Business Case

A biomass/waste-to-energy facility for Kelly Lake/Tomslake

British Columbia, Canada July, 2012

Prepared for: KLMSS

Presented by:

Alistair Haughton – COO, WtEC

Andy Harris – VP - Development, WtEC

The information contained in this document is CONFIDENTIAL and PROPRIETARY and may not be released in whole or part to third parties without the express written permission of Waste to Energy Canada Inc. © WTEC 2010

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Contents

INTRODUCTION ................................................................................................................. 4

BACKGROUND .................................................................................................................. 6

PROJECT VIABILITY ............................................................................................................ 8

STRATEGIC ALIGNMENT ................................................................................................... 10

SUMMARY ...................................................................................................................... 11

SCOPE & SUPPLY ............................................................................................................. 12

PROPOSED FACILITY LOCATION ........................................................................................ 13

DESIGN METHODOLOGY .................................................................................................. 14

The design process: ..................................................................................................................................................... 14

HEAT ENERGY FOR POTENTIAL RECOVERY AND POWER GENERATION ................................ 16

ENVIRONMENTAL PERFORMANCE .................................................................................... 17

SUMMARY LIST OF PROPOSED EQUIPMENT ...................................................................... 19

WASTE CONVERSION, EMISSIONS CONTROL, AND ASH HANDLING EQUIPMENT .................. 20

FOOTPRINT ..................................................................................................................... 21

Access: ......................................................................................................................................................................... 21

Building Envelope: ...................................................................................................................................................... 21

Certification and Registration: ................................................................................................................................... 22

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PROJECT COST STRUCTURE .............................................................................................. 23

CAPITAL COSTS ............................................................................................................... 23

METHODS OF IMPLEMENTATION: .......................... ERROR! BOOKMARK NOT DEFINED.

NEXT STEPS: .................................................................................................................... 24

APPENDIX A – FEED ELEMENTS ............................... ERROR! BOOKMARK NOT DEFINED.

FEED DELIVERABLES – DRAWINGS/IMAGES ............. ERROR! BOOKMARK NOT DEFINED.

FRONT END ENGINEERING DESIGN (FEED) DELIVERABLES (AS PER FEED AGREEMENT) ERROR!

BOOKMARK NOT DEFINED.

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Introduction

This business case illustrates Kelly Lake Métis Settlement Society’s plan to provide an economical and environmentally viable, funded and operated, biomasss/waste to energy facility to manage the Full Waste Stream Spectrum in alignment with the forward looking strategies KLMSS has for Kelly Lake and Tomslake and the region to supply power to the local BC Hydro grid and/or local industry.

The goal is to demonstrate how KLMSS, and people of the Kelly Lake area will benefit from the clean energy production from such a facility, reducing the cost of energy, while creating stable, long-term employment, and significant returns over the long term.

Using local resources to generate heat and energy is as old as gathering wood to burn in the fire to boil

water. Yet as humanity has grown more advanced and sophisticated, that hasn’t been necessary. Fuel in

the form of natural gas, coal and fuel oils has been readily available and relatively cheap. Regrettably,

this reliance on importing these resources has proved troublesome and many governments,

municipalities and industries are now looking for alternative, more strategically secure and cleaner

means of generating energy. One of those means that utilizes a locally produced, plentiful, sustainable

source of fuel is the Waste-to-Energy process.

Recovering energy from waste wood isn’t a new idea either, however it has evolved over the years from

the simple incineration of waste in an uncontrolled, environmentally unfriendly way, with very little

energy recovery, to highly controlled combustion of waste with energy recovery, materials recovery and

sophisticated air pollution control equipment insuring that emissions are well within EU and US limits.

This process took over 50 years of development and many improvements in design and technology, yet

our waste-to-energy methodology has now proven itself to be an environmentally friendly solution to

the disposal of municipal solid waste and the production of valuable and useful energy to save importing

increasingly costly energy.

Our intent is to Build, Co-Own & Operate this waste-to-energy facility with KLMSS, and future plants in

the region.

