Thermax Sustainable Energy Solutions Limited m CARBON

1. Thermax Sustainable Energy Solutions LimitedmCARBON Existing Barriers Programmes of Activities and Improvements Rajesh Madiwale 12th Mar 2011

2. Thermax Evolution: A Snapshot • Established in 1966 as Wanson (India) • Thermax Private Limited formed in 1980 and Wanson (India) merged with Thermax • Thermax became a public limited company in 1996 • Featured in the Forbes Asia list of “Best under a Billion” companies in 2008 2

3. Thermax Group Thermax Limited Subsidiaries Joint Ventures • Thermax Babcock & Wilcox • Thermax SPX Energy Technologies Ltd. • Thermax Sustainable Energy Solutions Ltd. • Thermax Onsite Energy Solutions Ltd. • Thermax Engineering Construction Co. Ltd. • Thermax Instrumentation Ltd. • Thermax International Ltd. (Mauritius) • Thermax Europe Ltd. (U.K.) • Thermax Hong Kong Ltd (Hong Kong) • Thermax do Brasil-Energiae Equipamentos Ltd (Brazil) • Thermax Inc. (U.S.A.) • Thermax (Zhejiang) Cooling & Heating Engineering Co. Ltd. (China) • Danstoker A/S. • Omnical Kessel & Apparatebau Gmbh 3

4. Our Global Network Thermax Russia Thermax Europe Ltd. Luton, UK Thermax Inc. Detroit, USA Thermax Ltd. Jebel Ali, UAE Thermax Zhejiang Ltd Thermax Ltd. Nairobi, Kenya Thermax Ltd. Kuala Lumpur, Malaysia Thermax doBrazil Sau Paulo, Brazil 4

5. Our Core Business THERMAX Boilers & Heaters Cooling & Heating Power Generation Chemicals & Water Air Pollution Control Renewable Enviro • ESP & Bag filters • Scrubbers • Air purification • Retrofit & Revamp Cooling • Exhaust & Multi-energy fired chillers • Steam fired chillers • Hot water fired chillers • Direct fired chillers Chemicals • Ion exchange resins • Cooling water chemicals • Fireside chemicals • Polyelectrolyte Water and wastewater • Wastewater & Effluent water treatment systems • Water recycling • Waste management Solar • Heating • Cooling Boiler & Heater • Package boilers • Large capacity power boilers • Thermal oil / water heaters • Energy recovery systems Turnkey Power Plants • Solid fuel based • Gas based combined cycle • Waste heat recovery based • RE based incl. Biomass, Bagasse, solar, etc. • O&M of power plants Heating • Steam/Hot water power plants • Packaged solid/oil/gas fired boilers • Fired thermic fluid heaters • Exhaust waste heat recovery boilers 5

6. Reliable support for Industry Automobile Oil & Gas Steel Cement Chemicals Food Power Generation Refineries & Petrochemical Textile Pharma Hotels & Commercial complexes Our business-to-business solutions help a broad group of industries to be energy efficient and eco-friendly Paper & Pulp 6

7. Recognition for Thermax • Featured four times in the Forbes’ list of Asia’s ‘Best under a Billion Companies’ (2005-’08) • Listed among the top 100 of India’s most valuable 500 companies (Business Today ’07) • Business Standard ‘CEO of the Year’ (2007-08) award for Chairperson 7

8. PROPOSAL TSESL proposes to use Programmatic CDM to promote use of Clean energy equipments Company can create value for a large segment of small customers and accelerate the use of Renewable energy based Equipments as against conventional fossil fuel equipment. TSESL the coordinating and managing entity for the PoA TSESL has developed a unique online monitoring system to monitor all the performance parameters of the equipments under the PoA

9. PoA for Biomass based heat generation systems in India Programmatic Proposal for small users Small and medium users untouched by the benefits of CDM Lack of knowledge ,manpower ,technology and cost of transaction of CDM Aggregating CDM benefits will help switch a large number of users to green technology “a no risk” program for benefit of this segment IT at the forefront to address issues of risk for all stake holders

10. TSESL PROGRAMMATIC CDM STRATEGY TSESL immediate proposal is to develop the following Programmatic CDM TSESL hopes to accelerate and promote the use of Renewable energy To create sustainable energy solutions with customers for reducing GHG emissions through innovative deployment of value added services across the product life cycle.

11. Programmatic CDM For Biomass Heat Equipments CER Remote monitoring of Projects by TSESL PoAs Development % € € DOE Validation % € TSESL Programmatic CDM CME % CDM EB € € % € € MONITORING % € DOE Verification € € CER CER CDM EB UNFCCC Bonn BUYER

12. Ist INDUSTRIAL CDM PoA REGISTERED BY UNFCCC

13. Strengths of Biomass heat generation systems PoA High quality engineering and technical capabilities Customer connect for entire life cycle of the project activity 100% Remote performance monitoring system for high level service support mCarbon GHG monitoring web software for transparent MRV Well established systems and procedures as per ISO 9000 All India network for distribution and service

14. Physical Model of Biomass Boiler Installation 6TPH

15. 100 % online mCarbon™web monitoring software and web site

17. Typical size of each Heat generation Project Activity Equipment output - Steam or Heat Average Capacity Tons per Hour - 6 TPH No of hrs of operation - 8000 hrs Average Load - 75% Average expected CERs per annum - 6000 CERs

18. Existing Barriers for PoAs implementation Liability due to Erroneous inclusion clause Validation and Verification of CPAs by one DOE Expansion of PoAs after registration in LDC countries & countries covered under EB 55 Annex 12 loan scheme Approval from HCA for each CPA under a PoA Baseline fuel should be conservatively declared by UNFCCC for LDC countries

19. Liability due to Erroneous inclusion clause The CPA is identified as erroneous inclusion up to first Issuance of CERs ie Within 6 mths after 1st issuance or 1 year from inclusion whichever is later then the DOE has to take the liability of the CPA. A DOE, that has not performed validation, registration, inclusion or verification functions with regard to this PoA shall conduct the review referred to in paragraph 9, by assessing a random sample of 10% of all CPAs currently included and submitting a report to Board within eight weeks. Proposal CPA which have passed the 1 year from inclusion and 6 months after 1st issuance should be cleared from the sample check and not be reopened for sample revalidation. Only those CPAs which are within 1 year and the 6 mths from issuance time line should be considered to be taken as a sample for check

20. Suggestions for improvement Expansion of PoAs after registration in LDC countries & countries covered under EB 55 Annex 12 loan scheme Proposal – The registered PoA should be allowed expansion in LDC countries by taking a sample case CPA and get the same approved by having an HCA approval for that host country and a DOE inclusion A DOE shall request issuance for all CPAs included in the PoA during the specified monitoring period .The monitoring period must be consecutive.(EB 55 Annex 38 pg 8 clause 37 and 39) Proposal - DOE should be allowed to submit request for issuance for any CPAs verified and monitored during the specified monitoring period,should not be mandatory to monitor and verify all the CPAs in one lot A separate DOE may be allowed to submit request for issuance within 3 months or a DOE may be allowed to request for issuance within 3 months for different CPAs Should not be mandatory for consecutive periods

21. Suggestions for improvement DOE performing the validation currently is not able to perform verification activity for the same PoA. Proposal – DOE performing the Validation and inclusion of PoAs may be allowed to complete the verification process for completion of activity Approval from HCA for each CPA under a PoA Proposal - HCA approval should not be mandatory for CPAs under a registered PoA as in a PoA the project could be included prior to actual start or commissioning of the Project.