PLASMA GASIFICATION WASTE ENERGY RECOVERY SYSTEM (PGWERS)

1. PLASMA GASIFICATION WASTE ENERGY RECOVERY SYSTEM (PGWERS) PRESENTATION TO Melaka State Executive Councilors By Demenshin Waters SDN BHD Private&Confidential-Property Demenshin Waters SB

2. LIST OF CONTENT • PROJECT BRIEF • PROJECT PROPOSAL • PROJECT BENEFITS • SYSTEM PROCESS DESCRIPTION • PROPOSER BACKGROUND • FINANCIAL IMPLICATION • RESOLUTION Private&Confidential-Property Demenshin Waters SB

3. PROJECT BRIEF • Title:- • Proposed Privatisation of PLASMA GASIFICATION WASTE ENERGY RECOVERY SYSTEM (PGWERS) Project in Melaka. • Proposer:- Demenshin Waters S/B- Developer(Owner) • Estimated Project Duration:- 2 years • Concession Duration:- 30 years • Estimated Project Capital Cost:- P&C • Application Date: Application Letter to State Government 24 Oct 2005 • Submission Objective:- • The award of Concession right from the State Government for the collection and use of Municipal Schedule Waste (MSW) for the Plasma Gasification Waste to Energy Recovery Plant • Detailed Working Paper and Agreement Draft:- • 2 months from award of Consession Right Private&Confidential-Property Demenshin Waters SB

4. PROJECT PROPOSAL • Content: • Plasma gasification waste to energy recovery system (PGWERS) • How does PGWERS works • Zero waste philosophy • Investigation and conclusion • Plasma gasification process • What is plasma • What is fuel gas • Type of waste processed • Why PGWERS not done before Private&Confidential-Property Demenshin Waters SB

5. Plasma Gasification Waste Energy Recovery (PGWERS) • Demenshin is a partner company dedicated to the development of the most current technology for the recovery of energy from waste, namely PGWERS. • In our opinion, the waste "problem" is the solution to our energy needs. • Because we think of waste as an asset rather than a liability. • Current technologies using plasma gasification and pyrolysis processes can convert almost ANY waste material into usable products such as electricity, ethanol, vitrified glass and other salable products. • PGWERS is a true waste to energy system that goes way beyond the traditional incinerator, Waste To Energy Plant (WTEP) and beyond standard gasification processes. • We promote technology that allows for 100% conversion of waste to energy in a safe and environmentally friendly manner. • Plasma gasification and pyrolysis processes allow for the virtual elimination of landfills, recycling without sorting, the complete thermal conversion, of all types of waste to energy in the form of green electricity, or ethanol. Private&Confidential-Property Demenshin Waters SB

6. How Does PGWERS Works • Plasma Gasification process, converts all types of waste streams (gas, liquid or solid) into a fuel gas composed primarily of carbon monoxide, hydrogen, nitrogen and water. This fuel gas is then used to generate electrical power. • The process is very efficient. 99.9% of the waste that is input into the system is converted to energy or other salable products. • Typical gasification or incineration plants generate up to 30% residual waste. • The Thermal Transformation process uses a high temperature (up to 8,000 degrees Fahrenheit.) plasma arc technology to "gasify" carbon based materials into an energy rich fuel gas with a BTU value about 1/3 that of natural gas. • The fuel gas is then cleaned and cooled so that it can be used in a gas turbine to generate electricity. • Non carbon based material is primarily transformed into vitrified glass or recyclable metal. Private&Confidential-Property Demenshin Waters SB

7. Zero Waste Philosophy • Recycle all materials back into nature in a manner that protects human health and environment. • Convert carbon-based material is in excess of 99%. • Non-carbon-based converted into vitrified glass. • Molten metals separated from glass and recovered. • The Fuel Gas produced is much cleaner than standard gasification processes and only contains traces of particulates, chlorine, sulfur and metals. • There are no tars, furans or dioxins. • Particulate is removed by a cyclone back into the process, becoming part of vitrified glass. • Chlorine is then scrubbed out leaving dilute hydrochloric acid (HCL). • The sulfur is removed in a wet scrubber, producing sodium bisulfite. • The dilute HCL can be concentrated to make a 20% salable HCL product. • The water that is removed by either process is reused in the plant for makeup water. • The only water discharge is cooling tower and boiler blowdown. • The sole discharge into the air is from the turbine, which meets EPA standards. • Heat from the process is used internally to produce electricity, distill ethanol and distill HCL. • NOTHING LEFT OVER, VIRTUALLY NO NEED FOR A LANDFILL WITH THIS PROCESS Private&Confidential-Property Demenshin Waters SB

