Biogas USA
2010

www.xebecinc.com
Natural and Renewable Gas Focus
Leading manufacturer of natural
and renewable gas systems for
infrastructure development
Natural and renewable gas
as transportation fuel
Create partnerships with gas
utilities, municipalities and the
food & waste industries to
increase our footprint in the
transportation sector
Global presence, with headquarters in Montreal, Canada
Listed on the Toronto Stock Exchange (TSX: XBC)
2
Who we are Market Focus Strategy

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Renewable and Natural Gas Value Chain
3

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Biogas upgrading plants
Hydrogen purifiers for hydrogen recovery Distributed small scale natural gas liquefaction
Natural gas dryers for NGV refueling stations
 Rapidly growing market
 High recovery, high purity,
low energy plants
 Key Customers:
SEMPRA, Montauk
Energy, Halla Engineering,
Terasen Gas
 Growing market
 Cost leadership through
Chinese manufacturing
 Key Customers: Clean
Energy, Petrochina,
Sinopec, Shell
 Evolving market segment
 Market-leading
performance for small-
capacity hydrogen plants
 Key Customers:
HydroChem,
Air Liquide, Linde, Nuvera
 Early-stage business
opportunity
 Compact size
 Easy and low-cost to install
 Low operating costs
 Key Customers: Solensa
Business Segments

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 High methane recovery: 96 – 98 %
 Competitive power usage: 0.17 – 0.23 kWh/m3
 No Heat requirement
 One-step Water/C02 removal
 Reliable Rotary Valves
 High availability of PSA: 99.5%
 Easy and Fast Installation
 Dry Process Purification Process, i.e.:
 No process water /no process water treatment
 No waste water/no waste water treatment
 No chemicals
 No corrosive gas atmosphere
 Co-adsorption of CFC’s , VOC’s
 Integrated drying/dew point < - 40c
 Partial removal of N2 and O2 - increase in calorific
value - no addition of N2 or O2
 Removal of silicon-compounds as well as higher
carbohydrates and halogenated carbohydrates –
meet California’s Rule 30
 Better overall efficiency
 Independent of ambient temperature
 No bacterial contamination
Benefits of Xebec’s High BTU Gas Plants

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Technology and IP Assets
Pure Innovation™
 World-class research and development facility in
Vancouver, Canada
 15 years of dedicated development in
gas purification & separation
 Ability to simulate, develop and test gas
separation technologies in line with market and
customer requirements
 130 patents or applications in
39 patent families worldwide
 Ongoing development work on next generation
biogas upgrading technology
 Contract Engineering Services for key purification
and separation technologies & projects
Xebec unit installed at
ExxonMobil refinery in 2007
Xebec Technology Center

Natural Gas: The Transportation Fuel Opportunity

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Ramping Oil Prices
Energy Security
Climate Change
Greenhouse Gas
Reductions
Governments’
Commitment to
Renewable Energy
Technology
Advancement
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
Numberofnaturalgasvehicles
Year
Natural Gas Vehicles (NGV)
to grow 600% by 2020 worldwide
Actual to date
Projected
© NGV Global www.iangv.org
Natural Gas as a Transportation Fuel

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 Asia has been growing at 50%
 The EU has seen growth in the NGV
market space and is planning for
accelerated growth in Germany, Italy,
Sweden, Austria, Switzerland, Spain and
others
 The U.S. and Canada are in the process
of introducing favorable legislation, which
will lead to significant future growth in
the NGV sector
 Latin America is continuing to grow its
NGV fleets
 Africa is seeing good growth
Global Growth for Natural Gas as a Transportation Fuel
Global NGV Growth by Region
0%
10%
20%
30%
40%
50%
60%
Asia
Europe N.A.
L.A.
Africa
Average % NGV growth
2000 to present by region
© NGV Global www.iangv.org

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Growing Support for NGV in North America
U.S. Energy Bill (S 3663)
DOE Clean Cities Program
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 Senate Bill : $3.8 billion for vehicle
purchase rebates (90% of incremental costs for
heavy-duty vehicles)
 $500 million proposed for fuelling infrastructure
 $2 billion for the manufacturing loan program
 U.S. $300 million in funding for 25 projects
 Aims to deploy over 9,000 alternative fuel vehicles
and 542 refuelling stations
 Funding for approximately 2,300 CNG vehicles and
500 LNG trucks was awarded
Multiple pro NGV measures including:
NGV Fuelling Station

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Heavy Duty Trucks Key to US NGV Market
Heavy Duty Trucks Account for 4%
of the Vehicles but Consume 23% of the Fuel
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40%
4%
(9.9 million)
54%
2%
Light Trucks Heavy Trucks Passenger Cars Motorcycles
35%
23%
41%
1%
Light Trucks Heavy Trucks Passenger Cars Motorcycles
Percentage of vehicle
types on the road
Percentage of fuel
consumed by each type of vehicle
Small segment of the transportation sector – Large environmental impact
and Buses and Buses
© Energy Vision www.energy-vision.org

Renewable Gas: An Ultra Clean TransportationFuel

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Fuels will be blended with renewables at an
accelerated rate for industry compliance.
This will drive demand for the biogas
upgrading solutions that Xebec provides.
RenewableGas
RenewableFuel
CRG/LRG
NaturalGas
Alternative Fuel
CNG/LNG
In the field of NGV, upgraded biogas,
or renewable gas, is the blending agent of choice
Renewable Fuel Standard II – Biogas identified as ―advanced biofuel‖
 European Union - 5% share of renewables in
transport fuel by 2015 and a 10% target by 2020
 California - 1 January 2011: Effective date of the
carbon intensity reference values for the Low-
Carbon Fuel Standards (LCFS) determined in
2009 by the California Air Resources Board
(CARB).
 2030 Target year set by the U.S. Department of
Energy to displace 30 %
of gasoline demand (2004 levels) in the United
States with renewables.
Renewable Gas in Transportation Segment

