A Unique W ay To P roduce E nergy ‘Turning Waste Into Energy’ Cracking Energy Machines Limited

1. A Unique Way To Produce Energy ‘Turning Waste Into Energy’Cracking Energy Machines Limited Proposal for the conversion of Car Tyres and other waste into energy Technological Innovation for reconcilable development

2. Cracking Energy have created a patented processThermodynamic Cracking The process of ‘thermodynamic cracking’ breaks down complex organic molecules or hydrocarbons into simpler molecules by breaking the carbon-carbon bonds; i.e. the breakdown of long chain hydrocarbons to shorter ones. The process is for materials that become viscous during processing through heat and friction, such as plastics and tyres. No harmful emissions are produced and the capital cost of the plants support commercial operation.

3. Why are we unique? Thermodynamic cracking is not Pyrolysis; cracking enables a complete decomposition of plastics/rubber or RDF without any emissions into the atmosphere (see Appendix I) It is an extremely commercially viable solution that can take many different materials as input to produce combustible hydro carbons (see Appendix III) We believe that no-one else has these particular technologies

4. How does it work? Transforms synthetic resins andrubber into combustible hydrocarbonsThe plastics or rubber are degraded and fedinto a horizontal, dual cylindrical reactor whichIs devoid of oxygen.Specially shaped rotors generate friction Externally, heating bands provide additionalheat..

5. How does it work?.... continued The high temperature generated, together with lack of oxygen insidethe reactor, causes molecular cracking of the compound and theformation of organic products made up of carbon molecular chainsbonded to other H2 molecules. These products are analogous tonatural hydrocarbons; in these conditions, the formation of bothdioxin and oxidation products is impossible.

6. Ouputs for different materials

7. The Environmental Problems

8. End of Life Tyres • The Facts • Over 3 billion tyres are discarded worldwide each year • In the European Union 250 million tyres are accumulated each year expected to rise by 4% per annum (EU Statistics & Freedonia Report) • European Landfill Directive (199/31/EC) states that whole tyres were banned from landfill in 2003 and shredded tyres in 2006 • Piled tyres may trap water, becoming breeding grounds for mosquitoes and bacteria, or they can present a fire hazard • Tyres not in controlled environments have adverse effect on local water courses • Stockpiled tyres can easily combust causing long term smouldering generating toxic smoke that impacts on the environment and local communities • Tyres are very difficult to recycle profitably • Governments and Industry are keen to find a commercially viable solution

9. Environmental Directives The Perfect Response The Landfill Directive represents a step change in the way we dispose of waste in the EU The CEML process is the perfect answer to EU directives by creating a “Virtuous Cycle”, a closed loop recycling process An Environmentally Friendly solution that reduces the Carbon footprint effectively • EU Member States will be responsible for their own waste recycling • U.K. Government reviewing what can & cannot be landfilled • Plastic is under review with regard to landfill • Land Fill Tax Escalator Extended to 2014 • Increase by £8 per tonne per annum to £80 • Stricter Controls on level of End of Vehicle Recycling

10. End of Life Tyres End of Life Tyres UK In the UK we produce 46,000,000 used tyres per annum Used tyres from cars equates to 27,000,000 per annum The above totals balance to 100,000 tyres per day taken off vehicles that have to be recycled. In weight there is 450,000 tonnes to reprocess It is expected that Vehicle ownership will increase between 30 to 40 %. Figures from Environment Agency

11. In the European Union 55 million discarded tyres are recycled every year! How?

12. Tyre Recycling Options Recycling through microwave technology • Breaks the tyres into their original components, the grade A steel can be sold for recovery, the carbon and oil are also reusable. Recycling through grinding • Used in sports and play surfaces, brake linings, landscaping mulch, carpet underlay, shoe soles and absorbents for waste. Energy Recovery • Tyres have a high calorific value, about 20% higher than coal, which on burning can be harnessed to produce energy. Recycling through cryogenic fragmentation • Used for athletics tracks, carpet underlay, playground surfaces and rubberised asphalt for road surfaces. Energy Recovery through pyrolysis • A self contained process which avoids the release of large volumes of combustion gases. Recycling through de-vulcanisation • Can be used to replace part of the virgin material in automotive and cycle tyres, conveyor belts and footwear. Energy Recovery through incineration in cement kilns

13. That is Economically Viable Gate Fees Sale of Energy Sale of Scrap Steel Sale of Carbon Black An Environment Friendly Solution • No Emissions • Minimal operational noise • A Completely Clean Process • Reduced planning permission requirements • Output Fuels meets Strict EU Standards • No requirement to stockpile Large Volumes of Feedstock's • Reduces Carbon Footprint Substantially

