ALTER NRG FOCUS - DECEMBER 2014 ISSUE

DECEMBER 2014

AP: Tees Valley Projects

GE: Gas Turbines Refueling

GTS: Grand Opening

GES: Environmental Approval

Westinghouse Plasma Gasifier Tees Valley 1 (TV1) Site in Tees Valley, UK

A GLOBAL OUTLOOKTECHNOLOGY | REVIEW | UPDATE

™

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460, 227-11TH AVENUE S.W., CALGARY, ALBERTA, CANADA T2R 1R9, T: 403.806.3875, (TOLL FREE: NA): 1.866.999.3875

Incinerator Ash Vitrification Facility Shanghai, China

Biofuels Facility Wuhan, China

Waste to Energy Facility Tees Valley #1 and #2, UK

Hazardous Waste Treatment Facility Pune, India

Westinghouse Plasma Pilot Facility PA, USA

Energy Recovery from Waste Facility Mihama-Mikata, Japan

W W W . W E S T I N G H O U S E - P L A S M A . C O M , W W W . A L T E R N R G . C O M

Westinghouse Plasma Corp (WPC), provides alternative energy solutions that meet the growing demand for environmentally responsible and economically viable energy in world markets. We are working to replace landfills with the most energy efficient and environmentally sustainable waste to energy solutions.

World’s Premier Plasma Gasification Technology

Converting the

into clean energy

orld’swaste

ISSUE | DECEMBER 20142

Content & Design: Alter NRG Corp. - Corporate Development Team

Past Issues: www.alternrg.com/media//publications

Alter NRG Corp. is a registered trademark. All other company and product names may be trademarks of their respective owners. The information contained herein cannot be reproduced in any format without legal permission from Alter NRG Corp., and is subject to change without notice.

Copyright © 2014. All rights reserved.

Cover Photo: Westinghouse Plasma Gasifier installed at the Tees Valley 1 (TV1) Site in Tees Valley, UK

Contents

AP: Tees Valley, UK ___________________ 4-5

GTS: Shanghai, China ________________ 6-8

GES: Bijie, China ________________________ 9

GE: Gas Turbines Refueling _______ 10-11

Alter NRG: Open House ___________ 12-15

Conferences ______________________ 16-17

Alter NRG and GTS Open House ______ 18

Awards _______________________________ 19

WWW.ALTERNRG.COM

FOCUS

AP: 4-5

GTS: 6-8

GES: 9

GE: 10-11

3 ALTER NRG FOCUS

Westinghouse Plasma Technology is at the center of two facilities in Tees Valley, northern England. TV1 has completed construction and is planned to be in commercial operation in early 2015.

The ground breaking ceremony for TV2 was carried out in April 2014 by Francis Maude MP, Minister for the Cabinet Office. The TV2 facility is expected to come on-stream in 2016. These pictures illustrate the significant progress and activity on the site since it began active construction in 2012.

AIR PRODUCTS, UK

Tees Valley Projects: TV1 & TV2

April 2012

The operation of the Tees Valley #1 project will demonstrate:

April 2012

Commercial scale volumes of syngas from waste:

• 950 tpd of feedstock will produce ~3 Million MMBtu/year of syngas

• 50 MW electrical, base load production of energy

• Equivalent production to 800-1000 Bbls/day of biofuels

Syngas will be consistently produced at the required specification:

To ensure reliability the syngas must consistently meet the fuel specification of the gas turbine

Gas turbine syngas specification is similar to liquids conversion technology syngas specification

Ability to create low cost syngas from feedstock’s that you get paid to process:

Tipping fee revenues cover the operating cost of making clean syngas

The photo below, is of the Westinghouse Plasma Torches being commissioned at the TV1 facility in October. Commissioning a large-scale facility is a long and methodical process, where each piece is separately tested prior to full commercial operations. The core technology being the Westinghouse Plasma torches and related power supplies have been successfully tested.

ISSUE | DECEMBER 20144

IMPACT for Alter NRG: The scale of these projects enhances Alter NRG’s substantial lead in the plasma gasification industry.

