Energy Efficiency Economic Benefits Environmental Sustainability

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1 Energy Efficiency Economic Benefits Environmental Sustainability

2 Smartcool Systems Inc.

3 Table of Contents The Vision 4 The Opportunity 5 The Energy Consumption Challenge 6 The Solution 7 The Products 8 Applications 12 Third Party Testing 15 Energy Efficiency & the Environment 16 Who is Saving With Smartcool? 18 Management Team 20 Corporate Structure 21 Contact Us 23 Stand Out and Save With Smartcool Nothing Else Compares

4 Smartcool s Vision Smartcool Systems Inc. manufactures and distributes a proven green technology that makes refrigeration and air conditioning systems more efficient, resulting in reduced energy consumption, cost savings, and a smaller carbon footprint. Smartcool Systems was established in 2004 as a public company listed on the Canadian TSX Venture Exchange. Smartcool was initially the Canadian distributor for the ESM on behalf of Abbotly Technologies Pty Ltd of Australia. In 2006, Smartcool purchased the assets of Abbotly, including intellectual property of the ESM, and became the sole distributor and manufacturer. With research and development moving to the Vancouver head office, Smartcool was well positioned for further corporate and product development. Today, Smartcool is growing alongside the expanding market for energy-saving technology being driven by bottom-line business fundamentals, increased environmental awareness, and rising energy costs. The principal focus of Smartcool Systems Inc. is the acquisition, further development, manufacturing and marketing of energy saving, green technologies. Smartcool has chosen to focus on the development, licensing, and sale of technologies that can be integrated into end products in various sectors. Goals & Objectives Continue to build a worldwide sales and distribution network for Smartcool s green technology product line Continue to evaluate energy saving, clean technologies and add new products to the Smartcool line as opportunities arise Maximize the financial benefits from existing government and utility rebate programs Substantially increase shareholder value 4

5 World Energy Consumption Quadrillion Btu Historical Projected Despite increasing energy prices, consumption will continue to expand rapidly in the near term as a result of expanding populations and substantial economic growth in developing countries. If the world continues on its current path of increasing energy consumption, CO2 emissions from energy generation will rise to 43 billion metric tons by 2030.* *Source: Energy Information Administration: International Energy Outlook 2008 Smartcool - The Opportunity Right Space, Right Time Smartcool s green technology address both economic and environmental issues of energy consumption in buildings. Proven Technology Smartcool s technology has already been adopted by some of the world s most prominent companies in their sectors including Tesco - UK (Supermarket), Telstra Australia (Telco), Bezeq Israel (Telco), HPL Hellman USA (Food Distribution), Gate Gourmet UK (Catering Logistics). The technology has also received third party verification from University of Miami (on behalf of FP&L) and Oakridge National Laboratory. Sales & Distribution Channels Smartcool has established strong networks around the world, exposing its technology to the global marketplace. Cost of Energy Explosive revenue growth expected through 2009 and beyond as the cost of power continues to soar. Legislation World-wide, governments are demanding that industry reduces its greenhouse gas emissions and economic stimulus packages have tightened the legislation around energy efficiency. Incentives An increasing number of utilities and governments are providing financial incentives such as rebates, to encourage end-users to reduce their electricity consumption. Smartcool s technology has the features necessary to qualify for incentives, making the economics of an energy efficiency retrofit even more appealing. 5

6 The Energy Consumption Challenge When most people consider greenhouse gas (GHG) emissions, they think of factories, transportation and deforestation. Most people would be surprised to learn that generation of electricity actually causes more emissions than all other anthropogenic sources. There are two ways to reduce the emissions caused by electricity. The first would be to use more renewable energy sources like wind and solar power. The second is to reduce the amount of electricity we are using around the world. Taking advantage of this fifth fuel is achieving greater momentum every year and provides the most cost effective option for reducing emissions. Where does all the electricity go? According to the US Department of Energy, the largest single use for electricity in North America is lighting (27%) followed by cooling (refrigeration and air conditioning) at 15%. In countries with higher ambient temperatures, the usage in air conditioning will be significantly higher, coming much closer 30%. There has been a great deal of development in the lighting field to reduce energy, however, in the area of air conditioning and refrigeration, most of the development has resulted in expensive and complex systems requiring highly skilled installers and programmers. The cost of these systems has prohibited the installation by most small to medium consumers and even larger businesses have been challenged to meet the expense. Smartcool provides a unique, proven retrofit technology to help make businesses more energy efficient, thus saving money and reducing greenhouse gas emissions. Since Smartcool s technology works in conjunction with the primary controller, installing these retrofit solutions requires limited to no system downtime and no equipment upgrades. 6