As directed by the British Columbia Provincial Government in its BC Energy Plan: A Vision for Clean

Energy Leadership, BC Hydro implements a Standing Offer Program to encourage the development of

small and clean energy projects throughout the Province of British Columbia. The program is a process

to purchase energy from small projects with a nameplate capacity greater than 0.05 megawatts but not

more than 15 megawatts (MW). In order to respond to BC Hydro’s Standing Offer Program call for

power, the new CGS is proposing to build a <15 megawatts biomass/waste-to-energy generation facility

on a pre-determined site near the Kelly Lake and Tomslake community which is approximately 120

kilometers Southeast of Hudson’s Hope, B.C.

The goals of the KLMSS are to develop economically viable energy production facilities using readily

available renewable biomass and potentially wood debris and operational waste from local agriculture

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and oil and gas operations as fuel sources at an acceptable cost per kilowatt hour ($/kWh), to provide

new and meaningful permanent employment, retain and expand existing employment (logging/forestry)

and provide revenues for both producers and sellers of the finished product. This biomass/waste to

power project will create urgently needed aboriginal employment opportunities and revenues, while

providing energy in an environmentally sound manner. In addition to helping to meet area power

demands, the projects will help reduce dependency on imported non-renewable energy sources.

The project is of significant importance to KLMSS in terms of its economic diversification and job

creation. It will also be important to the region as a whole in moving toward requiring increased

emphasis on renewable power and there is a projected shortage of power generation in an area of

increasing population and business growth – specifically from the oil and gas sector. Moreover, we

believe that this project will help enhance service reliability in the area.

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Background

The Kelly Lake Métis Settlement Society, besides being a recognized Aboriginal Community is a not- for-

profit Society registered in British Columbia under the Societies Act since April 26, 2002. Registration No.

S-44582. The Society is in good standing and continues to meet all annual filing requirements. An

economically-depressed area, Kelly Lake is seen as the only Métis community with historical roots in B.C.

having originated in the early 1800s. The membership is approximately 138 adults who live in the

settlement with their children.

Population Demographics

KLMSS represents Métis members as defined in the KLMSS bylaws and constitution. In February

2009 KLMSS membership totalled 138:

• 62 Men

• 76 Women

KLMSS continues to review socio-economic needs for the Métis members by identifying information

regarding the following areas:

1. Unemployment Rate: 36% (n=28)

2. Education Level

a. Elementary: 47% (n=30)

b. High School: 33% (n=30)

c. College: 17% (n=30)

d. University: 3% (n=30)

3. Percentage of KLMSS residents in Kelly Lake: 86% (n=28)

4. The average age of Kelly Lake members is: 35 (n=24)

KLMSS has focused on addressing governance and socio-economic issues facing the community and has

continued to identify economic opportunities through various relationships and joint ventures. KLMSS

has contracted services in mining, road upgrading, provision of dust control system, provision of camp

services, and underground piping in addition to authentic art. To diversify the local economy and create

employment opportunities that take advantage of technological advances and utilize resources that are

currently underutilized, KLMSS is proposing to build a biomass/waste-to-energy project utilizing Waste

to Energy Canada’s technology. The Kelly Lake/Tomslake waste to energy project will generate up to 15

MW of electricity – enough to power approximately 10,000 homes - using biomass from pine beetle

killed fibre, agriculture and wood residue from forestry operations as well as other sources from local oil

and gas operations that would otherwise be trucked long distances or disposed of in landfills. Meetings

with BC Forestry and oil & gas companies have provided provisional written and verbal approval of

feedstock supply.

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Historically, KLMSS continue to hold to their traditional visions of community renaissance and values.

Sustainable, efficient resource development requires KLMSS to create an environment in which the

whole community can thrive and prosper. The continued protection and utilization of aboriginal rights of

sovereignty and self-determination are key strategic elements to achieve a higher quality of life for the

community. These factors are integral to the business case for the facilty.

