CONVERTING BIOMASS AND PLASTIC WASTE INTO CLEAN AND AFFORDABLE ENERGY ON GRID CUSTOMER PRESENTATION PREPARED ESPECIALLY FOR UTAH STATE UNIVERSITY E3 ENERGY EXCHANGE ENTERPRISES IRVING A. BACKMAN & ASSOCIATES RESEARCH AND DEVELOPMENT JULY 18, 2011 2011. AGRIPOWER, INC. ALL RIGHTS RESERVED.
Notices CURRENT INFORMATION: We strive to keep the information at our website (WWW.AGRIPOWER.COM) current. However, product specifications, applications, delivery times and prices may change at any time. Please contact us for the latest information. PROJECT QUESTIONNAIRE: Interested parties are encouraged to complete our Preliminary Project Questionnaire which is available at our website or by contacting AgriPower. The information provided in the Questionnaire is intended to permit AgriPower to make recommendations about which of our Products is best suited for their projects and enable us to assist them to the maximum extent possible. Please provide us with all information that you believe will help us in evaluating your project and making these recommendations. All such information is and will remain confidential. If you require assistance or additional information, please contact us at the telephone numbers and e mail address contained herein. Thank you. PROJECT FINANCING: We can provide several flexible sale and leasing programs for qualified projects and customers. 2
Business Description AgriPower manufactures, sells and services its proprietary, modular, transportable, Waste to Energy ( W2E ) Systems that use Biomass and plastic waste products as fuel to continuously generate from 250kW to 750kW of on site, base load electricity. Our Combined Heat and Power ( CHP ) Systems also generate Thermal Energy suitable for numerous Co Generation applications in an environmentally friendly manner. The Systems are sized to be installed and operated at the customers locations where the waste is located. The waste is then used as a virtually free fuel for the production of lowcost electricity and valuable Co Generation while saving the customers their waste disposal costs. 3
The Problems Tens of thousands of enterprises generate Biomass and plastic waste that they pay a considerable amount to dispose of. These same enterprises would like to reduce the amount they pay for electricity and natural gas used to power and heat (or cool) their businesses and to produce hot water. Many enterprises are looking for a way to comply with current or impending environmental laws that will regulate the disposal of their waste materials. Numerous enterprises use, and would like to reduce the amount and risk of obtaining, expensive diesel fuel oil they must currently buy in order to operate their businesses. 4
Our Solution 1 Our Systems provide an affordable, environmentally friendly method of producing electricity, Thermal Energy and Co Generation using Biomass and plastic waste as a free or low cost fuel. They can efficiently combust most types of Biomass and plastic in an environmentally friendly, carbon neutral, manner that complies with applicable U.S. and E.U. regulations. Their modular, mobile design enables them to be easily transported to, and operated, where the fuel is located. They can substantially reduce the cost and market risk of obtaining expensive diesel fuel oil. 5
Our Solution 2 Our Systems are frequently exempt from, or easily comply with, local environmental permitting requirements. This enables them to be quickly and inexpensively placed into service. Our System s unique technology reduces maintenance, operating costs and downtime. Our customers have access to a large, worldwide installation and service company that can monitor and maintain their Systems on a 24/7/365 basis. 6
Our Technology 1 Our Systems use waste materials as fuel that would otherwise be transported to and discarded in a landfill at considerable cost, burned in an open field or decompose and convert into harmful methane gas. Our unique, proprietary technology combusts virtually every type of Biomass material and many types of plastic, in an environmentally friendly and carbon neutral manner. In addition to continuously producing from 250kW to 750kW of low cost electricity, our Systems also produce Thermal Energy suitable for Co Generation. Alternatively, this Thermal Energy can be used to produce an additional 125kW to 250kW of electricity. 7
Our Technology 2 The Systems are modular and transportable; the skid mounted modules can be placed on the chassis of tractor trailers, enabling them to be easily and inexpensively brought to the customers premises and remote, off grid locations (and disaster sites). The Systems can be permanently installed and fully operational (or dismantled) in only 1 to 2 days. They come in a wide variety of sizes and configurations and provide maximum flexibility to satisfy our customers power, heating, cooling and hot water requirements. Each System can be expanded to provide significant additional amounts of low cost heat and hot water. 8