7 Smartcool s Solution In air conditioning and refrigeration systems, the compressor is the largest consumer of electricity, in most cases consuming about 70% of the total electricity. Reducing the amount of time the compressor runs will substantially reduce the amount of energy used. The capacity of compressors to remove heat is directly proportional to the operating temperature of the system: the higher the controlled temperature, the higher the suction temperature and the faster the rate of heat removal. The chart opposite shows the compressor cooling capacity at each degree of suction temperature to reduce the temperature from 10 C to 5 C. When the compressor first starts at the high limit point it will be operating at maximum efficiency with a high suction pressure. As the conditioned space temperature is reduced, the suction pressure reduces and compressor capacity is reduced. Therefore each degree of temperature reduction takes a longer period of time and uses substantially more electricity. The last degree of cooling uses almost twice the energy and time as the first degree of cooling. Smartcool s technology is designed specifically to reduce the electricity consumption (kwh) and demand (KW) of refrigeration and air conditioning compressors by improving their performance and maintaining temperature control. Smartcool s ESM and ECO³ enable compressors to maximize the rate of heat removal by optimizing the natural physical properties of the compressor operating cycle. This process, known as Compressor Optimization can reduce compressor run time by up to 30% with no affect on the temperature conditions. 7

8 The Energy Saving Module (ESM) Set & Forget Retrofit Technology Average 15% Reduction in kwh Usage Average 10% Reduction in KW Demand Easily Verifiable Savings Typical Return on Investment in 2 to 3 years 8

9 The ESM is a green technology that reduces the electricity consumption (kwh) and demand (KW) of air conditioning and refrigeration compressors. Interfaces with existing equipment and controls to optimize the compressors and save energy Maintains temperature requirements Prevents over-cycling of the compressors, extending their lifetime and often reducing maintenance costs No impact on manufacturer s warranty Manual bypass possible and will always fail to safe As a modular system, the ESM is composed of two different parts, responsible for two different functions. The Network Controller (LNC) is the brains of the ESM, providing all calculations for optimizing the compressors. The Interface Module is connected in series between the LNC and the compressors, and is responsible for relaying the instructions from the LNC to the compressors. Two different types of Interface Modules are available: the System Interface Module (SIM) and the Intelligent Interface Module (IIM). A LNC can have up to four SIMs, providing control for up to eight channels. An ESM configured with SIMs is compatible with the majority of cooling systems. The IIM provides the ESM with additional control options making it compatible with large chillers and rack systems, including systems where slide valve control and temperature resets are required. Up to two IIMs can be configured with each LNC, giving control of up to four channels. In addition to excellent compressor optimization capability, the ESM offers advanced solutions for monitoring its performance. Savings achieved by the ESM can be monitored locally by reading off the LCD display, or a remote network can be established to monitor the performance via modem. Smartcool offers a one year warranty and manufacturer s guarantee. LNC SIM IIM Operating Voltage 24 VAC, 350 ma 24 VAC, 350 ma 24 VAC, 350 ma Display Backlit 4 line LCD N/A N/A Enclosure IP20 IP20 IP20 Dimensions Height Width Depth 75mm 100mm 110mm Height Width Depth 75mm 55mm 110mm Height Width Depth 75mm 55mm 110mm Environment -30 to +50 Celsius -30 to +50 Celsius -30 to +50 Celsius Channels N/A 2 2 Inputs Y1 & Y2 Analog Analog Analog 12VDC Modulated RTD (PT100) 0-10 VDC 4-20 ma 24 VAC to 240 VAC (max) 24 VAC to 240 VAC (max) 2 x 12 VDC Remain below 50mA Outputs RS-485 +/- RS VDC override terminals Analog 0-10 VDC Analog 4-20 ma Alarm Contacts: Voltage free rated 30V, Contact Rating 1 Amp 3 Amps 240 VAC, 360 VA, B300 Weight 317 grams 243 grams 243 grams 9