Project Initiation

At initiation BC Hydro implemented a Standing Offer Program to encourage the development of small

and clean energy projects throughout the Province of British Columbia. The program is a process to

purchase energy from small projects with a nameplate capacity greater than 0.05 megawatts (MW) but

not more than 15 MW. To help further diversify its economic base, KLMSS has already commissioned a

Feasibility Study that examined and recommended the possibility of developing up to a 15 MW electrical

generation facility on or near its traditional lands. Provisional approval from BC Hydro has been

provided.

The feasibility study included an assessment of available biomass fuel by KLMSS to satisfy the fuel

requirements of an initial 10 MW waste-to-energy power plant on a continuous basis, technology

assessment, site selection, economics viability given the foreseeable fuel and generation costs for

renewable energy generation. This effort has identified a potentially viable mostly biomass-fuelled

renewable energy project using WTEC’s proven Continuous Gasifier System technology and available

and proximate fuel supplies on a minimum 40 acres site on or near KLMSS traditional territory.

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Project Viability

Our assessment has shown that project viability is highly dependent upon resolution of two issues:

• Acceptable costs and interconnection agreement with BC Hydro High Voltage (HV) system, and

suitable site location close to BC Hydro substation

• Acceptable Purchase price for generated renewable power by BC Hydro.

Because of these factors, it is clear that in order to keep the transmission cost low, the power plant site

has to be close to BC Hydro grid. The ideal plant site should be no more than 15 km with BC Hydro

substation in Dawson Creek Substation (2552 DAW) to avoid connection fees. KLMSS has acquired a

power plant site of some 40 acres within the 15km distance from the grid as the current anticipated

purchase price as offered by BC Hydro for renewable power will probably not support the costs of about

15 km of HV transmission connection.

While almost all of North-Eastern British Columbia’s electricity is produced from coal, and/or fossil fuels,

the Province clearly has a sustainable supply of wood/biomass fuel to supply relatively small generating

facilities such as waste-to-energy facility the KLMSS is deploying.

Potential biomass fuel sources considered include:

• Wood waste from gas operation, gas transmission line clearings;

• Wood waste from sawmills and wood products manufacturing operations;

• Biomass from pine beetle killed fibre;

• Wood waste from logging operations;

• Forest management waste (such as fire prevention thinning, bio fuel); and,

• Local landowners, tree farming.

An annual estimated amount of 130,000 green tons of biomass fuel, some 360 metric tones per day, is

required to fuel a +/- 10 MW biomass to energy plant. The amount of biomass fuel within the KLMSS

traditional territory that the potential biomass sources including gas industries, forestry, plantation,

sawmill residues and pine beetle kill as well as from agriculture and other sources such as waste oil will

be sufficient to fuel the Power Plant for more than 20 years.

The local oil and gas industries have pledged support of fuel contributions to KLMSS in the amount of

15,000 m3 from each of their annual clearings.

Wood waste streams have been identified from most of the above potential sources that sell for $10 to

15 per ton, or will provide material free of charge for pick up. In addition, biomass material can be

sourced from landowners or tree farms for whole tree chipping operations. Another possibility for

supplying biomass to the proposed facilities is to collect logging residue. Waste residue (treetops, limbs,

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stumps and brush) comprises about 20% of the volume of trees now logged for the paper, wood, and

wood products industry. This wood waste is not only unsightly; it poses a forest fire threat. For power

production, the logging residue would be cut to transportable size, or chipped at the landing or trucked

to the generation project site for further hogging. The advantages of using logging residues are that it is

currently not utilized, relatively abundant, will clean-up logging cut areas, and produce “green and

clean” electrical power. Working to establish an aboriginal collection operation is a possibility. Annual

usage of a 10 MW plant would total 132,000 tons in a 50 km radius of the proposed plant site.

Another option to supply biomass fuel to the energy facility is for KLMSS to obtain it from local farmers

and landowners. Such farms and landowners have been contacted and fuel purchase arrangements are

being pursued to ensure long term fuel supply is established. Many landowners were contacted and

currently letters of intent with local landowners (more than 240 acres producing biomass fuel for $5 per

m3 or about $10 per ton) have been signed.

