovation and problem solving
Steve Sutherland (Technology & Strategy Advisor) technology visionary and founder of multiple start-up companies including a digital image processing company sold in a multimillion dollar transaction
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Kelvin Storage

Development Plan Overview

Demonstration Units (Q1 Q3 2014)
1250 kW-hr and 2 MW-hr TMES storage units

Prototype Unit (Q3 2014 Q2 2015)

20 MW-hr high-temperature TMES unit

Onsite Pilot Project (Q4 2016 -2017)

200 MW-hr pilot project

Commercial Installations (2018 onward)

Multiple 200 MW-hr units
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Solution Scaling Development

1000

Energy Storage Capacity (MWh)

100

200MW-hr Pilot 2 Unit @2250-2500K

10

1,250 kW-hr Demo Unit @1550K

20 MW-hr Pilot 1 Unit @2000K

0.1

2 MW-hr Demo 2 Unit @1750K

Development Plan Year

4
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Steve Parker
Steve.Parker@KelvinStorage.ca 416-755-2710

Kevin Gilchrist
Kevin.Gilchrist@KelvinStorage.ca 416-200-7158