8. Investigation and Conclusion • We had investigated gasification processes, plasma gasification, pyrolysis, hybrid thermal, gas turbines, numerous pollution control equipment providers, ethanol processes and water distillation. • Waste can be gasified to produce synthesis gas (syngas), which can be used to produce electricity. • Gasification technology is well proven, more than 100 plasma gasification plants around the world and a similar number of gasification plants. • Efficient way to produce power from waste is only to use a combined cycle gas/steam turbine. • Syngas can be used to make ethanol with certain specific gasification/pyrolysis processes. • Waste steam from the steam turbine can be used in certain situations to make large quantities of pure distilled water. • Plasma gasification has fewer emissions than gasification and treats certain types of waste better. • The capital cost for a plasma gasification plant is higher than the cost for a gasification plant. However, the overall economics for plasma is better than gasification in many situations, even though the capital cost is higher. Private&Confidential-Property Demenshin Waters SB

9. Plasma Gasification Process • Plasma Gasification Process begins with the thermal transformation of waste to produce a clean combustible gas referred to hereinafter as "Fuel Gas". • The Fuel Gas is used to produce electricity in a combined cycle gas/steam turbine. • Alternatively, the Fuel Gas can be used to produce ethanol (denatured ethyl alcohol), a fuel that can either be blended with gasoline or burned in an engine as a neat fuel. • Heat generated by the process is used to produce electricity, superheat steam, heat boiler feedwater and to distill water Private&Confidential-Property Demenshin Waters SB

10. What is Plasma Plasma • Plasma is a gas that is essentially • ionized, superheated air. • The superheated air is used to thermally decompose whatever it comes in contact with. • A plasma torch heats air to internal temperatures (inside the torch) as high as 25,000 degrees Fahrenheit and external temperatures (point of contact with the material) as high as 8,000 degrees Fahrenheit. • The source of energy for the torch is electricity. • Steel foundries have used plasma to smelt steel for many years. Plasma is a well-established technology in many industries Private&Confidential-Property Demenshin Waters SB

11. What is Fuel Gas • Fuel Gas is the gas coming from theorganic waste out of the reactor and used to fuel the gas turbine. • It contains carbon monoxide and hydrogen and has a Btu value of 320 Btu per cubic foot, or about 1/3 the Btu value of methane (natural gas). • When combined with the nitrogen and water in the gas stream, the fuel gas has an overall Btu value of about 160 Btu per cubic foot. It vary depend on feedstock and moisture content. Private&Confidential-Property Demenshin Waters SB

12. Type of Waste Processed • The Plasma Gasification Waste Energy Recovery System ( PGWERS) can process ANY typeof waste with the same environmental cleanliness and complete breakdown and recycling efficiency. • No pre-treating, sorting, or extra handling is required. • Household garbage, yard waste, glass, incinerator ash, oil waste sludge, plastics, paints, contaminated soils, tyres, etc. can all be processed and recycled Private&Confidential-Property Demenshin Waters SB

13. Why PGWERS not done Before • Why hasn't Plasma Gasification been done before? • Plasma gasification has been used in the steel, wood and other industries for many years. • A general abundance of inexpensive electrical power and ample landfills have limited the commercial viability of this technology for MSW. There are a large number plasma gasification plants in operation throughout the world in various industries. • Several plasma gasification plants are in operation in North America operating on hazardous waste. • With the demand for energy always on the rise, closures of landfills and the high cost of opening new ones, the time has come for using plasma technology to come to the forefront. Private&Confidential-Property Demenshin Waters SB

14. PROJECT BENIFITS • Content: • PGWERS versus incineration • PGWRS Versus waste to energy plant (WTEP) • PGWERS versus standard gasification • Ultimate process advantage • Environmental advantage • Material handling advantage • Practical and aesthetic • Local benefits • Environmental - Odorless • Environmental – Green electricity • Environmental – Carbon dioxide • Environmental – Any risk • Versus present recycle campaign • Is PGWERS recycling Private&Confidential-Property Demenshin Waters SB

