ArborElectroGen CHP. Eco EnerG Solutions Ltd, Unit 18, Stainton Grove Ind Est, Barnard Castle, Durham, DL12 8UJ

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1 ArborElectroGen CHP

2 CHP Combined Heat & Power Combined Heat & Power (CHP) is a sustainable energy option installed to replace traditional fossil fuels such as Oil and coal fired electricity. Our Biogas CHP produces both heat and electricity, and qualifies for government incentives such as ROCs and brhi (Biogas Renewable Heat Incentive). CHP produces electricity and heat by gasifying sustainably sourced wood chips. The heat from the process can be constructively used in a number of ways and has proven particularly useful for businesses with substantial heating or drying requirements such as hospitals, leisure centres, rural estates, broiler units and dairies. The electricity generated by the plant can be used directly on site or exported back to the grid. Eco EnerG Solutions is dedicated to supplying only the best and most effective

3 renewable and sustainable technologies. We constantly review new innovative technologies that would be complimentary to our clients businesses. We believe CHP offers unrivalled returns, as up until now the RHI tariff for biogas CHP has been relatively untapped. Supplying and installing CHP technology is relatively straightforward, providing good quality support and maintenance throughout the 20 year life of your machine is more challenging. To ensure our customers receive the service levels they expect Eco EnerG Solutions only install CHP systems within easy reach of our regional support teams. What is Combined Heat & Power? Combined heat and power or CHP is an efficient, low carbon approach to generating both electricity and heat from a single fuel source, wood chip. A CHP system consists of a gas engine, a generator and a heat exchange system. Sustainable, woody biomass fuels are heated to a very high temperature (1000ºC) and converted from a solid state to gas. This gas then fuels a combustion engine, which powers a generator producing 3 phase electricity. A large amount of heat is generated in the process, which is captured and used to heat anything from farming, horticulture, industrial facilities, hotels and schools. A standard power generation plants typically results in around 60% of the energy created from burning fuel escaping into the environment as pollutants and heat. The gasification process of a CHP system keeps exhaust emissions exceptionally low, making CHP very clean and therefore even suitable for areas with emission restrictions. The illustration below demonstrates the efficiency of CHP systems due to capturing the useful heat energy created in the generation process.

4 Some of the Benefits Benefit from better returns than traditional biomass solutions Generate sustainable electricity which can be used on site or sold back to the grid Reduce energy overheads by using your CHP plant for heating or drying Qualify for government financial incentives such as ROCs and RHI Demonstrate a substantial reduction in the carbon footprint of your business Is my energy profile suitable for CHP Customers with base loads of heat (83kW and above) and electricity demand (40kW/hr) would be an ideal candidate for conversion to CHP.

5 The ArborElectroGen 45 The ArborElectroGen range of proven, combined heat and power (CHP) systems deliver cost effective, low carbon heat and power for a variety of applications with incredibly low carbon emissions. The unit offers exceptional operational performance and is the only wood fueled product currently available this is accredited by Ofgem for the Biogas RHI.

6 Specification Here are details of one of the smallest in the range the ArborElectroGen 45 Indoor, model output 40kW electrical (45kW generator), 83kW heat from engine jacket and exhaust. Up to 18kW from Gas cooling, up to 20kW radiant heat from housing. Electrical output can be modulated between %. Dimensions of the unit Length 4820mm x Width 1270mm x Height 2500mm

7 The ArborElectroGen Range The CHP unit comes is various sizes to suit all needs and can be cascaded to increase the size even further. Fuel The Arbor Electrogen 45 runs on sustainably sourced dried woodchips, which are

8 gasified at high temperatures during the energy generation process. CHP doesn t require the use of a fossil fuel boiler to support the process and the real cost of generation per kwh is considerably cheaper than fuels such as oil, wood pellets or LPG. Costs for 1kWh of heat costs between 1.3p and 3.9p/kWh a notible reduction from Oil, Wood Pellets or LPG which can cost upwards of 5p/kWh. Woodchip Quality Your woodchip must be uncontaminated and and of a consistent size and shape G50 to prevent obstructions and wear and tear on the system. Woodchip with a lower moisture content burns efficiently, and is more cost effective. The ArborElectroGen unit requires woodchip fuel to be dried to around 12% to 15% before use. Own Woodchip By drying your own woodchip it is possible to make large savings on your wood fuel supply, dry wood is typically twice as expensive as wet wood. Using heat from your CHP to dry fuel is eligible for RHI revenue thus further reducing the price of your fuel.

