BIOMASS SOLUTIONS. There was always someone on the end of the phone from VG keeping me up to date. Domestic, Commercial and Industrial.

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1 BIOMASS SOLUTIONS Domestic, Commercial and Industrial Wind Turbines Biomass Solar PV There was always someone on the end of the phone from VG keeping me up to date Approved Partner Through innovation and design Heizomat have been at the forefront of manufacturing and installing biomass boilers for over 30 Years, having installed 30,000 boilers worldwide

2 55-98% Reduction of Carbon Emissions when compared to using fossil fuels 70% Savings enjoy significant savings on heating costs BENEFITS FROM INSTALLING A VG BIOMASS SYSTEM Generate an income from the RHI (renewable heat incentive). Reduce your monthly energy bill for your home or business. Help protect yourself or business against rising fuel costs. Increase the Net Present Value of your home or business due to the revenue stream from the boiler system. Lower your carbon emissions and help protect the planet by generating clean energy. Fuel Types Pellet Boilers are extremely controllable, with pellets being fed via a fully automated auger directly into the boiler. The pellets are made from compressed wood chips, have extremely high calorific values, and very low moisture content. With the efficiency of the combustion chamber, controllability and high quality wood pellets efficiencies of 95% and even higher can be achieved with added bonus that it is a carbon neutral heat source.

3 INTRODUCTION TO VG BIOMASS Biomass (or Wood-fuelled) systems burn wood pellets, chips or logs to provide heat for central heating and hot water systems. This can be for domestic use or for larger commercial requirements. To incentivise the uptake of modern and efficient biomass boilers, the government has introduced a programme called the Renewable Heat Incentive or RHI. This programme enables payment to the owner of the Biomass equipment for every unit of heat energy that their system produces. The rates that are paid for each of these units are dependent on the installed system size. These rates are index linked (RPI), which means that the rates will increase each year in line with inflation. Currently the RHI is for commercial customers only, with domestic customers being eligible in the near future. Biomass is a renewable energy technology and is classified as Carbon neutral. As trees grow they absorb Carbon from the atmosphere (and produce Oxygen). This carbon is stored in the tree. If this tree was to be left to decompose, this captured Carbon would be released back to the atmosphere over a few years, burning that material will also release the Carbon but will make use of the energy in the process. VG Energy customers find benefits in both the heating of their buildings (including residences) as well as providing heat for specific activities, including the heating of agricultural buildings, offices and commercial properties. All VG Energy Biomass installations are Fully MCS certified (where required) to allow our customers to make the most of the RHI scheme. VG Energy specialise in Biomass Systems that are designed to run on multiple fuel types which can give our customers future flexibility to use the most cost effective fuel available at the time. There are three main types of Biomass Boilers: Pellet Boilers, Wood Chip Boilers, and Log Burning Boilers. The choice of fuel and the supply of that fuel are dependent on the individual customer s situation. A lot of VG Energy s agricultural customers prefer to use Wood Chips, as they are generally available on their land through the sustainable management of woodlands, and from also making use of any fallen trees on the property. Having this source of fuel on their property removes any purchase and transport costs and makes the return on the investment even higher. Wood Chip Boilers are also extremely controllable - much more so than conventional oil or gas boilers. The wood chips are fed from the store to the boiler by a fully automated auger system. Wood chips are a fuel that is domestically produced, unaffected by economic crisis, and environmentally friendly. Log Burners have similar economics as the previous two technologies, but do not have an automated fuel delivery setup. Logs are loaded into the boiler by hand, generally once a day depending on the size of the boiler. Log burners are only suitable for smaller installations as manual feeding is not generally suitable in large commercial situations.