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Strategic alignment

The deployment of a privately designed, built and operated waste-to-energy facility in Kelly

Lake/Tomslake can help define the area’s forestry and oil and gas industries waste management

strategy when aligned within the overall strategy for the community.

By converting waste into thermal energy and electricity KLMSS can show a high degree of leadership for

meeting some of the energy needs of the local community and industry. Such a strategy will significantly

reduce GHG emissions from landfill, waste trucking, forestry waste and help reduce reliance on

increasingly expensive external energy sources.

The facility will create jobs in operations and educational components ensuring Kelly Lake Métis

Settlement Society’s workers when re-trained have the opportunity for employment and advancement.

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Summary

Our team together with the local stakeholders will ensure KLMSS benefit from advantages when WTEC

deploy, co-own and operate a waste-to-energy plant:

Decentralized ‒Reduces environmental effects & costs of waste transportation ‒Cuts and/or

eliminates capital expense of transfer stations ‒ the community and industries take

responsibility for their own waste - Encourages proper waste disposal.

Distributed ‒ Electricity and thermal energy is generated and consumed locally by industry

and community ‒ Loss during conventional electricity transmission and distribution is

eliminated.

Agile ‒ Processes widest range of solid and liquid wastes – Scalable & Modular ‒ Optimally

sized with capacity that can be customized – Option to use thermal energy for local

industrial use such as greenhouses for food, aquaculture or siviculture.

Long term ‒Highly efficient, robust and operates entirely on its own renewable electricity ‒

Emissions are completely mitigated ‒ Eliminates landfill disposal – Improves quality of air,

water and life.

Strategic Energy – Displaces fossil fuel use – Helps reduce power deficit – Reduces

vulnerability of reduced water for hydro-electricity – Avoids costs of thermal energy

production.

Improves Employment – Long-term employment growth in new renewable energy sectors.

Leadership – An exemplar of KLMSS’s leadership in renewable energy, education and

training.

Legacy - Long term environmental and fiscal sustainability via proven, well-funded

development group from Canada working with the team in Kelly Lake/Tomslake who will

ensure daily delivery of feedstock, meet all local regulations, ensure relations with clients

are maintained, and develop the business regionally.

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Scope & Supply

WTEC will provide a “turnkey” 400 metric tonnes per day (MPTD) Continuous Gasifier System (CGS) [and

potentially a supplementary Batch Gasifier System (BGS) to process hazardous waste to be determined

via the Preliminary Engineering Design] Waste to Energy facility for a targeted site, to provide a

centralized model, inclusive of:

Comprehensive inclusion of all the valuable work by KLMSS’s management personnel in

operating forestry industry businesses and handling all aspects of municipal, commercial and

light industrial waste management to support and lead deployment strategy;

All design and engineering for the project;

Waste Stream Characterization Study & Preliminary Engineering Design, commissioned in

advance to provide working engineering drawings and budgets.

o Buildings and structures.

o CGS gasification technology to manage +/- 400 MTPD

o Boilers, Turbines/generators, emission controls, and SCADA systems.

o All computer controls and instrumentation.

o Bottom ash conveyer.

o Continual and consistent support, training and management services through a rolling

30-year agreement.

* There is inherent capacity in a 400 MTPD facility to take some more waste as demand or needs

change.

The facility will be designed to accept a wide range of feedstock including, but not limited to:

Forestry waste

Residential Municipal Solid Waste (household waste of uniform characteristics).

Commercial/Industrial (wood and fibre waste, used oils, tires, plastics).

Assorted seasonal crop or wood waste biomass.

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Proposed Facility Location

One logical spot to establish the WTE facility is at a site within BC Hydro’s 15km radius from three-phase

grid, with good road access and a flat terrain if conditions allow. The benefits will focus on a proximity

principle - dealing with waste close to where it is generated to avoid unnecessary hauling costs and

emissions and, producing energy close to where it is required, reducing power loss via transmission. The

sighting of the facility at the landfill location will accomplish:

Proactive use of the existing infrastructure.

Eliminate the need to retool existing waste transport and infrastructure mechanisms.

Eliminate issues relating to landfill and emissions.

