Treating Waste as a Renewable Source of Energy

Treating Waste as a Renewable Source of Energy Plasma Gasification: The Next Generation of Waste-to-Energy Solutions Waste Expo Brasil November 22-24, 2016 Sao Paulo, Brasil

ABOUT US Our Focus and What We Do Alter NRG develops and owns projects utilizing Westinghouse Plasma Corporation (WPC) technology 30+ years of research and development; $2 billion invested in projects and technology Divert waste that is landfilled (including Municipal Solid Waste, Hazardous Waste, Industrial Waste, Medical Waste, Mixed Biomass, Construction & Demolition Waste, etc.) Make syngas from multiple waste streams Provide large and small scale solutions 25 tpd to 2000 tpd 2

ABOUT US KAIDI Build, owns and operate a portfolio of power facilities $6 billion USD Company generating 1400MW Currently permitted to build additional 3000+ MW over next 5 to 7 year period in China EPC capabilities - 200+ projects Biomass Power Plants Fujian, China Anhui (Ningguo), China Hydro Power Plants Yunnan, China Nanbuhe, China Power Plant Installations Mao Khe, Viet Nam Quảng Ninh, Viet Nam Proven expertise in hydro power, wind power, concentrated solar Bajiu, China Hai Duong, Viet Nam Key technology owner in desulfurization, waste water treatment and gas clean-up Fischer Tropsh technologies iron slurry and cobalt catalyst Anhui (Wangjiang), China Hubei, China Wind Power Plants Pinglu, China Henan, China Henan, China Shanxi, China 3

COMMERCIAL DEPLOYMENT OF PLASMA TECHNOLOGY FOR WASTE MATERIALS 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 1200 tpd scrap metal melting 2002 WORLD S 1 ST COMMERCIAL SCALE PLASMA GASIFIER Mihama Mikata, Japan - operational in 2002 2012 BIOMASS FACILITY Kaidi, China operational Q4 2012 1995 INCINERATOR ASH VITRIFICATION Kinuura, Japan - commissioned in 1995 2009 SECOND GENERATION ETHANOL FACILITY Coskata Lighthouse, U.S. -commissioned in Sept. 2009 2016 ENERGY FROM WASTE FACILITIES, Tees Valley, UK 2,000tpd MSW to combined cycle power Under construction, commissioning dates: TV1 2017 and TV2 2018 PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in 2008 WORLD S LARGEST PLASMA HAZARDOUS WASTE FACILITY Pune, India operational in 2009 2013 Medical Waste Gasification Shanghai, China 2013 1989 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 2003 WORLD S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE Utashinai, Japan - operational in 2003; 200 tpd 4

COMMERCIAL DEPLOYMENT OF PLASMA TECHNOLOGY FOR WASTE MATERIALS 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 1200 tpd scrap metal melting 1980 s Metallurgical applications Scrap materials recovery US, Canada 1989 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 5

COMMERCIAL DEPLOYMENT OF PLASMA TECHNOLOGY FOR WASTE MATERIALS 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 1200 tpd scrap metal melting 1995 INCINERATOR ASH VITRIFICATION Kinuura, Japan - commissioned in 1995 PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in 1990 s Incinerator Ash and Municipal Waste Gasification Pilot, Japan 1989 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 6

COMMERCIAL DEPLOYMENT OF PLASMA TECHNOLOGY FOR WASTE MATERIALS 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 1200 tpd scrap metal melting 2002 WORLD S 1 ST COMMERCIAL SCALE PLASMA GASIFIER Mihama Mikata, Japan - operational in 2002 1995 INCINERATOR ASH VITRIFICATION Kinuura, Japan - commissioned in 1995 PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in Early 2000 s Municipal Waste Gasification Japan 1989 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 2003 WORLD S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE Utashinai, Japan - operational in 2003; 200 tpd 7

COMMERCIAL DEPLOYMENT OF PLASMA TECHNOLOGY FOR WASTE MATERIALS 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 1200 tpd scrap metal melting 2002 WORLD S 1 ST COMMERCIAL SCALE PLASMA GASIFIER Mihama Mikata, Japan - operational in 2002 1995 INCINERATOR ASH VITRIFICATION Kinuura, Japan - commissioned in 1995 Hazardous Waste and Medical Waste India and China PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in 2008 WORLD S LARGEST PLASMA HAZARDOUS WASTE FACILITY Pune, India operational in 2009 2013 Medical Waste Gasification Shanghai, China 2013 1989 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 2003 WORLD S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE Utashinai, Japan - operational in 2003; 200 tpd 8

COMMERCIAL DEPLOYMENT OF PLASMA TECHNOLOGY FOR WASTE MATERIALS 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 1200 tpd scrap metal melting 2002 WORLD S 1 ST COMMERCIAL SCALE PLASMA GASIFIER Mihama Mikata, Japan - operational in 2002 2012 BIOMASS FACILITY Kaidi, China operational Q4 2012 1995 INCINERATOR ASH VITRIFICATION Kinuura, Japan - commissioned in 1995 2009 SECOND GENERATION ETHANOL FACILITY Coskata Lighthouse, U.S. -commissioned in Sept. 2009 Renewables, Liquid Fuels US and China PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in 2008 WORLD S LARGEST PLASMA HAZARDOUS WASTE FACILITY Pune, India operational in 2009 2013 Medical Waste Gasification Shanghai, China 2013 1989 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 2003 WORLD S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE Utashinai, Japan - operational in 2003; 200 tpd 9