4 A Brief Explanation of the UK Renewable Heat Incentive The Renewable Heat Incentive (RHI). On 10 March 2011, the Government announced details of the Renewable Heat Incentive policy to revolutionize the way heat is generated and used. This is the first financial support scheme for renewable heat of its kind in the world. A NEW OPPORTUNITY WITH THE RENEWABLE HEAT INCENTIVE At a time when we can see many problems with relying on a rapidly changing world and continuous reliance on oil and gas, we are proposing to put in place a key foundation stone of our future energy where both carbon reduction and energy security are assured. The Renewable Heat Incentive(RHI) policy document, sets out the detailed arrangements for this scheme, which will provide long-term financial support to renewable heat installations to encourage the uptake of renewable heat. This scheme can be highly lucrative for those owning suitable renewable generation plant. The RHI scheme has been set up with size bands for these renewable developments, this gives higher tariffs for smaller projects which enables all renewable energy projects to have similar returns on the investment. The relevant tariffs are shown on the table below. Tariff name Eligible technology Eligible sizes Tier Small commercial biomass Medium commercial biomass Large commercial biomass Small commercial heat pumps Large commercial heat pumps All solar collectors Bio-methane and biogas combustion Solid biomass including solid biomass contained in municipal solid waste (incl. CHP) Ground-source heat pumps; water source heat pumps; deep geothermal Less than 200 kwth 200 kwth and above; less than 1,000 kwth 1,000 kwth and above Previous tariff (pence / kwth) up to 31 March 2012 New rounded tariff (pence / kwth) from 1 April 2012 Tier Tier Tier Tier N/A 1 1 Less than 100 kwth N/A kwth and above N/A Solar collectors Less than 200 kwth N/A Bio-methane injection and biogas combustion, except from landfill gas Bio-methane all scales, biogas combustion, except from landfill gas N/A The Gas and Electricity Market Authority (Ofgem) will administer the RHI including: dealing with applications; accrediting installations; making incentive payments to recipients; and monitoring compliance with the rules and conditions of the scheme. The RHI will be funded from general Government spending, not through the previously proposed RHI levy. Connect and stay in touch with VG VG Energy VGEnergyLtd

5 Heizomat Robert Bloos built the first automatic discharger system for woodchips in The idea behind it was to use wood from his own forests with the same comfort as he would fossil fuels. In the beginning the discharger system was only to supply the boiler with woodchips for his own agricultural business, yet more and more people showed their enthusiasm for the Heizomat. HSK-RA Range Our bestseller continues to be the HSK-RA series. This boiler type with complete cladding is characterised by its high effectiveness, its robust processing, best emission values and simple use. The incineration is regulated with a lambda sensor. Feeding in the fuel takes place using the renowned Heizomat discharger technology. The range of use for the HSK-RA series are between kw. Woodchips, sawdust, wood shavings or even pellets are used as fuel. VG Product Range When it comes to sourcing our products, we have carried out extensive research in order to find the very best market leading products that are not only affordable and reliable, but are also World renowned for their quality. VG Energy constantly monitors new and existing products that are on the market to ensure that we are always installing the best possible products that have been independently tested and verified, for our customers. As accredited suppliers and installers of renewable technologies we are here to ensure that every aspect of your installation runs smoothly from initial discussions through to the installation and testing of your project. Today Heizomat has more than 200 employee s incl. a large training workshop with 14 apprentices in the Two Bavarian towns of Gunzenhausen / Maicha as well as Heidenheim in Central Franconia. The production area has developed from a garage to today s size of over 35,000 m². Along with firing plants for woodchips and biomass, Heizomat has specialised itself in the construction of hand and crane operated chippers, filling technology for woodchip storage, woodchip transportation systems and gripper for trunk and treetop wood. More than 30,000 installed heating systems and chippers worldwide stand for the quality and fully developed technology of Heizomat! Approved Partner of Heizomat - installers 30,000 boilers worldwide over 30 years. Benefit from an amazing return on investment

6 PRoduct Specification Automatic feed of the fuel into the combustion chamber, automatically regulated to provide the correct amount of heat. Automated ignition controlled with a timer or by your heating requirements. Self cleaning to maintain the boiler efficiency and to simplify everyday use. Automated ash removal by the integrated auger to the ash box. A simple touch screen interface, combined with web based monitoring keeps you in control The Agitator Additional products The Agitator was developed by HEIZOMAT in Since 2011 the Agitator with the patented parallel extension can be equipped allowing the silo to be emptied circularly, with low noise and without rebounding. The discharge auger with loosening geometry guarantees the trouble-free transportation of the heating material from the silo to the heating system. The high operational reliability is ensured by a 50/35 mm thick solid shaft. The core of every HEIZOMAT discharger is the bevel helical gear developed by us with a conferrable torque of up to 5,000 Nm. This has a special seal that reliably prevents the intrusion of dust and dirt. It is powered by a drive motor which is flanged to the discharger channel outside of the silo. No undershelf is required! 4 chamber rotary valve with counter blade Robust agitator from 1-7m, for the reliable transportation of fuel Discharger head with rip hook DISCHARGER SYSTEM Robust! Using the route channel, fuel up to G50 is securely transported and reliably led to the fire via the 4 chamber rotary valve! Inclined storage auger for internal fuel storage Underground storage for simple filling with agricultural equipment Overhead discharger for woodchip storage Connect and stay in touch with VG VG Energy VGEnergyLtd

