GASIFICATION AND GENERATION SYSTEM

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1 GASIFICATION AND GENERATION SYSTEM Power Network Group Inc. & Shangqiu Haiqi Machinery Equipment Co., Ltd. has signed an international cooperation agreement aimed at the development and utilization of energy, environmental protection, energy saving technology development and related product. As founding originator of domestic biomass burning machine industry, and as an industry and trade enterprise which integrates scientific research and development with manufacturing specialized biomass equipment, the company has established extensive cooperation with a number of universities and research center such as North China Electric Power University, Harbin Institute of Technology, Nanjing Forestry University. After years of technical research and joint design with well-known science and technology institutions, adopting domestic original biomass high temperature pyrolysis new technology, we launched a series of Hai Qi HQ series biomass burner, biomass gasifier, city life and industrial waste gasifier, biomass and waste gasification power plant, with a compact structure and high performance. Strong applicability of raw material is our biggest advantage. According to the actual situation and the different requirements of countries, we design different types and related ancillary energy equipment. We have our own R & D and sales team, thus our products have absolute competitive advantage. We have a highly efficient, rigorous and innovative manager and more than 20 people of sales team with very professional experience in OEM and ODM, has customers from all over the world., At present we already have a number of agents abroad as our products have passed the relevant international certification such as EU, CE, BV, TUV, SGS, etc. At present our main products are biomass resources reuse "biomass burner, biomass gasifier", adopting domestic advanced technology, completely overcome the bad situation of high energy consumption, cannot work continuously, severe coking. It turns out to be the best in the world that "Host structure is simple and compact, reasonable design, excellent quality".

2 Through unremitting efforts and the gradual improvement of technology, the device has been exported to many countries like the United States, Poland, Malaysia, the Philippines, Indonesia, Iran, India, Vietnam, Thailand, Korea, Pakistan, & Africa etc., enjoying a high reputation in the International market. Equipment introduction: This section deals with the description, the objectives and the proposed results for the 5MWh MSW Gasifier Power Project to be established by Power Network Group Project Activity and its Purpose MSW Gasification is the process of converting MSW into a combustible gas mixture called Producer Gas. A MSW Gasifier based Power Generation System uses Producer Gas to run engines (similar to Diesel Generator sets) and generate power. This method of power generation effectively improves the energy efficiency of MSW and simultaneously reduces the environmental hazards that stem from conventional burning. As an eco-friendly and sustainable solution, it acts as a source of Distributed Renewable Power Generation and provides Energy Security to the national grid. The proposed project will be of 5MWh capacity. The power generated will be sold to power public corporation of Peru after entering into a long term Power Purchase Agreement (PPA) for USD per unit for the first 30 years Project Objectives This project activity has the major following objectives: 5MWh Grid connected Power Plant for power To reduce GHG emissions from burning of fossil fuels at the thermal power plants supplying power to the grid. More specifically, the project shall contribute to the sustainable development of the region and country in the following ways. Co-generation recovering waste heat for greenhouse and house warming. Generation of Renewable Energy by utilizing of waste like waste, trash, wood. Meet energy generation needs and environmental goals. Contributing to a small increase in the local employment in the area of skilled jobs for operation and maintenance of the equipment Project Outputs Generating 43,800,000 kwh (units) per year of electricity for exporting to the State grid Project Stakeholders Shangqiu Haiqi Machinery Equipment Co., Ltd (Haiqi) -a Global Technology leader dealing in Renewable Energy Technologies for over more than 11 years and pioneers in the area of biomass &MSW Gasification & Biogas Systems. Project Technical Specifications MSW gasification is basically conversion of, city waste, solid fuels (wood/ wood-waste, agricultural residues etc.) into a combustible gas mixture normally called Producer Gas. The process is typically used for various biomass materials and it involves partial combustion of such biomass Partial combustion process occurs when air supply (O2) is less than adequate for the complete combustion of biomass. 2.1 Gasification The gasifier is essentially a chemical reactor where various complex physical and chemical Processes take place. Four distinct processes take place in a gasifier are: MSW is fed into gasifier at specified intervals. The equipment is designed in such a way that it takes in air in controlled quantities, resulting in partial oxidation of biomass into Producer