10 The ECO³ Set & Forget Retrofit Technology Average 15% Reduction in kwh Usage Average 10% Reduction in KW Demand Easily Verifiable Savings Typical Return on Investment in 2 to 3 years 10

11 The ECO³ is a highly economical, small scale application of the same technology used by the ESM. The two products share many features: Interfaces with existing equipment and controls to optimize the compressors and save energy Maintains temperature requirements Prevents over-cycling of the compressors, extending their lifetime and often reducing maintenance costs Manual bypass possible and will always fail to safe The ECO³ has several features that separate it from the ESM : Compatible with single and dual compressor air conditioning systems and with single compressor refrigeration systems Enclosure rated to IP64, allowing for installation outdoors Simple installation that can be completed in as little as one hour by a qualified technician The most notable feature of the ECO³ is its unique ability to optimize the heating and cooling cycles of compressor driven heat pumps. Smartcool offers a one year warranty and manufacturer s guarantee. ECO³ Specifications Single Channel Dual Channel Operating Voltage 24VAC, 350mA 24VAC, 350mA Display 4 digit, 7 segment, 3 LED indicators 4 digit, 7 segment, 3 LED indicators Enclosure IP64 IP64 Dimensions Environment Height 145mm (5 11/16 ) Width 159mm (6 1/4 ) Depth 27mm (1 1/16 ) -30 to 60 C -22 to 140 F Height 145mm (5 11/16 ) Width 159mm (6 1/4 ) Depth 27mm (1 1/16 ) -30 to 60 C -22 to 140 F Channels One Two Input Voltage 240VAC (max) 240VAC (max) Contact Rating 240VAC, 360VA, B VAC, 360VA, B300 11

12 Applications for Smartcool Technology The ESM and ECO³ have a large number of potential applications in a variety of different industries. Between the two products, Smartcool is able to offer a cost-effective energy efficiency solution for virtually any cooling systems, with the exception of blast chillers. In every Smartcool installation, the ESM and ECO³ provide great economic, environmental and energy reducing benefits for the client s facility. Air Conditioning Units The ESM is compatible with any air conditioning system, while the ECO³ is compatible with packaged units with one or two stages of control. Air conditioning in facilities such as commercial real estate, supermarkets, hotels, restaurants, schools, hospitals, data centers and telecommunications facilities can all benefit from the energy efficiency products supplied by Smartcool. ESM Installation: Air Conditioning Results Facility Type Hotel Return on Investment 15 months 187,089 kwh Annual Energy Savings ECO³ Installation: Air Conditioning Results 242,917 lbs 110,185 kg GHG Emissions Reduction Commercial Real Estate <24 months 19,019 kwh 25,654 lbs 11,636 kg GHG Emissions Reduction Facility Type 12 Return on Investment Annual Energy Savings

13 Refrigeration Units The ECO³ is compatible with any single compressor refrigeration system. The ESM is compatible with all refrigeration systems, including large multi-compressor racks. Process cooling, cold storage warehouses, hospitals, supermarkets, mini-marts or convenience stores, restaurants and many other businesses can save money on their refrigeration bills by installing the ESM or ECO³. ESM Installation: Refrigeration Results Facility Type Cold Storage Return on Investment 36 months 121,442 kwh Annual Energy Savings 163,811 lbs 74,303 kg GHG Emissions Reduction ECO³ Installation: Refrigeration Results Facility Type Supermarket < 24 months Return on Investment 40,230 kwh 54,625 lbs 24,777 kg Annual Energy Savings GHG Emissions Reduction 13