7 VG Product Range RHK-AK Range The versatility of organic fuels knows no limits. The task of the RHK-AK series is to use this multiplicity as a heating material. A round cyclone combustion chamber at the heart of the boiler is the guarantee for the optimum transfer of heat to the boiler water. The Counter-rotating air supply ensures very good combustion of the fuel. Through high-temperature cast blocks primary air is added to the combustion. Through the full fireclay lining of the combustion chamber, secondary air is specifically mixed into the Combustion process and an optimum heat yield are achieved. Everything which inertly turns to gas or burns is slowly moved towards the de-ash system with the chain catches and thereby optimally burned out. Combustion chamber made from refractory concrete Material thickness of all boilers min. 6 mm Does not need to be switched off during boiler cleaning 6 Million Tons of good wood is wasted each year that could be used to heat your home Generate Income from the Government backed Renewable Heat Incentive (RHI)

8 Product Specifications Connect and stay in touch with VG VG Energy VGEnergyLtd

9 BENEFITS OF INSTALLING A VG ENERGY BIOMASS BOILER SYSTEM At VG Energy our mission is to make renewable energy technologies both easy to understand and affordable. We adopt an honest approach and we will always be realistic in our estimates of energy production, energy savings, payback periods and ROI (return on investment). By purchasing a Biomass system from VG Energy for your property you will benefit from a government guaranteed 20 year RHI Payment, which will yield a higher return than most other investments, savings accounts, or ISA s. Benefits from Installing a Biomass System: Generate an income from the RHI (renewable heat incentive). Reduce your monthly energy bill for your home or business. Help protect yourself or business against rising fuel costs. Increase the NPV (Net Present Value) of your home or business due to the revenue stream from the boiler system. Lower your carbon emissions and help protect the planet by generating clean energy. Key reasons to use VG Energy to Supply and Install your System: VG Energy is committed to customer satisfaction. VG Energy only supplies quality components which are designed to last long term. VG Energy employs more than 60 staff and will be there to provide backup to your boiler if ever required. Key reasons to purchase a Heizomat Boiler: Heizomat have been manufacturing and installing biomass boilers for over 30 Years. Through innovation and design Heizomat have been able to provide customers with high quality, reliable and easy to use boiler technology to convert biomass materials into heat energy. Manufactured and installed over 30,000 boilers worldwide. Ability to utilise alternative fuels if primary fuel runs out. e.g( chip boiler can be run on logs) We Are a Leading Supplier of Renewable energy technologies We Offer a full in-house service from consultation to planning to installation. Generate an income and reduce your Energy Bill ACT NOW before the RHI reduces

10 What Size of Boiler do you need? Boiler Boiler size Boiler size Boiler size Boiler size Boiler size Boiler size Boiler size Heizomat HSK - RA Heizomat RHK - AK Fuel Comparison Fuel Usage Per/yr litres Oil Fuel Costs Litre 1,950 3,250 3,900 5,200 6,500 9,750 13,000 LPG Fuel litre 2,460 4,100 4,920 6,560 8,200 12,300 16,400 Electricity 12p/kWh 4,208 7,014 8, , , ,042 28,056 Property Size sqm High Insulation 360sqm 597sqm 717sqm 896sqm 1195sqm 1792sqm 2390sqm Medium Insulation 240sqm 398sqm 478sqm 598sqm 796sqm 1195sqm 1593sqm Low Insulation 180sqm 298sqm 358sqm 448sqm 597sqm 896sqm 1195sqm Output RHI peak load hours RHI financial 8.3p 3, , , , , , , Example: 3 bedroom house using 3500 litres of oil per annum with low insulation eg. Single pane glass, no wall insulation, loft insulation - measuring 275 sqm would need to install a 50kW rated boiler. High Insulation - New build property - Double Glazing, Loft Insualtion, Cavity Wall insulation, Solid doors. Medium Insulation - Established property - Double glazing, Loft insulation, minimal wall insulation. Low Insulation - Older property - Single pane glazing, loft insulation, solid walls. Please note this table is to be used as a guide only and an in-depth site survey would be required to size the boiler accurately. Disclaimer: Whilst the information contained herein is believed to be true and accurate to the best of VG Energy s knowledge, VG Energy do not give any warranty or any representation as to the accuracy of the information contained herein and you should always seek proper and detailed advice in relation to any matter arising. (Version 1 - Feb 2012) Connect and stay in touch with VG VG Energy VGEnergyLtd

