Creating new Renewable Power from the Sale of Guarantees of Origin Preben Munch, Director Corporate Customers, Ecohz AS

1. ENERGY POSITIVE!
CREATING NEW RENEWABLE POWER FROM
GUARANTEES OF ORIGIN
2014 German Norwegian Energy Forum
Preben Munch, Director Corporate Customers, ECOHZ

2. WRITING ON THE WALL
- Paul Simpson CEO CDP
“The single biggest risk
that exists to the
economy today”
- U.S. Treasury Secretary Henry
Paulson on climate change
"The transition to a low carbon economy will not
be successful without a paradigm shift in the
way we power our planet. That shift needs to
gather pace rapidly but also be conducted in a
pragmatic way,"
- Philip Ryan, Chairman Swiss Re Americas
“At IKEA, we see climate
change as one of the most
significant risks that
businesses face today, but
tackling it is also a significant
opportunity. ..”
- Peter Agnefjäll, CEO IKEA
"It makes better
business sense than
ever to ensure we
end the destruction of
our natural resources
and reduce our
carbon output.
- Sir Richard Branson, CEO -
Founder Virgin Group

3. ABOUT ECOHZ
Page 3
• Privately owned
corporation, HQ in Oslo
• Europe office focus is
corporate customers &
strategic partnerships
• Ca 20% of total EU GO
sales
• Largest range of
renewable power
products and wide
European origins
• European market leader in Guarantees of Origin
• 40-50 TWh annual volumes past 4 years
• Offer Guarantees of Origin from 200+ power
plants

4. OUR VISION
CHANGING ENERGY BEHAVIOUR
-
ORIGIN MATTERS
Page 4

5. ECOHZ GO2 => ENERGY SYSTEM TRANSFORMATION
Current energy system System transformed by ECOHZ GO2
Fossil generation Renewables Displace fossil generation More Renewables
Page 5
ECOHZ GO2
New renewables displace old carbon-intensive generation

6. ECOHZ GO2 – WHAT IT IS
• 1 MWh of renewable power with GO
• Zero Scope 2 emission guarantee
• A financial component
• Network of corporate energy behaviour
Thought Leaders
Page 6
Each ECOHZ GO2 documents
current renewable consumption
• Transparency and
traceability
• Access to the most
efficient way to participate
in the renewables future
• “Proprietary” link to the
new power plant –
exclusive story

7. ECOHZ GO2 - HOW IT WORKS
• 1MWh; of € 4.00 price, € 3.20 (80%) committed to
agreed new renewable project
• Funding administered by a special purpose foundation
• High leverage effect; financing maximum 15% of
project costs (top-up)
• All loans repaid to foundation, creating revolving fund
and achieve multiplier effect
• Third-party verification and audit, and compliance with
forthcoming CDP Standard
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Each ECOHZ GO2 contributes to
future new renewable production

8. ENERGY POSITIVE:
POWER PRODUCTION = x CONSUMPTION
Power consumption in a year
(example)
 100,000 MWh (zero carbon through GO)
Procurement cost through ECOHZ GO2
 100,000 x € 4.00 per MWh = € 400,000
Money committed to funding of projects
 80% (€ 3.20 / 4.00) = € 320,000
Top financing of a new small
hydro plant
 8% of € 4,000,000 = € 320,000
Power produced by new plant
 8,500 MWh per year
Power produced over 40 years’ life
 300,000+ MWh (3x original
consumption)
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9. ENERGY POSITIVE BENEFITS
Claim zero Scope 2 emissions on
power purchased as ECOHZ GO2
 Valid across Europe
 Compliant with GHG Protocol
 Recognised by CDP
Contribute to the creation of new
renewable energy
 Choose which power projects to fund
 Make a real positive impact in the
energy system
 Be seen as forming a positive energy
future
Page 9

10. ENERGY POSITIVE BENEFITS
Demonstrate leadership in
climate action to stakeholders
 Gain power project sponsorship rights
 Receive documentation for your
sustainability reporting and marketing
 Be part of the solution - Position as
thought leader
Customise ECOHZ GO2 to your
power supply needs
 Purchase future GO from new plants*
 Option for a PPA with new plants*
 ECOHZ scouts for desired projects
* Option availability depends on negotiation with project developers
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11. IN CONCLUSION
• Improves Scope 2 emissions
performance
• Shows climate leadership by
funding real new renewable projects
• Same impact and compelling story
as the trend setters (Google, Ikea,
Mars…)
• Optimised cost-benefit combination
• Customizable to include PPA and
long term GO procurement
Page 11

12. CHANGING ENERGY BEHAVIOUR
Preben Munch pm@ecohz.com

13. HOW DOES ECOHZ GO2 COMPARE - BENEFITS
Benefits Direct
Investment PPA ECO
LABEL ECOHZ GO2
Support to
new renewable
capacity
A A A A A A A A A
Power supply
and price risk
mitigation
A A A A A A - A A
Scalability A A A A A A A A
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AAA signifies greater benefits

14. HOW DOES ECOHZ GO2 COMPARE - COSTS
Costs Direct
Investment PPA ECO
LABEL ECOHZ GO2
Capital
commitment A A A A A A A A A
Implementation
& management
complexity
A A A A A A A A A
Horizon of
required
commitment
A A A A A A A A A
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AAA signifies lower cost/complexity

15. - Lord Adair Turner