Green EnviroTech Holdings, Corp. - Bater...

Green EnviroTech Holdings, Corp.

Providing Practical Waste-to-Energy Solutions to Address Global Environmental Challenges

Company Presentation August 2019

Green EnviroTech Holdings Corp. is an innovative green technology company that has developed a patent-pending process for converting waste plastics and scrap tires into valuable end products. The system was successfully demonstrated in a full-scale environment for over three years. The process was observed by BHP Engineering and Construction who provided the Company with the Performance Certification documentation.

The system tested converted scrap tires and waste plastics into a high-grade oil that is acceptable to refineries. The high quality of GETH oil allows the refineries to skip several steps in their refining process.

Who We Are

ALL INFORMATION CONTAINED HEREIN IS STRICTLY CONFIDENTIAL 2

Investment Highlights


1.  The entire GETH pyrolysis system has been in the ‘patent-pending’ stage for 18 months. We anticipate that the patent will be granted in the next 2 to 3 years.

2.  Large and growing waste plastic and scrap tire disposal problem. (See appendix A)

3.  Our process for converting waste plastics and scrap tires is significantly different from others by using a more stable heat source in step #2 and by adding several additional refinement steps to deliver oil that meets refinery specs. In the case of tires, the carbon black is refined to meet our end product users’ specs. (See Flow Diagram on Slide 6)

4.  In 2012, SAIC, a premier engineering and technology integrator, reviewed GETH’s process documentation and provided the attached letter. (See Appendix B) In 2016 BHP Engineering and Construction performed onsite analysis of the process and subsequently provided a ‘performance certification’ document. (See Appendix C) In 2019, the Wood Group (the 4th largest engineering company in the world) provided additional validation of the process. (See Appendix D)

5.  All three of the above companies are globally recognized oil and gas engineering firms. Both BHP and the Wood Group will act as Engineering, Procurement and Construction (EPC) contractors for the construction of the Plant.

6.  Schneider Electric (the largest electrical contractor in the world) is a strategic partner and will be responsible for every aspect of the automation and monitoring systems. In addition they will procure and install all electrical equipment.

1. Waste plastic feedstock: several Material Recovery Facilities (MRF’s) have indicated a strong interest in, and the ability, to supply a minimum of 300 tons of feedstock per day and a maximum of 900 tons per day. (LOI’s pending)

2.  Scrap tire feedstock: Liberty Tire, Auston Tire and Earth Energy TDF have all indicated the ability to supply tire feedstock for a 312 TPD plant. (LOI’s pending)

3. Oil product: GETH has a purchase order with Conoco Philips to purchase any or all of our output. BFP Refinery, Monroe Energy and Energy Transfer Partners have also expressed an interest in purchasing the output from our plants.

4. Carbon black from tires: This valuable byproduct from the tire process is further refined to meet customer specifications and will be sold into the rubber and plastics industries.

5.  Financial returns from a 312 TPD plant are estimated to be in the 43% to 50% EBITDA range.

Investment Highlights



History of Innovation

2008 2010 2016 2019 2012 2018 2014

GETH is founded by

Gary M. De Laurentiis

Conoco Philips LOI

Schneider Agreement

Process Certification

received from BHP

BHP Agreement

New Board Members

Added

New President Appointed

GMD took 3 yr. medical leave, Board appoints

interim CEO Filed Prov Patent

Application

Initial Proof of Concept

completed by SAIC

Interim CEO

Departs

GMD resumes

role as CEO

Filed Patent Application

Wood Engineering provides

‘process validation’ documentation

GETH System Flow Diagram

ALL INFORMATION CONTAINED HEREIN IS STRICTLY CONFIDENTIAL

Steel (tires only)

Reactor Condenser Clarifier

SynGas for Power

Co-generation

Carbon Black (tires) Char (plastic)

Oil Output Feedstock

6

A Compelling Issue: The Endless Production of Scrap Tires


•  Each year, nearly 350M tires are discarded in the United States •  About 200M of these tires are used to make crumb rubber for building projects, or are

burned as tire derived fuel (TDF) •  Approximately 35M tires are culled (separated) and resold to consumers in the second

hand market •  The remaining 140M are being landfilled or illegally dumped in remote places around

the country

200M Used for Crumb Rubber or

TDF 35M Culled for Resale

140M Landfilled or Illegally

dumped

350M Waste Tires Generated Annually

A Compelling Issue: The Endless Production of Waste Plastics

•  In 2015, plastic resin production in the United States reached 34.5M tons •  Only 9% (or 3.14M tons) was recycled (mostly PET and HDPE) •  Another 16% (or 5.35M tons) was incinerated •  The remaining 75% (or 26.01M tons) was either landfilled or ended up in the environment * Statistics from USEPA

ALL INFORMATION CONTAINED HEREIN IS STRICTLY CONFIDENTIAL

Recycled 3,140,000

Incinerated 5,350,000

Landfilled 26,010,000

US Plastic Production = 34.5M Tons Per Year (2015)

8

The GETH Advantage: Highest Quality End Products

A.  The Technology

1.  Feedstock preparation; Automation used in loading system and for precise batch weighing control

2.  Electromagnetic Induction Heating; copper coil wraps

around the heating vessel which allows for fast and more stable heating process resulting in a product approved by refineries

3.  Condensing of Vaporized Gases; hydrocarbon gases (oil) are condensed into primary oil product while ‘syngas’ is separated for later use

4. Water-wash; condensed oil is put through a water bath to decrease organic chlorides

5.  Flash Column; collected oil is transferred to a flash column for further refinement

6.  Sand bed; refined oil is filtered through a silica-based medium to remove particulates

7. Organic Chloride Removal; oil is pumped at high pressure and temperature through special media to adsorb remaining organic chlorides and meet commercial refinery standards

8.  Turbine Electric Generation System; non-condensable ‘syngas’ is captured and used as fuel for power ‘co-generation’ system. Will provide 40% of electrical needed to run the plant


GETH Process Gas Fired Systems

✔

✔

✔

✔

✔

✔

✔

✔

✔

✔

NO

NO

NO

NO

Unknown ✔

GETH Oil 85%

Syngas 14%

Char 1%

Waste Plastic: End Product Output Ratio (by weight)

10 ALL INFORMATION CONTAINED HEREIN IS STRICTLY CONFIDENTIAL

Each 312 TPD System can process up to 100,000 tons of waste plastic and produce almost 600,000 barrels of oil per year.