IMPACT for the World: One step closer to making traditional landfills obsolete; clean renewable power is a reality.

Impact for Future Clients: The Westinghouse Plasma Technology is commercial at a scale that provides meaningful energy output and associated cashflow.

Tees Valley 2 (TV2)Energy Facility Site

Tees Valley 1 (TV1)Renewable Energy Facility

Westinghouse Plasma Gasifier at the Tees Valley 1 (TV1) Facility

Westinghouse Plasma Gasifier

December 2013

5 ALTER NRG FOCUS

GTS Demonstration Facility, Shanghai, China

This turn-key solution includes the Westinghouse Plasma Technology as the core technology. Under the recent joint development and marketing agreement, Alter NRG has the opportunity to sell these turn-key units worldwide.

Since the grand opening, multiple companies from China and Europe have been to the commercial demonstration which illustrates the encouraging market potential of this joint solution.

GTS ENERGY, CHINA

Hazardous Waste FacilityGTS Energy held a grand-opening of its hazardous waste destruction facility in March 2014. This is an important facility as it is turn-key and can be replicated and sold in many areas of the world.

Inert non-leaching vitrified slag

ISSUE | DECEMBER 20146

IMPACT for Alter NRG: Westinghouse Plasma gasification process can handle multiple waste streams including hazardous, medical, fly-ash, industrial, petrochemical, etc.

IMPACT for the World: A turnkey hazardous waste solution using Westinghouse Plasma gasification process, that does not create any bottom ash. All inorganic materials are transformed to an inert non leaching vitrified slag product that can be sold for beneficial use.

Impact for Future Clients: A modular & cost effective approach reduces project time lines and increases economic returns.

“ In these three years, we have cooperated very successfully and constructed a 30 tonne/day medical and hazardous waste plasma gasification treatment system in Shanghai, China. This is the first time in China that advanced plasma technology has been utilized on a large commercial scale, and our system has been highly acclaimed by industry experts and the Chinese government. The medical and hazardous waste treatment industry is an immense domestic and international market with an incredibly bright future for our continued development. I would like to acknowledge and express my sincere appreciation towards Alter NRG/Westinghouse Plasma for their contribution and support of advanced plasma technology. GTS Energy will continue to use all resources, knowledge and 30 plus years of industry experience, which spans over 300 large scale energy projects all over the world, to strengthen this partnership and future ventures.”

– Naicheng Zhou, President, GTS Energy

We have created an economic and environmentally sustainable hazardous waste solution

The Westinghouse Plasma Gasification solution effectively processes hazardous waste and incinerator fly ash to produce an energy rich synthesis gas (syngas). In this configuration, the syngas generated by the plasma gasifier is immediately combusted, and used to create pressurized steam that is utilized by an existing steam turbine to create power.

Project Cost: US$ 15-20 million

Indicative Project Execution Schedule

• Pricing is indicative without project specific engineering and does not include any applicable taxes

• Pricing reflects the total installed cost of the system

• Pricing based on 30 tonnes per day (tpd) capacity of hazardous waste feedstock

Assumptions (table on right):

• 25 year project life

• 330 operating days per year

• Tipping fees of US$ 500/t

• Power price of US$ 0.09/kWh

• Steam sale US$ 10/GJ

Item Amount in US$ (Millions)

Total installed capital cost

18

Total revenue 8

Total operating cost 4

EBITDA 4

IRR 20%

Project Economics and Investment Return Analysis

• The timeline from start of engineering to start up is estimated at 12 months. This schedule is subject to change based on local construction conditions, etc.

7 ALTER NRG FOCUS

System & Process Description

The Plasma gasification

system includes eight sub-

systems as follows: • Feed system

• Plasma gasification system

• Plasma torch system

• Heat recovery system

• After burner syngas combustion system and water quench

• Exhaust treatment system

• Electronic control system

• Auxiliary systems

PROCESS FLOW CHART

30 tonnes per day (tpd) Hazardous Waste-to-Steam Facility

Steam Turbine Generator

Particulate Recycle System

Feed System

Plasma Gasification

System

Afterburner

Boiler

Gas Clean-up System

Thermal Oxidiser

ISSUE | DECEMBER 20148

GREENWORLD ENERGY, CHINA

Environmental Approvals in handThe Guizhou Provincial Environmental Protection Bureau approves the Environmental Assessment for China’s first Plasma Gasification Facility.

