Xebec Biogas 2010 Presentation

Biogas USA 2010

Natural and Renewable Gas Focus Global presence, with headquarters in Montreal, Canada Listed on the Toronto Stock Exchange (TSX: XBC) Who we are Market Focus Strategy Leading manufacturer of natural Natural and renewable gas Create partnerships with gas and renewable gas systems for as transportation fuel utilities, municipalities and the infrastructure development food & waste industries to increase our footprint in the transportation sector www.xebecinc.com 2

Renewable and Natural Gas Value Chain www.xebecinc.com 3

Business Segments Biogas upgrading plants Natural gas dryers for NGV refueling stations  Rapidly growing market  Growing market  High recovery, high purity,  Cost leadership through low energy plants Chinese manufacturing  Key Customers:  Key Customers: Clean SEMPRA, Montauk Energy, Petrochina, Energy, Halla Engineering, Sinopec, Shell Terasen Gas Hydrogen purifiers for hydrogen recovery Distributed small scale natural gas liquefaction  Evolving market segment  Early-stage business opportunity  Market-leading performance for small-  Compact size capacity hydrogen plants  Easy and low-cost to install  Key Customers: HydroChem,  Low operating costs Air Liquide, Linde, Nuvera  Key Customers: Solensa www.xebecinc.com 4

Benefits of Xebec’s High BTU Gas Plants  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 www.xebecinc.com

Xebec Technology Center Technology and IP Assets  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 Xebec unit installed at ExxonMobil refinery in 2007  Ongoing development work on next generation biogas upgrading technology  Contract Engineering Services for key purification and separation technologies & projects Pure Innovation™ www.xebecinc.com 6

Natural Gas: The Transportation Fuel Opportunity

Natural Gas as a Transportation Fuel Climate Change Governments’ Ramping Oil Prices Greenhouse Gas Commitment to Technology Energy Security Reductions Renewable Energy Advancement Natural Gas Vehicles (NGV) to grow 600% by 2020 worldwide Number of natural gas vehicles 70,000,000 60,000,000 50,000,000 Actual to date 40,000,000 Projected 30,000,000 20,000,000 10,000,000 0 Year © NGV Global www.iangv.org www.xebecinc.com 8

Global NGV Growth by Region  Asia has been growing at 50% Average % NGV growth  The EU has seen growth in the NGV 2000 to present by region market space and is planning for 60% accelerated growth in Germany, Italy, Sweden, Austria, Switzerland, Spain and 50% others 40%  The U.S. and Canada are in the process of introducing favorable legislation, which 30% will lead to significant future growth in the NGV sector 20%  Latin America is continuing to grow its 10% NGV fleets 0%  Africa is seeing good growth Asia Europe N.A. L.A. Africa © NGV Global www.iangv.org Global Growth for Natural Gas as a Transportation Fuel www.xebecinc.com 9

Growing Support for NGV in North America Multiple pro NGV measures including: U.S. Energy Bill (S 3663)  Senate Bill : $3.8 billion for vehicle purchase rebates (90% of incremental costs for heavy-duty vehicles)  $500 million proposed for fuelling infrastructure NGV Fuelling Station  $2 billion for the manufacturing loan program DOE Clean Cities 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 www.xebecinc.com 10

Heavy Duty Trucks Key to US NGV Market Heavy Duty Trucks Account for 4% of the Vehicles but Consume 23% of the Fuel Percentage of vehicle Percentage of fuel types on the road consumed by each type of vehicle 1% 2% 40% 35% 41% 54% 23% 4% (9.9 million) Light Trucks Heavy Trucks Passenger Cars Motorcycles Light Trucks Heavy Trucks Passenger Cars Motorcycles and Buses and Buses © Energy Vision www.energy-vision.org Small segment of the transportation sector – Large environmental impact www.xebecinc.com 11

Renewable Gas: An Ultra Clean Transportation Fuel

Renewable Gas in Transportation Segment In the field of NGV, upgraded biogas, or renewable gas, is the blending agent of choice  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 Natural Gas Renewable Gas carbon intensity reference values for the Low- Alternative Fuel Renewable Fuel Carbon Fuel Standards (LCFS) determined in CNG/LNG CRG/LRG 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 Fuels will be blended with renewables at an accelerated rate for industry compliance. States with renewables. This will drive demand for the biogas upgrading solutions that Xebec provides. Renewable Fuel Standard II – Biogas identified as ―advanced biofuel‖ www.xebecinc.com 13

Impact of Blending on GHG Emissions Source: DENA – German Energy Agency U.S. DOE estimates 25% of all diesel fuel could be replaced by renewable gas www.xebecinc.com 14

Value of Biomethane Wholesale 2020 gas futures CNG market value price 8.3¢/kWh market price if diesel is $2.70 versus versus per gallon MPR feed-in proposed tariff at production tax 2.3¢/kWh credit of $4.27/MMBtu $20.67 s.306 & h.r. 1158 $10.81 $10.57 $8.49 ~$6.30 Electricity Pipeline CNG Value of Biomethane Products per MMBtu www.xebecinc.com

Value of Biomethane — forecast for 2020 $120 Fuel prices expected to $100 climb through 2020 $80 $60 Electricity & gas prices to $40 remain flat through 2020 $20 $20.67 $0 2005 2010 2015 2020 $10.81 $10.57 $8.49 ~$6.30 Electricity Pipeline CNG Value of Biomethane Products per MMBtu Source: “Annual Energy Outlook 2010”, Energy Information Agency www.xebecinc.com

Value of Biomethane — forecast for 2020 $120 Fuel prices expected to $31.83 $100 climb through 2020 $80 $60 +54% 2020 $40 Electricity & gas prices to $20 remain flat through 2020 $20.67 $0 2005 2010 2015 2020 2010 $10.81 $10.57 Electricity Pipeline CNG Value of Biomethane Products per MMBtu Source: “Annual Energy Outlook 2010”, Energy Information Agency www.xebecinc.com

The Renewable Gas Opportunity 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 Strong global demand for solutions that Xebec provides 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 www.xebecinc.com 18

Renewable Gas Installations 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 Extensive experience in the biogas segment 2010 - YTD gained through multiple, successful Sempra Energy CA, US Waste Water Pipeline international projects Halla Engineering Seoul, Korea Digester CNG SKS Austria MSW Pipeline From 2006 to 2009 only about 30% of Xebec’s SKS Austria MSW Pipeline upgrading projects were for renewable gas to SKS Austria Waste Water CNG transportation fuel Verdemobil France MSW CNG In 2010 about 60% of Xebec’s upgrading WELtec China Agricultural Digester CNG projects will be for renewable gas to Huimiing China Landfill CNG transportation fuel Terasen Gas Canada Landfill Pipeline PT Indo Raya Indonesia Chemical Plant Pipeline www.xebecinc.com 19

Case Studies

Case Study – Waste Water Treatment Plant 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 www.xebecinc.com 21

Case Study – Mixed Waste-to-CNG 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 www.xebecinc.com 22

Case Study – Landfill Gas to Heating & Cooking 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 www.xebecinc.com 23

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) Compact integrated Xebec  Increased interest from Gas Utilities & upgrading skid 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) IMPORTANT Make the right investment decision today when comparing electricity to upgrading projects Source: “Annual Energy Outlook 2010” Energy Information Agency www.xebecinc.com 24

Thank you Kurt Sorschak President & CEO 450.979.8700 ksorschak@xebecinc.com

Xebec Biogas 2010 Presentation

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