11 Explanation of the VG Energy Sales Process Key Benefits of VG Energy VG Energy can offer the complete development and build, including: Our range of advice will cover each stage of the installation process. We initially supply some general information on our products and services which you will find in this booklet. If you would like some more specific advice on what renewable system is suitable for you, then one of our survey team will come to your property to determine your requirements and explain your options. They will also conduct a full site survey in order to ascertain the best possible solution for you or your business. During the site survey we will discuss your renewable energy needs in detail, assess your property for suitability, assist in choosing the right system for your needs and advise you on the next steps to having your biomass system supplied, installed and commissioned by VG Energy. We will then send you a full personalised quotation that will detail the recommended system and the costs. If you wish to proceed with the system as quoted, then a deposit is required along with the signed quotation. At this stage VG Energy will obtain any consents or agreements that may be required, before proceeding with the procurement and installation of your system. VG Energy is unique in that we perform all of these steps in-house with our own fully qualified and professional staff. During the procurement, construction and installation stages a VG Energy Project Manager will be assigned to be your point of contact during this process to ensure that you are well informed of the progress and to ensure that each stage of your installation is carried out to the highest standard. Site survey and Feasibility Studies System design Boiler Procurement Project Management Civil Works Electrical Connection Boiler Installation Boiler Commissioning On-going Operation & Maintenance Insurance and Finance Packages General Advantages VG Energy holds spare parts in the UK for quick repairs in the unlikely event of a breakdown. VG Energy employs 60+ staff specialising in Renewable Energy Systems. In-house Design Teams and Boiler System Experts. Maintenance staff and Boiler installers trained by the Boiler manufacturers. VG Energy deals directly with the Boiler manufacturers. VG Energy holds ISO9001, ISO14001, and MCS certifications. VG Accreditations VG Energy Group is fully accredited by the Microgeneration Certification Scheme (MCS) and only offers products which are also accredited by the same scheme (where applicable). MCS is designed to evaluate products and installers against robust criteria for microgeneration technologies, providing greater protection for consumers and ensuring that their money is spent in an effective and safe manner. ISO VG Energy Group achieved ISO9001 status in June 2010 which shows our commitment to offering the highest quality products and customer service available. ISO VG Energy Group also achieved the environmental certification ISO14001 standard in October 2010 which shows our commitment to protecting the environment as it ensures we continuously monitor and control our environmental impact.

12 Technical Matters 1. What is a biomass boiler? 2. Can a biomass boiler be connected to my existing heating system? 3. What maintenance does a biomass boiler require? 4. Can a biomass boiler work fully automatically? 5. How many biomass boilers are currently installed in the UK? 6. What sort of fuel can be burned in a biomass boiler? 7. How much fuel will I need? Biomass Frequently Asked Questions 8. Do I need Planning Permission and/or a Building Warrant to install a biomass system? 9. Can I install a biomass boiler in an Air Quality Control Area? 10. How do I dispose of the ash which is produced? 11. Are there any Government incentives for installing biomass systems? 1. What is a biomass boiler? A biomass boiler is a boiler designed to burn solid fuels classed as biomass. Such boilers can be supplied to burn every form of biomass from woodchips, wood pellets or logs to waste agricultural materials such as straw and grain husks, olive kernels, rice and the dust from any of these including sawdust. Boilers need to be designed to burn specific materials, with any given boiler able to burn a limited range of biomass. 2. Can a biomass boiler be connected to my existing heating system? Yes, in much the same manner as any other boiler. However, as many biomass boilers operate at a higher temperature, and hence pressure, than fossil fuelled boilers, with some operating at above 100C, it may be necessary to interpose a plate heat exchanger between the biomass boiler and the existing heating system. 3. What maintenance does a biomass boiler require? While fossil fuelled boilers usually require an annual maintenance visit only, biomass boilers require more attention. Biomass boilers burning even the most difficult of materials can operate unattended, but weekly inspection visits are required to carry out a visual inspection of the boiler and fuel feed system, to check the lubrication of bearings and to empty the ashbin. If the boiler is not fitted with automatic flue cleaning, regular cleaning of the flue tubes is required using a flue brush. 4. Can a biomass boiler work fully automatically? All but the smallest of biomass systems can be configured to work fully automatically. Typical automated features include time switch or optimum start/stop, fuel feed, de-ashing and flue cleaning. The majority of boilers can operate for up to 1 week at a time without manual intervention. 5. How many biomass boilers are currently installed in the UK? Currently several hundred systems, larger than domestic systems, are installed in the UK ranging in size from 50kW to the 220MW system installed at a power station. However, the number of installations is increasing rapidly as is the associated design and installation, and operating experience. 6. What sort of fuel can be burned in a biomass boiler? Almost all biomass materials can be burned in biomass boilers, but the majority of systems operate on woodchips or wood pellets. On a small scale almost any biomass material can be burned in a batch fed boiler including straw, wood offcuts, waste wood, and logs. It should be noted that the burning of waste wood and offcuts may be subject to the Waste Incineration Directive which prohibits the burning of materials contaminated by heavy metals (eg lead based paint) and halogenated organic compounds (eg some pesticides, sheep dip and similar materials). On a very large scale, as found in district heating systems, fully automatic boilers can burn straw, sawdust, nut husks, olive kernels, and oat, wheat and barley husks. Some of these latter materials are not recommended for burning on any but the largest scale because of the potential problems of slag formation, combustion control and emissions.

