KENTEC Energy

1. KENTEC Energy

2. Contents Company Business Gasification Kentec Technology Kentec Know How Why Kentec? References Conclusion

3. Company The team • CEO - Sung Chun Kim • 1999 - Now: CEO of Kentec Energy • 1996 - 1999: Chief director of Korea Marine Pollution Response Corp (KMPRC) Representative of United Nation • 1987 - 1996: Operating manager Korea National Oil Corporation • Korea Marine University CEO Sung Chun Kim Vice President Min Tae Kim CTO Shin Jin Geon CFO Jong Duk Won CMO In Soo Ju

4. Company Service area Waste toEnergyplants • Waste Pretreatment Units • Gasification and Energy recovery plants • Flue gas treatment Units Environmental Control • Solid Waste Landfills • Waste water sludge Treatment Facilities • Air Control Facilities Related Services • Waste water sludge treatment with THP • Operation of WTE plant • Environmental Impact Assessment Biomass fuel supply • Biomass Fuel supply of wood chip, wood pallet

5. Company • Feasibility study • Basic and detailed design • Supervision & Project management • Operation plant KENTEC offers a full range of services

6. Business Future prospect Waste to Energy market share will be 12% of the total energy market by 2020 Source: Shell International Renewables

7. Business (Unit :%) Trend With 100 BEP (Unit : Site) Landfill - 78% Recycling & Compost Waste to Energy No Data Source : EPA Source : EPA Future prospect Annual Trend of Waste Treatment Trend of Landfill Facilities in the US

8. Business Biomass energy plant key features • Pyrolysis and Gasification - complete combustion • High efficiency of energy recovery without auxiliary fuel • Wide range of feed stock • Manage low quality wastes (high in moisture) • Easy operation with complete automation systemfeed • Residents considered system (compression packaging to minimize odor) • Modular system to increase capacity

9. Business FEESSTOCK CLEAN SYNGAS G A SIFICATION GAS CONVERSION Steam Hydrogen 30% Liquid Fuel Power CO2 REMOVAL Consumer Products Separated CO2 SYNGAS 45% Chemicals 19% Power Transportation Fuels Substitute Natural Gas Substitute Natural Gas Chemicals Fuels Chemicals Fertilizers 6% Gaseous Fuel Source: Gasification Technology Council • Gasification converts hydrocarbons such as coal, petroleum coke (petcoke), biomass or various wastes to a synthesis gas (syngas). • Gasification produces the building blocks for a range of high-value products from a variety of low-value feedstocks.

10. Gasification Gasification is not combustion Gasification is a process which produces syngas comprised primarily of hydrogen (H2) and carbon monoxide (CO). Gasification compared to combustion CONSTITUENTS OF COAL GASIFICATION COMBUSTION CARBON CO CO2 HYDROGEN H2 H2O NITROGEN N2 NOX SULFUR H2S SO2 OXYGEN - O2

11. Gasification Transformation of enthalpy in pyrolysis and gasification reaction Waste Condition Reaction Heat Value (kcal/kg) Reaction Temperature(℃) Pyrolysis Waste to Char + Syn Gas (H20, H2, CO2, CO, CH4, C2H4) + △H 200 - 500 Gasification C+H2O ↔ CO + H2 C+2H2O ↔ CO2 + 2H2 C+CO2 ↔ 2CO CO+H2O ↔ CO2+H2 C+2H2 ↔ CH4 C+O2 ↔ CO2 C+1/2O2 ↔ CO Others - 2,350 - 1,517 - 3,183 446 1,492 8,100 2,450 500 - 800

12. Gasification FEESSTOCK 2% Biomass/Waste (KENTEC) 3% Petcoke GASFIER 8% Gas Slag by-products GAS CLEAN UP Sulfur by-products 32% Petroleum CLEAN SYNGAS 55% Coal Coal, Petroleum, Gas, Petcoke are all Fossil fuels! Power Various Products Global syngas output by feedstock Source: Gasification Technology Council

13. Kentec Technology MSW Shredding Feeding Start-up Burner Primary Chamber Primary Fan Start-up Burner Secondary Chamber Secondary Fan Cyclone Boiler Feed Water Boiler Steam Lime / Carbon Power Generation Lime/Carbon injection Bottom Ash Bag Filter Fly Ash ID Fan Gas Recirculation and Air Stack Gasification plant process flow