9 Woodchip delivery and Storage Due to its bulky nature, woodchip is usually delivered in large quantities and therefore storage space and a mechanism for transferring the woodchip from the lorry to the fuel store must be considered, as well as a plan of access for the delivery vehicle. Benefits of woodchip: A.) Woodchip is the cheapest form of timber fuel B.) It s sourced locally and easily obtainable C.) And requires minimal processing D.) The woodchip can be delivered by the supplier straight into an automatic processing system so handling is minimal

10 Incentives The Non Domestic Biogas Renewable Heat Incentive (brhi) is a Government environmental program, providing financial incentives to increase the uptake of renewable heat. For the non domestic sector broadly speaking it provides a subsidy, payable for 20 years, to eligible, non domestic renewable heat generators in the UK, subject to the detailed scheme rules. The Arbor ElectroGen 45 is the first CHP plant to be accredited by OFGEM to qualify for the generous Biogas RHI worth 7.62p per kwh. Based on 8,000 running hours per annum, the Arbor 45 will generate 656,000kWh of RHI eligible heat. Therefore: 656,000(kWh) x 7.62 pence = 49,987 of RHI income To claim the Non Domestic RHI for biogas you must be prepared to demonstrate that your installation meets the strict eligibility criteria. Regulations stipulate the RHI will support heat that is used to: Heat a space in an enclosed building or structure that is permanent or long lasting Heat water within a building for commercial use such as in hospitals or hotels Carry out a process within a building such as industrial cooking, drying of wood or use in manufacture. Carry out a process outside of a building for commercial cleaning and or drying To see if your heat requirement would qualify for RHI support; speak to a member of our team who can provide advice on eligible heat uses. We also strongly recommend that you visit to learn more and keep up to date with the latest updates.

11 The ArborElectroGen 45 is most efficient when run at maximum output. Many of our clients however have a heat requirement where the baseload (the permanent minimum heat load that is required at their site) is less than what a CHP system will produce. In these instances rather than reduce the output of the system (and therefore reduce efficiency), the preferred option is to use this as an opportunity to diversify and create new commercial operations such as drying biomass fuel for commercial resale and drying their own fuel to reduce fuel costs. A drying floor (see below) used to produce their own fuel and provide continuous heat loading, maximizing benefits.

12 Renewable Obligation Certificates (ROCs) The Renewables Obligation (RO) is designed to encourage generation of electricity from eligible renewable sources in the United Kingdom. Renewable Obligation Certificates (ROCs) are awarded for the generation of renewable electricity from eligible sources and depending on the technology different levels of certificates are awarded. The ArborElectroGen qualifies for 1.9 ROCs for every MWh of electricity it produces under the Advanced Gasification tariff. These ROCs can then be market traded to convert the certificates into a revenue stream for the plant owner. ROCs are currently valued at around 42 each. The Arbor Electrogen 45 will generate 320 MWh (based on running for 8,000hrs per annum). Therefore: 320(MWh) x 1.9 x 42 = 25,536 of available generated revenue from ROCs.

13 CHP Costs & Returns In addition to reducing overheads, CHP attracts three revenue streams: A.) Biogas Renewable Heat Incentive (brhi) for the heat that you use and B.) Renewable Obligation Certificates (ROC s) for the electricity you generate C.) Payments for Exporting surplus electricity to the grid As you will be using the heat and electricity you will benefit from reduced energy bills and this saving can be factored into the overall returns you can expect to receive. As an example, ideally you need to run the ArborElectrogen 45 system for 8,000hrs a year to fully maximise the potential. Aside from scheduled maintenance your CHP plant can run 24 hours a day, 7 days a week. Heat A.) The system generates 82kw of heat (656,000KWth annually) B.) Receive the RHI for the heat that you use C.) Reduce your existing energy bills, example based on you using oil & saving 6p/litre Heat generated RHI income 7.62p Energy bill saving Total Revenue 656,000 KWhth 49,987 39,000 88,987 Electricity A.) The system generates 40kw of electricity (320,000kWh annually) B.) Receive 1.9 ROC s per kwh generated

