Westinghouse Plasma Technology
WESTINGHOUSE PLASMA CORP. Who We Are Westinghouse Plasma is a wholly owned subsidiary of Alter NRG Corp, a publicly traded (TSX: NRG; OTCQX; ANRGF) alternative energy company Our Vision To provide the leading technology platform for converting the world s waste into clean energy for a healthier planet Primary Market is Energy from Waste Our core strength and the reason we exist - is the ability to convert difficult waste streams, including municipal, incinerator ash, commercial, industrial, petrochemical, and medical waste into syngas and environmentally sound by-products (e.g. aggregate, insulation) Strategic Partnerships We have formed global partnerships with industrial and commercial leaders to more rapidly advance the technology in large, strategic markets. 2
25 YEARS OF DEVELOPMENT AND SIGNIFICANT INVESTMENT HAS RESULTED IN A GLOBAL LEADING WASTE GASIFICATION PLATFORM Expertise: 34 global projects utilizing Westinghouse torches 20+ years of research and development @ the Westinghouse Pilot facility 10 years of successful operations @ Japanese MSW/sewage sludge facilities 3 years of successful operations @ the Indian hazardous waste facility 1 year ethanol demonstration with Coskata @ the Westinghouse Plasma Center Over $150 million spent in research, development, testing and operational improvements Joint Development Agreement with Air Products for WTE facilities in the United Kingdom and selected markets Facilities under construction COMMERCIAL FACILITIES Air Products: Teesside, UK 950 tpd MSW to power 50 MW combined cycle; equipment ordered, site construction underway and commissioning targeted in early 2014 DEMONSTRATION FACILITIES Sunshine Kaidi, Wuhan China - Biomass feedstock to FT liquids facility; commissioning Q4 2012 Green Technology Systems, Shanghai China - MSW & Incinerator Fly-ash Vitrification: equipment ordered and site construction underway Recent technology license sales TECHNOLOGY SITE LICENSES Czech Republic and Slovakia for WTE projects; PGPT EXCLUSIVE COUNTRY LICENSE South Korea Posco Steel / Posco ICT Projects under advanced development GASIFICATION PROJECTS International Falls, MN 250 tpd Industrial waste to syngas; KDA currently in advanced engineering stage and in process of gaining environmental permit India: SMS Envocare facility #3 and #4 for hazardous waste to power via reciprocating engines ~ currently undergoing environmental impact assessments; target construction start in Q2/Q3 2013 Brazil: MSW and hazardous waste 250 tpd South Korea: Jeju project, mixed biomass 200 tpd NON GASIFICATION PROJECTS Large plasma torch sale for integration by Asian company for steel industry applications 3
FOCUS ON DIFFICULT FEEDSTOCKS WITH ROBUST TIPPING FEES TO PROVIDE ZERO (NEGATIVE) COST SYNGAS WESTINGHOUSE PLASMA GASIFICATION IS THE KEY ENABLING TECHNOLOGY TOTAL PRODUCTION COST/GJ (NET OF TIPPING FEES) CLEANUP 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 Significance of Tipping Fees Economics MSW Revenue $19,710,000/yr Biomass Cost <$19,710,000> /yr Natural Gas Cost <$27,000,000> /yr. Total Value Generated $40,000,000/yr - $50,000,000/yr 4
ALTER NRG PLASMA GASIFICATION HAS DISTINCT COMMERCIAL ADVANTAGES Optimize Gate Fee Revenue and Energy Output Revenue Process a blend of feedstocks to take advantage of changes in gate fees over time In many markets, energy from plasma gasification qualifies for green energy incentives Ability to produce power in combined cycle mode and materially increase efficiency Ability to handle large quantities of waste economies of scale Reduce Start-up and Operational Risk WPC installing fourth generation gasifier at APCI s Tees Valley project. Most competitors don t have commercial installations High Reliability Operates in rugged industrial applications Over 500,000 hours and 20 years of industrial use on the plasma torches Superior Environmental Footprint Reduced carbon footprint vs landfill and other thermal treatment technologies Beneficial use of by-products and a reduction in the amount of material that must be sent to landfill Slag 5
PLASMA GASIFICATION PROVIDING THE FLEXIBILITY TO DELIVER TOMORROW S ENERGY SOLUTIONS UTASHINAI, JAPAN PUNE, INDIA TEES VALLEY, UK FUEL CELLS FISCHER- TROPSCH 6
PLASMA TECHNOLOGY MILESTONES COMMERCIALLY PROVEN 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 Demo 50 tpd 1995 INCINERATOR ASH VITRIFICATION Kinuura, Japan - commissioned in 1995 2002 WORLD S 1 ST COMMERCIAL SCALE PLASMA GASIFIER Mihama Mikata, Japan - operational in 2002 2009 SECOND GENERATION ETHANOL FACILITY Coskata Lighthouse, U.S. -commissioned in Sept. 2009 2011 ENERGY FROM WASTE FACILITY Teeside, UK 1000tpd MSW to combined cycle power Under construction, 2014 commissioning date Intention to build 5 facilities 2012 BIOMASS FACILITY Kaidi, China operational Q4 2012 1989 1999 PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in 1999 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 2003 2008 WORLD S LARGEST PLASMA HAZARDOUS WASTE FACILITY Pune, India operational in 2009 WORLD S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE Utashinai, Japan - operational in 2003 200 tpd 2012 DEMONSTRATION PLANT INEGRATED WITH EXISTING INCINERATOR Shanghai, China operational in 2013 7
