Brad Schneider & Bill Chynoweth, Recovered Energy Resources, Inc.

1. Michigan’s Waste toEnergy OpportunityPresented to: Michigan Department of Energy, Labor, and Economic GrowthApril 29, 2009 • Brad Schneider & Bill Chynoweth, Recovered Energy Resources, Inc. • Dave Prouty, President & CEO, Heat Transfer International, Inc. Recovered Energy Resources

2. Waste will become energy. A liability will become an asset.An opportunity and a vision will become a reality.The benefits will accrue to Michigan COMMUNITIES. Project Team Vision Recovered Energy Resources

3. Why Waste-to-Energy? • Michigan’s urban regions are poor in Wind and Solar resources, but have an abundance of MSW • Fuel source is close to every population center, offering significant transportation savings and associated emissions (esp. CO2) reductions • Michigan’s significant Agricultural waste within rural regions is not being fully exploited for energy production • Gasification provides a clean and efficient means to generate thermal and electric energy • MSW Waste-to-Energy (and other forms of Biomass) provides competitive and dependable base load power • Other forms of baseload renewable power (e.g. geothermal) do no exist in Michigan • Michigan has the opportunity to lead the nation in exploiting this relatively nascent opportunity • Provide a spring-board for uniquely Michigan based developers, manufactures, engineering and construction firms • Michigan has a unique stewardship responsibility for protection of the Great Lakes • MSW-to-Energy protects Michigan watersheds Recovered Energy Resources

4. Strong Government / Institutional Support • US Department of Agriculture • Co-funded RER feasibility study with USDA for Montmorency-Oscoda-Alpena Solid Waste Authority • $500,000 grant and loan guarantee to Sietsema Farm Feeds (under construction in Howard City) • Michigan Public Service Commission • $2,300,000 Energy Efficiency Grant awarded to HTI for Gasification Technology Demonstration Center in Kentwood • Michigan Economic Development Corporation • Science and Technology Vetted and endorsed by Technology Advisory Board • Business Strategy vetted and supported by MEDC Bio=Energy Team • Co-funded RER feasibility study with USDA for Montmorency-Oscoda-Alpena Solid Waste Authority (DTE Energy is co-development partner) • City of Kentwood • Granted Renewable Energy Renaissance Zone • Next Energy • Vetted and endorsed by Technology Advisory Panel Recovered Energy Resources

5. Michigan Economic Opportunities from Waste-to-Energy Gasification • Waste-to-Energy will ensure that the Governor’s goal of reducing fossil fuel imports for electricity production by 45% by the year 2020 can be achieved • Waste-to-Energy will ensure that the Governor’s goal of 25% renewable energy by 2025 can be achieved • Gasification technology does not require the massive amounts of MSW and economies of scale required with traditional urban-centered incinerator or plasma facilities • Provides economic opportunities for all regions (e.g. under-served urban areas and small communities) • 18 – 25 permanent jobs are created per small scale (e.g. 5 MW) waste to energy plant Recovered Energy Resources

6. Michigan Needs Renewable Energy ANDa Sustainable Solid Waste Strategy! • Testifying before the Michigan Senate Natural Resources Committee in 2005, DEQ Director, Steve Chester outlined the need for a more comprehensive solid waste strategy designed to improve Michigan’s recycling program and to ensure that landfill capacities remain adequate • According to Director Chester, the cornerstone of a responsible solid waste management program must include: • Funding efforts to increase recycling provide for economic development and build technical capacity at the local level • Expand the bottle bill to control litter and reduce the amount of recyclablematerial going to the landfills • Ensuring disposal capacity for waste generated in Michigan while reducing excess capacity attractive to out of state waste generators • Doubling the amount of waste recycled in Michigan by providing recycling opportunities for all Michigan citizens through plans designed and implemented at the local level • Update the original 1988 Michigan Solid Waste Policy to support these goals Recovered Energy Resources

7. MSW-to-Energy vs. Landfill Gas (LFG) • Energy from MSW is 6-9 times greater than energy produced from LFG (without the need to wait 15+ years) • System can exploit LFG from existing landfills without the intensive capital and O & M expenses required for LFG-to-Energy systems • Every ton of MSW converted to energy saves one ton of CO2 • Energy from waste can extend the life of landfills by 9 times • US DOE, EPA, FERC, and PURPA all recognize MSW as sustainable and indigenous • More that 18 states, including Michigan, include MSW as renewable Recovered Energy Resources

8. Solid Waste Models Typical Municipal Solid Waste Model Typical Recycled Waste Model HTI / RER Waste to Energy Solution Recovered Energy Resources

9. HTI/RER Solid Waste Solution

10. HTI/RER Solid Waste Solution (Continued) 2007 MDEQ records show that greater than 3,000 MW could be produced from existing MI landfills 800 KW of power produced from each Ton of MSW Nearly 100% recyclingof glass and metals create a revenue stream & increases landfill capacity

11. History of Gasification Recovered Energy Resources

12. HTI Solid Waste Gasification System Recovered Energy Resources

13. Why HTI’s Starved Air Low Temperature (SALT) Gasifier? • “SALT”… • Produces a cleaner combustible syngas • Leaves undesirables in the ash • Minimizes slag and soot • Reduces airborne emissions (more easily permitted) • Provides more options for producing heat and power • Higher system efficiency (energy out/waste in) • Simpler system • Lower initial equipment cost • Lower operating temperatures • Costs less to operate and maintain • Shorter concept-to-operation timeline • Low maintenance equipment yields long life span Recovered Energy Resources

14. Materials Previously Destroyed by HTI’s Gasification Systems BIOMASS Sawdust Pallets Sugar beets Sugar cane Turkey Litter GASES CO H2 Syngas SLUDGES Sewage Industrial Hazardous MUNITIONS Spent Nerve gas filters OTHER Pathological wastes Industrial trash Returned pharmaceuticals Organic process residues Waste solvents Laboratory chemicals Radioactively contaminated waste Municipal solid waste Industrial sludge Wood products Agricultural products Ethanol plant by products • MEDICAL • Drugs • Lab animals • Sharps • Solvents • Sludges • MSW • Unsorted • Tires • PCBS • Liquid • Sludges • PLASTICS • Carpet • Wraps • Seran • Mill scrap Recovered Energy Resources

15. Biomass Energy Project in Development: Sietsema Farms (Turkey Litter to Electricity)

16. RER Waste-to-Energy Plant Description • Step 1: Incoming waste is received by the plant where foreign and oversize material is removed. It is then shredded, removing the metals and glass, and the sorted waste is stored for further processing. • Step 2: The sorted waste is conveyed from the storage system to the gasifier array, where it is heated until it releases syngas. The syngas flows to the Lo-Nox oxidizer where it is combusted to produce a high temperature exhaust gas. • Step 3: The exhaust gas is passed into heat recovery to power conversion system, of which there are several technologies to implement depending on application and site specifics. • Step 4: Ash produced by the gasifiers is conveyed to a disposal container for land disposal or reuse. Recovered Energy Resources Lipten Company

17. Waste will become energy. A liability will become an asset.An opportunity and a vision will become a reality.The benefits will accrue to Michigan communities. Michigan can lead the nation. THANK YOU! Recovered Energy Resources