Westinghouse Plasma Industrial / Commercial Scale Syngas Production from Waste Power Gen Africa Cape Town, South Africa July 15-17, 2015
WESTINGHOUSE PLASMA CORPORATION: Our Focus The industry s leading plasma gasification technology that provides Syngas for industrial use. Our Vision To provide the leading technology platform for converting the world s waste into clean energy for a healthier planet. Who We Are Alter NRG is a publicly traded (TSX: NRG; OTCQX: ANRGF) Our Mission Focused on the gasification of difficult waste streams: Municipal Solid Waste Hazardous Waste Industrial Waste Medical Waste Mixed Biomass Construction & Demolition Waste Build shareholder value by enabling customers to convert waste into clean energy. 2
WESTINGHOUSE PLASMA CORPORATION: Key Milestones: Commercial operations since 2002 Recently commissioned 2 new China based projects in Shanghai (30 tpd) and Wuhan (150 tpd); Commercial scale project in Bijie (600 tpd), scheduled start of construction late Q2, 2015 30+ years of commercial development with over $1 billion USD invested worldwide In start up of Tees Valley Phase 1 1000 tpd Phase 2 1000 tpd commissions late Q1 2016 Wide range of capacity: 25 tpd to 1000 tpd 3
THE TECHNOLOGY FOCUSES ON GROWING WASTE STREAMS Current global MSW generation is 1.3 billion tons per year, will increase to 2.2 billion tons per year by 2025 14% Growing population and economic development leads to: increasing waste volumes 24% 54% Landfill Compost Recycle Environmental concerns over landfilling and incineration 8% Incineration THE TECHNOLOGY CREATES OPPORTUNITIES Ability to create low cost to zero cost syngas, because we get paid to take the waste (gate fees) Replacement of ageing incinerators with Westinghouse Plasma technology creates a cleaner and more efficient waste to energy solution Westinghouse Plasma technology creates syngas this supports conversion of waste into higher value end products (e.g. liquid fuels, chemicals, higher priced fuel replacement) 4
THE MARKET POTENTIAL IN AFRICA Current Urban MSW generation levels are approximately 115 Million tons/year Expected increase to approximately 255 Million tons/year by 2025 Current urban population (2012) is approximately 354 Million, projected to increase up to approximately 657 Million (2025) CURRENT TOTAL MARKET SIZE 2025 TOTAL MARKET SIZE LIQUID FUELS 207,000 Bbls/day (OR) SYNGAS 1,979,000 MMbtu/day LIQUID FUELS 548,000 Bbls/day (OR) SYNGAS 4,800,000 MMBtu/day (OR) (OR) WASTE 263,900 tonnes/day ELECTRICAL 8 GW Capacity WASTE 639,000 tonnes/day ELECTRICAL 19 GW Capacity Source: World Bank G-65 GASIFIERS 264 Units G-65 GASIFIERS 640 Units Markets and market potential are significant for traditional off-takes (e.g. power/liquids) as well as fuel replacement (e.g. syngas vs. LNG or diesel) 5
WESTINGHOUSE PLASMA GASIFICATION
WESTINGHOUSE PLASMA: PROJECTS UPDATE Commercial Facilities: Commissioning: Under Construction: WUHAN, CHINA - BIOMASS, 150 TPD: 2012 PUNE, INDIA - HAZARDOUS WASTE, 78 TPD: 2008 SHANGHAI, CHINA - MEDICAL WASTE & FLY ASH, 30 TPD: 2013 TEES VALLEY, UK - TV1 MSW, 1,000 TPD: 2015 TEES VALLEY, UK - TV2 MSW, 1,000 TPD: 2016 MIHAMA MIKATA, JAPAN - MSW & SLUDGE, 24 TPD: 2002 UTASHINAI, JAPAN - MSW & AUTO SHREDDER RESIDUE, 220 TPD: 2003 TO 2013 BIJIE, CHINA MSW, 600 TPD: LATE Q2, 2017 7
WESTINGHOUSE PLASMA: GASIFICATION SOLUTIONS AND SYSTEMS Key Parameters P 5 W 15 G 65 Waste (tpd) 100 300 1,000 Electrical (MW) 5 15 50 Energy equivalent of fossil fuel (Bbls/yr) 50,000 150,000 650,000 8
PLASMA GASIFICATION A CLOSER LOOK Feedstock Flexibility Industrial Waste Commercial Waste Waste Biomass Household Waste Medical Waste Tires Coal Other feedstocks 3 Seconds Residence Time (No furans or dioxins) 850 0 C 1000 0 C Syngas Tar free 250 to 300 BTU/scf 2:1 CO/H 2 Product Options Air & Oxygen Plasma Torches 1650 0 C Vitrified Slag 9
