An Energy Storage Company September, 2006 Energy Storage & - PowerPoint PPT Presentation

-1- An Energy Storage Company September, 2006 Energy Storage & Power Quality Solutions

-2- Forward Looking Statements Certain statements contained in this presentation which are not historical in nature, including any projections, forecasts, predictions or statements which may contain words such as “will,” “may,” “could,” “anticipate,” “believe,” “estimate,” “intend,” “expect” or other words of similar meaning are forward-looking statements. Forward-looking statements reflect management’s current views with respect to future events, are based on management’s beliefs and assumptions as of the date listed, and are subject to known and unknown risks and uncertainties that may cause actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Risks and uncertainties include, but are not limited to, the risk factors listed in our Annual Information Form filed with the British Columbia Securities Commission and available at www.sedar.com VRB Power does not assume any obligation to update or revise forward-looking statements made in this presentation to reflect events or changes in circumstances that occur after the date posted. Such contents are not to be used in connection with investment decisions and should never be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of VRB Power before any investment decision is made and are encouraged to seek independent professional advice. VRB Power Systems Inc. will not be responsible for any loss or damage arising from the use of information in this Energy Storage & Power Quality Solutions

-3- About VRB Power Systems inc. • Headquartered in Vancouver, Canada, VRB Power Systems Inc. is an energy storage technology developer which is marketing, selling and manufacturing products utilizing the patented VRB Energy Storage System (“VRB-ESS™”). The VRB-ESS can economically store and supply large amounts of electricity on demand and is focused on stationary applications. It is a long life, cost effective, low maintenance, efficient technology that allows for the scalability of power and storage capacity independently. The VRB-ESS is particularly beneficial to renewable energy providers, utilities and end users through its ability to “inventory” electricity, allowing for the optimal match of supply and demand. • The VRB-ESS is well suited for a variety of applications. Enabling the provision of “firm” capacity from intermittent renewable generation such as wind and solar; more cost effective and efficient generation of electricity in remote areas; capital deferral for utilities; and load levelling (peak shaving) applications. The VRB-ESS is also capable of providing backup power solutions including applications for utility sub-stations and telecommunication sites. • The VRB-ESS is characterized by having the lowest ecological impact of all energy storage technologies and is unlike most other conventional energy storage systems that rely on substances such as lead or cadmium. Energy Storage & Power Quality Solutions

-4- VRB Flow Battery Technology A vanadium based liquid electrolyte that is separate from the electrode. • An electrochemical energy storage system utilizing a vanadium based electrolyte operating at ambient temperatures • Reversible fuel cell – reduction and oxidation of single unique element: Vanadium • No cross contamination as with other storage systems. Electrolyte never wears out – high residual value • Very low maintenance • Deep cycles (20 to 80%) >10,000 • Low self discharge – indefinite energy storage • Energy can be recovered instantaneously • Battery can recharge as fast as it discharges (1:1) • Power and Energy separately scaleable Oxidation process Reduction process V 3+ + e - ⇒ V 2+ Charge V 4+ ⇒ V 5+ + e - V 5+ + e - ⇒ V 4+ V 2+ ⇒ V 3+ + e - Discharge Energy Storage & Power Quality Solutions

-5- What is Vanadium? Vanadium is found world-wide in mineral Vanadium is the 23rd element in the periodic table form, tar sands, fly ash, oil fields. Vanadium is primarily used as an additive to iron, steel, titanium to add strength, improve durability, resist wear and temperature. Hiveld Steel & Vanadium is the worlds largest producer of Vanadium and our strategic partner through exclusive supply Agreement. Electron shells Nucleus Vanadium is a silverish transition metal (the valence electrons 23 P 28 N exist in more than one shell). In normal states, vanadium atoms have 23 protons, 23 electrons, and 28 neutrons. Energy Storage & Power Quality Solutions

-6- VRB-ESS Components PLC/HMI Multiple outputs system Converter Energy Loads (PCS) sources Cell Stack Electrolyte storage Energy Storage & Power Quality Solutions