Inert char is a waste product that will be bagged and properly disposed of.

Syngas may be used on-site or sold as fuel.

* Ratios are approximated

GETH Oil 45%

Carbon Black 35%

Steel 10% Syngas

10%

Scrap Tires: End Product Output Ratio (by weight)

Steel belting from tires will be sold to a ferrous metal recycler.

Up to 33,000 tons of Recovered Carbon Black will be refined by GETH each year and sold back into the carbon market.

Syngas may be used on-site or sold as fuel.

Each 312 TPD System can process more than 9M tires and produce over 300,000 barrels of refinery grade oil per year.


* Ratios are approximated

Prospective Project Site: Plastics

Millville, New Jersey 1.  Location identified; 735k sq. ft. under roof with

rail access, part of opportunity zone, and lease has been negotiated

2.  A plastic processing plant converting 312 tons per day

3.  Feedstock totaling 900 tons per day is available from 17 material recovery facilities (MRFs) in New Jersey

4.  Permits will take approximately four months to obtain

5.  End product (oil); three potential buyers have expressed interest in the output

6.  Radius represents an area equal to 200 miles from the project site. Based on our analysis, this is the most cost-effective distance from which to collect feedstock

7.  Operational in 12 months from funding


Prospective Project Site: Tires

College Station, Texas 1.  Location identified; 220 acre undeveloped site

with rail access, part of economic development agency and is in an ‘opportunity zone’

2.  Tire processing facility converting 312 tons per day

3.  Acquire the assets of an existing tire recycling company to generate revenue immediately

4.  Feedstock supply on site with existing customer base for more

5.  Permits; ‘Permit by Rule’ – approximately six months to obtain

6.  End products; LOI for total oil output to Conoco Philips, and multiple LOI’s for carbon black

7.  Radius represents an area equal to 200 miles from the project site. Based on our analysis, this is the most cost-effective distance from which to collect feedstock.

8.  Operational in 12 months from funding


Prospective Project Site: Tires

Baltimore, Maryland 1.  Location; TBD 2.  Tire processing facility converting 312 tons per day 3. Feedstock; strategic partner identified (Auston

Tire) with annual supply of 22,000 tons per year 4. Permits will take approximately six months to

obtain 5. End products; three potential buyers have

expressed interest in the oil output, and multiple LOI’s for the carbon black

6. Radius represents an area equal to 200 miles from the project site. Based on our analysis, this is the most cost-effective distance from which to collect feedstock.

7. Operational 12 months from funding


Why to Invest in GETH


1.  GETH generates exceptional financial returns ranging from 43% to 50% EBITDA

2.  The entire GETH pyrolysis system has been in the ‘patent-pending’ stage for 18 months. We anticipate that the patent will be granted in the next 2 to 3 years.

3.  An endless supply of available feedstock guarantees that this technology will NEVER be obsolete

4. GETH technology is capable of producing the highest grade end products in the plastic and tire-to-fuel industry

5.  Our offtake agreement with a major refinery for all oil produced substantiates our claim of a superior end product

6.  Our technology has been independently verified and a performance certification was issued to mitigate investor risk

7.  Investor(s) funding opportunity is into an SPV, not the public entity

8. Different deal structures are available to suit the individual goals of each investor

AppendicesAppendixA: USScrapTireandWastePlasticsStatisticsbyStateAppendixB: TechnologyReviewandReportbySAICEnergy,Environmental&

Infrastructure,LLC

AppendixC: PerformanceCertificationDocumentbyBHPEngineeringandConstruction

AppendixD: ProcessValidationDocumentbytheWoodGroup

StrategicPartnerWebsites1. WoodGroup:https://www.woodgroup.com/2. BHPConstructionandEngineering:https://www.bhpeng.com3. SchneiderElectric:https://www.schneider-electric.us/en/4. PillarInduction:www.pillar.com5. SAIC:http://www.saic.com/

State PopulationDaily MSW

Generated By State in lbs.

Annual MSW Generated By State

in lbs.

% of Plastic in MSW in lbs.

Annual Plastic

Generated By State

in Tons

Available Tons At 25% Capture Rate

No. of Operating Units at

25% Capture

Rate5.69lbs.

perperson12%

Alabama 4,874,747 27,737,310 10,124,118,307 1,214,894,197 607,447 151,862 4.7

Alaska 739,795 4,209,434 1,536,443,246 184,373,189 92,187 23,047 0.7

Arizona 7,016,270 39,922,576 14,571,740,350 1,748,608,842 874,304 218,576 6.8

Arkansas 3,004,279 17,094,348 6,239,436,841 748,732,421 374,366 93,592 2.9

California 39,536,653 224,963,556 82,111,697,783 9,853,403,734 4,926,702 1,231,675 38.5

Colorado 5,607,154 31,904,706 11,645,217,785 1,397,426,134 698,713 174,678 5.5

Connecticut 3,588,184 20,416,767 7,452,119,940 894,254,393 447,127 111,782 3.5

Delaware 961,939 5,473,433 1,997,803,012 239,736,361 119,868 29,967 0.9

Florida 20,984,400 119,401,236 43,581,451,140 5,229,774,137 2,614,887 653,722 20.4