PLASMA GASIFICATION VS. INCINERATION Comparative Metric Tees Valley 1 Advanced Plasma Gasification Incinerator PA, USA Waste to Energy Facility, UK Daily Throughput (tonnes per day) 1,000 1,344 Availability 92% 90% Gross Power Output (MW) 50 MW 43 MW MWh/tonne 1.2 MWh/tonne 0.77 MWh/tonne SIGNIFICANTLY CLEANER THAN REGULATED STANDARDS Pollutant Units Westinghouse Plasma Combined Cycle Permitted Incineration Facilities, USA US Emissions Guidelines EPA Section 111(d) EU Emissions Directive on Waste Incineration (2000/76/EC) Nitrogen Oxide (NOx) (ppmvd) 36 110-205 205 97 Particulate Matter (PM) (mg/dscm) 4 16-27 25-27 10 Sulfur Dioxide (SO 2 ) (ppmvd) 1 26-29 29-31 17 Hydrogen Chloride (HCl) (ppmvd) 6 25-29 29-31 6 Carbon Monoxide (CO) (ppmvd) 19 100 100 40 Mercury (Hg) (μg/dscm) 1 28-80 80 50 Dioxins and Furans (PCDD/PCDF) (ng/dscm) 0 13-30 30-60 0.1 ppmvd: parts per million volumetric dry mg/dscm: milligrams per dry standard cubic meter μg/dscm: micrograms per dry standard cubic meter ng/dscm: nanograms per dry standard cubic meter. 2000/76/EC STP are 0 C and 101.3 kpa at 11% O2 dry basis *Values are based on daily averages **Values are based on minimum of 30 minutes and maximum of 8 hours Vitrified Slag VS. Fly Ash Westinghouse Plasma Gasifier produces non-leaching vitrified slag (used as a construction aggregate, landscaping blocks, rock wool insulation, floor tiles etc.) vs. leachable incinerator fly ash Flyash (Leachable and Hazardous) Slag (Non-leachable and Recoverable) 10
WESTINGHOUSE PLASMA TECHNOLOGY COMPARISON Vessel Outputs Description Steam Turbine Recip Engine Gas Turbine Biofuels Chemicals Fuel Cells Hydrogen Plasma Gasification Plasma gasification of waste at a temperature of ~5000 0 C Produces high quality syngas that can be used in gas turbines or liquid conversions No dioxins or furans are generated due to high temperature created by Plasma Torches Pyrolysis X X X X X X Pyrolysis gasification burns waste at a range of 400-800 0 C Generates syngas which is combusted to further generate steam Generates tar in syngas Generates dioxins and furans due to low temperature Incineration X X X X X X Incineration burns garbage at a low temperature range of 870-1,200 0 C Generates heat to create steam for the turbines Generates dioxins and furans due to low temperature 11
FUEL REPLACEMENT Utilizing Syngas to displace high cost fossil fuels required to power existing gas turbines
REFUELING OF GAS TURBINES WITH LOW COST, ZERO COST AND NEGATIVE COST SYNGAS WESTINGHOUSE PLASMA GASIFICATION IS THE KEY ENABLING TECHNOLOGY PLASMA GASIFICATION FACILITY UNIT OPERATING COST (PER MMBTU SYNGAS PRODUCED, NET OF GATE FEE REVENUES) CLEANUP Tipping Fees $0/t $20/t $40/t $60/t $80/t $100/t G-65 (1,000 tpd) $6.0 $4.40 $1.75 $0 ($2.40) ($4.75) * Europe, UK, China, India, Japan, Korea, South America NAT GAS / LNG $10 - $20 / MMBtu Assumptions: Capital per MMBtu for clean syngas is ~$2/MMBtu Compression to 400psig per MMBtu is ~$0.75/MMBtu $60/t MSW Revenue, $60/t Biomass Cost, $6/GJ Natural Gas Cost 1 G-65 Gasifier, 1000 t/d capacity Importers of high cost fuels - Users Countries that export high value fuels Sellers o Several countries use valuable fossil fuel to generate highly subsidized power o Why not use your waste streams to generate the power and sell the valuable fossil fuel The VALUE PROPOSITION of GASIFYING 1,000 tpd of WASTE Can produce ~3.5 Million MMBtu/year of syngas at significant discount to current global fuel pricing This syngas can be used to displace expensive and volatile fossil fuels 13
REFUELING OF GAS TURBINES WITH LOW COST, ZERO COST AND NEGATIVE COST SYNGAS GE Gas Turbines o 6, 7 and 9 Series (6B.03, 7E.03, 9F.03) Siemens Gas Turbines o SGT5-2000E Series o SGT6-2000E Series Solar Gas Turbines o Taurus 60 Series o Titan 130 Series 14
