One powerful future.

Europe – The Home for the Cogeneration

Manufacturing Industry.

François-Xavier SAURYsaury_francois-xavier@cat.com

Gas Business Development ManagerCATERPILLAR Electric Power Division

Feb 2012

Economic impact of CHP

Boosts wider manufacturing economy

Creates on the site permanent employment

EPD 2012

$37.278 MachinesEngines $20.114

Financial Products $3.003

2011 total

$60.138

Caterpillar Inc. 2011 Results (million dollars)

EPD 2012

WW GAS Engines Population

since 1960

45GW

72,000 units

G3304

engineG3306B

engine

G3616

engine

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7.8G

W5400 units

About 8GW Gas Genset Capacity in Europe over 15 years.

EPD 2012

Decades of Experience in Combined Heat & Power

Since 1960, Caterpillar and Cat dealers

have provided combined heat & power

solutions to our customers.

– CHP packages

– Power Modules

– Gas Engine Driven Chillers

– Attachments

– Ancillary equipment

– Switchgear

EPD 2012

Today’s Caterpillar’s CHP Package

2.0 MWe85% 95+% Total Efficiency

~400€ - 600€ / kWe Installed

Natural Gas CHP Generator Set

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Industrial CHP District Heating Greenhouses

Trigeneration Coal Mine Methane Renewable CHP

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– Power buy or sell rate $/kWh

– Fuel cost rate $/MMBTU or $/HHV

– Thermal credit $/kW thermal

– Cost of money % interest rates

– Oper. & Maintenance Typically 0.7-1.5 cents/kWh

CHP high level feasibility analysis

CHP plants are economically driven.

Economics are based on rate disparity

(spark spread)

EPD 2012

Significant European Manufacturing Presence

Caterpillar in Europe.

• about 22,000 Employees

• 29 Manufacturing Locations for Over 50 Years

•3 are manufacturing CHP related gensets.

• Training & Demonstration Center, Spain

• Parts Distribution Centers, Belgium

• WW Gas Headquarter is located in Mannheim, Germany

EPD 2012

Related Engineering, Construction and Contracting industries

Power plant construction

– Engineering

– Civil contracting

– Project Logistics

– Installation contracting

• Electrical

• Mechanical

• Sound proofing

• Pipe work, water, exhaust, fuel gas

– After treatment equipment

– Project management

– Commissioning & Start up

EPD 2012

Operation and Service over 25 years life time

Labor intensive related activities

– CHP and Grid operation

• Standard compliance

• Safety and security

– Remote Monitoring & Telemetry

• Alert management, Data acquisition, trending

• Dynamic Optimised Planned Maintenance

– Parts In & Out logistics

– Service

• Inspection

• Preventive maintenance

• Overhauls

– Parts Remanufacturing & Reconditioning

– Training for all Activities

EPD 2012

Full Time Equivalents jobs

per MW over 10 years

1.25 FTE

About 9,000 FTEwith actual 8GW population

FTE = Full Time Equivalent

Typical Service labor generated over 10 years

Service labor in hours

Overhauls

Electrical

Other

PM

EPD 2012

Take away

• Europe is the home of CHP business

• CHP stimulates The European Economy

– Creating local service jobs

– Creating innovation and industrial activity & jobs

– In all degree of qualification

• Supporting CHP is well spent public money

EPD 2012

Thank you for your attention