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Stirling Energy Systems, Inc.

SOLAR ENERGY

Creating a

brighter future

for humanity through

Orange County Business CouncilMarch 10, 2009

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Introduction to SES

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Overview

SES acquired the world’s most efficient solar technology, the McDonnell Douglas solar Dish Stirling system, developed at a cost of $400 million by McDonnell Douglas, U.S. DOE & Kockums of Sweden

SES develops central station solar electric plants and sells electricity through Power Purchase Agreements with leading utility companies

SES will sell equipment for turn-key solar thermal Dish Stirling electrical power plants

About SES

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Strategic Partners

SES founded in 1996, based in Phoenix, Arizona

SES has outstanding technical expertise in solar energy development

NTR invested $100 million in April 2008 and continues provide millions in funding, as well as excellent proficiency in large scale infrastructure and renewable energy

Together SES and NTR are capable of building the world’s largest and most efficient solar generating facilities

SES & NTR Partnership

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Technology Overview

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SES Solar Dish Assembly

Power Conversion Unit (PCU)

PCU Boom

Azimuth Drive

Elevation Drive

Mirror Facet

Dish Controller(inside pedestal) Pedestal

Box Trusses

Main Beam

Hydrogen Storage

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p

The SES Solar Dish AssemblySunCatcher is modular for ease of assemblyand maintenance

Penetrator

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Power Conversion Unit (PCU)

Stirling Engine

Receiver

Radiator

Fan

Frame

Controls

Stirling Engine

Receiver

Radiator

Fan

Frame

Controls

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Stirling Engine

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Significant Competitive Advantages vs. Other Solar Technologies

2 - 3x more efficient at producing grid-quality electricity. We hold the world’s record for efficiency at 31.25% (Converts 31.25% of the energy that hits our mirrors into grid quality electric power).

Requires approximately one-half of the raw materials and cost of a solar power plant of equal output.

Uses <1% of water used by other CSP

Modular system and high availability

More flexible siting

Lower startup costs

Targeted for utility-scale power

Source: Southern California Edison and Sandia National Laboratories

SunCatcher Efficiency vs. Other Solar

Efficiency is key to SES’ cost-competitiveness

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Phased Commercialization

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High Volume, Low Cost Manufacturing Model

The SunCatcher is like a “funny-shaped” automobile

Cost Reduction Drivers:

Economies of scale

Automation

Simplify product / reduce number of parts

Off-the-shelf components

Simplify assembly

Projected cost reductions are based on a learning curve approach widely used in industry

SES is leveraging potential strategic partners and key suppliers to transform hand-built units into a high performance, low-cost product

Detroit high-performance engine manufacturer will build Stirling engine

Production Rate

$ / kW

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Past… Today“Technology”

“Commercialization”

“PATHWAY”

“Bridging the Gap”

Commercialization Program Product commercialization Supply chain development Development projects

• Model power plant•Company infrastructure

Goals US & International markets Supply chain—US based with global reach Ultra-low cost systems High-volume manufacturing Advanced systems

Starting Point 20-year history Development units

•Model power plant•6 systems•SES supply chain

Pathway to Commercialization

Commercialization program is the pathway to fulfilling production contracts

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SES Model Power Plant Operating at Sandia

Located at the National Solar Thermal Test Facility (NSTTF) at DOE’s Sandia labs. – partners for more than 10 years. We are putting 150,000 watts into the Kirkland, AFB power grid.

Proving ground & showcase On-Going system testing

– Performance– Reliability– Systems Integration

Augmented SES with Sandia scientists & engineers

Located at the National Solar Thermal Test Facility (NSTTF) at DOE’s Sandia labs. – partners for more than 10 years. We are putting 150,000 watts into the Kirkland, AFB power grid.

Proving ground & showcase On-Going system testing

– Performance– Reliability– Systems Integration

Augmented SES with Sandia scientists & engineers

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El Centro PlantSES Solar Two

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Solar Two Plant

Imperial Valley site designed for 750 MW, enough

energy for approximately 500,000 homes

30,000 Solar Dish Stirling systems

20-year Power Purchase Agreement with SDG&E up

to 900 MW

Sited on 650,000 acres at Plaster City, 10 miles west

of El Centro

Construction scheduled for 2010 – 2014

SDG&E and SCE contracts support supply chain

sustainability

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Schedule and Process

Application For Certification filed with the California Energy Commission June 30, 2008

Memorandum of Understanding with CEC and Bureau of Land Management

State and federal approvals required

Estimated approval 12 to 16 months

Construction Spring 2010

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Jobs and Cost

Total cost to build plant is approximately $1 billion

Construction jobs will range from 300 to 700 during four years

Solar Two will create more than 160 new full-time jobs to operate solar generating facility

Local job impact will be even greater with multiplier effect

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Additional Benefits

Stirling Energy will emit no greenhouse gasses and displace tons of harmful emissions from old power plants in San Diego

Stirling will enhance economic development, spark solar energy generation and produce millions of dollars of new revenues for the County of Imperial

Solar Two will require only 33 acre-feet of water to generating 750 megawatts of clean solar energy

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Solar Generating Facility