In November 2014, US Green Energy Development Co., Ltd. (GES), received the environmental assessment approval from the Government of Guizhou and the Provincial Environmental Protection Office. The Plasma Gasification waste treatment facility will be located in Bijie City, Qixingguan under the District Garbage Utilization Demonstration Project.

After the initial start-up, expected in late 2016, GES referred to as Bijie City Green Environmental Energy Limited (BGE) intends to double the capacity of the facility with a second gasifier and also has many additional projects in Southern China under development.

“ We are very excited to be kicking-off our first project in China which we believe provides the best-in-class waste management solution with better environmental performance compared to other alternatives. In addition to the Bijie project, BGE has additional projects in China which it also continues to advance. This project will also provide a testing platform for clean coal applications. We believe that the Westinghouse Plasma Gasification Technology will play a significant role in China Clean Coal Applications.” – Jeffery Hu, Principal, BGE

IMPACT for Alter NRG: GES has additional projects under development in Guizhou Province and other areas in China.

IMPACT for the World: Westinghouse Plasma Gasification solution has multiple applications, including clean coal.

Impact for Future Clients: Westinghouse Plasma technology will improve both project returns and environmental performance.

Photos of the GES facility under development

9 ALTER NRG FOCUS

“GE simulated performance of a

6B.03, 7E.03, 7F.04 and a 9F.03

operating on a fuel blend composed

of natural gas and syngas generated

from a Westinghouse Plasma

gasification system. In all cases the

Westinghouse syngas was found

suitable for the GE turbines in

either a blend or full load

scenario.”

- Jeffrey Goldmeer,

Gas Turbine Fuel Flexibility

Manager (GE Power & Water)

The two questions that were answered during the GE study were:

1). Can the GE turbines operate on Westinghouse Plasma gasification syngas?

2). Will the performance of the gas turbines be negatively affected by syngas?

In all cases, the study confirmed that the Westinghouse Plasma gasification syngas is suitable for GE’s B, E, and F class turbines.

Our Westinghouse Plasma gasifier has the ability to transform 330,000 tonnes per year of waste into 650,000 barrels per year of equivalent energy that can be used to displace higher cost fossil fuels. To capitalize on this opportunity, we are working with GE, who has thousands of gas turbines deployed in target areas around the world. The results of a recently completed feasibility study, confirmed that Westinghouse Plasma gasification syngas is suitable for GE’s B, E and F class turbines.

Refueling GE Gas Turbines with Westinghouse Plasma Syngas

Currently, there are over 5,000 6, 7, and 9 series GE gas turbines operating globally that are a potential target for fuel replacement.

SYNGAS

FEED HANDLING PLASMAGASIFICATION

SYNGAS CLEAN-UP &GAS COOLING

REFUELING GE GAS TURBINE

WIDE VARIETY OF FEEDSTOCKSLOW $ COST

FLEXIBLE PROCESSGASIFIER

WIDE VARIETY OF PRODUCTSHIGH $ VALUE

▪ Gasification creates hydrogen and carbon monoxide: An energy rich gas stream▪ Gasification is not incineration

Feed MaterialReceiving,

Storage& Conveying

IndustrialWaste

CommercialWaste

WasteBiomass

HouseholdWaste

MedicalWaste

Tires

etc.

PlasmaTorches

Air orOxygen

Slag & Recovered Metals

CURRENT MARKETS

NEW MARKETS

In several regions throughout the world GE gas turbines are utilizing high cost fossil fuels for the generation of power

Utilize Westinghouse Plasma’s low cost/zero cost syngas from waste for additional power generation

ISSUE | DECEMBER 201410

The Westinghouse Plasma Gasification technology is capable of processing a variety of waste

materials to generate a commodity grade syngas, that can be utilized in GE turbines to displace

high cost fossil fuels.