TYPICAL PLASMA GASIFICATION SYSTEM 8
LEVERAGING SUCCESS TO INCREASE OUR COMPETITIVE ADVANTAGE 25+ years of development and optimization has culminated in the world s first 1000 tpd, 50 MW, waste to combined cycle plant This commercial tipping point has created significant global interest in the Westinghouse Plasma Gasification technology from customers, EPC firms and syngas recipient technologies As a result: Alter NRG is in strategic partnership discussions with EPC s and syngas recipient technologies to offer a complete EfW plant with the appropriate plant performance guarantees CUSTOMER EPC PARTNER EPC PARTNER ALTER NRG EPC PARTNER Liquids Partner(s) ASU Feed System Particulate Removal (WESP) Balance of Syngas Cleanup Power Partner(s) 9
SUMMARY Westinghouse Plasma: Is a commercially proven key enabling gasification technology for the EFW market Represents unmatched feedstock flexibility with numerous high value product options Is actively being pursued and deployed by industry leading companies as the key enabling technology for strategic growth Is actively expanding its solution to further solidify our position as the market leader 10
TEES VALLEY RENEWABLE ENERGY FACILITY, UK
About Air Products $10.1 billion company $1.6 billion in capital spent in FY2011 More than 20,000 employees worldwide (~1,600 in the UK and Ireland) Operations in over 50 countries with UK operations since 1950 Previous owner/operator of five waste-to-energy plants in US Global industrial gases, performance materials, equipment and technology company. Enabling customers to become more productive, energy efficient and sustainable for over 70 years Supplying innovative solutions to the energy, environment and emerging markets World class capability to run complex technologies and facilities in a safe, reliable, and cost effective manner
Air Products Major Energy Sector Experience Waste-To-Energy: Owned and operated 5 waste incineration plants in US Solid Fuel Cogeneration: 50-85 MW solid fuel CFBs, processing coal, waste coal, petcoke, tires and biomass Hydrogen: World s largest producer with over 150 hydrogen fuelling stations worldwide Landfill Gas Recovery: Owned and operated 11 plants w/gas cleanup Other Power Production: Numerous facilities (NGCC, NG Cogen, and peaking plants) up to 154 MW LNG: worldwide leader in baseload LNG 13
Tees Valley Renewable Energy Facility Process Description A new combination of proven technologies Process capitalizes on AP s core gas handling and clean-up skills Processed waste is fed into gasifier where a crude syngas is generated, cleaned and fed into gas turbines to generate power
Tees Valley Renewable Energy Facility Location Northeast England site close to major industrial complex Part of the New Energy & Business Technology Park Existing landfill site nearby 15
Why Tees Valley? Tees Valley has a number of advantages: available industrial zoned land good access to electrical infrastructure excellent road links Our scheme provides an alternative to some of the landfilling that is already occurring in the North East region.
Tees Valley Renewable Energy Facility Status Update Tees Valley: our first facility Capital investment of $500MM Secured planning permission and environmental permit Signed waste feedstock supply agreement with Impetus Signed Power Purchase Agreement with well-known high street chain Signed agreement with bank for renewable credit purchase Announced project go-ahead in August 2012 Groundbreaking ceremony October 2012 Anticipated on-stream in 2014
Air Products UK Vision Advanced Gasification Solution for Waste Tees Valley Renewable Energy Facility - $500 million invested - 700 temporary construction jobs created - 50 permanent jobs created - 350,000 tonnes of waste diverted from landfill - 50MW renewable electricity produced Second and third UK projects in the early stages of development with real potential for additional projects Potential for up to five Tees Valley scale projects in the UK - Divert over 1.5 million tonnes of waste from landfill - Produce enough base-load quality power (~250MW) for up to 250,000 homes in the UK 18
215, 4000 4 th Street SE Calgary, Alberta Canada T2G 2W3 Phone: (403) 806-3875 Fax: (403) 806-3721 www.westinghouse-plasma.com TSX: NRG, OTCQX:ANRGF THANK YOU