14 C.) Reduce your electricity bill by using the power* D.) Export surplus electricity to the grid *Example based on 50% used paying 11p/kWh Electricity generated ROC s. 1.9 x 4.2p Energy bill saving Export Total Revenue 320,000 KWe 25,536 17,600 7,840 50,976 Fuel, Service & Maintenance A.) The system uses 38kg/hr or 304 tonnes per year based on 8,000 operating hrs B.) Annual fuel costs 36,480* C.) Service & Maintenance 14,000 per year inc parts and labour *Assuming 15% moisture wood chips approx 120 a ton Summary Electricity ROC income Heat RHI Income Energy bill s saving Electricity Export Fuel & Maintenance costs Total Net Revenue 25,536 49,987 56,600 7,840 51,480 88,483 Installation Process The timescale to complete a CHP installation is dependent upon grid work and site specific infrastructure. In most instances a CHP plant requires no formal planning application and manufacturer lead times are typically 12 weeks from placement of order. Every aspect of your project is handled by our experienced in house team, with

15 a project manager acting as a single point of contact. Grid Connection Our project manager will oversee the grid connection application with your Distribution Network Operator. An initial budget quote will be obtained and this provides an early indication of likely connection costs. A formal quote for connection is requested upon product order and provides a detailed cost breakdown. Infrastructure and Civil Works Each project we complete is unique in design. A CHP installation can be straightforward, incorporating the indoor unit in an existing building with a simple flow and return system to distribute heat. Alternatively the project might include new buildings to house the CHP unit with bespoke fuel stores and multiple loops to distribute heat. Upon completion of the system design, we can manage the installation of the infrastructure on your behalf or you can manage this stage of the project yourself, working to the design we have provided. Warranties & Maintenance For your peace of mind Arbor offer a 12 months parts warranty on the unit as standard, with the option to extend it via the manufacturer to longer periods.

16 Office and on site support CHP units operate at high temperatures for extended periods of time and whilst we only install the most reliable machine on the market, they do require regular engineer support. Our team of service engineers are fully qualified to provide the best level of care for your ArborElectroGen. We operate tracking devices in all our service vehicles which enables us to deploy whichever engineer is best located to attend a support call. With remote monitoring from both our office and the manufacturer s, we are able to provide a proactive service to ensure that your ArborElectroGen remains in good health and is available for heat and power generation.

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18 Appendix A Non Domestic Renewable Heat Incentive (RHI) Guidance Volume One: Eligibility and How to Apply (Version 4), Feb The RHI Policy Document 35 sets out the principles underlying the government s policy on heat uses that are eligible for RHI support: The RHI is intended to provide support for renewable heating where the heat generated is usable and useful. In order for an installation to be eligible for the RHI, the heat load it is being used to meet must be an economically justifiable heating requirement, ie a heat load that would otherwise be met by an alternative form of heating. The heat load should be an existing or new requirement, ie not created artificially purely to claim the RHI Eligible heat uses 5.2. The regulations state that the RHI will support heat where that heat is used in a building for eligible purposes : heating a space, heating water or for carrying out a process where the heat is used. Following the introduction of the RHI (Amendment)(No 2) Regulations 2013, the RHI now also supports heat where that heat is used otherwise than in a building for cleaning or drying carried out on a commercial basis. Our interpretation of these terms is described in more detail below. Heating a space: the heating of rooms or other enclosed spaces within buildings, typically through the supply of hot liquid to heat emitters, such as radiators and underfloor heating. Heating water: the heating of water within a building for direct use, such as commercial and industrial hot water or for use in schools or hospitals. Heating hot water for domestic use is also permitted, provided that the eligible installation does not provide heat solely to a single, domestic premises. For more information on what constitutes a single, domestic premises, see section Installations heating one single domestic premises are ineligible in chapter 4 above. Carrying out a process (within a building): the use of heat to carry out a specific process such as industrial cooking, drying (including drying of wood and other biomass fuels), pasteurisation or chemicals manufacture. Other examples include heat that is used for cooling, eg passing renewable heat through absorption chillers. It does not include heat used for the generation of electricity, as set out in section Ineligible heat uses below. Carrying out a process (other than in a building): the use of heat to carry out a process used other than in a building for cleaning and/or drying on a commercial basis.