Our Technology 3 Using about 10 to 12 tons (the AG 375 System) of fuel per day, our Systems provide enough energy to produce significant savings in electricity and Thermal Energy costs. The Systems use unique and superior high temperature and clean air technologies that drive the turbine generator and reduce maintenance costs and down time. The Systems are non condensing (i.e., they do not require water or steam) and their operation does not use high air pressure. The Systems provide superior performance and are less costly to operate than comparable technologies. The Systems are fully automated and their operation does not require expensive, on site engineers or technicians. 9
AgriPower s 250kW Test Unit The above photo shows the 250kW Test Unit which consists of: (1) the Fuel Feed Hopper Module; (2) the Combustion Chamber Module; (3) AgriPower s proprietary T3 Technology Module (it stands for Thermal Treatment and Transfer); (4) the Automated Control Module; (5) the computer Module; and (6) the 250kW Turbine Generator Module. It was from this Test Unit that the current upsized Systems were developed. 10
Our Modular, Transportable System The above graphic shows the complete AG 375 System which consists of two trailers. The first one contains: (1) the Fuel Feed Hopper Module; (2) the Combustion Chamber Module; (3) the Fans and Filters Module; and (4) the Automated Control Module, all set on a tractor trailer chassis. A second trailer contains: (5) AgriPower s proprietary T3 Technology Module (it stands for Thermal Treatment and Transfer); (6) the 250kW Turbine Generator Module; and (7) the 125kW Waste Heat Generator. The Systems provide flexibility as they can be operated on tractor trailers or permanently installed (they can always be easily dismantled and re located). The installation, set up and tear down time is only 1 to 2 days. Modularity, ease of transport and rapid set up and tear down times are significant benefits of the System. 11
Numerous System Sizes Are Available 1 2 3 4 5 6 SYSTEM NAME AG 250 AG 375 AG 500 AG 625 AG 750 SYSTEM DESCRIPTION ONE 250kW TURBINE GENERATOR ( T/G ) SET ONE 250kW T/G SET AND ONE 125kW WASTE HEAT GENERATOR ( WHG ) TWO 250kW T/G SETS TWO 250kW T/G SETS AND ONE 125kW WHG TWO 250kW T/G SETS AND TWO 125kW WHGS GROSS POWER RATING 250kW 375kW 500kW 625kW 750kW GROSS HEAT RATING NOTE: EACH SYSTEM CAN BE UPSIZED UP TO 65MMBTU/hr APPROXIMATE QUANTITY OF FUEL (@ 7,500 BTU/lb) PER 24 HOURS OF CONTINUOUS OPERATION 5MMBTU/hr 7MMBTU/hr 10MMBTU/hr 12MMBTU/hr 14MMBTU/hr 8 TONS 11 TONS 16 TONS 19 TONS 22 TONS 12
Combustion Chambers and Control System (1) (2) (4) (3) Clockwise: (1) 7MMBTU/hr Combustion Chamber Module For AG 375; (2) 7MMBTU/hr Combustion Chamber Module For AG 375 Configured For Heat And Hot Water; (3) Automated Control Module For All Systems; And (4) 30MMBTU/hr Combustion Chamber Module Configured For Heat And Hot Water. 13
AG 375 Combustion Chamber Module Internal View Two Screw Augers In The Rear Wall Feed The Fuel Into The Combustion Chamber And Four Screw Augers Move The Fuel Through The Combustion Bed Into The Automated De Ash Control System. 14
Combustion Chamber Module Components 15
System Power Generators And T3 Technology Module (1) (2) (3) Clockwise: (1) 250kW Turbine Generator Module; (2) 125kW Waste Heat Generator Module and (3) Thermal Treatment and Transfer Technology ( T3 ) Module. 16
Biomass Is A Readily Available, Renewable Fuel In Most Parts Of The World The Systems can use for fuel a wide variety of Biomass including: Wood, cardboard, paper, wood waste (debris; wooden pallets); Small diameter, dead and damaged trees, trimmings, forest residuals, bark, brush, invader bush, saw grass, weeds; sawdust, paper and pulp waste, discarded fruits and vegetables; most types of crop waste and agricultural products including: corn stover, grain hulls and other crop residues; sugar cane bagasse and energy crops (Poplar, Willow, etc.); almond, coconut, nutmeg, peanut, walnut and other nut shells; peach and olive pits, pulp, skins and tree trimmings; and crushed grape dregs and vine clippings and oil palm waste. animal manure, municipal wastewater and paper mill sludge*; and many types of commercial and municipal waste including most types of plastic* * May require a mixture of fuels such as wood chips, sawdust, etc. 17
Biomass Is Non Polluting Using Biomass as a fuel helps to combat climate change. That s because Biomass is often considered carbon neutral because the carbon dioxide released when it is combusted is eventually absorbed by other Biomass as it grows. So, unlike natural gas or fuel oil, Biomass releases no net carbon dioxide into the atmosphere. It is a closed loop energy source, simply re circulating the carbon dioxide already within the Earth s carbon cycle. And it s a perpetual, renewable fuel source. 18
Our Systems Can Use A Wide Variety Of Commercial Waste As Fuel (1) (2) (3) Clockwise: (1) Sorted Biomass (Cardboard and Paper) And Plastic Waste; (2) Baled Cardboard; And (3) Discarded Wooden and Plastic Pallets and Other Wood Debris. 19