COMMERCIAL DEPLOYMENT OF PLASMA TECHNOLOGY FOR WASTE MATERIALS 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 1200 tpd scrap metal melting 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 2012 BIOMASS FACILITY Kaidi, China operational Q4 2012 Combined Cycle, UK 2016 ENERGY FROM WASTE FACILITIES, Tees Valley, UK 2,000tpd MSW to combined cycle power Under construction, commissioning dates: TV1 2017 and TV2 2018 PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in 2008 WORLD S LARGEST PLASMA HAZARDOUS WASTE FACILITY Pune, India operational in 2009 2013 Medical Waste Gasification Shanghai, China 2013 1989 INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 2003 WORLD S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE Utashinai, Japan - operational in 2003; 200 tpd 10

GLOBAL WASTE & POPULATION GROWTH CHALLENGES A large portion of the world s MSW is landfilled MSW generation (billion tpy): World population growth (estimates in billions): Facts are that landfills cause: Greenhouse gas emissions, both CO 2 and methane Unnecessary land occupation Water contamination through leaching Clean up issues for future generations World population growth impacts waste generation: World population is projected to reach 9 Billion by 2050 Urbanization will account for 86% in developed countries; 64% in developing countries Increase in urban population and consumption has a direct impact on the increase of waste generation Waste generation levels are expected to grow by 69% by 2025. (World Bank Study, 2012) 11

GLOBAL WASTE HAS SIGNIFICANT ENERGY EQUIVALENTS ESTIMATED MUNICIPAL SOLID WASTE ESTIMATED WASTE BIOMASS MSW WASTE 3.6 Million * Tons/day SYNGAS 37 Trillion Btu/day (OR) LIQUID FUELS 3 Million Bbls/day (OR) ELECTRICAL 178 GW Capacity WASTE BIOMASS 14 Million Tons/day SYNGAS 120 Trillion Btu/day (OR) LIQUID FUELS 12 Million Bbls/day (OR) ELECTRICAL 685 GW Capacity * 2012 ESTIMATED HAZARDOUS WASTE ESTIMATED WASTE TIRES HAZARDOUS WASTE 1.2 Million Tons/day SYNGAS 17 Trillion Btu/day (OR) LIQUID FUELS 874,000 Bbls/day (OR) ELECTRICAL 43 GW Capacity WASTE TIRES 28,000 Tons/day SYNGAS ½ Trillion Btu/day (OR) LIQUID FUELS 24,000 Bbls/day (OR) ELECTRICAL 1.4 GW Capacity 12

GASIFIER VESSEL DEVELOPMENT Generation 1 Generation 2 Generation 3 13

ALTER NRG PLASMA GASIFICATION IS A WASTE REDUCTION TECHNOLOGY Waste Feedstocks: Municipal, Hazardous, Industrial, Medical, Mixed Biomass, Construction & Demolition, Coal, Tires, etc. 850 0 C 1000 0 C 1000 Tons/day Fine & Heavy Particulate Matter Removed Coarse Particulate Matter Removed Plasma Torches Sulphur Removed 1650 0 C Slag Liquid Fuels Power 50 MW Gross (41 MW Net to the grid) For sale to market Fuel Replacement 20 Tons/day Sludge to landfill 20 Tons/day Recycled into the WPC Gasifier 1 Ton/day For sale to market 250 Tons/day For sale to market as aggregate 800-1200 Barrels/day For sale to market 10,500 Btu/day (4 MMBtu/year IN SUMMARY: 1000 tpd Waste Processed Using Alter NRG Gasifier 250 tpd Slag for Sale To the Market as Aggregate 40 tpd Waste for Disposal 20 tpd Particulate Matter + 20 tpd Sludge for Landfill Disposal OR Recycled back into Alter NRG s Gasifier 14

FROM AN ECONOMICS PERSPECTIVE - WHY PLASMA? A COST ADVANTAGE UTILIZING WPC SYNGAS WHEN CREATING POWER AND LIQUID FUELS WESTINGHOUSE PLASMA GASIFICATION IS THE KEY ENABLING TECHNOLOGY 1000 TPD PLASMA GASIFICATION FACILITY UNIT OPERATING COST (PER MMBTU SYNGAS PRODUCED, NET OF GATE FEE REVENUES) CLEANUP Gate Fee $0/t $40/t $60/t $80/t $100/t Cost of Syngas Production (Per MMBtu) $6.0 $1.75 $0 ($2.40) ($4.75) The VALUE PROPOSITION of GASIFYING 1000 tpd of WASTE In a period of historically low fossil fuel prices, WPC syngas continues to be a cost effective feedstock for the production of liquid fuels. Gate fees for waste feedstocks offset the cost of syngas production and provide a significant source of revenue for a plasma gasification facility. 15

