Introduction to the Energy Savings Module™ & The ECO³™

1. Introduction to the Energy Savings Module™ & The ECO³™

2. Introduction to Smartcool • Technology initial developed in Australia by Abbotly Technologies Pty. Ltd. in the mid – 1980’s • Smartcool acquired the assets of Abbotly Technologies Pty. Ltd. in 2006 • Developing distribution networks throughout the Americas, Europe, Middle East, Asia-Pacific & Australia • Proven technology with over 26,000 installations worldwide • Member of the TSX Venture 50 in 2007 • Winner of the Deloitte Green 15 in 2007

3. Components of the ESM™

4. What Is The ESM™? Microprocessor based energy saving device Air conditioning systems Refrigeration systems Plant operational time reductions 15% to 40% Average usage (kWh) savings of 15% Average demand (KW) savings of 10% No penalty system No change to pre-existing operating criteria No impact on conditioned space or chilled water temperatures No impact on case, cold room & product temperatures

5. ESM™ Key Features Retro-fittable product with minimal field wiring or plant down time Complies to plant manufacturers specifications Self-learning - requires no manual adjustment Always fails to safe Certified product CE Certified UL Certified Remote communications and control Energy efficiency rebates & incentives can be received following kWh savings validation by utilities

6. ESM™ Installation Example

7. The ECO³™ Product Overview

8. ECO³™ Features The ECO3™ is an economical, small-scale application of Smartcool technology. • Two models: • Single Channel, for use with a single compressor • Dual Channel, for use with two compressors cooling the same controlled space • Reduces compressor run times • Usage (kWh) savings averaging 15% • Demand (KW) savings averaging 10% • Interfaces with existing controls • No risk to current equipment or effect on manufacturer’s warranty • Maintains temperature performance • Optimizes the efficiency of the cooling & heating cycles on compressor driven heat pump units

9. ECO³™ Features • Displays kWh savings • Allows bypass- auto returns to savings when bypass complete • Smartcool proprietary software • Multiple cable diameter sealed entry • IP64 rated for outdoor installations • Simple wall mount and product installation

10. ECO3™ Installation Example

11. Compatibility With Control Systems Compatible with all known control systems since it complements, but does not replace the primary controls 26,000 units installed world wide on many different control platforms ESM™ has RS 485 & RS 232 communication ports which allow for networking of all units on site & connection with PC via LAN or Modem Integration with BMS & 3rd party software successfully completed in the past

12. NO Impact on existing equipment warranties Complies with compressor manufacturers specifications for cycling rates Low voltage product with a fuse to protect existing equipment Always fails to safe Standards compliance Quality Assurance: Complies with ISO9001 North America: Complies UL 916 & ULC 22.2 No.205-M1983 Europe (CE): Complies with EN60730 (IEC 730) & EN60950:2000 Complies with EMC directive EN55022, EN55024, 89/336/EEC & 93/68/EEC Australia: Complies with AS2064, AS3100 & AS3260 Impact on Existing Equipment Warranties

13. So…How do the ESMTM & ECO3TM achieve savings?

14. Background Majority of controls concentrate on conditioned space temp, chilled water temp or suction pressure Compressors are switched ON in response for cooling and will operate until that demand is satisfied To avoid (short cycling), which will cause damage to compressors, the control bands are usually set with a min. differential of approx. 4 PSI or 2° C.

15. Background (cont’d) Compressor capacity to remove heat is directly proportional to the operating temperature The higher the controlled temperature, the higher the suction pressure (evaporator temperature), the faster the rate of heat removal When compressor first starts at high limit point it will operate at maximum efficiency with a high suction pressure As the conditioned space temp. is reduced, the suction pressure drops and compressor capacity is reduced Each degree of temperature reduction takes a longer period of time and uses more electricity

16. Background (cont’d) The example above, uses a +(-) 2.5° C suction temperature differential The table to the right, shows a typical chiller compressor capacity chart for a nominal 40 kWh heat load, showing the time & energy taken per degree of temp. reduction Reducing from 6° to 5°C takes 14.4 minutes and 3.57 kWh The last degree of pull down uses almost twice the energy and time

17. Background (cont’d) Unfortunately, this increases the mid point temperature from 7.5°C to 8°C. The chart to the right illustrates the percentage of energy used per degree. The last degree of pull down used 28% of the total energy for the cycle

18. COMPRESSOR OPTIMIZATION Designed to work with the existing refrigeration equipment, along with the current control methodology, to reduce energy consumption When a call for cooling comes from the existing controller, the advanced control module takes over to determine when and for how long each compressor or unloader will run This advanced control technology enable the compressor to maximize the rate of heat removal by optimizing the natural physical properties of the compressor operating cycle

19. Compressor Optimization • This “Optimization” is done with no appreciable difference to the temperature being controlled

20. Compressor Optimization • By creating more time where the compressors operate in the higher suction pressure area, the ESM™ have the compressors run more often when they are more efficient. • By running less, the compressors energy usage is reduced.

21. Smartcool Technology Result: • The ESM™ and ECO3™ increase the efficiency of the compressors by causing the refrigeration or A/C system to operate at a higher suction pressure • The ESM™ and ECO3™ reduce the total run time of the compressors resulting in a reduction of electricity use • Because the compressors are operating more efficiently pre-set controlled space temperature performance is maintained with fewer operating hours and less electricity use

22. THIRD PARTY VALIDATION Smartcool has undergone significant independent third party testing, proving its energy saving capabilities. Of particular note are the following tests: Florida Power & Light: The University of Miami conducted extensive testing on behalf of FP&L of the ESM™ over a twelve month period in 2006. The testing showed that the ESM™ reduced kWh usage of the entire air conditioning system by 8.9% – which provides a savings of 13.38% of the kWh usage by the compressors, an annual reduction of 43,660 kWh and a reduction in greenhouse gas emissions of 58,911 lbs. Oak Ridge National Laboratory: ORNL conducted a two phase test of the ESM™ in 2004-2005. The first phase of the test involved the analysis of data collected from an installation on a refrigeration rack in a grocery store. The second phase evaluated the ability of the ESM™ to reduce the electrical consumption of a four compressor roof top unit in a controlled laboratory environment. Test results showed an 11.87% reduction in kWh usage by the compressors in the system and a 2.2% demand (KW) reduction.

23. Who Uses Smartcool technology?

24. Pharmacia & Upjohn Smartcool technology was installed on the air conditioning system of Pharmacia’s international headquarters in New Jersey. FAES Farma Smartcool technology was installed on the air conditioning system of FAES Farma’s research and manufacturing facility in Biscay, Spain.

25. Royal Newcastle Hospital Smartcool technology was installed on the air conditioning and refrigeration systems of the hospital Newcastle, Australia. GE Healthcare Smartcool technology was installed on the air conditioning system of a GE Healthcare facility in Bangalore, India.

26. What Smartcool can do for you • Energy efficiency retrofits are the fastest, most cost effective way of meeting energy reduction targets • Cooling systems consume at least 15% of the energy used in buildings, making them responsible for a substantial portion of GHG emitted by buildings

27. Smartcool Product Summary Compelling Economics Savings are Easily Verifiable After Installation Compatible With All Known Control Systems No Impact on Existing Equipment Warranties Ease of Installation • Ability to Capitalize on Incentives / Rebates • Proven Track Record • Product Liability Protection • 12 Month Manufacturers Warranty

28. Improve Your Business by E3

29. Questions? More information is available at www.smartcool.net or info@smartcool.net