Our Systems Can Use A Wide Variety of Biomass Feed Stocks as Fuel Clockwise: (1) Wood; (2) Woodchips; (3) Sugar Cane Bagasse; And Energy Crops Such As (4) Fast-Growing Willows And Poplars; (5) Giant Miscanthus; And (6) Jatropha. 20
Our Systems Can Use A Wide Variety of Agricultural and Forest Materials as Fuel Clockwise: (1) Crop Waste; (2) Oil Palm; (3) Forest Residuals; (4) Timber Slash And Brush; And (5) Cow, Horse And Poultry Manure. 21
Our Value Proposition 1 AgriPower s technology produces significant cost savings for its clients by: 1) Reducing waste disposal expenses; 2) Inexpensively producing electricity and Thermal Energy suitable for many Co Generation applications; 3) Reducing diesel fuel oil costs; and 4) Generating tax benefits, carbon credits and subsidies. Additional benefits: We do NOT use any type of food crops or animal feed for fuel. No commodity risk; our customers usually generate and use their own waste for fuel thereby eliminating the market risk of obtaining fuel at an uncertain price. 22
Our Value Proposition 2 Thermal Energy and Co Generation have many valuable uses: Heating (buildings, greenhouses) Hot Water (kitchens, laundries, showers, swimming pools) Air conditioning (commercial buildings) Refrigeration (supermarkets, food and flower storage sites) Water purification and desalination (disaster sites) Making ice (disaster sites) Drying and bonding (kilns, lumber mills) Pre drying excessively wet fuels (paper and pulp and municipal sludge) 23
Case Study Of A Commercial User 1 A big box retail store currently sends 11 tons per day of Biomass and plastic waste to a landfill at a cost of $75 per ton. The customer purchases a standard AG 375 System at a fully installed cost of $2,000,000. The customer enjoys less than a 3 year payback period (not including tax benefits). With these benefits, the payback period is reduced to less than 2 years. AgriPower can save the customer over $758,000 per year: Over $288,000 per year in waste disposal costs. Approximately $302,000 per year in electricity savings at a net output rate of 300kW (at $0.12 per kw/hr). At least $168,000 per year of natural gas expense savings from Co Generation (heat, hot water, air conditioning or refrigeration) at $20 for 2MMBTUs/hr. The customer s savings increase as disposal, electricity and natural gas costs continue to rise. 24
Case Study Of A Commercial User 2 A casino hotel currently sends 11 tons per day of Biomass and plastic waste to a landfill at a cost of $75 per ton. The customer purchases a standard AG 375 System upgraded with a hot water heater at an installed cost of $2,500,000. The customer enjoys less than a 3 year payback period (not including tax benefits). With these benefits the payback period is reduced to less than 2years. AgriPower can save the customer over $1,000,000 per year: Over $288,000 per year in waste disposal costs. Approximately $302,000 per year in electricity savings at a net output rate of 300kW (at $0.12 per kw/hr). At least $420,000 per year of natural gas expense savings from Co Generation (heat, hot water for their kitchen, laundry, room showers and heated swimming pool; air conditioning or refrigeration) at $50 for 5MMBTUs/hr. The customer s savings increase as disposal, electricity and natural gas costs continue to rise. 25
Additional Products in Pipeline AgriPower plans to have the following additional Systems available for sale during 2012: A larger, 1MW version of its System; and A wider range of its Waste Heat Generator Modules in sizes ranging from 400kW up to 2.2MW. Each Product Line can also provide a heat and hot water capability of up to 65MMBTU/hr. 26
Summary And Conclusion 1 The Systems utilize Biomass and plastic waste generated by customers at their locations to generate continuous on site,, base load electric power and valuable Thermal Energy suitable for Co Generation. They save waste disposal costs and reduce electricity and natural gas expenses (and diesel fuel oil costs). They provide a quick pay back (usually about 3 years before tax benefits and about 2 years with tax benefits). Green technology they are environmentally friendly and do not cause pollution or use water, steam or high air pressure. Our unique, proprietary and superior high temperature and clean air technologies provide lower operating costs and reduced downtime. 27
Summary And Conclusion 2 The Systems qualify for significant tax benefits and may generate carbon credits and other subsidies. The Systems comply with applicable U.S. and E.U. environmental regulations. No current competition in the transportable, 250kW to 750kW space. Available in Q4 2011. Access to a large, worldwide installation and service company. We offer a wide range of Systems: from 250kW to 750kW (and up to 2.2MW) and up to 65MMBTU/hr for heat and hot water. We have flexible sale and leasing programs. 28
FOR ADDITIONAL INFORMATION, PLEASE CONTACT: BARRY J. BERMAN, CHIEF EXECUTIVE OFFICER TEL: (516) 829 2000 MOB: (516) 384 2100 FAX: (516) 487 3163 E MAIL: BBERMAN@AGRIPOWER.COM WEBSITE: WWW.AGRIPOWER.COM