Marketing Opportunity

High-Pressure DG/CHP Applications

1. Regulatory Pressures
   1. EPA emissions regulations
   2. State EPA emission regulations
   3. Global Warming-driven demand for increased fuel utilization/efficiencies
2. Economic Pressures
   1. CHP to increase efficiency of energy utilization
   2. DG to increase:
      1. Power quality
      2. Power reliability
      3. Power flexibility (CHP compliant)
   3. DG to decrease:
      1. Power cost (XX% of cost of retail power is represented in the Transmission & Distribution grid construction maintenance.)
      2. Transmission line siting bottlenecks
   4. VAST to increase fuel flexibility which translates into lower fuel costs
3. Homeland Security Aspects – DG vs. Central Power Plants – less reliance on vulnerable Transmission & Distribution (T&D) system

Low-Pressure Applications

1. Regulatory Pressures- See High-Pressure Applications
2. Economic Pressures
3. Operational efficiencies
   1. Flexible temperature and pressure output capabilities
   2. Flexible Btu release rate fuel streams
   3. Enhanced component life durability

VAST has selected one major application in each of the two categories. In the high-pressure niche, the combustor is being used to power an expander such as a turbine in an onsite power plant. The expander will turn a generator to produce electricity which can be used at the location or sold for use elsewhere. The heat of combustion is also used in a VAST Power Cycle to meet the location’s other needs such as hot water, steam, or cooling. This energy utilization can make a significant contribution to the preservation of scarce natural resources and aid in the reduction of harmful ‘greenhouse gases.’ In the low-pressure application, the combustor is being utilized to generate steam which is used to clean up polluted Brownfield real estate sites. VAST believes its technology will give users significant competitive advantages in both high and low-pressure applications.