-7- Technical Advantages of VRB-ESS • High-energy efficiencies of 75% in large installations. • Remains fully charged with low self-discharge, almost indefinitely. • Storage capacity can be easily increased by changing the tanks and volumes of electrolyte. • Cross mixing of electrolytes does not lead to the contamination of electrolytes. • Designed for unattended operation with very low maintenance costs ($0.001/kWh). • Ambient/Low operating temperature. • Can be discharged and charged >10,000 times without need for membrane replacement. • Integrated sophisticated multi-quadrant, fast acting PCS provides reactive energy (VARs) continuously. Energy Storage & Power Quality Solutions

-8- Charge Discharge Curves for VRB-ESS 900 400 Battery potential Battery current 300 800 Discharge Discharge Discharge 200 Charge Charge Battery potential (V) Battery current (A) Charge 100 700 0 600 -100 -200 500 -300 Elelctrolyte Temp: 38-41 C 400 -400 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Charge /discharge time (hr) Energy Storage & Power Quality Solutions

-9- Environmental Advantages • No heavy metals such as lead, nickel, zinc and cadmium • No Halides – Kyoto Accord • A life-cycle assessment approach of the environmental impact of both Vanadium Redox and lead-acid batteries for use in stationary applications, indicates that the Vanadium Redox Battery contributes between 7-25% of emissions of key environmental impact components (CO2, SO2, CO, CH4, NOx) during its life cycle, when compared with lead-acid batteries. • The system can be recharged at high rates in a fraction of the time needed for the lead-acid battery. Has a charge/discharge window of 1:1 with deep discharge capability which is ideal for wind generation applications. • Electrolytes used in the VRB-ESS™ have indefinite life – No disposal issues – Completely reusable Energy Storage & Power Quality Solutions

-10- VRB-ESS™ Footprint in Square Meters Hours 4 6 8 10 kW 50 11 16 21 26 100 21 32 42 53 200 46 46 46 57 500 60 90 120 149 1,000 120 179 239 272 2,500 272 408 414 518 10,000 622 933 995 1291 Energy Storage & Power Quality Solutions

-11- Current Status of VRB Technology • Current Focus is Vanadium based VRB ESS – 5KW to 10MW - up to 12 hours duration and beyond – Fully scalable for multiple applications • Scaleable power in 5kW or 50kW increments • Scaleable storage by adding additional electrolyte – Ownership* of world-wide patents • Strong portfolio from Pinnacle / Sumitomo acquisitions • Continue to strengthen patent portfolio • Application patents filed – wind, diesel, telecoms • Regenesys Energy Storage Systems – 10MW to 100 MW - up to 10 hours duration – Polysulfide Bromine Based – Exclusive license to world-wide patents – Acquired key assets and manufacturing know-how * Excluding Australia. Energy Storage & Power Quality Solutions

-12- VRB Products – Large Systems • Engineered to fit – customized to customer needs • Power scaled in increments of 50 kW • Storage scaled by adding electrolyte • Multiple Markets, including Renewable Energy, RAPS, Capital Deferral, Peak Shaving • Additional Markets as costs lower / energy prices increase – Including Arbitrage and Load Leveling Energy Storage & Power Quality Solutions

-13- Castle Valley - Utah • 250 kW x 8 hour VRB-ESS Grid Enhancement Project PacifiCorp, Castle Valley, Utah • 3 years successful operation – 98.7% availability • Avoided Capex of US$4m / Ability to “Peak Shave” – Payback 3-4 years • Capital Deferral Market est. US$1 billion annually Energy Storage & Power Quality Solutions

-14- Castle Valley - Cell Stacks, Piping, Pumps and Valves Energy Storage & Power Quality Solutions

-15- Castle Valley, Utah Energy Storage (300kW) Support of Feeder Load 4000 Normal Load 3500 Feeder Capacity Limit Feeder Load (kW) Feeder Load with 3000 Energy Storage Discharging Feeder Load with Energy Storage Charging 2500 2000 1500 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour of Day Energy Storage & Power Quality Solutions

-16- King Island - Australia • 250 kW x 4 hour VRB-ESS Islanded Wind-Diesel Installation King Island, Australia • 4 year Payback based on reduced fuel / maintenance – 46% reduction in emissions • Wind-Diesel Storage Markets est. US$500 million + annually Energy Storage & Power Quality Solutions