PROJECT ECONOMICS Waste to Power Waste to Syngas (Replace LNG) Waste to Syngas (Replace Fuel Oil)
WASTE TO POWER - ECONOMICS Tipping fees* and long-term power prices are key drivers to project economics. Project economics are driven by multiple factors including: Emerging countries dynamics no/low tipping fees but high power prices Industrialized countries dynamics higher tipping fees due to improved waste management policies but lower power prices In addition to economic benefit, a Plasma gasification solution solves other important issues: 1. Avoiding landfilling 2. Providing renewable energy 3. Improved emissions POWER PRICE ($/MW) Effect of Power price and tipping fees on pre-tax ROE TIPPING FEE ($/tonne) $ 60.00 $ 70.00 $ 80.00 $ 90.00 $ 100.00 $ 60.00 0.85% 4.41% 7.40% 10.10% 12.64% $ 70.00 4.94% 7.86% 10.50% 13.05% 15.48% $ 80.00 8.32% 10.96% 13.46% 15.89% 18.26% $ 90.00 11.38% 13.87% 16.28% 18.65% 20.98% $ 100.00 14.28% 16.68% 19.04% 21.37% 23.68% $ 110.00 17.08% 19.43% 21.76% 24.06% 26.35% $ 120.00 19.82% 22.14% 24.44% 26.73% 29.00% Assumptions: 1000 tpd @ 13.79 MJ/kg, combined cycle. 50% Debt @ 7%. Installation Location is USA USGC $248M USD Installed Capital @ 20% contingency. Discount rate = 10%. Oxygen Purchased @ $61/tonne. Plant Availability = 85% (year 1), 90% (year 2), 90% (year 3). Metallurgical Coke as carbon bed material @ $300/tonne *Tipping Fees are costs to dump at landfill sites Courtesy of Air Products Tees Valley 1 Project, UK - 1,000 tpd to create 50 MW Power. Total Project 2000 tpd 100 MW 16
WASTE TO SYNGAS REPLACE LNG Multiple uses for Syngas: o Replacement fuel for LNG o Replacement fuel in existing boilers up to 30% (COEN boiler study) o Use in gas turbines to replace up to 100% of natural gas (GE study performed) o Inside the fence industrial companies or manufacturers use their own waste to create energy LNG PRICE ($/GJ) Effect of LNG price and tipping fees on pre-tax ROI TIPPING FEE ($/tonne) $ - $ 20.00 $ 40.00 $ 60.00 $ 80.00 $ 100.00 $ 10.00 N/A 5.68% 13.30% 20.12% 26.70% 33.15% $ 12.00 6.11% 13.66% 20.46% 27.03% 33.47% 39.80% $ 14.00 14.01% 20.08% 27.36% 33.80% 40.12% 46.32% $ 16.00 21.03% 27.69% 34.12% 40.44% 46.63% 52.70% $ 18.00 28.02% 34.45% 40.75% 46.94% 53.01% 58.96% Assumptions: 1000 tpd @ 13.17 MJ/kg Replacement of Fuel Oil. 50% Debt @ 7%. $172M USD Installed Capital @20% contingency. Plant Availability = 85% (year 1), 90% (year 2), 90% (year 3). Cost of Power = $85/MW (Average for USGC 2013). 17
WASTE TO SYNGAS REPLACE FUEL OIL Ability to replace fuel oil with syngas Syngas can be supplied at much lower cost (negative cost in some cases) Optimum target geography countries/regions that do not have natural gas and/or import fuel oil for power Advantages: Refineries use waste streams, create syngas and reduce parasitic load (sell more @ market) OIL PRICE ($/BBL) Effect of Fuel Oil Price and tipping fees on pre-tax ROE TIPPING FEE ($/tonne) $ - $ 10.00 $ 20.00 $ 30.00 $ 40.00 $ 50.00 $ 80.00 5.74% 9.69% 13.27% 16.69% 20.02% 23.29% $ 90.00 12.51% 15.95% 19.20% 22.58% 25.82% 29.03% $ 100.00 18.57% 21.86% 25.12% 28.33% 31.52% 34.68% $ 110.00 24.44% 27.67% 30.86% 34.03% 34.16% 40.27% $ 120.00 30.20% 33.37% 36.51% 39.63% 42.17% 45.76% $ 130.00 35.83% 38.95% 42.04% 45.10% 48.13% 51.13% Assumptions: 1000 tpd @ 13.79 MJ/kg Replacement of Fuel Oil. 50% Debt @ 7%. Installation Location is USA USGC. $175M USD Installed Capital @60% contingency. Discount rate = 10%. Natural Gas Cost, Delivered ($/GJ) = $13.00. Oxygen Purchased @ $61/tonne. Plant Availability = 85% (year 1), 90% (year 2), 90% (year 3). Metallurgical Coke as carbon bed material. Electric Driven Compressor. Cost of Power = $120/MW (Average for Florida USA in June 2013). 18