Georgia 10,429,379 59,343,167 21,660,255,776 2,599,230,693 1,299,615 324,904 10.2

Hawaii 1,427,538 8,122,691 2,964,782,295 355,773,875 177,887 44,472 1.4

Idaho 1,716,943 9,769,406 3,565,833,070 427,899,968 213,950 53,487 1.7

Illinois 12,802,023 72,843,511 26,587,881,468 3,190,545,776 1,595,273 398,818 12.5

Indiana 6,666,818 37,934,194 13,845,980,963 1,661,517,716 830,759 207,690 6.5

Iowa 3,145,711 17,899,096 6,533,169,890 783,980,387 391,990 97,998 3.1

Kansas 2,913,123 16,575,670 6,050,119,503 726,014,340 363,007 90,752 2.8

Kentucky 4,454,189 25,344,335 9,250,682,425 1,110,081,891 555,041 138,760 4.3

Louisiana 4,684,333 26,653,855 9,728,656,991 1,167,438,839 583,719 145,930 4.6

Maine 1,335,907 7,601,311 2,774,478,453 332,937,414 166,469 41,617 1.3

Maryland 6,052,177 34,436,887 12,569,463,802 1,508,335,656 754,168 188,542 5.9

Massachusetts 6,859,81939,032,370 14,246,815,090 1,709,617,811 854,809 213,702 6.7

Michigan 9,962,311 56,685,550 20,690,225,600 2,482,827,072 1,241,414 310,353 9.7

Minnesota 5,576,606 31,730,888 11,581,774,171 1,389,812,901 694,906 173,727 5.4

Mississippi 2,984,100 16,979,529 6,197,528,085 743,703,370 371,852 92,963 2.9

Missouri 6,113,532 34,785,997 12,696,888,934 1,523,626,672 761,813 190,453 6.0

Montana 1,050,493 5,977,305 2,181,716,387 261,805,966 130,903 32,726 1.0

Nebraska 1,920,076 10,925,232 3,987,709,841 478,525,181 239,263 59,816 1.9

Nevada 2,998,039 17,058,842 6,226,477,297 747,177,276 373,589 93,397 2.9NewHampshire

1,342,7957,640,504 2,788,783,796 334,654,055 167,327 41,832 1.3

NewJersey 9,005,644 51,242,114 18,703,371,741 2,244,404,609 1,122,202 280,551 8.8

NewMexico 2,088,070 11,881,118 4,336,608,180 520,392,982 260,196 65,049 2.0

NewYork 19,849,399 112,943,080 41,224,224,313 4,946,906,918 2,473,453 618,363 19.3

NorthCarolina 10,273,41958,455,754 21,336,350,250 2,560,362,030 1,280,181 320,045 10.0

NorthDakota 755,393 4,298,186 1,568,837,952 188,260,554 94,130 23,533 0.7

UnitedStatesbyState-Plastic(basedon104TPDOperatingUnits)

Ohio 11,658,609 66,337,485 24,213,182,102 2,905,581,852 1,452,791 363,198 11.3

Oklahoma 3,930,864 22,366,616 8,163,814,898 979,657,788 489,829 122,457 3.8

Oregon 4,142,776 23,572,395 8,603,924,336 1,032,470,920 516,235 129,059 4.0

Pennsylvania 12,805,537 72,863,506 26,595,179,518 3,191,421,542 1,595,711 398,928 12.5

RhodeIsland 1,059,639 6,029,346 2,200,711,257 264,085,351 132,043 33,011 1.0

SouthCarolina 5,024,36928,588,660 10,434,860,758 1,252,183,291 626,092 156,523 4.9

SouthDakota 869,666 4,948,400 1,806,165,832 216,739,900 108,370 27,092 0.8

Tennessee 6,715,984 38,213,949 13,948,091,370 1,673,770,964 836,885 209,221 6.5

Texas 28,304,596 161,053,151 58,784,400,203 7,054,128,024 3,527,064 881,766 27.6

Utah 3,101,833 17,649,430 6,442,041,866 773,045,024 386,523 96,631 3.0

Vermont 623,657 3,548,608 1,295,242,040 155,429,045 77,715 19,429 0.6

Virginia 8,470,020 48,194,414 17,590,961,037 2,110,915,324 1,055,458 263,864 8.2

Washington 7,405,743 42,138,678 15,380,617,350 1,845,674,082 922,837 230,709 7.2

WestVirginia 1,815,857 10,332,226 3,771,262,610 452,551,513 226,276 56,569 1.8

Wisconsin 5,795,483 32,976,298 12,036,348,869 1,444,361,864 722,181 180,545 5.6

Wyoming 579,315 3,296,302 1,203,150,358 144,378,043 72,189 18,047 0.6

Totals 325,025,206 1,849,393,422 675,028,599,081 81,003,431,890 40,501,716 10,125,429 316.4

State Population

25%Capture

Rate

(no.oftires)

Available

Tonsat25%

CaptureRate

No.of

Operating

Unitsat25%

Alabama 4,874,747 1,218,687 13,406 0Alaska 739,795 184,949 2,034 0Arizona 7,016,270 1,754,068 19,295 1Arkansas 3,004,279 751,070 8,262 0California 39,536,653 9,884,163 108,726 3Colorado 5,607,154 1,401,789 15,420 0Connecticut 3,588,184 897,046 9,868 0Delaware 961,939 240,485 2,645 0Florida 20,984,400 5,246,100 57,707 2Georgia 10,429,379 2,607,345 28,681 1Hawaii 1,427,538 356,885 3,926 0Idaho 1,716,943 429,236 4,722 0Illinois 12,802,023 3,200,506 35,206 1Indiana 6,666,818 1,666,705 18,334 1Iowa 3,145,711 786,428 8,651 0Kansas 2,913,123 728,281 8,011 0Kentucky 4,454,189 1,113,547 12,249 0Louisiana 4,684,333 1,171,083 12,882 0Maine 1,335,907 333,977 3,674 0Maryland 6,052,177 1,513,044 16,643 1Massachusetts 6,859,819 1,714,955 18,865 1Michigan 9,962,311 2,490,578 27,396 1Minnesota 5,576,606 1,394,152 15,336 0Mississippi 2,984,100 746,025 8,206 0Missouri 6,113,532 1,528,383 16,812 1Montana 1,050,493 262,623 2,889 0