Allow easy access to connect power to the BC Hydro grid.

Allow for cost avoidance of thermal energy production using BOS process heat for community

heating, hot water etc.

Provide a demonstration exemplar and focal point for KLMSS community pride in environmental

leadership.

Maintain existing employment and add new roles in training, service, education and research.

KLMSS’s support will smooth the path to project development and deployment.

120mtpd BGS plant – Dargavel, Scotland - during installation. With 8 Primary Chambers (Grey cubes)

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Design Methodology

The project is designed around a proven, cost effective and successful technology that has been utilized

in configurations from 100 metric tonnes per day (MTPD) to multiple MTPD capacity trains deployed in

multiple arrays since 1995.

Highlights include:

Modular and scalable design, allowing for cost effective growth and reduction:

o Growth: the system can easily be added to in plug and play modules which would

accommodate a growth factor of 100%

o Reduction: modules can easily and cost effectively be taken offline in order to

compensate for reduction in the waste stream through community initiatives such as

recycling and compositing.

The design process:

The design waste stream currently consists of over 400 MTPD of mixed forestry, oil and gas industry

sump oil, some municipal solid waste and potentially hazardous waste from the region of Kelly

Lake/Tomslake encompassing Grand Prairie and Dawson Creek as required. At an assumed facility

availability factor of +90 percent, a 400 MTPD capacity facility can process a total of approximately

132,000 metric tons of solid waste per year delivered to the site for which tipping fees per tonne will be

paid where feasible, and there is capacity for future demand growth. Note: We can seek other waste for

tipping fee revenue stream as required.

As the final detailed characteristics of the design waste stream have yet to be completely inventoried

and for the purposes of this proposal, we have calculated “close to home” assumptions based on our

review of previously published reports on the forestry waste stream in British Columbia and Alberta.

With this analysis and review we assume that the waste will remain unsorted and unprocessed

municipal solid waste (MSW) with an average bulk density of approximately 240 kg / m3, average

moisture content of approximately 30 percent, and average net calorific value as received of

approximately 12,000 kJ / kg for the purposes of this discussion.

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Figure 1. A CGS™ enclosed within building configured in

two 250mtpd ‘trains’ with full emissions control systems.

The KLMSS facility will be twin 200mtpd capacity trains.

It is further noted that the above volumes are based on municipal waste and do not include waste oils

and tires, hazardous waste or waste from other industry. With the addition of these feedstock’s we will

realize a significant boost in energy recovery levels. . The Preliminary Engineering Design will determine

the Calorific Value (CV) of any potential sump oil from local oil and gas industry operations. Upon

acceptance of the Waste Stream Characterisation Study currently underway and the next step of Front

End Engineering Design, we will double check the completed waste stream inventory inclusive of

Municipal, Commercial; Industrial, used oils, and tires. A 400 MTPD capacity facility may process up to

5% more for seasonal peak loads,

depending on the waste, as there is a

margin of additional capacity per

primary gasification chamber.

It is our intention to configure the

required processing capacity at the

identified location through two CGS™

process trains comprising of: Primary

Gasification Chamber feeding one

Secondary Oxidation Chamber and one

emissions control system. The facility

will look much like the one in Figure 1,.

The proposed Waste to Energy facility

to be located at the identified site in

Kelly Lake/Tomslake will have a start-up

schedule together with the large

capacity the Primary Gasification

Chamber, the slow continuous gasification of waste at moderate temperature, and the proprietary

control systems to ensure that the continuous processing of mixed and variable waste stream results in

production of an even, continuous supply of energy to the power train and subsequently to the grid

interconnection.

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Heat Energy for Potential Recovery and Power Generation

The CGS is a highly efficient technology for converting wastes into useful and valuable thermal energy,

offsetting the need for production elsewhere and thus reducing the total draw on the BC Hydro grid.

The CGS converts upwards of 99-percent of the energy available in the volatile portion of the waste

stream and sends approximately 95-percent to the boiler or to other energy recovery equipment.