14 Chillers Most modern chillers are fitted with Micro-Processor Chiller Management Systems that usually allow a third party interface to modify the chiller capacity control. The Intelligent Interface Module allows the ESM to modify chiller capacity control using either remote set point control, temperature reset, dual set point control or pulse width modulation. The ability of the ESM to provide savings on a chiller is achieved by the ability of the IIM to interface with the primary controller causing the unit to shed load for a period of time to reduce the amount of energy the system is using. The ESM is able to provide this set point shift/load shifting through the full range of ambient conditions and not just at low ambient conditions. Using a direct interface with the chiller management system ensures that the integrity of the chiller safety and management systems complies with the chiller manufacturer s warranty conditions and is usually more cost effective than hard wiring to the chiller control circuits. The level of savings achieved by the ESM on a chiller is dependent on the type of compressor involved. The ESM is compatible with any type of compressor, with the highest savings being achieved on reciprocating and scroll compressors, and lower savings achieved on screw and centrifugal compressors. Regardless of the type of compressor, a Smartcool installation on a chiller will have an average return on investment of two to three years, making the ESM an extremely cost effective solution. ESM Installation: Air Conditioning & Refrigeration- Chiller Results Facility Type Dairy Processing Plant Return on Investment 25 months 166,413 kwh Annual Energy Savings 224,470 lbs 101,817 kg GHG Emissions Reduction 14

15 Smartcool s technology is unique, proven and gives you savings you can quantify Third Party Testing Smartcool s technology has undergone significant testing, resulting in a great deal of evidence of its energy saving capabilities. In addition to independent third party tests, the ESM and ECO³ have been installed in over 26,000 facilities worldwide. Independent Third Party Testing Results: The University of Miami, on behalf of Florida Power and Light (FPL), conducted extensive testing of the ESM installed over a twelve month period in 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. The ESM reduced the peak demand of the system by 10.8%, providing additional benefits to the utility. Oak Ridge National Laboratory (ORNL), a division of the U.S. Department of Energy, conducted a two phase test ESM in The first phase of the test involved the analysis of data collected from an installation on a refrigeration rack in a grocery store. Phase 1 results were sufficiently promising to merit and a second phase of testing in a controlled laboratory environment. 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. In 1998, a test on a refrigeration system was conducted by the Los Angeles Department of Water and Power (LADWP). The ESM was installed on two compressors of the refrigeration system of Notrica s Market in Bellflower, California. The average daily kwh usage savings recorded during this test was between 20% and 24%. These reductions were achieved while maintaining the temperature performance of the system. 15

16 Energy Efficiency & the Environment Achieving greater energy efficiency is a crucial step towards building more sustainable communities. The generation of electricity for use in buildings is the single largest producer of greenhouse gases in the world. Smartcool is helping clients achieve greater energy efficiency, increase profits and promote environmental sustainability through the installation of the Energy Saving Module and ECO³. These green technologies reduce the electricity consumption (kwh) and demand (KW) of the compressors in air conditioning and refrigeration systems. Each year Smartcool s energy savings solutions provide existing clients with a cost effective means of reducing electricity consumption by 221,000 mwh and greenhouse gas emissions by 235,870 metric tons. Smartcool s affiliations with several leading organizations promoting energy efficiency provide significant benefits for clients using Smartcool products. Financial incentives and corporate recognition can be achieved with Smartcool and these organizations. These are just two good reasons to get involved in the efforts to make business operations smart, sustainable and responsible. Using smarter technologies, more brains and less money to wring more work from less delivered energy is the largest, cheapest, safest, cleanest, fastest, most diverse, least visible, least understood and most neglected way to provide energy services. - Amory Lovins, Chairman Rocky Mountain Institute 16

17 Smartcool & Environmental Organizations As an Energy Star Service and Product Provider (SPP), Smartcool can help identify energy saving opportunities and quantify the financial value of improved energy performance in your business. Working with an Energy Star SPP like Smartcool can help you achieve operational excellence and distinguish you as an environmental leader. The U.S. Green Building Council (USGBC) is a non-profit organization that developed the Leadership in Energy and Environmental Design (LEED) Green Building Rating System. The LEED system assigns points to new and renovated buildings, based on their design, construction and operation. The LEED standard is now recognized worldwide and supported by other national chapters of the Green Building Council. Smartcool s Energy Saving Module and ECO³ contribute towards satisfying requirements for credits in the Energy & Atmosphere and Innovation requirements within LEED. Flex Your Power is California s initiative aimed at providing detailed information on energy efficiency in the state. As a partner organization, Smartcool is passing information through to clients and helping them achieve the energy reduction goals established by Flex Your Power, particularly by reducing the base demand load on air conditioning and refrigeration systems. 17

