Waukesha Engine

Natural Gas Advanced Power Generation Engine Commercialization Update

ARES Argonne Conference June 29, 2006 by Bob McDowell, Project Manager Ed Reinbold, Principal Investigator

ARES Phase I - Advanced Power Generation Product Waukesha Engine APG1000TM Enginator

Waukesha Engine introduces APG1000TM engine & Enginator to serve the growing power generation needs throughout the world.

ARES Phase I - Advanced Power Generation Product

Introduction
ARES Phase I Project Goal:
Release a highly-competitive 1-MWe gas power-generation product for world-wide sale

Market Drivers:
Power generation focused product High efficiency Low emissions Lower total $/kWe No reduction in reliability

ARES Phase I - Advanced Power Generation Product

1 MWe Market Overview

17%

50 hz: 41%
50 hz Prime Power (Europe) 29% 50 hz Prime Power (World) 60 hz Peak Shave (US) 60 hz Prime Power (US)

13%

5% 12%

50 & 60 hz Landfill Gas Other

60 hz: 29%

24%

ARES Phase I - Advanced Power Generation Product

Performance

Frequency Speed KWe* HPb Mech Eff(%)* Elect. Eff(%)* BMEP PSI(Bar)

60Hz 1800rpm 1100 1529 42 40.5 230(15.8)

50 Hz 1500rpm 1000 1390 42.7 41.2 250(17.2)

*With motor driven water pumps, 54 deg C IC water, .8 pf, ISO3046

Standard Emissions (TA Luft)

NOx 1.0 g/bhp-hr (420mg/nm3) TA Luft on request

ARES Phase I - Advanced Power Generation Product Features of the APG1000TM

Two stage intercooler Single high capacity high efficiency turbocharger Dry exhaust manifold Coil on plug design

High efficiency generator

Mounted lubricating oil cooler

Spin on oil filters

ESM with detonation protection & AFRC (kW)

ARES Phase I - Advanced Power Generation Product

Broscho Fabricated Products

7600 run-hours to-date

ARES Phase I - Advanced Power Generation Product

Jay Plastics

7450 run-hours to-date

ARES Phase I - Advanced Power Generation Product

Northwest Community Hospital

ARES Phase I - Advanced Power Generation Product

Northwest Community Hospital

APG1000 Field Test Case Study Exhaust Heat Recovery 25% Fuel Savings Over 6500 Hours 98% Uptime

ARES Phase I - Advanced Power Generation Product

Production Readiness Update

Waukesha Engine Operations
Tracking both manufactured & purchased parts on a daily basis Production routings updated by manufacturing engineering Quality plans for critical WED parts Job 1 engine start date of 6/15 will be met

ARES Phase I - Advanced Power Generation Product

Production Readiness Update

Waukesha Engine Sales & Marketing
Operations & Maintenance and Parts Manuals available APG1000 distributor service training available Early production builds for process validation over next several months Full production is scheduled to follow

ARES Phase I - Advanced Power Generation Product

Commercialization Summary
The Waukesha Engine ARES program has successfully attained its ARES phase I goals:
42% brake thermal efficiency at 1.0 g/bhp-hr NOx emissions (before after-treatment) and offering electrical generating sets at a competitive price.

The advantage of ARES technology in the APG1000 when compared to its predecessor VGF P48GLD:
power output increased by more than 20% and efficiency improved by 13%, with decreased exhaust emissions, while maintaining its maintenance and reliability.