UnitedStatesbyState-Tires(basedon104TPDOperatingUnits)

Nebraska 1,920,076 480,019 5,280 0Nevada 2,998,039 749,510 8,245 0NewHampshire 1,342,795 335,699 3,693 0NewJersey 9,005,644 2,251,411 24,766 1NewMexico 2,088,070 522,018 5,742 0NewYork 19,849,399 4,962,350 54,586 2NorthCarolina 10,273,419 2,568,355 28,252 1NorthDakota 755,393 188,848 2,077 0Ohio 11,658,609 2,914,652 32,061 1Oklahoma 3,930,864 982,716 10,810 0Oregon 4,142,776 1,035,694 11,393 0Pennsylvania 12,805,537 3,201,384 35,215 1RhodeIsland 1,059,639 264,910 2,914 0SouthCarolina 5,024,369 1,256,092 13,817 0SouthDakota 869,666 217,417 2,392 0Tennessee 6,715,984 1,678,996 18,469 1Texas 28,304,596 7,076,149 77,838 2Utah 3,101,833 775,458 8,530 0Vermont 623,657 155,914 1,715 0Virginia 8,470,020 2,117,505 23,293 1Washington 7,405,743 1,851,436 20,366 1WestVirginia 1,815,857 453,964 4,994 0Wisconsin 5,795,483 1,448,871 15,938 0Wyoming 579,315 144,829 1,593 0

Total 325,025,206 81,256,302 893,819 28

011558 | 3151204099 | Green Enviro D3 client copy.docx

November 29, 2012 Mr. Rahman D’Argenio Energy Capital Partners 51 JFK Parkway, Suite 200 Short Hills, NJ 07078 Subject: Review of Tires and Plastic to Oil Project Dear Mr. D’Argenio:

Introduction

Green Envirotech Holdings (“GETH”) is developing a series of projects to convert used tires and waste plastics to the following products: oil, compressed syngas, waste steel and char. The technology for the production of products is a combination of an indirectly heated pyrolysis system supplied by Hoi Hing Loong Sdn. Bhd. (“HHL”) of Malaysia and GETH’s oil upgrading system. HHL currently offers a commercial batch tire pyrolysis system sized to process 10,000 pounds per batch over a 15-hour period. GETH’s oil upgrading system is provided by Gas Purification Engineering Corporation (“GPEC”) using an adsorbent provided by UOP, LLC, a Honeywell Company (“UOP”). The combination of HHL’s pyrolysis technology and GETH’s oil upgrading system are collectively referred to as the GETH Technology. The initial facility is to be in Gilroy, California (the “Project”) and will be the first plant integrating the two technologies. GETH plans to test the HHL technology on plastics (after the installation of the Project is completed. HHL has reportedly run their system on plastics; however, we have not been provided any data from a plastic test run.

GETH plans to install 12 pyrolysis systems each consisting of two HHL reactors, an oil upgrading system and support equipment. When all 12 systems are in place, the Project is to process 2.8 million pounds of tires per year and 2.8 million pounds of agricultural plastic. GETH expects the product yields by mass from tires to be as follows: 45 percent oil, 33 percent char, 11 percent syngas and 11 percent steel. The char produced by the tire processing is a carbon black type material. The plastics yields are expected by GETH to be 85 percent oil, 10 percent syngas and 5 percent residuals. The Project is to be constructed in stages, starting with a single system (two pyrolysis reactors) and eventually containing six tire processing systems and six plastic processing systems.

Objective and Scope of the Review

The role of SAIC Energy, Environmental & Infrastructure, LLC (“SAIC”) is to review the principal aspects of the GETH Technology as demonstrated in other facilities either utilizing the HHL technology in China, or the proposed oil upgrading system, and to identify any technical issues that would need to be resolved prior to proceeding with the Project. Our scope includes the review of the basic engineering design, operation and maintenance (“O&M”) costs, capital costs, and certain results from HHL to determine the suitability of the design to achieve the proposed technical inputs to the Project’s pro forma. The technical review presented in this letter report (the “Letter Report”) provides an overview on the state of the GETH Technology as of November 2012. We performed the activities outlined in this Letter Report in accordance with our Master Professional Services Agreement (the “MPSA”) dated May 25, 2011 and a task authorization dated September 9, 2012 between SAIC and Energy Capital Partners II LLC (“ECP”). This Letter Report is submitted to ECP for their review and use.

Mr. Rahman D’Argenio November 29, 2012 Page 2


This Letter Report is solely for the information and assistance to ECP and should not be relied upon for any other purpose or by any other party. This Letter Report has been developed based on the specific needs of ECP regarding the GETH Technology. The level of information included in this Letter Report reflects the knowledge of the issues gained from ECP through the course of our review. To the extent that other readers of this Letter Report have not been involved over the course of our review, the information contained herein could be incomplete.

This review does not address legal, economic or regulatory matters, including obtaining feedstock and the marketing or potential sale of any end product coming from the proposed Project. Our review is based on discussions with and information supplied by GETH and in-house knowledge of similar technologies.

