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Presentation to: 2012 Green Energy Summit – Plenary Session D, Ballroom AB, 2pm March 7th, 2012

Presentation to: 2012 Green Energy Summit – Plenary Session D, Ballroom AB, 2pm March 7th, 2012 Milwaukee, Wisconsin. About Us. Global Infrastructure Asset Management LLC (GIAM) is an investment management firm with offices in Chicago and Madison

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Presentation to: 2012 Green Energy Summit – Plenary Session D, Ballroom AB, 2pm March 7th, 2012

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  1. Presentation to: 2012 Green Energy Summit – Plenary Session D, Ballroom AB, 2pm March 7th, 2012 Milwaukee, Wisconsin

  2. About Us • Global Infrastructure Asset Management LLC (GIAM) is an investment management firm with offices in Chicago and Madison • GIAM is a dedicated team with proven expertise in infrastructure credit that has recently lifted out of larger asset management firms and banks to raise and manage specialized private investment funds • GIAM’s first focus is on the current opportunities that exist in renewable energy infrastructure and manages the Geo Investors Renewable Infrastructure Fund I LP • The Geo Investors Fund is focused on providing project level financing for projects that generate renewable energy

  3. What Do Investors Want? • High Absolute Returns • High Risk-adjusted Returns • Low Risk • Liquidity • Proven Technologies • Proven Asset Classes • Larger Projects • Investments that Fit Existing Asset Allocations • Proven Teams and Track Records • Something to Talk to Their Friends About • Uncorrelated to other Assets • Inflation Protection In Other Words…… Everything!

  4. Why Invest in Biogas Projects? – The Context • Return on Risk • Predictable Cash flows • Diversification to Other Investments Infrastructure • Area of Growth and Demand • Variety of Project Sizes and Opportunities Renewable Energy Projects Biogas Projects • Multiple Drivers of Revenue and Value • Need to Fit Within the Context Above

  5. Biogas Within the Renewable Energy Project Universe • Challenges: • Project siting • Grid Connection • Intermittence of power to grid • Other environmental impacts Utility Scale Wind Utility Scale Solar Large scale Ethanol Large Hydroelectric (Reservoir systems) Large Geothermal Community Wind (multiple turbines >500kW) • Opportunities withinDistributed Generation • Can Benefit from: • Efficiencies of utility scale • Easier grid interconnection • Less complex project siting • Long-term PPAs with regulated utilities Commercial and Industrial Solar Installations Commercial, Industrial, Municipal Energy Efficiency Waste to Biofuels Midsize Geothermal Methane Waste to Energy Small Hydro (Run of river) Small Methane Digesters • Challenges: • Inefficient scale • Lack of professional operation • Credit worthiness of off- take counterparty Small Wind (single turbine <500kW ) Retail and Small Commercial Energy Efficiency Projects Residential Geothermal Heat Pumps Residential Rooftop Solar

  6. Biogas Project Financing: Financial Market Constraints • Small project sizes compared to customary project finance market • Doesn’t offer the return expectations of typical Angel or VC investors $5 - $20 $5 - $100 $20 - $100 $100 Company Stage Technology Development Pilot Plant Demo Plant Build-out of Commercial Plants Business Strategy Project Portfolio Finance Company Expansion Investment Style Venture Capital Infrastructure Equity/ Debt Private Equity Infrastructure Equity/ Debt Buyout/ Growth Angel/ A Round B & C Round D Round/ Exit-IPO Investment Attribute Technology expertise, sector knowledge, Management building Project Finance Sector knowledge, Company building, Financial engineering Material knowledge Market Knowledge Project Finance Project Financing Gap Source: DB Advisors; Hudson Clean Energy

  7. Biogas Investment Proposition • Maximize Cash Flow • Minimize Risk • Who is the developer/owner/operator? • Internal or Third Party • Track Record of Experience • How will the project make money? • Revenues from: Gas, Electricity, Thermal Energy, Tipping Fees, Co-Products • Availability of Long-term Contracts with Creditworthy Parties • Is there sufficient Feedstock? • Single or Multi Source ; Creditworthiness • Supply of Higher Energy Supplements • How, who, and what will be built? • Engineers, Technology Providers, Construction Contractors Key Questions to Ask:

  8. Current Observations on the Project Finance Market Estimated Breakdown of $134 Billion of Capital Investment from 2010 Deployment Capital Investment Banks, Finance Companies, Insurance, Specialized Funds Solar Senior Debt $60B Debt 55% Wind Developers, Contractors, Tax Equity, PEFunds Infrastructure Funds Subordinated Debt $14B Equity 15% Geothermal Equity $20B Gov’t Grant $40B Gov’t Grant 30% US Government Bioenergy • General supply of debt financing still constrained by macro economic factors and the ongoing repair and repricing of bank balance sheets • Some signs of improvement, especially for larger projects and where equipment finance is involved • Significant uncertainty around the future of federal support through ITC and PTC tax credits • Tax credit uncertainty and reduction of participants in the tax equity market has driven up the cost of tax equity

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