PROJECTS IN COMMISSIONING/ CONSTRUCTION
TEES VALLEY, UK: ADVANCED GASIFICATION ENERGY-FROM-WASTE FACILITIES Overview: 2,000 tpd of MSW (in total) 100 MW (gross) electrical, base load production of energy using combined cycle power block World s first combined cycle EFW facility Update: First phase - TV1 (1,000 tpd), is commissioned and in start-up; scheduled to be on-stream in Q3, 2015 Second phase - TV2 (1,000 tpd), is under construction and estimated to be commissioned in early 2016 20
TEES VALLEY MUNICIPAL WASTE FACILITY (2015) TV2 TV1 Courtesy of Air Products 21
TEES VALLEY MUNICIPAL WASTE FACILITY (2015) 22
TEES VALLEY MUNICIPAL WASTE FACILITY (2015) Courtesy of Air Products 23
WHY IS TEES VALLEY #1 SIGNIFICANT FOR THE REFUELING OF GAS TURBINES The operation of the Tees Valley #1 project will demonstrate: 1. Commercial volumes of syngas: 1000 tpd of feedstock will produce ~3.5 Million GJ/year of syngas (50 MW electrical) Base load production of energy 2. Syngas that is consistently produced at the required specification: To ensure reliability, the syngas must consistently meet the fuel specification of the gas turbine 3. Ability to create low cost syngas from feedstock's that you get paid to process: A moderate tipping fee generates enough revenue to cover the operating costs to make clean syngas 24
GREENWORLD ENERGY SOLUTIONS CORP. (GES) GES, Bijie, China In November 2014, GES received the environmental assessment approval from the Government of Guizhou and the Provincial Environmental Protection Office Signed agreement with Bijie City Green Environmental Energy Limited to provide engineering and equipment A 600 tpd facility that will produce 15 MW of electricity using MSW from the City of Bijie, China with initial start-up expected in late Q2, 2017 This project has been officially designated as a key project by the Provincial Government of Guizhou due to the anticipated environmental benefits We are very excited to be kicking-off our first project in China which we believe provides the best-in-class waste management solution with better environmental performance compared to other alternatives. In addition to the Bijie project, BGE has additional projects in China which it also continues to advance. This project will also provide a testing platform for clean coal applications. We believe that the Westinghouse Plasma Gasification Technology will play a significant role in China Clean Coal Applications. - Jeffery Hu, Principal, BGE 25
PROJECTS IN OPERATION
MIHAMA-MIKATA, JAPAN: ENERGY FROM WASTE Hitachi Metals 2 nd project with Westinghouse Plasma Corp Serves the two cities of Mihama and Mikata, Japan WPC Plasma gasification of 20 tpd of MSW and 4 tpd of waste water sludge Oldest operating facility; Commissioned in 2002 Syngas is combusted and the resulting heat is used to dry sewage sludge prior to gasification 27
INDIA: COMMERCIAL HAZARDOUS WASTE SOLUTIONS SMSIL owns and operates a hazardous waste treatment facility using WPC technology and equipment 40-60 different waste streams processed simultaneously; to date has processed over 600 waste streams Commissioned in 2009 in Pune India Syngas is used to create electricity which is exported to the grid SMSIL and Alter NRG cooperating to replicate the Pune configuration around the world We are pleased to be working with the industry leader, Westinghouse Plasma, and have aggressive plans to develop and build plasma gasification facilities ourselves and for our customers in India and the Middle East. We have received many inquiries from customers who want to construct facilities similar to the plants in Pune and Nagpur. We have dedicated 140 people to expanding our plasma gasification business and we expect to construct up to 4-5 facilities over the next 2-3 years. - Hemant Lohda, Director of SMS states 28