At a net energy efficiency of 90-percent, CGS equipment processing the design waste stream at 400

MTPD with the assumed characteristic as listed above, will deliver approximately 10 MWe electrical

energy (101,640 MWh annually) and in the region of 50 MW thermal energy (MWt) for recovery and

reuse. The cost of this +/-50 MWt energy from waste can offset or avoid costs of energy production

elsewhere in the community and is highly valuable for uses in local heating or for industry, including

greenhouses for locally produced food, aquaculture and siviculture.

The WTEC plant will help service this demand and use some 950kw to operate itself.

200mtpd CGS plant – Vertical orientation

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CGS Design Basis for Air Emissions

Compared to EU Emissions Limits

WTEC CGS Design

Basis

Maximum Limits

EU Regulations

Daily average of half-hourly measurements

taken at 11% O2 and 0°C

Particulate Matter (PM) < 5 mg / Nm3 10 mg / Nm3

Nitrogen Oxides (NOx) < 100 mg / Nm3 200 mg / Nm3

Carbon Monoxide (CO) < 10 mg / Nm3 50 mg / Nm3

Sulphur Dioxide (SO2) < 10 mg / Nm3 50 mg / Nm3

Total Organic Carbon (TOC) < 2 mg / Nm3 10 mg / Nm3

Hydrogen Chloride (HCl) < 5 mg / Nm3 10 mg / Nm3

Dioxin & Furans < 0,08 ng / Nm3 0,10 ng / Nm3

Figure 2. Design basis for air emissions at the proposed Kelly

Lake/Tomslake facility compared to European Union limits. The final

design basis can be adjusted to meet other standards as advised.

Environmental Performance

The CGS technology has inherently very low emissions of particulates (dust), Carbon Dioxide, Total

Organic Carbon, Heavy Metals, NOx and other pollutants. WTEC reduces emissions even further by

fitting the BOS with an advanced emissions control system set to an operating regime designed to meet

and exceed EU and Canadian Standards. Figure 2 (below) shows the design basis compared to EU

emissions limits.

Please note: WTEC

proposes to treat the flue

gas using Best Available

Control Technology (BACT),

which is dry-absorbent

injection technology using

sodium bicarbonate for

acid neutralization,

activated powdered carbon

to remove trace dioxins,

furans and heavy metals,

flue gas recirculation and

dry urea injection for NOx

reduction, and a filter bag

house to collect the

scrubber consumables and

any residual fly ash.

Note: that any of the three

types of injection systems

(sodium bicarbonate,

activated powdered

carbon, and dry urea) can

be installed with or without the other systems, and each system can operate independently and only as

required by the immediate levels of pollutants in the untreated flue gas. Each system has its own

digitally controlled operating regime that can be programmed to begin operating at chosen trigger

levels. This allows programming of the equipment to achieve the desired spot and overall levels of

emissions while conserving scrubber consumables to very low levels (sodium bicarbonate, activated

powdered carbon, and/or dry urea).

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The operating temperature in the CGS™ Secondary Oxidation Chamber will be 870° C or as required by

regulation, and the retention time of the oxidised syngas at that temperature will be no less than two

seconds or as required by regulation.

The proposed BACT emissions control system uses a dry-absorbent injection system that uses no water

and therefore has no wastewater discharge. The BOS™ itself discharges no waste water and uses water

only as a light mist to control the bottom ash as it is pushed from the Primary Gasification Chambers

onto the automatic ash conveyor, or steam make-up and for wash down of the receiving floor – this can

be via rain water harvested from the roof and detained in tanks onsite.

The bottom ash from the BOS™ is virtually free of residual carbon, is non-toxic, and can be employed

successfully and without restriction as concrete aggregate, light-weight fill material, or aggregate for

asphalt road or parking surfacing, road repair aggregate, landfill layering or reclamation or pipe bedding.

The bottom ash is approximately five percent or so by volume and 10 percent by weight of the initial

waste stream.

Non-combustible items in the waste stream—primarily metals and glass—are left behind with the

bottom ash in the base of the Primary Gasification Chamber v-hearth which is continually removed and

can be recovered for extracting recyclables (metals are generally extracted, compacted and set aside for

transport, and glass can be ground to a powder and added to the bottom ash for use as aggregate).