18 Whatever your cooling requirements, Smartcool can save you energy, money and GHG emissions Smartcool s services are utilized by some of the worlds leading corporations particularly in the commercial, retail and food service areas. Since 1992, over 26,000 ESM & ECO3 units have been installed worldwide. The ESM is ideal for businesses with large or complex cooling systems and monthly electric bills in the range of $5,000 USD. Some examples of systems and facilities where the ESM is a perfect fit: 18 Refrigeration racks providing process cooling in bottling plants, injection moulding plants, dairy processing facilities... Large refrigeration or air conditioning systems in supermarkets, cold storage facilities, hospitals... Chillers providing air conditioning to malls, cinemas, office buildings, hotels, schools, government buildings... Large air conditioning systems cooling the equipment in data centers... The ECO3 is better suited to smaller cooling systems and potentially lower electric bills than are a fit for the ESM. Some examples of systems and facilities where the ECO3 is a perfect fit: Small single stage refrigeration systems in grocery stores, restaurants, hotels, mini-marts, cafeterias... Simple one and two stage pakcaged air conditioning units in supermarkets and other retail outlets, wireless base stations, small commercial real estate properties... AND MANY MORE...

19 A company is known by the company that it keeps Our client list is first class Retail Auchan Supermarkets (France & Poland) Big W (Australia) Burger King Corporation (Singapore) Coles Supermarkets (Australia) El Rancho Market Place (USA) Ice Land Frozen Foods (UK) Kmart (Australia) Lidl Supermarkets (France) Marks & Spencer (UK) McDonald s (Australia) Notrica Market (USA) Parksons Xtra Stores (Malaysia) Safeway Supermarkets (UK) Sainsbury s (UK) Shell Mini-Marts (UK) Somerfield Stores Ltd. (UK) Target (Australia) Tesco-Lotus Hypermarket (Thailand) Tesco Supermarkets (UK) U.S. Navy Exchange (USA) Wal-Mart ASDA (UK) Walter Mart Supermarket (Philippines) Wellcome Supermarket (Hong Kong) Woolworths (Australia) Hospitality Cairns International Hotel (Australia) East Shore RV (USA) Greater Union Cinema (Australia) Radisson SAS Hotel (UAE) South Hills Country Club (USA) Sunshine Towers Hotel (Australia) Tweed Heads Bowling Club Ltd. (Australia) Institutional Kamehameha Schools (USA) North Sydney Council Library (Australia) Royal Devon and Exeter Hospital (UK) Royal Newcastle Hospital (Australia) Commercial Apple Computers (UK) Ayala Land (Philippines) Bezeq Israel Telecommunications (Israel) China Telecom (China) FAES Farma (Spain) Gate Gourmet (UK) Globe Telecom (Philippines) Migdal Insurance Company Ltd. (Israel) National Australia Bank (Australia) Reed Business Information Ltd. (UK) Stockland (Australia) Telefonica S.A. (Spain) Telstra Corporation (Australia) Westpac (Australia) Vodafone (UK) Industrial Barbados Dairy (Barbados) Blue Bell Creameries (USA) Carclo Technical Plastics (UK) GE Medical Systems (India) Hellmann Perishable Logistics (USA) Lancaster Foods Cold Storage (USA) Olympic Fruit and Vegetable (USA) Nestle Ltd (UK) Ringwood Brewery (UK) Singapore Food Industries (Singapore) Staples Vegetables Ltd. (UK) Tapia Brothers Food Service (USA) West Devon Meats (UK) 19

