CLEAN MULTI FUEL

1. The „3R” Technology Recycle – Reduce – Reuse Intelligent Energy for Europe CLEAN MULTI FUEL Cost Efficient Retrofit/Revitalizationof Solid Fuel Power Plants 20MW - 300 MW Revitalization of the Coal – RenewableIndustry by Clean Multi Fuel Supply Investors information from: TERRA HUMANA Clean Technology Engineering Ltd. E-mail:edward@terrenum.netWeb:http://www.terrenum.net Tel: +(36-20) 201 7557 Fax: +(36-1) 424 0224 H-1222 Budapest, Szechenyi 59, Hungary By Edward Someus June, 2003 EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

2. The 3R Process CLEAN MULTI FUEL: • The 3R process is a cost efficient preventive pre-treatment of low-grade solid multi fuels by low temperature carbonization in downsized reductiveenvironmentfor removal of hazardous air pollutants prior burning and improvement of burning efficiency of the revitalized solid fuel powerplant-CHPup to 300 MW capacity. • The 3R technology has been developed to meet the open – liberalized energy and co-generation market demands and has beenimplemented by the support of the • EUROPEAN UNIONDG Energy and Transport • contract No: EU FP5 NNE5/363/2001 • CONCEPTS: • Prevention versus „end of pipe” solution, resulting • Guaranteed and competitive long term clean energy supply • Providing compatibility between development of open – liberalized energy market and the objectives of the environmental protection • Providing overall cost savings for sustainable clean energy production • Separated material stream treatment versus „all in one flow” • Improve safety and recycle-reduce-reuse all streams • Flexible feed choice application from regionally available feed supply • Improving overall cost efficiency for green energy production EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

3. The goal of this presentation We would like to introduce to you an innovative „green energyproduction”technology that : • Converts widely available low grade fuels to high grade fuels by value added 3R process application • Meets the „open – liberalizedenergy market” demands for clean energy production in a sustainable way • Converts trash (low grade fuels) into cash (clean electric energy) The purpose of this presentation if to attract strategic partners for 3R Field Demonstration revitalization set up at solid fuel power plant(s) and CHP’s between the capacities from 20 MW to 300 MW power, in order to bring this technique into commercial practice. EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

4. The key component of the 3R method and apparatus is an indirectly heated horizontally arranged closed cycle operating rotary kiln, where material is safely separated in absence of air and decomposed into gas-vapour and solid phase. The hazardous air pollutants, such as Sulphur, Chlorine and Mercury are removed in the gas-vapour phase and separately treated – recycled in downsized environment, while Clean Multi Fuel – Clean Coal is utilized in boiler. 3R Low Temperature Carbonization - Overview Lignite Coal Biomass Derived fuels Organic Waste Fuel streams Input 40k tpa to 560k tpa I.Grind and dry II. Carbonize III. Remove pollutants IV. Reuse all streams Carbonization Technology 3R value added process 1. Clean Multi Fuel 2. Recycled energy 3. Recycled byproducts Clean Multi Fuel Products Output Recycled Energy Recycled byproducts EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

5. Overview of the Thermal Treatment Technologies and the position of the 3R carbonization process: the 3R process is NOT an incineration REDUCTIVE ENVIRONMENT ABSENCE OF AIR OXIDATIVE ENVIRONMENT SURPLUS OF AIR t= INCINERATION 1200 °C GASIFICATION 600 °C 3R PROCESS 20 °C Increasing consumption of clean air Low High EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

6. 3R advanced performance The revolutionary horizontally arranged indirectly fired rotary kiln provides a highly efficient and flexible thermal separation process which is not an incineration. Process performance with flexible feed choice (with variations in flow, composition and concentration of toxic volatile input compounds) treated by flexible safe process conditions. Modular system design from 40,000 tons per annum throughput capacity block to 14 x 40 k tpa = 560,000 tpa (70 t/h). Link or bolt-on to operating power plant as per local demand Providing significant improvement of overall cost efficiency Containing no exotic technical solutions and materials EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