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U.S. DOE estimates 25% of all diesel fuel could be replaced by renewablegas
Impact of Blending on GHG Emissions
Source: DENA – German Energy Agency

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Value of Biomethane
Wholesale
price 8.3¢/kWh
versus
MPR feed-in
tariff at
2.3¢/kWh
2020 gas futures
market price
versus
proposed
production tax
credit of
$4.27/MMBtu
s.306 & h.r. 1158
CNG market value
if diesel is $2.70
per gallon
$8.49
~$6.30
$20.67
$10.81 $10.57
Electricity Pipeline CNG
Value of Biomethane Products per MMBtu

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Value of Biomethane — forecast for 2020
$0
$20
$40
$60
$80
$100
$120
2005 2010 2015 2020
Fuel prices expected to
climb through 2020
Electricity & gas prices to
remain flat through 2020
Source: “Annual Energy Outlook 2010”, Energy Information Agency
$8.49
~$6.30
$20.67
$10.81 $10.57
Electricity Pipeline CNG
Value of Biomethane Products per MMBtu

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$20.67
$10.81 $10.57
$31.83
Electricity Pipeline CNG
Value of Biomethane Products per MMBtu
2010
2020+54%
Value of Biomethane — forecast for 2020
$0
$20
$40
$60
$80
$100
$120
2005 2010 2015 2020
Fuel prices expected to
climb through 2020
Electricity & gas prices to
remain flat through 2020
Source: “Annual Energy Outlook 2010”, Energy Information Agency

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The Renewable Gas Opportunity
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Rapidly growing market for biogas upgrading,
as utilities make room for it in their portfolio of
renewables
 Strong global demand, with Asia leading the way
 Attractive government incentives are being prepared
Going forward, as the NGV market picks up
speed, we expect demand for renewable gas to
increase significantly as a result of blending
requirements and economics
Long-term macro trend that supports our business
in the renewable gas segment
 Superior environmental benefits
 Strong economic profile
 Government incentives, including renewable fuel
standards and other legislative measures
Strong global demand for
solutions that Xebec provides

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Project Location Biogas Source End-Use
2006 - 2009
Scenic View Dairy MI, US Digester Pipeline
Rumpke Landfill OH, US Landfill Pipeline
Widnau Switzerland Digester Pipeline
Lavigny Farm Switzerland Digester Pipeline
UNH NH, US Landfill Turbine
SKS Austria Digester CNG
Swiss Farmer Switzerland Digester Pipeline
STEP Switzerland Digester Pipeline
Hilarides Dairy CA, US Digester CNG
Daesung Seoul, Korea Landfill CNG/LNG
SKS Austria Digester CNG
2010 - YTD
Sempra Energy CA, US Waste Water Pipeline
Halla Engineering Seoul, Korea Digester CNG
SKS Austria MSW Pipeline
SKS Austria MSW Pipeline
SKS Austria Waste Water CNG
Verdemobil France MSW CNG
WELtec China Agricultural Digester CNG
Huimiing China Landfill CNG
Terasen Gas Canada Landfill Pipeline
PT Indo Raya Indonesia Chemical Plant Pipeline
Renewable Gas Installations
Extensive experience in the biogas segment
gained through multiple, successful
international projects
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From 2006 to 2009 only about 30% of Xebec’s
upgrading projects were for renewable gas to
transportation fuel
In 2010 about 60% of Xebec’s upgrading
projects will be for renewable gas to
transportation fuel

Case Studies

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Location: Southern California, US
Developer: Gas Utility
Biogas Feed: Waste Water Plant
Raw Biogas: 58% CH4
~360 Nm3/h
End-use: Test/Pipeline
Pipeline Operator: Southern California Gas
Order date: 2010
Case Study – Waste Water Treatment Plant

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Location: Seoul, South Korea
Developer: Halla Environmental
Biogas Feed: Food Waste Digester
Raw Biogas: 60% CH4
~650 Nm3/h
End-use: CNG for Refuse Trucks
Order date: 2010
Case Study – Mixed Waste-to-CNG

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Location: British Columbia, Canada
Developer: Terasen Gas
Biogas Feed: Landfill at Salmon Arm
Raw Biogas: 58% CH4
~700 Nm3/h
End-use: Household Heating and
Cooking for ~300 Homes
Customer: Terasen Gas Inc.
Order date: 2010
Case Study – Landfill Gas to Heating & Cooking

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Conclusions
 Strong macro trends support renewable gas in
transportation (GHG reduction, increased use of
renewables in transport and energy)
 Strong economics for renewable gas in
transportation (most money for the gas)
 Increased demand forecast for renewable gas in
transportation (as NGVs increase)
 Increased interest from Gas Utilities in
renewable gas (Green Gas – renewable content)
 Increased interest from Gas Utilities &
exploration companies in NGV vehicles and
refuelling infrastructure (as NGV population
increases)
 Reduced cost forecast for upgrading technology
(equipment is getting cheaper and more reliable)
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Compact integrated Xebec
upgrading skid
Source: “Annual Energy Outlook 2010” Energy Information Agency
IMPORTANT
Make the right investment decision
today when comparing electricity to
upgrading projects

Thank you
Kurt Sorschak
President & CEO
450.979.8700
ksorschak@xebecinc.com