The chart (on left) shows the impact of syngas operation on the capacity of GE gas turbines.

In each case, the syngas created from the Westinghouse Plasma Technology may create additional power from the same unit when compared to natural gas at ISO conditions. The Westinghouse Plasma Solution provides a significantly lower cost of energy as well as increased power output.

Our marketing strategy focuses on two groups:1). Importers/consumers of high cost fuels (natural gas, oil, LNG) for the production of power. The chart (bottom left) shows the October

LNG prices and illustrates the high cost of energy in many areas of the world.

2). Countries/customers that utilize native fossil fuel for the production of subsidized power (e.g. Saudi Arabia):

These countries could refine the heavy oil and sell to the international market.

World LNG Estimates

GLOBAL MARKET OPPORTUNITY

Walter Howard (CEO, Alter NRG) and Jeff Goldmeer (GE), jointly

presented at the Power-Gen Middle East Conference, held in

Abu Dhabi, UAE, from October 12-14, 2014 (photo below).

11 ALTER NRG FOCUS

Alter NRG hosted this year’s open house event in Tees Valley, Northern England. A firsthand view of this flagship facility allowed participants to truly understand the scale and complexity of our Westinghouse Plasma Gasification Solution. The facility reflects our commercial momentum and dedication to playing a vital role in the energy advancements of the 21st century. We appreciate Air Product’s support in providing an overview and answering questions regarding the overall facility.

ALTER NRG: UK

Open House at Tees Valley, UK

Westinghouse Plasma Gasifier Tees Valley 1 (TV1) Facility in Tees Valley, UK

ISSUE | DECEMBER 201412

Presenter: Jeffrey Hu, President

GreenWorld Energy Solutions, (GES) is referred to as Bijie City Green Environmental Energy Limited, is a structured solutions provider to the waste to energy sector in Southern China. Jeffrey presented details of their first project in Bijie, China and another dozen projects they intend to build in the coming years.

www.ges.org.cn

Presenters: Naicheng Zhou, General Manager and Dean Mao, Deputy General Manager

GTS Energy, designs and manufactures a wide range of energy systems for industrial applications worldwide. Alter NRG and GTS Energy have signed a joint development and marketing agreement for its turnkey and small scale waste destruction solution. Naicheng presented details on their reference facility which has been commissioned and their future plans.

www.gtsenergy.com.cn

Presenter: Lisa Jordan, Business Manager, Bioenergy Europe

Air Products & Chemicals Inc. (Air Products), a Fortune 500 company recognized for its innovative culture, operational excellence and commitment to safety and the environment. Lisa presented the two facilities currently under construction and discussed future business developments efforts in the energy from waste market.

www.airproducts.co.uk, www.airproducts.com

Presenter: Matt Cook, Global Technology Leader

Foster Wheeler Ltd. (Foster Wheeler), is a leading international engineering, construction and project management contractor and power equipment supplier. Matt presented their learnings and role during the Tees Valley projects as well as other projects they are supporting using the Westinghouse Plasma Technology.

www.fwc.com

Guest Speakers at the Open House:

We thank the speakers who

presented at the open house for

their continued support including

Air Products, Foster Wheeler,

Cahill Energy , GreenWorld Energy

Solutions Corp, and GTS Energy

Technology (Shanghai) Ltd.

13 ALTER NRG FOCUS

Alter NRG Team at the Open House 2014

Delegation and guests from China including GTS and GES Delegation and guests from Brazil

Open House in Photos

ISSUE | DECEMBER 201414

Guests taking in a complete view of the Westinghouse Plasma Gasifier

Listening to AP’s Duncan Snelling’s overview on the bus

Networking at the reception Alter NRG team undertaking Q&A at the Open House

Guests enjoying the receptionNetworking at breakfast

15 ALTER NRG FOCUS

Alter NRG: Conferences 2014Conference Date Location Alter NRG Attendees

MSW to Biofuels and Bio-products Event

October 6-7 Orlando, FL, U.S.A. Alex Gorodetsky

Power Gen Middle East October 12-14 Abu Dhabi, U.A.E. Walt Howard and Jeffery Goldmeer (GE) to co-present; Mark Wright, Bruce Leonard