13 7. How much fuel will I need? As with any heating system the amount of fuel required will depend on the size of boiler and the period for which it is operated. The amount of fuel required also depends on the calorific value of the fuel and its density. For example, a 100kW boiler operating at 85% efficiency for 10 hours a day for 7 days would require: Using wood pellets: 1.7 tonnes requiring 2.6m³ of storage Using 30% moisture content: 2.4 tonnes requiring 11.2m³ of storage Using 50% moisture content: 3.7 tonnes requiring 12.2m³ of storage 8. Do I need Planning Permission and/or a Building Warrant to install a biomass system? While Planning Permission is not required for a boiler, it may be required for a boiler house, fuel silo and flue (chimney). It may also be required for any aspect of an installation where historic buildings are involved or in sensitive locations. 9. Can I install a biomass boiler in an Air Quality Control Area? Yes. All VG Energy boilers are on the Exempt Appliances List but a Local Authority may be persuaded that a non-exempt appliance can be used providing they have been satisfied that the emissions will not be prejudicial to health or a nuisance. 10. How do I dispose of the ash which is produced? The ash produced from biomass boilers is potash which makes the ash valuable as a top dressing by farmers or as a component of composts by horticulturalists. If ash cannot be disposed of in this way, or if the quantities are small, it can be disposed of to landfill with other wastes. On large boilers fitted with flue gas cleaning equipment, and where the fly ash is collected separately, it may need to be treated as special waste if the concentration of any heavy metal in the fly ash exceeds a threshold value. Currently, there is no regulatory requirement to segregate bottom ash from fly ash in the UK. 11. Are there any Government incentives for installing biomass systems? The Carbon Trust operates an interest free loan scheme to businesses repayable over 5 years. Information, and an on-line loan calculator, can be found on the Carbon Trust website: The Renewable Heat Incentive has been now been launched. Please refer to the RHI section of this brochure. Annual Heat Requirement (kwh) Fuel Requirements (Wood Pellets, tonnes) Size of store m3 10, , , , , ,

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15 WATCH BIOMASS IN ACTION To watch videos of our biomass boiler systems please scan the above code or visit our VG TV page on our website. Visit:

16 VG ENERGY HEAD OFFICE Waterside Farm Glasgow Rd, Galston Ayrshire, KA4 8PB Company No Tel: Fax: ABERDEENSHIRE OFFICE Unit 7 Thainstone Centre Inverurie, AB51 5XZ Tel: YORKSHIRE OFFICE Skipton Auction Market Gargrave Road, Skipton North Yorkshire, BD23 1UD Tel: WILTSHIRE OFFICE Spittleborough Farmhouse Swindon Road Royal Wootton Bassett Wiltshire, SN4 8ET Tel: VG OPERATIONS OFFICE Hill Farm Glasgow Rd, Galston Ayrshire, KA4 8PH Tel: VG Energy can help you generate energy and income Call: info@vgenergy.co.uk Connect and stay in touch with VG VG Energy VGEnergyLtd