SHANGHAI, CHINA: HAZARDOUS VITRIFICATION FACILITY Commissioned in 2014 Located in Shanghai, China, processing 30 tpd of medical waste and incinerator fly-ash Facility is co-located with Shanghai Chengtou waste processing facility o o o Reduces fly ash disposal costs Increases electrical output Improved environmental performance GTS and Westinghouse offer turn-key hazardous waste solutions worldwide Westinghouse Gasification Solution has been publicly endorsed by the Government of China for waste treatment In these three years, we have cooperated very successfully and constructed a 30 tonne/day medical and hazardous waste plasma gasification treatment system in Shanghai, China. This is the first time in China that advanced plasma technology has been utilized on a large commercial scale, and our system has been highly acclaimed by industry experts and the Chinese government. The medical and hazardous waste treatment industry is an immense domestic and international market with an incredibly bright future for our continued development. GTS Energy will continue to use all resources, knowledge and 30 plus years of industry experience, which spans over 300 large scale energy projects all over the world, to strengthen this partnership and future ventures. - Naicheng Zhou, President of GTS Energy 29
WUHAN, CHINA: WASTE-TO-BIOFUELS FACILITY Wuhan Kaidi s commercial demonstration facility in Wuhan, China. Gasifier commissioned in Q1, 2013. Facility converts syngas to liquid fuels. Kaidi has more than 100 identified sites for the conversion of biomass-to-energy (both power and liquids). Recently purchased Rentech s technology for liquids conversion. Kaidi is a large, publicly traded energy company in China We are pleased to be working with the Westinghouse plasma solution and believe it provides fuel flexibility for the more than 150 biomass projects that we plan to develop throughout China. We are looking to begin development immediately of a small scale project that can be used as a reference to aggressively build out many larger scale facilities in the near-term. - Mr. Chen Yilong, Chairman of Kaidi 30
Industrial / Commercial scale volumes of Syngas from waste: 1,000 tpd of feedstock will produce ~3.5 Million MMBtu/year of Syngas ~50 MW (gross) electrical, base load production of energy Equivalent production of 800 1,000 Bbls/day of liquid fuels Product Flexibility: CONCLUSION: WESTINGHOUSE PLASMA Generates quality Syngas from waste materials and provides multiple end-product options The flexibility maximizes project economics (power, liquids, fuel replacement, chemicals etc.) Westinghouse Plasma is classified as Advanced Thermal Treatment in many markets throughout the world: Environmental footprint is favorable (No bottom or fly ash; air emissions are a fraction of legislated limits) Projects receive maximum financial incentives (where available) LIQUID FUELS ~365,000 Bbls/yr (OR) WASTE 350,000 tpy SYNGAS ~3.5 Million MMBtu/yr ELECTRICITY 50 MW (gross) base load production 31
IN SUMMARY: A Westinghouse Plasma Corp. gasifier enables the conversion of difficult feedstocks e.g. Hazardous waste, MSW, industrial waste, etc. It produces clean syngas that is suitable for use in advanced conversion technologies - such as high efficiency gas turbines or next generation liquid fuels technologies. Future developments utilizing syngas include fuel cells and additional hydrogen production. Westinghouse Plasma Corp. gasification technology will: Increase revenues, decrease operational risks, and provide superior environmental performance versus other technologies. Westinghouse Plasma Corp. is the only plasma gasification company with operating, long-term commercial reference facilities. 32
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