1) The document discusses the growing global energy demand and CO2 emissions challenge, noting that world energy consumption has risen 45% since 1980 and is projected to increase 70% more by 2030, driven largely by emerging markets. 2) It argues that energy management through optimization of existing infrastructure can achieve 30% global energy savings and proposes focusing first on optimizing processes, buildings, and equipment which can deliver fastest impact within 1-5 years. 3) The company, Avanceon, provides integrated energy efficiency solutions including monitoring, automation, and optimization of steam, water, air, and power systems aimed at delivering guaranteed energy savings of 5-15% for industrial and commercial clients.

1. Taming the Energy MonsterFinancing Energy Optimization Projectswith Guaranteed IRRBakhtiar Hameed WainCEO AvanceonMay 25, 2010

2. The energy and CO2 emission challengeWorld consumption up 45% since 1980, 70% higher by 2030Emerging markets> 75% of new demandsCO2 up 33% since industrial revolution, rising faster than everResources competition &Political instability keep prices highCoal use continues to grow in emerging marketsThese trends are here to last unless we act!

3. The energy dilemma is here to stay÷2x2The needThe factVSCO2 emissionsTo avoid dramatic climate changesSource: IPCC2007, figure (vs. 1990 level)Energy demandBy 2050Source: IEA 2007Energy management is the key to address the dilemma

4. 30% global energy saving!>1 year of electricity from 20,000 coal-fired power plants>12GigatonesCO2e/year

5. We have 10 years….to fix 4 critical problemsGeneration:> 10 years to fixTransmission:> 10 years to fixBuilding & Process:1-5 years to fixPoint of Use:1-5 years to fixProblems:CO2 Emissions Capacity ConstraintsTransmission EfficiencyCapacity ConstraintsStranded CapacityProcess Domain KnowledgeEfficiency , Integration & OptimizationFocusing on point of use architecture provides fastest impact and frees upstream capacity through Power PlantSource: Hot, Flat and Crowded: tom Friedman

6. And remember: a small save is a big save at the power plant!Fuel100 units35 units25units=1 unit saved4units saved at the power plant

7. …and also the first energy consumers!Energy use split31%Industry & Infrastructure28%Transportation>2%Data centres &networks21%Residential18%BuildingsMain energy consumption is for steam generation,heating, cooling, motors, lighting, Electronics and appliancesSource: EERE Building Energy Data book 2006EERE Manufacturing Systems Footprints,http://www1.eere.energy.gov/industry/energy_systems/pdf/mfg_footprint.pdf

8. Excluding raw material costs, 70% of manufacturing costs are absorbed by the cost of energy …………. US Department of EnergyEnergy use split31%Industry & Infrastructure

9. Approach to active energy efficiency5. Integrate renewables1. Find out what the challenge is…Energy audit & meteringPassive Energy EfficiencyActive Energy Efficiency2. Fix the basics3. Optimize through automation & regulation4. Monitor, maintain, improveSolutions in:Pumping, Compressor and Fan Contol,Steam System ManagementPower management, motor & lighting controlMetering, monitoring and consulting services, EE analysis softwareLow consumption devices, insulation material, power factor correctionPassive + Active EE solutions = Sustainable Energy Savings

10. Avanceon’s Integrated solutions for the industryMake energy visibleMake systems work togetherIntegrationAvanceon Solutions:iBoiler & iWaterMicrosoft Certified Data Visualization and Archiving Solution.Efficient Steam and Flow ControlOptimizes Utilities for 10 to 35% reduction in energy usageEnergy monitoringData ArchivingSteam System OptimizationMotor ControlPumpsFansCompressorsLighting ControlSolutions with PartnersHVAC ControlElectrical Distribution

11. 30% savings are available today……thanks to a combination of100%70%Efficient devices andInstallation (5 to 10%ce )Optimized usage viaAutomation(10 to 15%) Monitoring & maintenance(2 to 8%)Energy ConsumptionTime

12. But saving can be lost quickly… Unplanned, unmanaged shutdown of equipment and processes

13. Lack or mistuned of automation and regulation

14. No continuity of behavior100%Up to 8% per year is lost without monitoring and maintenance programUp to 12% per year is lost without regulation and control systems70%Efficient devices andInstallation (10 to 15%ce )Optimized usage viaAutomation(5 to 15%) Monitoring & maintenanceEnergy ConsumptionTime

15. Avanceon Energy Dashboard

16. Value Proposition – Steam System OptimizationDo you?Run more than one boiler in tandemHave more than 10 Ton / Hour of average loadUse fuel to produce steamWant to reduce cost by 5 to 15%Avanceon will bear the total cost of iboilerTM system which includes proprietary software, control system, instrumentation, installation and commissioningHow does Avanceon get paid:9 to 15 months of proven savings; Avanceon will confirm the exact savings amount after site survey and before the contract is signedManaged Service Level Agreement (MSLA) to ensure sustained savingsBoth parties have the right to terminate the contract with 90 days notice

17. Value Proposition – Water & AirDoes your manufacturing facility have?Cooling and Process Water SystemChilled water SystemFans and BlowersCompressed Air CircuitThe above areas as a rule of thumb could have up to 30% energy potentialMost engineers or consultants would agree with the above claim of savings potential…………... then what stops organizations from harnessing this savings potential???

18. Value Proposition – Barriers to Moving ForwardWho guarantees the saving and what if savings is not achieved?Will my manufacturing process be disturbed?Involves high capital investment!!!I can think of better investment opportunitiesI need a specific ROI or IRR to invest; Energy optimization is not my business and am not sure if I can manage it to achieve my financial goals

19. Value Proposition – Risk Free Financial ProposalAvanceon guarantees Energy Savings; enables organizations to earmark reduction in expense budget for CAPEX

20. Agreed Payback PeriodValue Proposition – Risk Free Financial ProposalYour SavingsSavings paying for the ProjectPrevious Energy CostsProcess Energy CostsNew reduced Energy Costs with EMS SolutionTime