15. PGWERS Vs Incineration • Incineration is the burning of carbon based (organic) material in an oxygen-rich environment (02).The carbon contained in the organic matter reacts with the oxygen to form carbon dioxide (CO2) and water (H2O). • The combustion is highly exothermic and releases the energy in the organic material in the form of heat. The combustion is incomplete, leaving ash, tar and char that contains heavy metals and toxic substances. • Non carbon based (inorganic) materials (metal, glass, soil, concrete, silica, etc.) not affected by burning and become ash. Unburned material as high as 30% by weight. Incineration results in high levels of tars, furans, NOx, dioxins and sulfur dioxide. • Plasma Gasification is not incineration and it does not burn the waste. • It is the transformation of carbon based material in an oxygen-starved environment using high heat source (plasma) to produce a fuel gas. Though the temperatures higher than incineration, material doesnot burn because there is not enough oxygen. • The organic materials is transformed to a fuel gas composed of carbon monoxide (CO) and hydrogen (H2). Carbon monoxide contains substantial chemical energy and can be used in a variety of ways. • High temperatures of Plasma Gasification melt metals, glass, silica, soil, etc., which flow out of the bottom of the reactor. The metals are recycled and the other inorganic materials become vitrified (molten) glass. • Due to high temperatures and lack of oxygen there are no tars, dioxins or furans and Nox and Sox are much lower. Private&Confidential-Property Demenshin Waters SB

16. PGWERS Vs WTEP (Waste to Energy Plant) • As of 2000, about 102 "Waste to Energy (WTEP) facilities use combustion process operating in U.S. These WTEP include the following technologies:- • Mass Burn (MB) WTEP plants generate electricity and/or steam from waste by feeding mixed municipal waste into large furnaces dedicated solely to burning trash and produce power. 70 of the 102 WTE facilities utilize this process. • Refuse-derived fuel (RDF) WTE plants remove recyclable or unburnable materials and shred or process the remaining trash into a uniform fuel. A dedicated combustor, or furnace, may be located on-site to burn the fuel and generate power; or the RDF may be transported off site for use as a fuel in boilers.19 of the 102 "Waste to Energy" facilities utilize this technology. • Remaining 13 WTE facilities are Modular WTE plants, similar to Mass Burn plants, but are smaller mobile units. • These WTE plants now process about 30 million tons of trash/ year or about 14% of US solid waste. Electric power generated about 2,816 megawatts/hour. These technologies are the most widely used to convert municipal waste into energy. Capital investment for WTE combustion plants is about $3,570 per installed kWh of capacity. • Typical plant performance of WTE Combustion plants is as follows: • Combustion temperatures can be as high as 2000° F with high combustion efficiency and CO emissions of 15 to 40 ppm. Reactor exit temperatures below 1200° F. • Waste VOLUME reduction of about 90%. Ash on a WEIGHT basis is as high as 25% of the input. Ash from earlier plants( incinerator) was considered toxic(class B landfill). However, with higher temperatures, ash is considered non-hazardous for all plants that have made the environmental changes. A small portion (<4%) of the ash is used in roadbeds and for other uses, however, majority has to be disposed of in a landfill. • Emission satisfy current EPA requirements. Early plants ( "Incinerators") did not have adequate emission control devices and had very high emissions and gave the industry a bad reputation. Most plants have either upgraded their emission control systems or have been forced out of business. WTE plants still produce air emission of high levels of tars, dioxins, furans and char compared to IGCC plants or PGWERS. However, WTE plants prevent the release of new greenhouse gasses. WTE plants prevent the release of more than a million tons of methane into atmosphere, assuming the same amount of trash now processed at WTE facilities is disposed in a landfill without methane recovery. Private&Confidential-Property Demenshin Waters SB