19 5.3. The regulations also set out certain conditions that must be met, in order for the heat loss by any pipework between buildings not to be discounted for RHI payments Any heat that is not used for an eligible purpose is classed by the regulations as an ineligible purpose, and such heat is not eligible for RHI support.41 Heat must be used for eligible purposes within a building with the exception of those specific processes used other than in a building detailed above. For example, renewable heat generated to meet the heat loads described below would not be eligible for the RHI: heating of external surfaces to prevent frost or mitigate the effects of cold temperatures, underground heating of open external spaces, eg recreational facility, heating of open air, eg partially enclosed swimming pools The regulations define a building as any permanent or long-lasting building or structure of whatever kind and whether fixed or moveable which, except for doors and windows, is wholly enclosed on all sides with a roof or ceiling and walls. The definition therefore has two main components: whether the building is permanent or long-lasting, and whether it is wholly enclosed. We explain below how we will interpret these two components; you will need to ensure that your building meets both criteria We will ask for information about the building(s) in which the heat is used as part of the accreditation process. To illustrate how we will apply this definition of a building in practice, we include below some indicative examples relating to both parts of the definition. These are not intended to be comprehensive and we will look at other situations on a case-by-case basis to assess whether the definition in the regulations is met In assessing whether a building or structure meets the requirement that it is permanent or long-lasting, we shall consider all the relevant circumstances. Considerations may include: the length of time for which it is expected that the building or structure will remain in its location the materials from which the building or structure (including any associated foundations) are constructed the degree to which the building or structure is designed to be moved and the extent of works required to effect its removal In considering the length of time for which a building or structure is expected to remain in its location, we would not generally consider any building which would be eligible for exemption from the energy efficiency requirements of Schedule 1, Part L of the Buildings Regulations 2010, to be permanent or long-lasting. This is on the basis that it has a planned time of use of two years or less 43. In addition, we may also consider a claim for capital allowances on a moveable building44 as an indication that this building is not expected to remain in a single location on a permanent or long-

20 lasting basis Based on the above, we would normally consider that tents, polytunnels and similar structures which are erected on a temporary basis are not eligible because they do not meet the criterion of permanent or long- lasting building or structure. However, moveable buildings or structures which are constructed with a view to having a long period of use such as porta-cabins, static caravans, greenhouses and shipping containers could be regarded as permanent or long-lasting provided they are expected to remain in the same location for a sufficiently long period of time Structures which are erected outdoors but are themselves wholly enclosed on all sides with a roof or ceiling and walls such as distillation columns and silos would be eligible. This interpretation would generally extend to situations where a number of wholly enclosed structures are erected outdoors on the same site; for example, where a chemical or industrial processing facility comprises a series of wholly enclosed structures joined by sealed piping. This is subject to each individual structure meeting the requirement that it is permanent or long-lasting (see our guidance above) and wholly enclosed (see our guidance below in this section on apertures which are not windows and doors). It must also be shown that the eligible heat use eg the carrying out of a process is contained within the relevant structure(s) Where heat is used for an eligible purpose within a series of wholly enclosed structures which make up a chemical or industrial processing facility, each such structure would normally be treated as a separate building for RHI purposes. Open structures such as uncovered tanks, reservoirs and channels would be excluded from the definition of building. We also interpret the requirement that buildings or structures should be wholly enclosed on all sides to mean that structures with open sides (such as barns, car ports, covered terraces etc) and with retractable roofs are ineligible. A building or structure where one or more of its four walls contains a window or door which is significant in proportion to the area of the wall (such as retail shops with display windows, cafes with patio doors, loading bays and docks, garages etc.) could therefore still be regarded as wholly enclosed In interpreting the requirement for wholly enclosed, we shall also take a pragmatic approach to the existence of apertures in walls, ceilings or roofs which are not doors or windows (such as vents, flues, air intakes etc.), provided that these are small in size and number relative to the area of the wall, ceiling or roof and do not, in our opinion, permit the significant escape of heat.