DONG Energy Generation

1. www.dongenergy.com DONG Energy Generation March 2007

2. SALES AND DISTRIBUTION PRODUCTION OPTIMISATION PRIVATECLIENTS PUBLIC CLIENTS BUSINESSCLIENTS WHOLE-SALE ENERGYEXCHANGES NATURAL GAS OIL RENEWABLE ENERGY COAL BIOMASS DONG ENERGY – Business Model Doc. info

3. DONG ENERGY – Past and future DONG Energy was established on 1 July 2006 as a result of the merger of six Danish power companies • DONG • Elsam • ENERGI E2 • Nesa • The electrical department ofKøbenhavns Energi • Frederiksberg Forsyning Doc. info

4. DONG ENERGY – Past and future After the merger, DONG Energy is active in every link of the energy chain • Exploration and production of oil and natural gas • Generation of power at conventional power plants and renewable energy plants • Sales of electricity and gas to end consumers including energy saving consultancy services • Distribution of electricity and gas • 112,000 natural gas consumers in Denmark • 900,000 Danish electricity consumer in the greater Copenhagen area Doc. info

5. ORGANISATION – DONG Energy Generation CEO, Generation Niels Bergh-Hansen HR Development Karen Hvid Finance Mikael Geday Modellering, analyse og strategi Christina Grumstrup Sørensen IT HR Management Accounting Controlling Management Services Jesper Engsig Christensen Doc. info Model development Market research Production Jens Erik Pedersen Project development and Engineering Bent Christensen Production planning & optimisation Leif Winum

6. GENERATION – Key activities • Production and trading of electricity and heat • Purchase of fuels • Operation and maintenance of existingpower plants • Refurbishment of existing plants to meet market demands • Engineering and construction of new production facilities • Development and demonstration ofnew technologies • Research and development Doc. info

7. Esbjergpower plant GENERATION –Production facilities Frederikshavn ELECTRICITY DISTRICT HEAT Central power plants GWh 22.995 TJ 47.638 (2006) Small-scale CHP plants Waste-to-energy plants Måbjerg Grenaa Herning Studstrup power plant DTU Doc. info Horsens Svanemølle power plant Kyndby power plant H.C. Ørsted power plant Asnæs power plant Avedøre power plant Skærbæk power plant Slagelse Køge Vejen Ringsted Odense Haslev Haderslev Stigsnæs power plant Masnedø Ensted power plant Maribo-Sakskøbing

8. Esbjergpower plant Production capacity Frederikshavn MW net capacity Large power plants Asnæs Power Plant 1,057 Avedøre Power Plant 810Kyndby Power Plant 734 Studstrup Power Plant 700Ensted Power Plant 626 Stigsnæs Power Plant 409 Skærbæk Power Plant 392 Esbjerg Power Plant 378 H.C.Ørsted Power Plant 185 Svanemølle Power Plant 131 Central power plants Small-scale CHP plants Waste-to-energy plants Måbjerg Grenaa Herning Studstrup power plant DTU Doc. info Horsens Svanemølle power plant Small-scale CHP plants216,3 Waste-to-energy plants96,5 Total installed net capacity 5.734,8 (1. January 2007) Kyndby power plant H.C. Ørsted power plant Asnæs power plant Avedøre power plant Skærbæk power plant Slagelse Køge Vejen Ringsted Odense Haslev Haderslev Stigsnæs power plant Masnedø Ensted power plant Maribo-Sakskøbing

9. Heat production Frederikshavn Central power plantsTJ Avedøre Power Plant 12.172 Studstrup Power Plant 9,090Svanemølle Power Plant 3,951 H.C.Ørsted Power Plant 3.546Skærbæk Power Plant 3,495Esbjerg Power Plant 2,545Asnæs Power Plant 931Ensted Power Plant 926 Måbjerg Grenaa Studstrup power plant Herning DTU Svanemølle power plant Doc. info Horsens Waste-to-energy plants5.355 Small-scale CHP plants5.628 Total heat production 47.638 (2006) H.C. Ørsted power plant Asnæs power plant Skærbæk power plant Avedøre power plant Esbjerg power plant Vejen Slagelse Køge Ringsted Odense Haslev Haderslev Masnedø Ensted power plant Maribo-Sakskøbing

10. Offshore wind turbines Onshore wind turbines Hydro power Power plant under construction Renewable energy productionin Europe Nygårdsfjellet 3,5 MW Narvik SKS 131 MW Indalsälven 205 MW Bergen Barrow 45 MW Nysted 132,5 MW Horns Rev64 MW Doc. info Ploudalmezeau 9,1 MW 188 MW Evira, Karistos and Tourla 18,6 MW CRISA Mini Hydro 6 MW

11. GENERATION Power production GWh Fuel mix 4,5% Coal Oil Natural gas Biomass Waste 12,8% 10,3% 7,8% 64,6% DONG Energy Denmark Installed capacity MW Heat production TJ Doc. info DONG Energy Denmark DONG Energy Denmark