All Energy Australia October 15-16 Melbourne, Australia Richard Fish

SGC International Gasification Seminar October 15-16 Malmö, Sweden Kevin Willerton

Export Development Canada (EDC) and IFC, a member of the World Bank Group

October 24-28 Hong Kong Richard Fish, Danny Hay

GTC Gasification Technologies October 26-29 Washington, DC, U.S.A. Walter Howard , Richard Fish, Alex Gorodetsky, Bruce Leonard

Alter NRG and GTS Open House November 18-19 Shanghai, China Mark Wright, Ken Willis, Bruce Leonard, Alex Gorodetsky

LD Micro December 2-4 LA, San Francisco, U.S.A Walter Howard

ROTH New Industrials Corporate Access Day

December 16 New York, NY, U.S.A. Danny Hay

Walter Howard making a presentation to government officials.

The Mayor of Nanjing, Ruilin Miao (front row, center), Walter Howard (second row, second from left side) and Richard Fish (top row, second from right).

Richard Fish at the banquet.

Walter Howard (CEO of Alter NRG) and Richard Fish (President of Alter NRG) attended the Nanjing Mayor’s International Consultative Conference, held in Nanjing, China on September 23, 2014.

ISSUE | DECEMBER 201416

Westinghouse Plasma President, Richard Fish, joins the panel discussion on Waste-to-energy at the International Finance Corporation Forum, held in Hong Kong, from October 28-29, 2014

Walter Howard (CEO of Alter NRG) speaking at the Gasification Technologies Conference, held in Washington, DC, from October 26-29, 2014.

Richard Fish (President of Alter NRG - second from right), at the EDC / IFC discussion forum presenting the company’s projects and technology overview.

Richard Fish (President of Alter NRG) sitting left, front row and Danny Hay (CFO of Alter NRG) standing third from left back row).

17 ALTER NRG FOCUS

Alter NRG and GTS Energy jointly hosted their Open House in Shanghai China from November 18-19, 2014, showcasing their Turnkey Hazardous Waste Solution utilizing the world class Westinghouse Plasma Gasification technology. Over 60 participants were invited to learn from industry experts and meet our key executives and some current customers.

Alter NRG and GTS Open House

ISSUE | DECEMBER 201418

In addition Alter NRG’s CEO, Walter Howard, won the Roy F. Weston Award from the Journal of Solid Waste Technology and Management. The Roy F. Weston award was established in 1985 to acknowledge significant individual contributions to the field of industrial waste management. The Journal of Solid Waste Technology and Management is an international peer-reviewed journal covering landfill, recycling, waste-to-energy, waste reduction, policy and economics, composting, waste collection and transfer, municipal waste, industrial waste, residual waste and other waste management and technology subjects.

Alter NRG: AwardsAlter NRG was honored with the IAIR Corporate award for Best Company for Leadership in Clean Technology. The IAIR awards recognize excellence in global economy and sustainability. Winners were chosen based on IAIR readers’ votes, including business and financial journalists in 120 countries, and selection by the editorial staff.

Walter Howard (CEO, Alter NRG), receiving the Roy F. Weston award

About:

- IAIR AWARDS® (www.iairawards.com)

- Roy Weston Award (www.pwea.org/awards)

19 ALTER NRG FOCUS

WWW.ALTERNRG.COM

WWW.WESTINGHOUSE-PLASMA.COM

Alter NRG provides clean energy solutions that are economically viable and environmentally sustainable. Westinghouse Plasma is the industry leading plasma gasification technology that provides clean and renewable energy solutions by converting all types of waste and biomass into high value energy - like electricity, ethanol or syngas. With plasma systems in operation for 20 years and converting waste into energy since 2002, the technology is commercially proven and produces lower emissions than other conventional energy technologies.

Converting the

into clean energy

orld’swaste