Process Description

The HHL WXT-8 Twin Reactor Pyrolysis Converting System uses a twin gasifier reactor system to process tire or plastics feeds into a residual char and a gas product that is separated into condensed oil and compressed syngas products. When processing tires, the residual char is a form of carbon black. Steel is also recovered from the tires. The two reactors are operated in a batch mode requiring approximately 15 hours per batch. The batch cycles for the two reactors are phased approximately one hour apart for ease of operation. The batch time consists of 1/2 hour to load, seal, and pressure test the reactor, 8 hours to heat the reactor up to its operating temperature, 3 hours at the normal operating temperature of approximately 380 degrees Centigrade (“°C”) (716 degrees Fahrenheit (“°F”)), 3 hours to cool down the reactor and contents to below approximately 100°C to repeat the cycle, and 1/2 hour to unload residual material. For example, for tires at the end of the cool down period, the unloading time is used to remove the tire steel from the reactor. When processing plastics, little char is expected to be produced. The operating pressure of the reactor while it is heated is approximately 0.02 megapascals (“MPa”), equivalent to approximately 3 pounds per square inch gauge (“psig”). After cool down, the pressure in the closed reactor is reported to be approximately atmospheric.

Each reactor is a cylinder with internal flighting. Reactor dimensions are approximately 6 meters in length and 2.2 meters in diameter. The front end of a reactor has a hinged door that fully opens. When the door is shut, a flange and closing bolts on the door are used to create a pressure seal. The reactor is mounted on variable-speed motor-driven rollers and is rotated at less than one revolution per minute (“rpm”) clockwise during heat up and while at operating temperature. During cool down, when the temperature in the reactor has dropped below 100°C, the direction of rotation is changed to counterclockwise at slightly more than 1 rpm to transport residual char towards the rear of the reactor. At the rear of the reactor, at approximately the centerline of the cylinder, is a trough that collects solids. Mounted in the trough is an auger that transports solids from the trough out of the reactor through a stationary (relative to the reactor) pipe and then drops the char into an enclosed char collection system. The pipe is also used to remove vapor product from the reactor. The entrance from the pipe to the enclosed char collection system is ordinarily closed with a manual knife gate valve. During the cool down period, as the pressure in the reactor falls towards ambient pressure, the vapor connection to the downstream processing is closed with a valve.

Each reactor is indirectly heated using an induction heating system that heats the wall of the reactor cylinder, transmitting heat into the contents of the reactor by radiation and conduction that is enhanced by the reactor rotation, which includes mixing and tumbling of the contents. The induction heating is mounted around the reactor with a small clearance to allow the reactor to rotate without moving the induction heater. A transformer is used to convert line power to low voltage, high amperage, and high frequency power. A closed loop deionized water cooling system is required for cooling the induction heating equipment. There are two parallel pumps and heat exchangers for the deionized water cooling system to safeguard the induction heating equipment from overheating. Heat is removed from the deionized water system by exchange with a separate main cooling water system. The main cooling water system uses evaporative cooling for heat removal. Make-up cooling water is to be provided by the local municipal water supply.

Feed to the process is to consist of baled plastics, usually agricultural polyethylene film, or whole tires that have been baled. Bale weight is approximately 2,500 pounds for plastics and 2,500 pounds for tires. The



reactors are designed to process of up to 5 tons per batch. The bales are to be placed in the reactor, using a front-end loader with specially designed tines.

As the contents of the reactor are heated, any surface water is evaporated, and the plastic or tire material begins to devolatize, then pyrolyze into a vapor at the operating temperature. The vapor from the reactor passes out the rear of the reactor through the pipe that is also used to remove char and then upward into an insulated gas separator that operates at approximately 788°F without any temperature control. Some of the vapor is condensed and falls by gravity into the heavy oil tank that sits beneath the gas separator. The remaining vapor enters two sets of twin parallel condenser/distillation vessels in series in which the vapor is cooled indirectly with cooling water to approximately 80°F, condensing the oil that is formed during pyrolysis of the feed. The condensed oil is collected in a light oil storage tank located beneath each set of parallel distillation vessels. The remaining gas passes through a water-filled tank that acts as a pressure seal and into a gas clean-up system before it is compressed and cooled into cylinders.

The gas clean-up system consists of several vessels in series. In the first vessel (the acid neutralization spray tower), the gas is scrubbed with a liquid solution to remove hydrogen sulfide and other reduced sulfur compounds. Sodium hydroxide solution is added to the scrubbing liquid to maintain the pH of the liquid between 7 and 8. The spray tower operates at approximately 80°F. Cooling for the scrubbing liquid is supplied as required indirectly by the cooling water system. A gas-water separator immediately downstream of the spray tower is used to drop entrained water (from the spray tower) out from the gas. Downstream of the gas-water separator is a vessel filled with activated carbon designed to remove additional water from the gas by adsorption. The next vessel is filled with activated carbon designed to remove certain residual hydrogen compounds, such as hydrogen sulfide and any remaining water from the gas by adsorption. The activated carbon in the vessels is replaced with fresh activated carbon as required. After the activated carbon vessels, the syngas is compressed and cooled in three stages to a final pressure of 0.8 MPa (approximately 8 atmospheres or 116 psig). The compression is intended to liquefy the syngas. However, it is unclear if this is the result of the compression.