14. What revenue could the use of a tyre cracking plant attract?

15. Using the example of scrap tyres, the input/output from the plants, assuming 350 days per year Outputs Inputs

16. How does that compare? The real difference is the result of molecular cracking rather than burning

17. The Environmental Problem

18. End of Life vehicles (ELT) European Legislation Directive 2000/53/EEC The Directive aims to decrease the quantity of waste arising from vehicles by weight The rate of re-use and recovery: 85% no later than 1 January 2006 95% no later than 1 January 2015 Vehicles built prior to 1980 have different targets. There are key processes that ELV’s are subjected to prior to final breakdown The End of life Vehicle directive (2000/53/EC) is the framework of disposal and has been adopted by the UK Government • In Europe 9,000,000 tonnes of ELV’s arise each year • In the UK there are approximately 2 million tonnes ELV’s per year currently • 400,000 are premature i.e. scrapped due to Accidents (17%) • 1.5 million are natural ELV’s disposed responsibly (71%) • 200,000 are abandoned(11%)1% • equates to illegal parts resulting from stolen vehicles Figures from Tri study report - DEFRA

19. End of Life Vehicles • The diagram below shows the various materials from a vehicle

20. End of Life Vehicles • End of life vehicles have to be processed via an Authorised Treatment Facility • Recycling processes are sophisticated delivering a large volume of product • Car Fluff has been filtered to a very fine degree however there is plastic left that cannot be recycled • Non recycled plastic goes to landfill incurring a substantial cost • Current charges are £56 per tonne rising by £8 per annum through to 2014

21. An Environment Friendly Solution to Car Fluff WasteCracking Energy Machines Ltd • No Emissions • Minimal operational noise • Reduced planning permission requirements • Output Fuels meets Strict EU Standards • No requirement to stockpile Large Volumes of Feedstock's • Reduces Carbon Footprint Substantially • Economically Viable • No fees to landfill • Sale of energy • Using a totally non recyclable waste

22. The Environmental Problem

23. Rigid Plastics There are a range of different plastics that can be recycled; in order to assist recycling they are marked with an agreed code located in the recycling triangle Recyclable Rigid Plastics • PET – Polyethylene Terephthalate – Code 1 • HDPE – High Density Polyethylene – Code 2 • PVC – Polyvinyl Chloride – Code 3 • LDPE – Low Density Polyethylene – Code 4 • PP – Polypropylene – Code 5 • PS – Polystyrene – Code 6 • Other Plastics – Code 7

24. Relative Occurrence

25. UK Plastic Waste VolumesThe most recent review of UK plastic waste volumes was carried out in 2006 by WRAP

26. Global Volumes The global consumption of plastics is over 200 million Tonnes pa and growing. Based on the experience of several European countries with a strong domestic recycling activity; from a technical perspective is would seem practical for well over 20% of global consumption to be met by recycled plastics – at least 40 million Tonnes pa.

27. CEML Technology CEML Technology • CEML’s thermodynamic cracking technology can use waste plastic as a feedstock. After transformation, the waste plastic is converted into:- • Diesel that complies with specification EN: • Liquefied Petroleum Gas (LPG – Propane) that complies with EN:

28. The input/output characteristics of the CEML C750 and C1500 machine using plastic as a feedstock are as follows;Input Output Data Sheet – typical mixed plastics

29. Input Output Data Sheet – typical mixed plastics

30. Appendix I – Emissions from Pyrolysis versus Cracking

31. Appendix II – composition of fuel and testing • Liquids • Tested to EN590:2009.01 • EN590 describes the physical properties that all automotive diesel fuel must meet if it is to be sold in the EU, Iceland, Norway and Switzerland • It allows for blending up to 5% Biodiesel for a 95/5mix • Tested to EN14214. The standard for Biodiesel • LPG • Tested to BS EN 589:2008 • BS EN 589:2008 specifies requirements and test methods for marketed and delivered automotive LPG (Liquefied Petroleum Gas) • Carbon Black • Tested to BS ISO 6209:2009 • The standard for Rubber compounding ingredients

32. Appendix III – Other Materials We Can Process % of output depends on materials used

33. Appendix IV Input Output Calculator - Based on Tyres

34. Appendix V Electricity Generation.

35. Contact Cracking Energy Machines Ltd UK Agents The Office Building Harman Martin Ltd Gatwick Road Robin Martin Crawley 07967 233062 West Sussex Steve Harman RH 10 9RZ 07528 208387 Tel: +44 (0) 1293 847480 info@ceml.eu www.ceml.eu