INTEGRATED WASTE TO LIQUIDS SOLUTIONS (EXAMPLE AT 1000 TONS PER DAY) 3.8 Million MMBtu/yr (250-300 Btu/scf) 300K to 400K Bbls/yr Other downstream liquids technologies Alter NRG Plasma: WPC is a provider of syngas for the biofuels industry WPC syngas is a suitable fuel for GE s 6,7 and 9 series gas turbines Offers an integrated waste to diesel solution through Sunshine Kaidi Wuhan, China: Biomass to Liquids, 150 tpd RES Kaidi: Demonstrated over 5 years at 10 BPD capacity, 14,000 hours of operation, at 4,000 hours of continuous operation Premium quality, clean burning diesel and jet fuels, finished FT Diesel Conforms to ASTM D975 FT aviation turbine fuel meets all specifications for ASTM (American Society for Testing and Materials) Evaluated by United States Air Force, Commercial test flight with United Airlines; approval from U.S. Federal Aviation Administration 16

FUEL REPLACEMENT TECHNICAL / ECONOMIC FEASIBILITY HIGHLIGHTS GE completed work to evaluate suitability of Westinghouse Plasma (WPC) Syngas and confirmed that: WPC syngas is a suitable fuel for GE Frame 6, 7 and 9 series gas turbines: GE gas turbines will not experience a de-rate when operating on a blend or at 100% WPC Syngas The increased volume of WPC Syngas will increase efficiency and generate additional electrical power vs. natural gas Currently, there are over 5,000 6, 7, and 9 series GE gas turbines operating globally that are potential targets for fuel replacement Who benefits: Users: Importers of high cost fuels Sellers: Countries that export high value fuels and use fossil fuel to generate subsidized power Environment: Lower CO 2 footprint, reduced landfill volume 17

OTHER KEY OPERATIONS - HAZARDOUS WASTE Commercial operations: In India (since 2008). In China (since 2013). Flexible operations: Processed over 600+ hazardous waste streams since 2008. Syngas can be utilized for steam, power or process fuel. SHANGHAI, CHINA - MEDICAL WASTE & FLY ASH, 30 TPD PUNE, INDIA - HAZARDOUS WASTE, 78 TPD Some of the feedstock processed at the Pune, India Facility: 1. Agricultural Waste 2. Artificial Crystal 3. Automobiles 4. Battery 5. Bearing 6. Bio Medical 7. Chemicals 8. Construction 9. Cosmetics 10. Defense 11. Distillery 12. Electrical Equipment's 13. Engineering & Machinery 14. Electroplating 15. Foundry 16. Food Processing 17. Forging 18. Heat Treatment 19. Iron & Steel 20. Leather/ Tannery 21. Mouldings 22. Paints 23. Paper & Printing 24. Petrochemical 25. Pharmaceuticals 26. Plastic 27. Polymer 28. Power Generation 29. Refineries 30. Rubber 31. Textile 32. Wind Mill etc. 18

TEES VALLEY IS THE LARGEST ADVANCED PLASMA GASIFICATION FACILITY IN THE WORLD Overview: 2,000 tpd of MSW via 2 separate facilities 100MW (gross combined for both facilities) electrical base load production Facility uses combined cycle power block (via Solar Turbines) Tees Valley 1 and 2 are the World s first combined cycle EFW facilities TV1 TV2 WPC Gasifier and Auxiliary Modules installed at TV1 19

TEES VALLEY FACILITIES AND REORGANIZATION OF AIR PRODUCTS Reorganization: Under new leadership, Air Products reorganized its business units in late 2015 to create better focus for its core business industrial gases Consequently Air Products has been selling off non-core business units Air Products announced that both the Energy from Waste business and the Performance Materials business were non-core Air Products sold the Performance Materials business in May 2016 Tees Valley Facilities: Tees Valley 1: construction has been completed Tees Valley 2: approximately 75% of construction has been completed Tees Valley 1 commissioned and has undergone several start-up and trial runs Through these start-ups, deficiencies identified/corrective actions put in place/initiated None of the identified deficiencies are critical flaws with plasma gasification technology 20

LEARNINGS Basic Facts: Oxygen blown gasification can lead to excessive, localized heat release, exceeding design temperatures of materials (this is not unique to plasma) Design must include adequate cooling to avoid localized effects Operating philosophy and temperature monitoring must be robust Waste handling is challenging: MSW is highly variable in shape/size and pre-processing is required to move MSW reliably to a gasifier Lumps, metal objects, ropes, fibers can all lead to mechanical hang-ups Waste quality affects downstream operations: Since MSW is unpredictable in composition, downstream design must be flexible and robust This includes pressure control, corrosion control, and the addition of an auxiliary fuel to ride out variations Issues arising from these basic facts are addressable with experience, design and operating philosophy. 21

THE WRAP UP A plasma gasifier can process up to 1,000 TPD of waste in a single unit With tipping fees, plasma gasification produces zero-cost syngas Multiple waste streams can be used to create syngas or higher value end products LIQUID FUELS 365,000 Bbls/yr (OR) WASTE 350,000 tpy SYNGAS 3.5 Million MMBtu/yr ELECTRICITY 50 MW (gross) base load production 22

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