17. PGWERS Vs WTEP(cont..) • Most of WTE facilities in U.S. operate between 1980- 1996. Only 3 new plants have come on line since 1996 (2 in 1997 and 1 in 2000). No new plants currently under construction. The primary reason for the slow-down in new WTE plants is the environmental concern involving existing plants. • Most of these plants were installed without adequately addressing the environmental issues. Due to new emission standards some of these facilities have closed or being renovated. • The WTE industry is currently require $800 million plant upgrade to install air quality control systems to meet current EPA standards. • Because of their historical emission problems, the Incinerator plants continue to receive significant resistance from environmental groups and negative reviews in the press. • Disadvantages of WTE Combustion processes compared to PGWERS:- • Emissions of tars, furans, dioxins, char, VOC's, particulates and SOX are higher. • Combustion processes only produce steam and electricity, whereas the synfuel from a gasification process can be used for many other applications. • WTE processes use steam turbines are only half as efficient as combined cycle gas/steam turbines that are used by PGWERS. • All inorganics contained in the waste come out as ash, which contains char and tars. The amount can be as much as 25% by weight which means that landfills will continue to be required to dispose it. Ash has very little use except as a road base.Though it is considered non-hazardous it still has an environmental impact and very few people will use it. • Vitrified glass from PGWERS process has no environmental impact and can be used in numerous applications. • Most WTE facilities require pre-sorting. In order to reduce the volumes of ash, inorganics are sorted out. They cannot handle all types of waste as the Plasma Gasification Process does. Private&Confidential-Property Demenshin Waters SB

18. PGWERS Vs Standard Gasification Standard gasification operate in the 700 - 1500 degrees F range. They do not use any external heat source and rely on the process itself to sustain the reaction. They are really "partial combustors" and a substantial portion of the carbon is combusted just to support the reaction. Gasification process produces a fuel gas similar to the gas produced by the plasma process, but much dirtier, contains char and tars. The lower temperatures cannot break down all the materials. So, many materials must be sorted out of the waste stream before the reactor. Because of the low temperature, the gas that is produced by a standard gasifier has tars and other contaminants that must be further cleaned up. Char residue remains that is up to 15% of the weight of the incoming material. Most standard gasification systems cannot feed MSW directly from truck. Refuse must be dried to an acceptable moisture content, and processed into a uniform size and consistency thus adding to the cost and complexity. Plasma gasification uses an external heat source to gasify the waste, resulting in very little combustion. Almost all of the carbon is converted to fuel gas. It is a pure gasification and a "true gasifier". Because of the temperatures, all the tars, char and dioxins are broken down. The exit gas from the reactor is cleaner, no ash at the bottom of the reactor. It can process any type of waste, does not require sorting and is not impacted operationally by moisture. Private&Confidential-Property Demenshin Waters SB

19. ADVANTAGES- Ultimate Process CONVERT EVERYTHING. Virtually any kind of waste can be processed, (solid, liquid, or gas) except nuclear material. This includes, but is not limited to, MSW, auto shredder residue, coal fines, medical waste, hazardous waste, sludge, oily water, tank bottoms, landfill gas, dioxins, PCB's, pesticides, paint, tyres, contaminated soil, incinerator ash, etc. COMPLETE CONVERSION. The conversion of the waste to salable products is greater than 99%. This is the ultimate recycling system. VALUABLE PRODUCTS. The waste is converted into valuable products, including electricity, ethanol, vitrified glass, metal and sodium bisulfite. Molten metals are separated for recycle. Other valuable derivative products can also be produced. Non-carbon-based materials, including silica, rocks, concrete, soil, glass, gravel, minerals, etc. are vitrified or thermally fused into glass by the thermal transformer. Private&Confidential-Property Demenshin Waters SB

20. ADVANTAGES - Environmental ELIMINATE LANDFILLS. This process does not generate residual waste, thereby eliminating the need for new landfills GROUND WATER. The risk of contaminated ground water is eliminated. RENDER INCINERATORS OBSOLETE. Existing incinerator plants can be retrofitted into our process, eliminating the ash disposal and emissions problems inherent with incinerators. AIR AND WATER EMISSIONS ARE BELOW EPA STANDARDS. RECOVERED ENERGY. The energy produced by the process (electricity or ethanol) is recovered from discarded materials. Private&Confidential-Property Demenshin Waters SB

21. ADVANTAGES- Material Handling NO SORTING. The thermal transformer does not distinguish between types of waste. Materials such as silica, glass, soil, rocks, concrete, metals and any carbon-based waste are all processed the same and require no sorting. SANITARY STORAGE. Inventory of waste material is stored inside the building and is cycled every 3-4 days. CLEAN EVERY NIGHT. Waste material is removed from the tipping floor to the storage area within a few hours, leaving an empty tipping floor each night. Private&Confidential-Property Demenshin Waters SB

22. ADVANTAGES- Practical & Aesthetic APPEARANCE. The equipment, material handling system and tipping floor are all inside an attractive building. LOCATION. The plant can be located in an industrial area of the city, thus dramatically reducing freight costs to a landfill and the number of garbage trucks necessary. The plant can also be located next to the city sewage treatment facility and be used to process sludge. The plant can be located at prior landfills where it can be used to process landfill gas or to reclaim the ground. IMPORT INCOME. The plant can accept railcars or barges of waste, allowing the facility to process waste from other locations and generate additional income. Private&Confidential-Property Demenshin Waters SB