The collected light oil is to be pumped to the secondary distillation tank where it is to be reheated and evaporated into the secondary distillation column to remove metals and chlorine that are left behind as a residual solid. Induction heating is to be used. The bottom of secondary distillation column for light oil is to operate at approximately 608°F and 4.35 psig. The desired level of chlorine in the light oil after the secondary distillation is 45 parts per million (“ppm”) by weight or less. The condensed, redistilled light oil is then passed at approximately 500°F and 50 psig through a bed of UOP molecular sieve adsorbent that is designed to adsorb residual organic chlorine in the light oil down a level of less than 5 ppm. The molecular sieve adsorbent is periodically replaced to maintain the bed’s ability to remove chlorine. The processed light oil is to then be tested to determine whether it meets the contractual specifications for product oil. If the batch meets specification, it is to be sent to oil product storage. If it does not meet specification, it is to be reworked for additional dechlorination and removal of dissolved gases by sending it to the secondary distillation unit. The distillation process produces some uncondensed gas that is sent to gas clean-up. The heavy oil is to be processed separately through the secondary distillation and molecular sieve system and to remove metals and chlorine. The processed heavy oil is to then be tested to determine whether it meets the contractual specifications for product oil. If the batch meets specification, it is to be sent to oil product storage and combined with the light oil. If it does not meet specification, it is to be redistilled and dechlorinated again. The distillation process produces some uncondensed gas that is sent to gas clean-up.

Technical Review

We expect the processing steps described above are capable of producing compressed syngas, oil, char and steel products from tires and compressed syngas and oil with minimal char from plastics. The tire products will contain sulfur and chlorine while the plastic products will contain minimal amounts of sulfur and some chlorine.

GETH is projecting the product yields and product qualities shown in Table 1.



Table 1 Product Yields (Percent of Feedstock)

Tires Plastics

Oil 45 85 Syngas 11 5 Char 33 NA (1) Steel 11 0 ____________________ (1) Not available (“NA’).

In addition, a complete material balance to accurately confirm the yields of the several products has not been provided by GETH. Based on other indirect pyrolysis technologies of which we are familiar we would expect the following yields of the several products to be within the ranges listed in Table 2.

Table 2

Range of Product Yields

Tires (1) Plastics

Oil 40 – 45% 80 – 90% Syngas 11 – 14% 5 – 15% Char 33 – 35% 5% Steel 11% 0% ____________________ (1) Based on whole tires.

Based on the information provided by GETH through November 2012, we expect the following product qualities:

x For char/carbon black, it appears that a majority of the sulfur in tires (perhaps 80 percent by weight) will remain in the char, resulting in a char that contains up to 3 percent sulfur by weight. We would expect that most of the (non-steel) materials in the tires, such as fiber (from the cord) and ash (zinc oxide, etc.) will also remain in the char. GETH intends to sell the tire char as a carbon black. We note that this may require the addition of equipment to remove the fiber or other contaminants. GETH has not provided a plan to qualify the char as carbon black. However, assuming that GETH does qualify the char as some level of carbon black, we would expect there to be a time period for this to occur. Thus, prior to selling the char as carbon black, there should be an alternative market identified for the char. The most likely market would be a high sulfur solid fuel.

x GETH intends to sell the compressed syngas as liquefied petroleum gas (“LPG”). Subject to the issues raised below, the syngas product should contain some amount of LPG material (propane and butane); however, the composition of the syngas needs to be confirmed to determine if this gas has a value equivalent to conventional LPG or a lesser value, such as natural gas.

x Based on the sample analysis provided to the proposed offtaker, Phillips 66, the oil product appears to be equivalent to a “light crude oil” as stated by GETH. We note that only one sample has been provided for review, and Phillips 66, has set the quality specifications based on that sample. The ability of the GETH Technology to maintain product quality, particularly with regard to the trace elements, cannot be assessed based on the single sample. GETH has stated that any oil that does not meet the Phillips 66 product specifications is to be reworked until the required specifications are achieved.

x The steel recovered from processing tires will be dirty from residual, loose char dust and ash. This may reduce the value of the steel, unless the impurities can be removed. GETH expects the removal of the residual material to be the responsibility of the steel offtaker.



Based on our understanding of the process at this time, the following issues may require additional process design, additional capital equipment, and/or a change in manner of operation to allow operation in California:

x Purge of Reactor Residual Gas. After the end of a batch cycle, a reactor will contain residual hydrocarbon gas of unknown composition. Currently, no provision has been made to prevent this gas from mixing into the processing building after the front door of the reactor is opened. Purging the reactor with nitrogen is an option that is discussed in the HHL operations manual; however, a method for disposal of the purge gas needs to be identified. We believe that the disposal of the residual gas needs to be addressed, prior to the front door of the reactor being opened to remove residual solids from the reactor. We expect that the purged gas, along with relief gas discharge during upset conditions, would need to be sent to a flare. GETH has stated that, if necessary, it intends to install a vacuum vapor removal process to remove any residual vapors prior to opening the reactor chamber.

x Syngas Composition. GETH has not yet analyzed the syngas from either the tire pyrolysis or plastics pyrolysis, so the composition of this gas is presently unknown. Based on our knowledge of other similar systems, we would expect this syngas to contain some amount of hydrogen, carbon monoxide, methane, ethane and ethylene. The level of LPG components is unknown, and the composition of this syngas will determine its potential use. We do not believe that the activated carbon used for removing impurities from the syngas prior to compression to LPG will be successful in removing hydrogen, carbon monoxide (if present), and methane from the gas. These gases and other gases that may be partially removed by the activated carbon such as ethane and ethylene do not liquefy at the proposed liquefaction operating conditions. Thus, these gases will likely be present in the form of compressed vapor in the storage bottles for sale. While limited amounts of ethane and ethylene are allowable in some forms of LPG, hydrogen and especially carbon monoxide are not suitable components for LPG, and methane is ordinarily limited to approximately 0.5 percent by volume. We note that these noncondensible gases could be purged from the process after the third compression and cooling step for extracting the liquids by adding a vapor-liquid separator; however, the process is not currently designed for this approach.

