DIRECT-CONTACT CONDENSING TECHNOLOGY WATER TUBE BOILERS

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DIRECT-CONTACT CONDENSING TECHNOLOGY WATER TUBE BOILERS Existing indirect technology developed in the 1800 s Flame heats metal, which in turn heats water 65-75% efficiency on a seasonal basis due to thermal dynamics Environmentally inefficient: 35% of energy wasted (flue gases up to 700 F) Professional supervision required: Stationary engineers

DIRECT CONTACT CONDENSING TECHNOLOGY 10 F approach temperature between incoming water & exhaust flue gases THE TECHNOLOGY 1. PERCOMAX Hot Water Heater Direct-contact, natural gas, or propane-fired water heater Building heating, fresh air and boiler make-up water pre-heating, process water heating 2. PERCOTHERM Flue Gas Heat Economizer Direct-contact condensing stack economizer Recovers waste heat in boiler flue gases to heat a cold water stream 3. HYBRID PERCOMTHERM Patented Boiler Replacement Combines advantages of a Percomax with a Percotherm in one unit Direct-contact condensing stack economizer with an integrated fully modulating gas burner Recovers waste heat in a boiler s flue gases and transfers the heat to cold water

THE TECHNOLOGY 4. ULTRA HIGH EFFICIENCY WATER HEATER High Temperature Hot Water (190 F) Percomax equipped with a steam pump Composed of a Percomax direct contact water heater and water vapour pump Greater efficiency than a standard direct-contact water heater Operates at high seasonal efficiencies (>95%) even for space heating requirements General Applications to heat up: Boiler M/U water, Domestic Hot water, Space Heating, Fresh Air, Process water (ex. In food industries, concrete plants, etc ) COMPETITIVE ADVANTAGES Increases efficiency from 65% seasonal average to 95-99% Savings on construction, maintenance and insurance Reduction of greenhouse gas emissions Payback generally between 6 months 3 years Serves building owners, industrial and commercial markets Custom-made units with no size limits No supervision required External installation possible Atmospheric units (do not follow pressure vessel codes)

COMPETITIVE ADVANTAGES Limited blowdown quantity when compared to conventional boilers Water treatment: Open loop applications: Not needed (For industrial process such as sanitation water, boiler M/u water, ) Closed loop applications: ph monitoring as well as purge & refill lines needed (For space heating, domestic hot water, ) CASE STUDY MAPLE LODGE FARMS Installation of PERCOTHERM to recover latent & sensible energy from flue gases generated by cogen unit. Two stages project: Stage 1: Condensing stack economizer PERCOTHERM Upgrade of PERCOTHERM Natural Gas Burned: Turbine: 63.3 MMBTU/H Duct Burner: 39.5 MMBTU/H Energy lost: 19 MMBTU/H

CASE STUDY MAPLE LODGE FARMS CASE STUDY MAPLE LODGE FARMS Stage 1: PERCOTHERM The PERCOTHERM was designed to receive & recover 75% of the lost energy in the flue gases. The other 25% flue gases was exhausted directly before the PERCOTHERM. PERCOTHERM sized to recover 14.25 MMTBU/H. Heat sink: 360 USGM of sanitation water to reach 120 F (MAX.) by PERCOTHERM. Emissions reduction of 4620 Tons CO 2 /year Energy recovery per year : 88,920 GJ/yr Yearly monetary savings at 1.74 $/GJ: 154,750 $/yr Equipment cost in 1998: 122,447 $ Payback in 1998: 122,447 $/154,750 $/yr = 0.79 yrs Actualized equipment cost at 3% inflation rate: 122,447 $ x (1.03) (2008-1999) = 159,765.00 $ Actualized savings in 2008: (8.5$/GJ) x (88,920 GJ/yr) = 755,820 $/yr Actualized payback in 2008: (159,765 $)/ (755,820 $/GJ) = 0.21 yrs

CASE STUDY MAPLE LODGE FARMS Stage 2: PERCOTHERM UPGRADING they need more hot water. Thus, the PERCOTHERM was to accept the additional 25% of the lost flue gases while maintaining its original design. In addition, the flue gases back up pressure (4.9 W.C.) should not increase at the inlet of the PERCOTHERM. The unit will recover additionally 4.75 MMBTU/H. In total, 19 MMBTU/H is being recovered. Heat sink: 600 USGM of sanitation water to reach 110 F (MAX.) by PERCOTHERM. Additional emissions reduction of 1540 Tons CO 2 /year Energy recovery per year : 29,640 GJ/yr Yearly monetary savings at 8.0 $/GJ: 237,120 $/yr Equipment cost in 2005: 94,000 $ Payback in 2005: 94,000 $/237,120 $/yr = 0.4 yrs Actualized equipment cost at 3% inflation rate: 94,000 $ x (1.03) (2008-2005) = 102,716.00 $ Actualized savings in 2008: (8.5$/GJ) x (29,640 GJ/yr) = 251,940 $/yr Actualized payback in 2008: 102,716 $/ 251,940 $/GJ = 0.4 yrs Note: Backup pressure was reduced from 4.9 W.C. to 3.9 W.C., while increasing the flue gases flow and maintaining the same PERCOTHERM s dimensions. CASE STUDY MAISONNEUVE-ROSEMONT HOSPITAL In the framework of the hospital s expansion, a new wing being built, an additional load of 8 MMBTU/H had to be implemented. The hospital installed a water heater economizer HYBRID PERCOMTHERM to do so instead of installing a fourth 400HP steam boiler. The project had two different options: OPTION #1: Supply & install a Sofame s HYBRID PERCOMTHERM Offers an overall a combined 95% for the existing boilers & HYBRID PERCOMTHERM Did not need new stationary engineers or special safety requirements. Project s cost: 324,000 $. OPTION #2: Supply & install a new 400 HP steam boiler Seasonal efficiency of 70%. Annual forecasted natural gas consumption with option would be 112,286,000 cu.ft A new boiler room as well as additional stationary engineers were needed to meet the law s requirements. Cost: 220,000 $.

CASE STUDY MAISONNEUVE-ROSEMONT HOSPITAL Heat sinks: Boiler s make up water Domestic hot water and hydronic heating loops Savings: Natural gas consumption with the Sofame solution: 82,449,000 cu.ft Difference between the two solutions was 104,000 $ Savings between the two solutions: 29,837,000 cu.ft/yr In 1995 and 3.96$/GJ, the monetary savings were: 118,000 $/yr Payback in 1995: (104,000$)/(118,000$/yr) = 0.88 yrs Actualized cost difference in 2008: (104,000$) x (1.03) (2008-1995) =152,728 $ Actualized fuel savings in 2008 and at a cost of 9.9 $/GJ: 295,386 $/yr Actualized payback in 2008: (152,728 $)/(295,386 $/yr) = 0.52 yrs MAISONNEUVE-ROSEMONT HOSPITAL

THANK YOU SOFAME Technologies Inc. 500, Alphonse D. Roy Street Montreal (Quebec) Canada H1W 3Y8 Luc Mandeville V.P. Research & Technology Phone: (514) 523-6545 EXT 328 Fax:(514) 524-6183 Cell: (514) 518-3863 www.sofame.com Thank You!