3 gas. One kg of MSW gets converted into 3 to 4 Nm3 of gas with a calorific value of Kcal per Nm3, which would have the following composition: CO 15-20% H % CH4 1-4% CO2 8-12% N % Advantages of Gasification It converts a traditional low quality fuel that is inconvenient to use into high quality, convenient, combustible gaseous fuel. Such conversion is at relatively very high efficiencies and results in total convenience and process control. Almost all environment pollution associated with biomass use can be eliminated. It is environment-friendly and reduces the threat of global warming. Both initial investment and also the cost of energy/ power production are just about the lowest amongst all known alternatives as it is based on locally available resources with reasonable price stability. As this is a renewable technology, there are a number of incentives available from the governments. Gasifiers are eligible for Carbon Credits under the Clean Development Mechanism and the rising cost of these credits could make the payback for the system much faster. 2.2 Engine Generator set : The Engine Generator is from Shangdong Zibo Zichai New Energy Co., Ltd., model no. 8300D/M Engine of 500 kw of which the details are given below: Model 8300D/M-2

4 Technical parameters Model 8300D/M-2 Item Technical parameters Model 8300D/M-2 Gas mix mode Inline water-cooled, Four stroke, spark plug, Open combustion chamber Engine ENGINE Cylinders 8 Cylinder Diameter (mm) 300 Rated Speed (rpm) 600 Rated Power (Kw) 550 Heat Consumption (MJ/Kwh) 120 Flywheel Rotation Direction Clockwise Starting Mode Air Motor Start up Exhaust Temperature (C) <600 Gas Pressure (kpa) >2.5 Gas Temp. prior to Engine (C) <40 Oil Consumption (g/kwh) < 1.0 GENERATOR Model 500 GFM Rated Power (KW) 500 Voltage (V) 400/6300/10500 Current (A) 902/57/34 Power Factor (C OS*) 0.8 (lag) Exciting Mode Brushless Phase 3 Phase 4 Wire Size 6400 x 1600 x 2900 mm Weight 22,000 kg. 2.3 Waste Generation and Disposal Method: The following are the wastes generated by the gasifier: Ash This is about 3 5% by weight of the MSW fed into the gasifier. This is a good pesticide and can be returned to the soil or given back to the local farmers, as it has fertilizer values. This can also be used for making fly ash bricks. Sludge This is again ash mixed with some water. This can also be added to the soil. Tar After cleaning the gas, some tar will be filtered by filters. And a little quantity will flow out with the water. We have sewage treatment system, we add active and sand inside of the treatment, the treatment is closed. After cleaning, then the waste water can flow outside. it can meet the environmental requirements. There are no other liquid/ gaseous effluents. The engine exhaust is very clean and the water is used in recirculation mode.

5 2.4 Pollution / Effluent / Gaseous Emission/ Environmental Related There are no harmful effluents from gasifier. Water is re-circulated in interlayer system from cooling pond to gasifier and from cooling tower to gas cleaning system. One has to replenish water pond to compensate evaporation losses and that depends upon no. of units generated in a day. Usually, ½ liter of water per unit of electricity generated is to be added as make up water. Water for engine cooling is to be added as per the specification of engine manufacturer given in their O & M manual. Any mud free water can be used for gasifier cooling pond and hence, it does not require any special water treatment but occasionally ph of water is to be maintained at desired level. The other discharges from gasifier are charcoal and ash. Both are of biological nature and biodegradable. Dry charcoal can be used again in gasifier while rest can be used as an activated carbon in air dryer or as earthing material in electrical towers/ connections. Ash can be used as filling materials in large pits. Briquettes of ash can also be made and sold as fuel cake. Gas from gasifier is fed directly into engine without any atmospheric discharge while flare is given to occasionally check the quality of the gas generated in gasifier and during the stoppage of the system. The major gaseous emission from the power pack is from engine exhaust only. Exhaust from gas engine using producer gas is cleaner than conventional fuel due to absence of Sulphur in biomass. Below are the indicative figures: Emissions with Producer Gas: GAS PERMISSIBLE LIMITS AS PER CPCB NORMS EMISSION OBSERVED CO 1.2g/MJ g/MJ NOX 2.2g/MJ 0.7g/MJ Hydro Carbons 0.3g/MJ 0.005g/MJ Particulate Matter 0.2g/MJ 0.005g/MJ 2.5 Technical Specifications Snapshot Power Plant of 500KW Gasifier model technical specifications: Gasifier Model Gasifier Type Fuel Specifications Size (mm) Moisture Content (%) Gasifier Output Rated Gas Flow (Nm3/hr) 3000 Average Gas Calorific Value (Kcal/Nm3) > 1,050 Rated Thermal Output (Kcal/hr) Maximum city waste Consumption (Tonnes /hr) Maximum 0.5T/hr Gasification Temp. ( C) Indicative Gasification Efficiency (%) Gasifier system > 85% Temperature of Gas at Gasifier Outlet ( C) 300 to 500 C Biomass Feeding Mode Bucket conveyor HQXX-III3000 Down Draft MSW Minimum:( ) 10 mm; Length (L) 30-50mm Maximum: ( ) 75 mm; L 75 mm < 15% (Wet Basis)