14. Kentec Technology Syngas Uses Electricity Stack Fuel Preparation Syngas Cleanup Gasification Venturi Cyclones Dry filtration Entrained bed Moving / Fixed bed Gas cooling COS hydrosis Absorber tower Sulfur recovery Sulfuric acid plant Blending Screening Shredding Briquettes Crushing Grinding Aqueous slurry Preheating Combustion Turbine Waste Preparation Waste / Fuel Feeding Particulate Removal Syngas Conditioning Sulfur Removal & Recovery Gasification Reactor Wastes Chemical Production Processes Oxygen Support Fuel (coal, heavy oil, pet coke, etc.) Sulfur or H2SO4 Byproducts Support Fuel Preparation Slag Handling Residue Treatment Flash gas Solids Water Discharge or recycled water Dewatering Byproduct sale Landfill Flash vessel Gravity separation Filtration Sour water stripper Brine concentrators Incinerator HCl production Residue & Slag Handling Slag To disposal or Metals reclamation Process flow details

15. Potential for Renewable Energy Gasification Steam & Power Ethanol Boiler Wax Gas Turbine Combined Cycle Syngas Diesel / Kerosene Fischer Tropsch IC Engine Power Gen Gasoline Fuel Cells Naphtha Methanol Refinery Hydrotreating Hydrogen DME Gasoline Transportation Fuels Formaldehyde Methyl Acetate Acetic Acid Ethylene Propylene Polyolefin Fuel Cells Oxy Chemicals Chemicals Acetic Anhydride VAM Ketene Acetic Esters Fertilizer PVA Diketene & Derivatives Bio-based Products

16. Kentec Technology Flue Gas Recycled Inert Flue Gas Fuel Feeding Fuel Input By-Pass Valve Fireproof & Airtight Sluice Primary Chamber Drying Pyrolysis Reduction Combustion Filter Secondary Chamber Boiler STEAM TURBINE POWER Cold Air Intake Secondary Air Controller Ash Pit Recycled Inert Flue Gas Primary Air Functional Diagram

17. Kentec Technology The core gasification technology Kentec’s thermal conversion technology reaches up to 90% from any kind of hydro carbon fuel such as municipal solid waste, industrial waste and all biomass.

18. Kentec Technology Highly efficient ENERGY GENERATING complete combustion Energy Generating Capacity • 3ton steam or • 0.5ton coal or • 250l light oil 1 Ton Heat for 3,000 Apt. residences OR Produces 2.5MW electric power 100 Ton/Day

19. Kentec Technology Domestic and EU emission standards are satisfied KOREAN EU KENTEC TEMPERATURE 800℃ 850℃ 1000 ℃ GAS SUSTAINED 2 sec 2 sec 2 sec DUST 20 mg/Nm³ 10 mg/Nm³ 5mg/N㎥ NOx 70 mg/Nm³ 80 mg/Nm³ 40mg/N㎥ SOx 30 mg/Nm³ 50 mg/Nm³ 20mg/N㎥ Co 50 mg/Nm³ 50 mg/Nm³ 1mg/N㎥ F 2 mg/Nm³ 1 mg/Nm³ 0.3mg/N㎥ 20 mg/Nm³ 10 mg/Nm³ HCl 2mg/N㎥ HEAVY METAL Refer to separate standards 0.05 mg/Nm³ 0.02 mg/Nm³ DIOXINE 5ng-TEQ/Nm³ 0.1 ng/Nm³ 0.03ng/Nm³

20. Kentec Technology Emission gas comparison Source: Fossils fuels Guidance 95;13, Combustion plant.

21. Kentec Know How Overview

22. Kentec Know How Carry in

23. Kentec Know How Chamber Control

24. Kentec Know How Boiler Control

25. Kentec Know How Emission Control

26. Kentec Know How Operating Control

27. Why Kentec? KENTEC uses waste as a fuel! • Tremendous amount of wastes are produced daily • Landfill tax will be dramatically increased • Fossil fuel price are rising FEED TYPE # OF MAJOR PLANTS IN THE WORLD MSW (KENTEC) 9 (7) Coal/Biomass 2 Coal/Petcoke 4 Visbreaker/Tar 3 COUNTRY LANDFILL TAX (EURO/TON) Asphalt 2 Tar 1 Denmark 50 Belgium 55 Petcoke 4 France 10 Oil Residues 2 Netherlands 75 Gas 9 Norway 40 Petroleum 4 Sweden 31 Coal 3 Source: OECD, Strategy Unit and Enviros

28. Why Kentec? • Living wastes • Industrial wastes • Medical wastes • Food wastes • Tires • Green wastes (trees, grasses, etc.) • Residues (corn, palm, sugar cane, etc.) • Livestock excretions • Agricultural products • Wastewater sludge Energy Generation Use In Turning into Fuel Various Wastes Steam Power • Local Heating • Factory Running • Glass Greenhouse • Sea farm • Etc. What can we use? All kind of wastes contains CH compound