The proposed project will realize a very significant net reduction in greenhouse gas (GHG) emissions—

largely from eliminating the methane (CH4) that would otherwise be released by waste decomposing in

a landfill as methane is 21 times more potent as a GHG than any carbon dioxide (CO2) emitted by the

cBOS™ facility. Other significant reductions in GHGs will also be achieved by offsetting the electricity or

thermal energy that would otherwise be generated by burning fossil fuels, by recycling the metals and

other materials recovered from the bottom ash, and by recycling the bottom ash itself as concrete

aggregate.

Based on preliminary information, WTEC estimates that the CGS™ conversion of the waste stream from

the proposed facility will result in a net annual reduction in greenhouse gas (GHG) emissions of over

300,000 MTCO2e per CGS, which is equivalent to removing more than 90,000 vehicles from the road per

year. We will monetize this reduction in GHG’s by selling the resulting carbon credits on the Canadian or

international markets.

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Summary List of Proposed Equipment

WTEC will supply and operate a complete CGS™ facility including two process trains with ash transport

and emissions control systems as described above and in more detail below (Excluding land, buildings,

infrastructure and energy grid connections)

The CGS™ Primary Gasification Chamber will be equipped with conveyor-supplied front-loading doors

and a low door at the back of the chamber where the bottom ash is pushed to the ash-house. All doors

will be provided with hydraulic opening and closing mechanisms.

The unique v-hearth design ensures even and continuous gasification of waste in the primary

gasification chamber.

As an integral part of the two CGS™ process trains, WTEC will supply an automatic ash handling system

at the back of the Primary Gasification Chambers for ease of distribution.

Also as an integral part of the CGS™ process trains, WTEC will supply a complete air emissions control

system to meet and exceed current EPA, Canadian or EU standards. A Continuous Emission Monitoring

(CEM) system will monitor and log air emissions from the process trains.

WTEC will also provide its proprietary, automated, digital control system with manual override for the

two 200mtpd CGS™ process trains. The control system will include feedback from heat recovery and

power train equipment (supplied by others) to ensure a constant and even flow of thermal energy for

recovery. Operators interact with the control system by a simple touch-screen. The control system has

SCADA (Supervisory Control & Data Acquisition) data-logging capability. The control system must

provide real-time, continuous, remote access by WTEC technicians for monitoring, operating advice, and

upgrades as part of an overall service contract – a full time uninterrupted internet connection will be

required.

KLMSS will be responsible for all site development, infrastructure, buildings and grid/thermal energy

interconnections.

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Waste Conversion, Emissions Control, and Ash Handling Equipment

WTEC will provide process trains in singular or chained configurations e.g.

2 x 200 MTPD train for a 400 MTPD total capacity

We will provide each train inclusive with associated equipment as described above and in more detail

below (excludes buildings, infrastructure, roads, connections etc):

1st stage – Gasification

1 Primary Gasification Chamber fed by conveyor

2nd Stage – Synthetic Gas Oxidation

1 Secondary Oxidation Chambers

1 De-NOx Selective Non-Catalytic Reduction (SNCR) System

Power Train

1 Low Pressure Boiler & Super Heater

1 Steam Turbine & generator

Flue Gas Cleaning 1 Gasification train reaction tower

1 Gasification train Baghouse

1 Baghouse to stack

1 Ducting

1 ID Fan

1 Continuous Emission Monitoring (CEM) system

1 Stack 15 meters high or as required by local regulations

Ash Handling Equipment

1 Conveyors

1 Swan neck Conveyor

Control System

1 PGC control Panels

1 SOC control panel

1 Emission Control System Panel

1 ID fan control panel

1 Master SCADA control system with backup computer

1 Data logging computer

1 Remote monitoring computer

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Footprint

Given the inherent modular nature of the CGS and components, the proposed facility would occupy the

following footprint (subject to the findings of the Preliminary Engineering Design Study where

efficiencies may be found):

As per the overview for the 400 MTPD facility:

• Site footprint +/- 4,000 m2

• Building area +/- 3000 m2.

