Heat to Energy Recycler System (HERS) … an innovative and environmentally friendly way to reduce heating costs within the food service industry Presenter: Tom Marshello, President & Co-Founder Our CEO & Co-Founder, Mike Horvath, invented our system out of necessity. Green Heat Corporation’s patent pending technology, the Heat to Energy Recycler System (HERS), captures kitchen equipment exhaust heat before it is wasted and vented out of the hood, transfers that heat to water and then stores it in a proprietary storage tank for other uses such as: Heating an establishment in cold weather environments (works with forced air, slab, baseboard, and boiler heat) Heating an establishment’s domestic water Creating Steam Generated Electricity 1 The 3rd generation Heat to Energy Recycler System (HERS) generated at least 168,000 BTU per hour of heat from a free heat source – normally wasted kitchen exhaust heat. This 3rd generation test unit, consisting of a 48" griddle with internal/backsplash heat extractors, heated 80 lbs of water (10 gallons) by 35 degrees per minute. 80 lbs x 35 degrees x 60 minutes = 168,000 BTU per hour. 5 In October 2012, Green Heat Corporation was awarded a cash/in-kind grant of approximately $60,000 from the Natural Resources Research Institute (NRRI) of the University of Minnesota – Duluth. NRRI has verified the system metrics listed in the prior slide in their first round testing of our 3rd generation unit. Independent verification of system performance is currently in process on a new 5th generation test unit at the NRRI. A restaurant in Northern Minnesota has been selected for product installation to monitor real-time system performance and gather data once NRRI testing is complete. 5 In the US alone, there are: -550,000 Commercial Food Service Establishments -207,000 Schools and Colleges with cafeterias -75,000 Hotels with restaurants -5,700 Hospitals with cafeterias -2,000 Prisons Worldwide there are: -500,000 Department of Defense (DoD) facilities of which at least half have one or more kitchens (some with 5-10) -8 to10 Million Commercial Food Service Establishments The market for our technology is enormous! 5 If half of the 1,339,700 food service establishments in the US and DoD facilities in the world were to cut their fuel consumption by 3,500 gallons annually using HERS (as we have done with our technology in our founder’s restaurant): -23.21Million tons of carbon would be effectively removed from our atmosphere annually. -This is the equivalent of removing over 3 Million cars from our roads! At a price of $2.88 per gallon of fuel this represents for the establishment: -A savings of over $10,000 per year. -A payback period of approximately 2 years. 6 The value proposition to the restaurant owner is both a reduction in the amount of fuel costs incurred and a reduction in the amount of carbon emitted on a yearly basis. The table below shows a real life example: * Our founder’s restaurant used 1,800 gallons of propane per year to cook and heat water and about 7,000 gallons to heat the building. After installing HERS, only 3,500 gallons of propane was used to heat the building! 11 Heat to Energy Recycler System (HERS): -Works with any commercial kitchen equipment – griddles, fryers, ovens, etc. and all appliances can be linked together creating more savings. -Has been tested in three manufacturers griddles- Wolf, Vulcan and US Range -3rd generation system has proven to generate at least 168,000 British Thermal Units (BTU) with a 48 inch griddle with internal/backsplash heat extractors. Products in development: -Pre-Vent Hood Cooler - This product filters grease and cools the exhaust air reducing the vegetable oil waste particles emitted into the atmosphere from kitchen equipment. -Steam Engine Electric Generator - This product uses steam created from Green Heat Corporation heat extractors to power a steam generator that provides electricity for an establishment or sends it back to the grid. 7 Green Heat Corporation 523 N. 1st Ave. E Duluth, MN 55805 Website: www.greenheatcorp.com Tom Marshello, President Email: tmarshello@greenheatcorp.com Phone: 860.751.8971 7