Fact Sheet: Siemens Energy in the US

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1 Fact Sheet: Siemens Energy in the US Energy infrastructure overview The U.S. electricity market is the world s largest and accounts for one-fifth both of global power demand and generation capacity. The aging of the existing infrastructure beyond its intended lifetime has led to a displacement of coal. In the U.S., the average age of large coalfired power plants is approximately 40 years, urging the need for replacement with advanced, much more efficient power plants. Added to the economic-driven reduction in electricity demand, the growing presence of renewables and unconventional natural gas applications, higher flexibility in the electricity grid is required. This development has led to increasing opportunities for renewables and a growing demand for new gas fleets as well as Integrated Gasification Combined Cycle (IGCC) over the mid- to long-term. Compared to the much younger U.S. gas-fired CCPP fleet, the new generation of Siemens H-class gas turbines consumes one-third less natural gas and emits one-third less CO 2 in combined cycle mode to generate the same amount of power. Environmental modernization demand will also increase along with the U.S. Environmental Protection Agency s (EPA) actions, resulting in tightened environmental regulations.

2 Siemens power generation solutions help meet one-third of America s total energy needs every day. Furthermore, Siemens energy management and high-voltage systems help to ensure the continuous reliability of one-third of America s transmission grid and increase the capacity of existing transmission lines by as much as 24 percent. The company is one of America s leading providers of equipment for wind and solar power, and a leading provider of solutions to help reduce industrial CO 2 emissions. The United States is a very attractive market. With approximately 60,000 employees in the U.S. in all 50 states, Siemens is a major employer and generates domestic value. The worldwide Energy Service Business is headquartered in Orlando, Florida, and the Oil & Gas Division has an important part of its business located in Houston, Texas General facts and figures for Siemens Energy, Inc. - 10,700 employees in the U.S. - Headquartered in Orlando, FL - No. 1 provider of steam turbines for solar thermal power plants - No. 2 provider of gas turbines in the U.S. - No. 3 provider of wind turbines in the U.S. based on installed capacity

3 Reference projects and innovations: FPL selects Siemens advanced, next-generation H-class gas turbine technology for two plant modernization projects in Florida After a nearly ten-year development phase, Siemens has entered the market with its industryleading, advanced H-class gas turbine. Florida Power & Light Company (FPL) has contracted Siemens Energy to supply six 60-Hz H-class gas turbine-generator packages for the modernization of its Riviera Beach and Cape Canaveral Next Generation Clean Energy Centers in Florida, as well as a 15-year service agreement for all turbines. Each power plant will utilize three 274-MW-rated SGT6-8000H gas turbines. With an efficiency of approximately 60 percent in combined cycle operation, this advanced, next-generation gas turbine technology offers highly flexible operation and industry-leading efficiency. In addition, the turbines can go from standby to startup in five minutes and reach full power operation in only 15 minutes. Facts and figures on the 60-Hz H-class gas turbine: - Equipping all of the combined-cycle plants in the U.S. with H-class gas turbines from Siemens would yield as much additional power as 25 million Americans could consume in one year without increasing CO 2 emissions. - Consisting of more than 7,000 individual parts, an H-class turbine has an output equal to that of up to 1,200 high-performance sports cars. - At 280 tons, each of the 60-Hertz gas turbines ordered for Florida weighs a little more than a fully fueled and fully loaded Airbus A with 300 passengers on board. - At 444 tons, the largest 50-Hz model currently available weighs as much as a fully fueled Airbus A380 and generates enough power to supply the energy needs of a city of 2.2 million inhabitants.

4 First order for flexible combined cycle power plant Siemens Energy has been awarded a contract from Northern California Power Agency (NCPA) for the supply of a natural-gas-fired combined cycle power plant. The 280-MW power plant will be located in Lodi, California, and will generate highly efficient and environmentally friendly power. The concept is unique because of its fast-start capability designed to deliver approximately 200 megawatts (MW) of power to the grid within only 30 minutes. These short start-up times reduce plant emissions significantly. It can also result in a carbon monoxide reduction of over 200 tons per year when compared to standard F-class combined cycle plants, which will set a new standard for greenhouse gas emissions for gas-fired combined cycle power plants. IGCC Summit Texas Clean Energy Siemens Energy has been awarded a Front End Engineering Design (FEED) contract by Summit Texas Clean Energy, LLC to provide coal gasification and power block technology for the Texas Clean Energy Project (TCEP). The new polygeneration IGCC project will use coal as its feedstock. With a gross capacity of 400 megawatt (MWe), the plant will also produce urea for the U.S. fertilizer market. With a carbon capture rate of 90 percent, the plant will have one of the highest carbon capture rates of any IGCC plant in the world. The CO 2 will be used for enhanced oil recovery in the west Texas area. Siemens is working with Fluor Corporation and Linde during the project s FEED. This project received a USD350 million award under the U.S. Department of Energy s Clean Coal Power Initiative (CCPI) - Round 3, to demonstrate the commercial integration of large-scale IGCC with CO 2 capture and geologic storage.