29. Why Kentec? Easy store and transport • The unique Kentec pretreatment system • Sort recyclable materials and bailing (Easy transport and store) • Similar to RDF with less cost

30. Why Kentec? Fuel supply system with bailing & energy plants For big city as Seattle Bailing plant Gasification plant Gasification plant Gasification plant Gasification plant Gasification plant

31. Why Kentec? Unstable energy generation due to batch feeding Stable energy generation due to continuous feeding Energy Generation Energy Generation Time Time 24-hour, 120day continuous running • 24-hour, 120-day non-stop running • Only Kentec can gasify 1 M3 (1 ton) waste bale

32. Why Kentec? • Secondary Chamber • Combustion control Depends on energy demand, automatically controls the gasifier combustion • Energy control Energy generation can be controlled from 30% to 120% (stoker type cannot run with 30% output) • Emission control Automatically controls the emission • Oxygen control Controls oxygen level (6-10%) by mixing emission gas to control temperature and oxygen • Nozzles Multi step injection nozzle to control oxygen and temperature for gasification

33. Why Kentec? Nox, Sox & Co control Temperature and oxygen control area NOx, SOx (mg/N㎥) 60 NOx 40 20 Co 0 800 Temp. (oC) 1100 1400 1700 320 injection nozzles to control oxygen level

34. Kentec Technology 13) 폐기물 처리시설 여열 활용방안 바이오 에너지 플랜트 종합 폐기물 지역 난방 연소설비 보일러설비 연소가스설비 수 영 장 공장, 온실 소내사용 증기 분배기 증기 복수기 흡수식 냉동기 보일러 급수펌프 전력 판매 터빈 발전기 열 교환기 응축수 탱크 탈기기 순환펌프 18

35. Kentec New Technology of Emission Free Syngas Utilization Singas can replace existing Fossil fuel High Efficiency energy production with Gas engine or gas turbine Low calorific value fuel can be converted as useful fuel thru gasification 19

36. New Kentec Technology of Emission Free 1. Emission Free with Co2 Production Biomass Boiler Gasification Dust Collector Emergency Stack Feeder scrubber CO2Gas recycle CO2 O2Gas Dehydration Co2 Storage tank Markets Refining Beverage Beer Medical Cosmetic` Compressor Tank Condensation Feed Air Co2 Purification System PSA 20

37. New Kentec Technology of Emission Free 2. Syngas to Liquid Fuel Biomass Wet. Gas cooler Emcy Stack Dust Collector Feeder Gasification Wet. scrubber Syngas Buffer tank Fuel Diesel Gasoline Ethanol` 21

38. New Kentec Technology of Emission Free 3. Syngas purification and Syngas to Electricity Biomass Emcy Stack Feeder Gasification Dust Collector (Fine Tar) Wet. Gas cooler Dust Collection Cleaning (Dust Tar) Neutralization Cleaning (HCL Removal) Desulfurization Cleaning (H2S Removal) Electricity Gas Turbine Syngas Buffer tank 22

39. New Kentec Technology of Emission Free 4. Syngas Purification for substitute LNG Biomass Boiler Emcy Stack Dust Collection Cleaning (Dust,Tar) Feeder Gasification Cooling Device (Dust Removal) Desulfurization Cleaning (H2S Removal) Neutralization Cleaning (HCL,NH2) Dry Cleaning (Fine Tar) Syngas Buffer tank Products 23

40. References • Bosung No.1 & No.2 Plant, Korea • Capacity: 40 Ton / Day (2001) • Haenam Plant, Korea • Capacity: 25 Ton / Day (2005) • Kangjin Plant, Korea • Capacity: 25 Ton / Day (2006) • Pyungchang Plant, Korea • Capacity: 25 Ton / Day (2006) • Geochang Plant, Korea • Capacity: 35 Ton / Day (2007) • Hapchon Plant, Korea • Capacity: 25 Ton / Day (2008)

41. Conclusion • Great potential to substitute fossil fuel • Provides the most efficient energy of all known new and renewable sources Energy Source Solar Cell Wind Power Hydroelectric Power Waste to Energy 0.057 USD/kWh 0.571 0.085 0.056 * Source: Korean Waste to Energy Development Plan, 2008 * Present Exchange Rate : KRW 1,255 = USD 1

42. Conclusion KENTEC Proves! • 10 years of Gasification plant operating know-how • 7 successful sites • Flexible 20-200 ton per day capacity • Continuous feeding for stable energy generation (not a batch process) • Waste as an energy source (only 2% of global syngas output is from waste – continuous market growth is expected) • Carbon credit advantages • Pyrolysis & Gasification and related patents • Strong R&D and business partners (US, Norway, UK, etc.) • Competitive price (approximately 80% of competitors)

43. Thank you