23. ADVANTAGES – Local Benifits • REDUCES COSTS AND RISKS ASSOCIATED WITH LANDFILLS. • ADDITIONAL SOURCE OF REVENUE. • STIMULATES LOCAL ECONOMY. • CREATES JOBS. • MONEY STAYS AT HOME. • REDUCES PETROLEUM DEPENDENCE. Private&Confidential-Property Demenshin Waters SB

24. Financial Benefits • FINANCIAL BENEFITS TO THE COMMUNITY • Several hundred jobs created during the construction period. • Significant number of good paying permanent jobs. • Cleaner environment. • Savings on handling difficult waste. • No future liability from a landfill. Private&Confidential-Property Demenshin Waters SB

25. Environmental Aspect- Odorless Will there be any odors from the plant? The receiving area for all of the refuse is enclosed and kept at a negative pressure. The air required for the process is pulled through the receiving and storage areas thereby pulling the odors into the gasifier. The off-hours storage is contained inside a building and is cycled every 3-4 days. Only enough material is stored to operate the plant when it is not accepting wastes, such as at night and weekends. Odors are first minimized and then contained and processed along with the waste. Private&Confidential-Property Demenshin Waters SB

26. Environmental Aspect– Green Electricity Is the electricity produced by plasma gasification "green electricity"? (Green electricity is defined as electricity produced from renewable sources) Typically we think of solar, wind and geothermal power when we think of renewable energy. However, MSW and other wastes renew themselves and the energy produced from waste is green electricity. There are several companies that market green electricity. They generally do not market power from incinerators because of the negative environmental impact and bad reputation of incinerators. However, plasma gasification does not have the negative impact of incinerators and will eventually be sold by the distributors of green electricity. Private&Confidential-Property Demenshin Waters SB

27. Environmental Aspect – Carbon Dioxide Doesn't the plant generate carbon dioxide? Does this carbon dioxide contribute to the greenhouse effect? When the CO goes through the gas turbine it is combined with more oxygen and energy is released. The CO becomes CO2 or carbon dioxide. Coal, diesel and natural gas power plants produce CO2 and contribute to the greenhouse effect. These power plants are using petroleum based fuels that are introducing new CO2 into the environment. The Plasma Gasification Waste Energy Recovered System (PGWERS) does not contribute to the greenhouse effect because it does not use new hydrocarbons as a fuel source. Our process simply releases CO2 that was already part of the base of organic material. Private&Confidential-Property Demenshin Waters SB

28. Environmental - Any Risk? What risks are there if this plant is built in my town? The facility does not create any new waste streams and all emissions are closely monitored. The design of the plant incorporates the latest technologies for modern storage tanks, containment systems and fire control systems. Modern control systems assure safe operation and proper reaction in the event of an upset. Risks are actually much lower than the risks of conventional landfills. Private&Confidential-Property Demenshin Waters SB

29. Versus Present Recycle Campaign Won't we lose the income and positive environmental impact from the recycling program that we now have? ? For some items the collecting and sorting out of the "recyclable" item such as glass and metal costs more than the income that is realized by the sale of such materials. The Plasma Gasification Waste Energy Recovered System is a more efficient "recycling" method. We do not, however, discourage traditional recycling programs. We simply offer the municipality an option to decide which items to recycle traditionally and which to send unsorted to the facility for 100% recycling into energy or useful byproducts. Private&Confidential-Property Demenshin Waters SB

30. Is PGWERS a Recycling How can you call this process recycling? The American Heritage dictionary defines recycling as the extraction and reuse of useful substances found in waste. The Plasma Gasification Waste Energy Recovered System is the ultimate form of recycling. Over 99.9% of the waste processed is recycled into other products and energy that can be reused. This is all done with no sorting and less effort. Private&Confidential-Property Demenshin Waters SB

31. SYSTEM PROCESS DESCRIPTION • Content:- • Process Flow • Typical plant layout • Material Handling • Thermal transformation • Gas clean up • Steam and power generation • Energy in the waste • Production of electricity • Production of glass • Others Products • Example of operating plant Private&Confidential-Property Demenshin Waters SB