6 Frequency Ash Removal Gas Cooling Gas Cleaning Start-Up Typical Gas Composition Depending on the gasifier system designed Continuous through proprietary control and water seal/ Dry Ash Char Removal System Through water cooling system, water-bath dust removal system, oil water separator, etc. Through proprietary & patented fine filters Through high pressure fan CO %, H2-18+2%, CO2-8+3%, CH4 -Up to 3%, N2-50% 3- PROJECT SPECIFICS 3.1 Generation Process The process adopted for generation of power involves a system of gasification with the use of MSW as fuel. MSW gasification is a process of converting MSW to a combustible gas in a reactor, known as gasifier, under controlled conditions. The combustible gas, known as producer gas, has a composition of approximately CO 19%, CO2 10%, N2 50%, H2 18% and CH4 3%. This gas which has a calorific value of 4.5 to 5 MJ/cu.mtr is then cooled and cleaned prior to combustion in internal combustion engines for power generation purposes. 3.2 Power Evacuation The power generated by the plant would be at a voltage of 380V. The voltage will be stepped up to 66 kv and parallel with national grid at the same voltage level. The power national grid substation is within 2kms from the Biomass gasifier power plant. 3.3 Sale of power to the Grid The power generated by the plant would be supplied to the national 0.23EU per unit generated. The generated power will be fed to KV feeder line through power evacuation equipment.

7 3.4 Shed for Power Plant For the system, we will give steel structure; you need to build a cover for the gen set. For the gasifier furnace, you can add a shed for it. For the raw material, you need to build shed for storing them. 3.5 Essential Services Water: The water required for the factory is sufficient through bore well. The cost of rigging the bore well and the pump set for the same has been included in the civil structure estimates Affluents: The design and technology provided has made necessary arrangements for disposal of affluent discharges during the process of production. 3.6 Manpower Requirements: The gasifier system is Automatic control system; it needs one person on duty. For the gen set, it can be controlled by computer. It also needs one person on duty. 3.7 Transport cost Since the purchase price offered includes the transportation cost, raw material shall be delivered to the power plant at their own cost. Similarly, the material from the supply chain and hence no provision for transportation has been made. 3.8 Operation & Maintenance Plant & Machinery shall be purchased with enough spares to support 1 years of requirement. A provision has been made for repair and maintenance to the tune of USD 0.01 per unit of power generated. 3.9 WARRANTY ONE YEAR for all delivered equipment. The buyer should operate according to the operation manual the seller supplied. If the buyer uses the biomass burner and rotary dryer according to the operation manual, and any parts failw ithin one year, the seller will supply a new part to the buyer. However, theb uyer will pay for the freight. After one year of guarantee, the buyer pays for part and the freight. The seller will instruct the buyer how to repair the equipment and the methods in the manual KW proposal and related specifications and main parts list x Specifications of gasifier system NO. NAME MODEL POWER (Kw) QTY (units) 1 Conveyor Bucket HQ Blender Hydraulic Pump Lubrication Pump Gasifier Furnace HQ Water Pump of Gasifier Furnace Ash Discharge Water Sprinkler HQ III Condenser HQ III Draught Fan C 22 1

8 11 Cyclone Dust Collector 4 Cyclones Tube Cyclone Separator HQ III Draught Fan C Cyclone Dust Collector 4 Cyclones Condenser HQ III 1 16 No.1 Filter Plastic Ball No.2 Filter Clapboard Condenser HQ III No.3 Filter Air Filter Gas Tank HQ III Control Panel PLC Water Pump for Gas Clean System Steel Structure Cooling Tower 50 Ton specification of 500KW Generator set Item Technical parameters Model 8300D/M-2 Gas mix mode Inline water-cooled, Four stroke, spark plug, Open combustion chamber Engine ENGINE Cylinders 8 Cylinder Diameter (mm) 300 Rated Speed (rpm) 600 Rated Power (Kw) 550 Heat Consumption (MJ/Kwh) 120 Flywheel Rotation Direction Clockwise Starting Mode Air Motor Start up Exhaust Temperature (C) <600 Gas Pressure (kpa) >2.5 Gas Temp. prior to Engine (C) <40 Oil Consumption (g/kwh) < 1.0 GENERATOR Model 500 GFM Rated Power (KW) 500 Voltage (V) 400/6300/10500 Current (A) 902/57/34 Power Factor (C OS*) 0.8 (lag) Exciting Mode Brushless Phase 3 Phase 4 Wire Size 6400 x 1600 x 2900 mm Weight 22,000 kg. Thank you in advance, Don Hinst Chairman Manuel A. Keesee Co-Chairman

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