7. 3R process descriptionabstract The multi fuel feed stream is dried to < 15 % weight volume moisture content and homogenized to 0-5 mm particle size dimension. The carbonization is processed in the continuously fed indirectly heated 3R rotary kiln with material core temperature up to 600 °C in absence of air. The separated gas-vapor phase, containing volatile compounds and hazardous air pollutants, is continuously removed and in a post combustor burned off under 1250 °C and minimum 2 sec. residence time. Due to the reductive environment, post burner and fast cooling options, creation and recreation of dioxins are prevented. The solid phase Clean Multi Fuel „Clean Coal” is introduced into the power plant boiler feed system for clean energy production. The heat is recovered and flue gas is cleansed in a high efficient multi venturi off-gas scrubber. Mercury (if any) is separated from the flow and process water is treated with lime, whereas clean gypsum is achieved containing no ash and heavy metals which is contrary to the traditional residual management where the gypsum contains both ash and heavy metals. The comprehensive process is integrated linked or bolt-on to an operating solid fuel power plant, and can be operated in an independent mode as well. EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

8. The advantages of the 3R process Reductive thermal treatment in downsized environments („downsized”refers to lower volume of off-gas treatment by pretreatment option compared to conventional off- gas treatment by „end of pipe” option) Safe and cost efficient treatment of volatile toxic components with variationsin flow, composition and concentration. No creation and recreation of dioxins and furan gases during the process. Designed to cost efficiently meet installation demands and conditions of existing industrial units: modular installation option per block. Flexible operation and maintenance. Providing near zero emission solution: comprehensive recycling and reuse of all material streams. Improving overall cost efficiency of the green energy production as per „openenergy market” demand conditions. EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

9. The application advantages of the Clean Multi Fuel end product Clean Multi Fuel is introduced into the boiler system, while hazardous air pollutants, such as Sulphur, Chlorine and Mercury have already been removed prior to burning in a separate treatment process. Simplifying „end of pipe” off-gas treatment process and decreasing the capital intensivity for the off-gas treatment process installations. Providing cost efficient solution for residual recycling and reuse. Reducing boiler corrosion and improving process safety. Improving burning and boiler efficiency Improving overall cost efficiency of the green energy production. EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

10. 3R process and project status 2003 2004 2005 Pilot plant demonstrationphase Commercialization phase UnitedEuropeanknow how and experience 1982 - 2002 Pilot tests 2002-2005 EU FP5 NNE5/363/2001 Business Plan and Technology Implementation Plan TIP Field Demonstration Industrial applications United Europeanscientific and engineering know how • Based on the united know how, develop, design and execute pilot test program • Comprehensive audit of3R process and TIP • Open energy market supply and demand evaluation • Contact industrial partners • Dissemination plan • Preparation of participation in EU FP6 demonstration EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

11. Summary • CONCEPT: • PREVENTION isBETTER, SAFER, FASTER andLESS COSTLY than „end of pipe” solutions • Price input raw material Low or negative value • Value added „3R” treatment Well defined process • Price output Clean Multi Fuels Competitive, as per demand of the open energy market • Initial investment Depending on plant capacity and site conditions, est. from approx. € 2 M • Return on investment Est. to 3-5 years • Added value for environment Sustainable and high performance • Financial subsidy Not needed, the full scale 3R has been designed for open market conditions EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal

12. 3R project Partners under NNE5/363/2001 • TERRA HUMANA Clean Technology Development, Engineering and Manufacturing Ltd. (Coordinator, engineering design and technology provider, Sweden - Hungary) • Centre for Research and Technology Hellas / Institute for Solid Fuels Technology and Application (Greece) • Netherlands Energy Research Foundation (The Netherlands) • University of Rostock (Germany) • Cereol Vegetable Oil Production PLC. (USA - Hungary) • Latvian State Institute of Wood Chemistry (Latvia) • United European Environment Controls Ltd. (UK) • Aristotle University of Thessaloniki (Greece) The new 3R technology opens new technical and economical opportunities Please contact Mr. Edward Someus: e-mail: edward@terrenum.net EU FP5 NNE5/363/2001 http://www.terrenum.net/cleancoal