20 The Smartcool Management Team George Burnes - President & CEO, Director (Vancouver Office) Prior to joining Smartcool Systems Inc., Mr. Burnes was instrumental in the development of several customer-focused enterprises engaged in new product and service deployment. Mr. Burnes most recently held the position of President & COO of Novus Entertainment Inc; a communications service provider offering consumer s choice for their entertainments needs. Chris Lefaivre - Vice President Sales (Vancouver Office) Prior to joining Smartcool Systems Inc., Mr. Lefaivre played a key role in building and managing several business to business product and service distribution networks. Mr. Lefaivre most recently held the position of Business Unit Director for UTEL Networks, the business to business sales unit of Teligence Communications; a company specializing in telecommunications and non face to face commerce solutions. Allan Thompson - CFO & Corporate Secretary (Vancouver Office) Since moving to Canada from the UK in 1993, Allan Thompson has served as the Vice-President, Finance for Maxwell Mercantile Inc. from 1993 to the present. Since 1997, he has held financial management and consulting positions in varying sectors including oil and gas, manufacturing, software development and energy saving initiatives. Ken Landymore - Director of Operations (Vancouver Office) Ken Landymore brings a wealth of experience throughout the supply chain in the areas of manufacturing, purchasing, logistics, customer service, service, and after sales support. Most recently, Mr. Landymore was the General Manager, Parts and Service for Trail Appliances where he was instrumental in improving both the financial performance and service delivery metrics. Russ Visser - Technical Director (Vancouver Office) Russ Visser brings over 30 years of technical experience to the Smartcool team from such diverse industries as Oil and Gas, Food Manufacturing, Electrical Generation and Distribution, Water Purification, and Electrical Design and Construction, Custom Production Equipment Manufacturing, as well as a background in Automation and Control systems. Suellen McAlpin - Director of Business Development, Asia-Pacific Region (Sydney Office) Suellen McAlpin most recently held the position of President of Abbotly Technologies Pty Ltd previous to its acquisition by Smartcool Systems Inc. With over twenty years of experience working in all facets of sales and marketing, strategic development and implementation, product development, training, project management and change management both domestically and internationally, with 10 of those years specialized in management consulting. Andrew Sanders - Managing Director, Smartcool Systems (EMEA) Ltd. (London Office) Working as a member of the Smartcool UK board of directors for the past fourteen (14) years, Mr. Sanders leads the organisational and planning development of Smartcool EMEA. His past career involves various financial and commercial consolidation projects and large IT installation initiatives with organisations such as Thorn EMI and Allied Domecq. Steven Martin - Sales Director, Smartcool Systems (EMEA) Ltd. (London Office) Mr. Martin s previous career in Estate and Property Management & Sales provide him with a wide and varied experience across a range of industry sectors. With over sixteen years experience in the delivery of innovative energy solutions, he brings a wealth of knowledge in the technical, sales and management aspects of the industry. 20

21 Corporate Structure Smartcool Systems Inc. has expanded to include three wholly owned subsidiaries working together to provide Smartcool products and services on a global scale. Smartcool International Inc. is the owner, developer, manufacturer and worldwide distributor of the ESM and ECO3. Smartcool Systems USA Inc. is responsible for the sales and distribution of Smartcool s technology in North America through a direct sales force and various 3rd party sales channels. Smartcool Systems (EMEA) Ltd. distributes Smartcool s technology both directly and through 3rd party sales channels in Europe, the Middle East, the Indian sub-continent and Africa. Apart from Smartcool s subsidiaries, a network of independent distributors is under continuous expansion around the world. The Asia-Pacific market is supported from Smartcool s office in Sydney, Australia, while the Vancouver head office supports developments in Latin America. Head Office Vancouver, Canada Subsidiary: Owns IP & is Master Distributor Head Office in Barbados Subsidiary distributor for North America Head office in Houston, Texas Subsidiary distributor for Europe, Middle East, Africa & India Head office in London, UK International independent distributors 21

22 Separate yourself from the crowd Start saving with Smartcool

23 Contact Us Head Office Tel Seymour St. Vancouver, B.C. V6B 5A6 Canada Service areas: 1- Province of British Columbia (Canada) 2- Latin America Regional Offices Tel Mitchelldale, Suite B-4 Houston, TX 77092, United States Service Area: North America Tel West Gate, 104 High Street Alton, Hampshire GU34 1EN, United Kingdom Service Area: Europe, Middle East, India & Africa Tel Suite Lauriston House Lower Collymore Rock Drive Bridgetown St. Michael Barbados Master Distributor suellenm@smartcool.net Tel Sydney, Australia Service Area: Asia-Pacific For more information or to find an independent distributor in your region, please see our website: 23

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