12. DONG Energy in Europe Fortum 11 Statkraft 11 GW Power productioncapacity EDF E.ON Enel RWE Vattenfall Endesa Electrabel Iberdrola EnBW PPC CEZ British Energy Statkraft Fortum EDP Scottish&Southern Edision Axpo Verbund SE Union Fenosa Scottish Power DONG Energy Essent Nuon Drax Vattenfall 33 114 45 45 44 33 32 28 23 14 12 12 12 11 11 11 10 10 9 8 7 7 6 6 5 4 4 Scottish Power 6 DONG Energy 6 Scottish&Southern 10 Nuon 4 Drax 4 Essent 5 British Energy 12 E.ON 45 EnBW 14 Electrabel 28 RWE 44 CEZ 12 Doc. info SE 7 Verbund 8 Axpo 9 EDF 114 Iberdrola 23 Enel 45 PPC 12 EDP 11 Edision 10 Endesa 32 Union Fenosa 7

13. HOW WE TRADE SWEDEN NORWAY The Danish power market consists of two zones: Western Denmark (DK1) and Eastern Denmark (DK2) 620 MW 520 MW 950 MW 1000 MW • DONG Energy Generation sells electricity to the wholesale markets of North European power exchanges such as Nord Pool and the German EEX – European Energy Exchange. • The price of electricity is determined on the basis of supply and demand. The price is highly dependent on the water reservoirs in Norway and Sweden and on the general supply and demand situation in Northern Europe. • Large quantities of precipitation in Scandinavia increase power production at Scandinavian hydropower plants which leads to lower electricity prices whereas limited precipitation results in reduced power production and therefore increased prices. DK1 SWEDEN 1700 MW 1300 MW Doc. info DK2 950 MW 1500 MW GERMANY 550 MW 550 MW GERMANY

14. Project develop- ment Plant- Construc- tion Added value O&M Services R&D PROJECT DEVELOPMENT AND ENGINEERING Project development and Engineering is DONG Energy's joint project management and technical knowledge centre within the fields of power and heat production. Key activities: • Project development – development of new power plants in Denmark and abroad. • Plant construction – construction of new power and heat production facilities. Rebuilding and refurbishment of existing production facilities to make them up-to-date in terms of latest technology and compliance with environmental requirements. • Operation and maintenance services – operation and maintenance services to existing production facilities. • Research and development. Doc. info

15. Coal Wind power Gas W-t-E Biomass Hydro REtrol Bio ethanol CO2 PROJECT DEVELOPMENT AND ENGINEERING • Core Competencies: • Ability to complete complex energy projects in the multi million USD class with many contractors (split package) within frames of time, cost and performance. • Ability to handle alle phases of a power plant project from feasibility studies over design and procurement to construction supervision and commisssioning Doc. info

16. RESEARCH, DEVELOPMENT AND DEMONSTRATION Within research and development our most important focal points are the development of highly efficient power plants, renewable energy sources and technologies to reduce the impacts on the environment of our power plants. The three main projects right now are: • AD700 – Advanced steam data, 700 degrees Celsius steam temperatureThe objective of the project is to develop new materials which will allow an increase of the boiler steam temperature to 700 °C to ensure a higher output rate and lower CO2 emissions. • CASTOR – CO2 from Capture to StorageThe objective of the project is to separate CO2 from the power plant flue gases and to investigate the possibilities of re-using the carbon dioxide for enhanced oil production in oil fields. • IBUS – Integrated Biomass Utilisation SystemThe objective of the project is to process biomass like straw into ethanol (alcohol) for use as an additive to gasoline. The process is energy-heavy and there are good synergies to be obtained in the production of ethanol in connection with power plants. Doc. info

17. ENVIRONMENTAL POLICIES Policies for quality, working environment and the environment in general In DONG Energy we: • will identify objectives, evaluate results and currently improve these and be the best in the business. • make sure that we work in accordance with the legislation in force and current standards and requirements. • will communicate openly about things related to our objectives for quality, working environment and the environment in general and about our results in these fields. • are committed to making our clients content and to give advice on the optimum way to use our products. • will motivate, train and involve our employees in tasks concerning quality, working environment and the environment in general. • will work hard to obtain a healthy and safe working environment. • commit ourselves to constantly reducing our consumption of resources and impacts on the environment. • will choose to work with suppliers and partners who have and act according to policies for quality, working environment and the environment in general. Doc. info

18. ENVIRONMENT In DONG Energy we work hard to reduce the impacts on the environment of our power and heat production. As a consequence hereof we have built in environmental plants at several of our power plants. • Desulphurisation plants – remove 90-98 %of the sulphur compounds in the flue gas. • DeNOx plants – break down more than 80 %of the nitric oxides in the flue gas. • Fly ash separators – remove up to 99.9 %of the fly ash in the flue gas particles. Doc. info

19. ENVIRONMENT When coal, oil, biomass and waste are used as fuels, a number of minerals and residues are produced such as fly ash, bottom ash, gypsum and slag. • Fly ash is used in concrete and cement. • Bottom ash is used in building blocks and insulation materials. • Gypsum is used in panels and cement. • Bottom ash from biomass-fired boilers is used in agricultural fertilizers. • Slag is used as sand and gravel replacement in many types of construction projects. Doc. info