Development of BiomassElectricity ProjectsWilliam S. Bulpitt, P.E.Sterling Energy AssetsOctober 7, 2010AWMA Conference

*We are the largest marketer of renewable energy in North America winning the US Department of Energy Renewable Energy Marketer of the Year award in both 2007 and 2008We have a strong, experienced leadership team with many decades of electric utility and entrepreneurial experienceWe work with electricity generators helping to qualify the facilities to sell RECs, and buying historical RECs and future RECs to remarket to our customers. We have a broad client base that includes Fortune 500 companies, universities, government agencies, and individualsWe are active participants in nearly every mandated and voluntary market for RECs, Carbon credits, and energy efficiency credits (a.k.a. White Tags)Overview of Sterling Planet, Inc.

* Sterling Energy Assets, Inc. Develops and acquires renewable generation facilities supported by power purchase agreements with utilities and/or steam sales to industrial facilitiesTargets opportunities to:Acquire and convert fossil generation to green generationDevelop green field biomass power projectsDevelop industrial cogeneration projectsLeverages knowledge, relationships and deal flow generated by core carbon credit and REC marketing business

U.S. Electricity Generation by FuelSource: EIA

INTEREST IN RENEWABLESBY ELECTRIC UTILITIESSource: Black & VeatchType

Renewable Portfolio StandardsState renewable portfolio standardState renewable portfolio goalwww.dsireusa.org / April 2009Solar water heating eligible* Extra credit for solar or customer-sited renewablesIncludes separate tier of non-renewable alternative resourcesWA: 15% by 2020*OR: 25% by 2025 (large utilities)5% - 10% by 2025 (smaller utilities)CA: 20% by 2010 NV: 20% by 2015* AZ: 15% by 2025 NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) HI: 20% by 2020 Minimum solar or customer-sited requirement TX: 5,880 MW by 2015 UT: 20% by 2025* CO: 20% by 2020 (IOUs)10% by 2020 (co-ops & large munis)*MT: 15% by 2015 ND: 10% by 2015 SD: 10% by 2015 IA: 105 MWMN: 25% by 2025(Xcel: 30% by 2020) MO: 15% by 2021IL: 25% by 2025WI: Varies by utility; 10% by 2015 goalMI: 10% + 1,100 MW by 2015* OH: 25% by 2025ME: 30% by 2000New RE: 10% by 2017 NH: 23.8% by 2025 MA: 15% by 2020 + 1% annual increase (Class I Renewables)RI: 16% by 2020CT: 23% by 2020 NY: 24% by 2013 NJ: 22.5% by 2021 PA: 18% by 2020 MD: 20% by 2022 DE: 20% by 2019* DC: 20% by 2020VA: 15% by 2025* NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)VT: (1) RE meets any increase in retail sales by 2012; (2) 20% RE & CHP by 201728 states & DC have an RPS5 states have goals

RECENT POWER PLANT COST DATASource: IEA

Mills AndPower Plants In GeorgiaSource:Georgia ForestryCommission

Southern Pine ResourceAgricultural wood resource underutilized18+ million green tons unused southern pine available per year (sustainable)

~730 million gallons ethanol equivalent~20% of GAs gasoline use

Source: Georgia Forestry Commission

FORESTRY BIOMASS - USASource: USDA

TOTAL BIOMASS AVAILABILITY - USASource: USDA

Project Overview Project ASoutheastern U.S.Existing fully integrated Pulp & Paper MillMill Vintage 1951MotivationAging power plant facilitiesState Renewable Energy StandardsAdequate Wood Supply

Project A (Contd)Steam Supply to Mill 350,000 lb/hrElectricity to offtaker 46.5 MW @ 115 KVElectrical & Thermal RECs to OfftakerOperations Existing Mill PersonnelWood Supply managed by MillPermitting New stand alone permitFinancing Equity and Institution LoansStand Alone Capability

Source: Babcock & Wilcox

Project Overview Project BExisting Integrated Pulp & Paper MillMill Vintage 1929MotivationNeed for Power Plant improvementsState Renewable Energy StandardsAdequate local wood supply

Project B (Contd)Steam Production 250,000 lb/hr

Turbine/Generator addition 24 MW

Upgraded emission control equipment

Operations by Mill Personnel

Sale of RECs to Offtaker

Biomass Project IssuesRenewable Energy StandardsPower Purchase AgreementsPerception of BiomassFuel RisksBiomass Definitions

Thank You

bbulpitt@sterlingplanet.com

678-325-7106

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