The Israel Fuels choices Initiative

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1 The Israel Fuels choices Initiative Reducing World Dependence on Oil in Transportation Haim Rosenbaum DOR Group

2 Agenda The importance of finding alternative solutions Oil substitutes current status Dor Group activities in implementing Methanol as an alternative fuel.

3 The Israel Fuels choices Initiative Israel government mission: To serve as a catalyst for the reduction of global dependence on crude oil by establishing Israel as a center of knowledge and industry in the field of fuel alternatives for transportation.

4 Reduce the world dependence in oil Oil is monopoly in transportation. Around 1 billion new cars will be sold in Oil reserves peaking. Economic effects. Environmental problems.

5 Freedom to choose There are many solutions. Verity of solution increase our freedom to choose. Solutions must have economic viability. Market force will dictate what are the best solutions. Infrastructure will need government support. Implementation can start now.

6 Economic viability of Technologies- Forecast

7 Market Needs

8 Tragets 1. Reduce the share of oil in Israel s transportation sector by 30% by 2020 and by 60% by 2025, while supporting green growth becoming a show case to the world. 2. Turn Israel into a center of knowledge and industrial best practices in the field of fuel alternatives. 3. Raising the world s awareness of alternative fuels. Building global coalition of partners to speed up innovation.

9

10

11 Movie Methanol for Energy

12 Dor s activities M15 field tests. M70-85 in Flex Fuel Vehicles. Gas Turbine conversion from diesel to Methanol Firing.

13 Gasoline Higher Cost Higher Emissions Lower Cost Methanol Lower Emissions

14 Methanol for transportation in Israel Field tests

15 M15 test Tested parameters Chassis dynamometer measurements. Emissions (HC, CO, NO x, CH 3 OH, HCOH, CO 2 ). Metal corrosion. Rubber & plastic compatibility. Lubricants performance. Stability of M15 blend.

16 Methanol & M15 Economy $/ton 1,150 1,100 1,050 1, Gasoline 95 Methanol (Calorie Adj) & Gasoline Prices Methanol Super 95 Methanol / Calory Adjusted M15 fuel consumption is increasing by 5% compared to regular 95 gasoline, which mean 2.5% energy saving. At current, gasoline and methanol prices, the economy saving by using 15% methanol is 5%.

17 FFV- Flexible Fuel Vehicle FFV can use different mixtures of Gasoline and Ethanol up to 85% Ethanol. FFVs are already marketing worldwide including Israel. Dor chemicals has started now a new experiment using M70 blends in Flexible Fuel Vehicle (FFV).

18 Electric Gas Turbine (GT) Methanol firing Methanol as a Low Cost Alternative Fuel for Emission Reduction in Gas Turbines

19 GT Methanol firing Dor and Israel Electric Company (IEC) has a joint venture in developing Methanol application for power plants. o The Eilat project Conversion of a Pratt & Whitney 50 MW Gas Turbine Unit in Eilat from Diesel to 100% Methanol firing. o Objectives To restore the full capacity of the machine and to gain long-term operating experience of working with Methanol- fueled GT. o Schedule Started as from Q3/2014

20 GT Methanol firing Jerusalem Post, 1/10/2014:

21 Eilat GT power station

22 Advantages Lowering emissions NOx by 75% SOx by 100% Particles by 80% Results Comply with clean air law requirements. Allow unlimited working hours of the GT. Starting commercial operation on June Smooth operation with no difficulties.

23 Future Potential This technology (first of its type in the world) can be adopted in many other places (mainly Islands) where due to no natural gas supply, are currently using polluting fuels. Project under evolution (Hawaii, mediterranean island) Methanol consumption can sum to more than 1 million tons/year.

24 Thanks for your attention! 24

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