x Syngas Quality. The syngas product specification for the Project has not yet been established. LPG typically consists of mixtures of primarily butane and propane. Other similar tire pyrolysis units with which we are familiar have produced a syngas with low levels of propane and butane, and substantial amounts of olefins (butene), heavy hydrocarbons (C6s and C7s) and some aromatics (benzene, toluene and xylenes) and dienes (butadiene). If these components are present in the Project’s syngas, we would expect a portion of these to liquefy. The compressed syngas product should be tested for benzene (a carcinogen) because benzene content of fuel (e.g., of gasoline) is often strictly limited. LPG usually has a maximum vapor pressure limitation and often has a maximum butene limit as a percentage of butane, a total olefin limit (including ethylene) of 1 percent by volume of the total LPG, and/or a maximum limit on heavier hydrocarbons. Depending on the amount of olefins, aromatics and heavy hydrocarbons in the raw compressed syngas, treatment option such as an additional carbon filter, distillation, or hydrotreating may be necessary to meet LPG specifications, or the product may have to be marketed as a chemical or fuel other than LPG. The key to the value of the compressed syngas is knowing the composition.

x Steel Removal from Reactor. The steel remaining in the reactor is most likely to be coated with unattached char dust, and provision for dust control will need to be incorporated into the unloading process.

x Proposed Cycle Time Adjustment. The cycle time includes loading, heating, cool down and unloading. Based on discussions with GETH, the batch cycle heat up and operating (at temperature) have been optimized to produce the proper quality products and should not be reduced. The cool down time could be shortened by purging the reactor, but would produce a purge gas that would need to be flared. The times required for feed loading and solids removal from the reactor, currently estimated by HHL at one hour each, may be able to be reduced. We do note that the time to remove the plastic residue should be shorter than the tire steel. Thus, different cycle times for the two materials may be achieved after some number of batches is processed. However, reduction of the cycle time to less than 15 hours does not appear to be appropriate at this time without purging the reactor during cool down. We have not evaluated the suitability of the size of the processing equipment for gas clean-up, compressed syngas production, oil



distillation and clean-up, and cooling in association with the stated cycle times, because we have not been provided with sufficient information to perform an analysis.

Comparison To Other Pyrolysis Technologies

Technologies for the conversion of tires and plastics via pyrolysis to produce oil, char and gaseous products are available from several manufacturers; however, the number of these facilities in the United States are limited to pilot plants or small-scale demonstrations. Prior to the increase in crude oil prices in 2008, an economic driving force for the “pyrolysis” of tires in the United States was the recovery of carbon black from the tires. However, the market for this material has been slow to materialize, resulting in the limited number of [operational plants] in the United States. However, there appears to be plants in Asia and India. The technologies that are available in the marketplace are of various types, including rotary kiln types, fluidized beds, and fixed beds. In order to maximize production of oil and carbon black type char, indirectly heated units (keeping oxygen away from the feedstock) are preferred. The primary differences between the HHL technology and these other technologies include the heat source, the method of heating the reactor , operating pressure and temperature, residence time, and feedstock pre-treatment, and batch versus continuous operation. The ability of the HHL technology to process whole or baled tires is an advantage over systems that require shredding or crumbing of the tires. The use of electricity as the heat source allows for reduced emissions as compared to systems which use combustion for indirect heating of the reactor, with the disadvantage being potentially higher operating costs for the electrical use. Continuous systems can potentially provide higher throughputs and economies of scale, allow for more efficient recovery of the reaction heat, and require less manual labor as compared to batch systems such as the HHL technology but require more complicated feeding and control systems. The yield and quality of the oil product from the HHL technology appears to be comparable to other pyrolysis systems, with minor differences resulting from the operating temperature or pressure of operation and the reaction time. In general, there are several manufacturers that state they are able to supply pyrolysis systems; however, specific information of these systems is limited.

Operations and Maintenance

Although GETH supplied a high level summary operating plan for the HHL portion of the Project, a staffing plan and an estimate of O&M expenses, no operating plan is currently available for the balance of the Project including the heavy oil upgrading, the light oil upgrading, or the policies and procedures that will need to be developed by GETH.

Project Organization

GETH intends to operate the Project with staff hired specifically for the Project. The Project will have a combined staff of 29 employees for a 2-system operation. This staffing plan includes a plant manager overseeing: an administrative assistant and a maintenance manager. The operations department consists of 4 shift supervisors, who oversee 12 process operators and 7 feedstock handling staff. The maintenance manager leads a department consisting of two maintenance technicians. The laboratory services are handled by an outside contractor. The above staffing accounts for the daily O&M of the Project, with major maintenance requiring additional personnel during planned and unplanned Project outages. The staffing is increased to 119 for a 24-system operation. GETH has stated that the parent company will supply additional expertise such as an environmental health and safety person and other management staff.



O&M Costs

The non-feedstock O&M costs for the proposed tire and plastics pyrolysis plant, as estimated by GETH and modified by the Client, were provided in the pro forma model titled “GETH Model_11.9.12_ECP_v5.xlsx” (the “Pro Forma”). The O&M costs consist of labor, maintenance, consumables, and general and administrative expenses and are shown in Table 3. GETH estimated these costs based on their current understanding of the HHL pyrolysis technology. The O&M costs in Table 3 are likely to change once the technology questions are resolved. All costs discussed in this section are in $2012 U.S. dollars. Our analysis is based on the full complement of 12 systems which is proposed to occur in the second full year of operation.

Table 3

Estimated Annual O&M Costs (1)

Twelve Systems (2)

Labor (3) $5,239,014 Maintenance 540,000 Electricity [5,593,728] Consumables (4) 4,525,412 General and Administrative (5) 5,050,272 Total $[20,948,426] ____________________ (1) As estimated by GETH. (2) Each system consists of two reactors. (3) Includes labor for operations, maintenance personnel and

plant management. (4) Includes catalysts, catalyst disposal, lab costs, truck fuel, and

miscellaneous plant expenses. (5) Includes plastic transportation, oil transportation, building

lease payments and overhead.

We have the following comments on the O&M estimate that need to be resolved.