5 The Texas Clean Energy Project is located in Penwell, near Odessa, Texas. Siemens will deliver the gasification island technology, which will include two SFG-500 gasifiers. The power block will be based on an SGT6-5000F gas turbine modified to operate on high H 2 syngas, which will allow the plant to have a very high carbon capture rate of about three million tons/year. The power block will also include a Siemens SST-900RH steam turbine, air-cooled generators and SPPA-T3000 controls. Grant received from DOE for CO 2 capture project Siemens has been awarded a USD8.9 million grant from the Department of Energy (DOE) to build its first CO 2 capture project for coal-fired power plants in the U.S. The company is planning to design, install and operate a pilot plant for treating a slipstream (1 MW equivalent) at the Tampa Electric Big Bend Station to demonstrate POSTCAP technology for postcombustion CO 2 gas capture. The primary goal of this project will be to reduce the large amounts of energy traditionally needed to operate carbon capture technologies. But more importantly, Siemens' POSTCAP technology will utilize an amino acid salt formulation as a solvent for CO 2 absorption. The usage of this non-toxic, biodegradable solvent will result in a more environmentally friendly process. Neptune HVDC cable supplies power to Long Island Siemens built the high-voltage direct current (HVDC) transmission line between Sayreville, New Jersey, and Long Island, New York. The HVDC system carries 660 megawatts at a DC voltage of 500 kv. Thanks to this HVDC submarine cable interconnection, Long Island receives power from the New Jersey power grid in a low-loss and environmentally compatible way, thus helping meet the constantly growing power demand and strengthening the backbone of Long Island s transmission system.

6 Service upgrades at Klamath Falls power plant The Klamath cogeneration plant has set the standard for new levels of environmental performance. It was the model for an Oregon law, which was the first of its kind in the U.S. This power plant is one of the cleanest and most fuel-efficient power plants in the world. An efficiency increase of 20 percent compared to conventional coal-fired power plants was achieved by performing a service upgrade, resulting in lower cost, less emissions, waste water reduction and, therefore, less pollution for the community. Improve performance and increase output also reduce the CO 2 emissions. Turbine-generator unit upgrades of nuclear power plants in the U.S. Siemens Energy is refurbishing and upgrading the turbine-generator units of Florida Power & Light Company s (FPL) St. Lucie and Turkey Point nuclear power plants in Florida, as well as its Point Beach nuclear units in Wisconsin. The projects in Wisconsin and Florida have the potential to increase the installed capacity by up to 570 MWe. First direct-drive wind turbines for the U.S. market Siemens will supply 95 SWT wind turbines for the Crossroads wind power plant in Oklahoma. Additionally, Siemens was awarded a contract for three units of the new SWT , Siemens new 3-MW gearless, direct-drive wind turbine. This was the first step in establishing this game-changing technology in North America. Upon completion in the second half of 2011, Crossroads will be able to meet the electricity needs of more than 68,000 average U.S. homes. Wind turbine supply agreement with Cape Wind While the onshore wind industry is well developed in the U.S., the U.S. offshore wind resources still offer a vast, untapped source of renewable energy potential. Siemens will make its offshore wind turbine market entry with the first planned offshore wind

7 farm in the U.S., the Cape Wind project off the coast of Massachusetts. Cape Wind has entered into an agreement with Siemens to supply MW offshore wind turbines, which would be enough to provide clean, renewable energy to meet three-quarters of the electricity demand of Cape Cod. Largest single onshore wind project in the U.S. Siemens Energy has secured an order for its largest single U.S. wind turbine project. Puget Sound Energy, Washington s oldest, local energy utility, awarded the company an order for 149 SWT wind turbines for the Lower Snake River wind farm in Washington State. With an installed capacity of nearly 350 megawatts, the wind power facility is expected to provide clean power for more than 100,000 homes in the state of Washington. PSE has an option to purchase an additional 110 units for later phases of the project. First photovoltaic power plant order Siemens Energy was selected by Syncarpha Capital to provide engineering, procurement and construction services for a 3-megawatt-peak (MWp), ground-based PV power plant in Easthampton, New Jersey. Construction began in May 2011 and the plant went online in October The Sparta project is capable of powering more than 600 homes.

8 Did you know? - Siemens power generation equipment supplies more than one-third of the electricity in the U.S. - Siemens high-voltage systems helped U.S. utilities increase the capacity of existing transmission lines by up to 24 percent. - Siemens energy management systems help to ensure the continuous reliability of more than one-third of the U.S. and Canadian transmission grid. - Siemens has supplied some of the longest running operating wind turbines in the U.S. In California, the oldest turbines have been successfully in service since the mid-1980s. - A typical gasification-based coal-to-liquids plant can produce up to 250 million gallons per year of clean aviation fuel for the U.S. airline industry.