• Stack Height: 15 m (45 ft) or to local regulations.

NOTE: Each building is designed for the inherent characteristics of each site and location and is divided internally into receiving area, secondary treatment and power production.

Planning will need to be inclusive and ensure space is incorporated for any recycling and/or composting

areas.

Access:

Access to the facility will be restricted to employees and authorized personal only. With advanced notice

the facility will be available to host tours and an interested community will want to ‘see for themselves’.

Building Envelope:

Exterior circulation around the building is required.

Climate proofing will be integral to design.

Rainwater harvesting will be used where feasible.

Trucks will be weighed on an exterior weighbridge, enter one door, door will close, the truck will unload, the truck will exit the facility, door will close, truck weighed again to determine waste load.

A separate entry for hazardous materials will be used.

A negative pressure environment will be present within the facility, eliminating possible odour escaping from within the facility.

Strict bio security protocols will be maintained at all times and will part and parcel of the SOP, EMS and BMP’s.

Noise abatement measures will be used such as enclosing any turbines within a controlled

acoustic enclosure within the facility.

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Sensitive monitoring equipment will be housed in a separately enclosed air-conditioned building

within the facility.

The building will allow for boom crane access over the primary gasification chambers and

secondary oxidation chambers for maintenance (e.g. eaves > 8m and roof peak >12m).

Certification and Registration:

All processes and ancillary activities will conform and be registered as compliant under all applicable

Municipal, and Federal mandates.

Registered under ISO 14001 Environmental Management System (EMS) and ISO 14064 GHG

project accounting standard.

An in depth and thorough environmental and operation application will be delivered to all stakeholders.

Please see Appendix A for details.

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Project Cost Structure

Please note: the proposed Waste to Energy facility is designed around the long term, +30 years,

conversion of waste to useful thermal energy and in specific; the capture, use and conversion of waste

thermal energy into steam driven turbines/generators creating electricity.

The projects costs are capital intensive and by such; the agreed sale of power to the community at an

acceptable market value for +30 years is a good indicator; as such a +30 waste feedstock supply

agreement is required and a permitted and entitled site.

All estimates are “close to home” assumptions based on research, however a complete Waste Stream Characterisation (underway at the time of writing) and the next step of Front End Engineering Design (FEED) that produces working drawings and budgets will needed to be completed before a firm value can be delivered. The FEED illustrates exact specifications for CGS technology to be deployed. Budgeting $380,000 for the initial phase of FEED should be accounted for.

No allowance has been made for provincial, national or other funding, grants or subsidies, or for

steam/heat sales revenue at this stage. Use of waste sump oil has been factored.

Pro Forma Profit & Loss Statement (per year: 400 MTPD / 132,00 MTPA)

Estimated Revenues Assume: $120 MWh; Tipping fees $30 /t, Excludes STEAM/HEAT revenue. $19,457,000

Expenses

Operations & maintenance $6,600,000

Net, fully inclusive, before taxes $12,857,000

Capital Costs

Total capital investment for a turnkey 400 MTPD CGS Waste to Energy facility producing +/- 101,640

MWh, 10 MWe of electricity to the BC Hydro grid:

Estimated Capital Costs: $30,625,000

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Next Steps:

In order to bring this project to fruition and deliver on the benefits we will need to complete

the following:

Quantify the waste stream makeup, characterization and volume next 30-years via

commissioning a Waste Stream Characterization Study (WSCS) - complete

Commission and complete the Front End Engineering Design (FEED) to produce working

drawings and final budgets.

Secure financing.

All preliminary approvals for a privately owned & run waste-to-energy facility.

Exclusive regional 30+ year waste feedstock supply agreement to the facility, including

sole rights to other waste such as oil waste, medical and industrial/commercial.

A 20+ year power buyback to-grid rate and agreement, index linked to inflation.

A 20+ year heat/steam rate and agreement, index linked to inflation.

Permitted and entitled site for the facility.