1. The GETH O&M estimate, as shown in Table 3, assumes that the syngas when compressed can be sold in pressurized bottles. This has not been confirmed and, thus, any additional costs associated with an alternative method of handling the syngas are not included in Table 3.

2. The O&M costs in the Pro Forma are initially based on operating a single system. GETH intends to operate 2 systems for the first 6 months, 4 systems for the second 6 months and then 12 systems after the first year. However, the current building layout shows 4 systems. GETH has stated that they intend to have 12 systems in the same building at the site and that the 12 systems will fit in the building.

3. The power load table in the Pro Forma does not incorporate the most current load estimate from GETH, as provided in their version of the model (ECP Gilroy 11-12-12 One System .xlsx) dated November 12, 2012. We have reviewed the GETH load estimate, and it appears to have some inconsistencies with the HHL information, with some loads being overestimated and others being underestimated. However, the net effect appears to result in an overall power consumption in the GETH model to be within plus or minus 10 percent of the load as indicated by the HHL information. This would add approximately $700,000 to the O&M estimate.

4. GETH has stated that the actual electricity rate is subject to an electrical study yet to be conducted and that the 11.3 cents per kilowatt-hour rate that is included in the Pro Forma is a bundled rate estimate based on discussions with a Pacific Gas & Electric representative. This rate would be an aggregate of the customer charge, demand charge and energy charge. We note that the tariff also has a charge based on power factor, and the induction heating usage has a low power factor unless corrected.



5. Maintenance spare parts expenses are estimated to be $540,000 per year regardless of the number of installed systems. We would expect this expense to vary with the number of systems. This expense is approximately 1.5 percent of GETH’s estimated cost, which is lower than the range of 2 to 2.5 percent of total installed costs which we would expect at this stage in the Project’s development.

6. The Pro Forma does not include expenses for inert purge gases, and building heating and cooling. GETH has stated that additional expenses are not needed.

7. We have been unable to confirm the estimated activated carbon and molecular sieve replacement and disposal costs based on the limited information provided.

Capital Cost

At this time, we do not have sufficient information to perform a capital cost review of the Project. We do note that the major equipment listed in the Pro Forma is supported by vendor quotations, supplier or emails. However, as a result of the outstanding process questions with respect to the nature of the syngas and method of handling the residual gas in the reactor, a complete cost review would be inconclusive. In addition, as the design is completed we would expect additional equipment may need to be added, such as a capacitor bank to improve the power factor. It also appears that the cost of installation of the major equipment is without a firm basis, and additional engineering and design are required to finalize the electrical design, piping, fire protection, or any structural modifications that the building may require. With these issues resolved, a cost review could be undertaken with additional information from GETH which would include information from the installation contractor.

Summary

The GETH Technology appears to be capable of producing a crude oil from tires and plastics. The GETH Technology also has the potential to produce other products, such as carbon black and steel (from tires only) and compressed syngas (from both tires and plastic), but the yield, quality and value of these byproducts is yet to be determined. The yield of all of the products and byproducts from both tires and plastics appear to be in the range of other systems with which we are familiar; however, the performance of the GETH Technology with respect to yield and quality of the several products requires further confirmation for the specific operating parameters that are planned for the Project. GETH has proposed to increase the throughput of the Project by decreasing the batch cycle time by approximately one hour. This minor reduction from the vendor recommendation is not unreasonable; however any additional reduction in cycle time would require operation of the system to confirm. The open items with respect to the cycle time, yield, and quality of the several products (particularly the syngas and the char) could be resolved with either extensive testing at an operational unit, or the construction and testing of a single unit at the proposed site.

July 14, 2016 Mr. Gary DeLaurentiis Green EnviroTech Holdings 210 S. Sierra Ave. – Suite A Oakdale, CA 95361 Mr.Joe Anderson Energy-Three 1997 Annapolis Exchange Parkway, Suite 300 Annapolis, MD 21401

Subject: GETH Pyrolysis System Process Certification Introduction BHP Engineering & Constructions, L.P. (“BHP”) has been requested to provide a process certification for a tire pyrolysis system by Green EnviroTech Holdings (“GETH”). This process certification is limited to the pyrolysis system selected by GETH and that this system will produce the desired products and will meet the required specifications. A separate certification for the organic chloride removal system will be provided by the third-party manufacturer.

This initial operating plan intends to operate as an eight reactor batch operation system to process a total of 104 tons per day (208,000 pounds per day) of tires to produce oil, syngas and char and recover any steel from the tire cord and belting. The oil is intended to be sold to ConocoPhillips Co., the syngas will be incinerated and the char and steel sold.

The major equipment of this system is a primary/secondary pyrolysis reactor, condensers, clarifying filters, organic chloride removal system, thermal oxidizer and cooling water system. The equipment will be designed by and purchased from third party suppliers. An oil heater and fractionation column will replace the secondary reactor of the original design. This alteration will be designed by BHP in collaboration with GETH and warranted by BHP. Objective The role of BHP has been to review, understand and witness the tire pyrolysis system selected by GETH and evaluate the capability of the system to produce the desired products. Having completed the analysis, this letter provides a process certification with appropriate conditions of the proposed system. At this point in time BHP has only been asked to provide a process certification for the system described in this document. Any other system or modification to this system, i.e., continuous reactor is not included.

Page 2 of 5 Green EnviroTech Holdings July 14, 2016

Expected Yields Below is the expected range of product yields based on percent of feed stock. The nameplate capacity of the plant will be 104 tons per day (208,000 pounds per day).

Product Range of Product

Yields Mass%

Oil 40-45%

Syngas 7-12%

Char 32-37%

Steel 5-10%

Project Costs BHP has reviewed the expected capital cost and the operating and maintenance (O&M) cost for the two cell (eight reactor) system that GETH has supplied and concur with these costs. The expected capital cost is $25,984,500. The first year O&M cost is $6,692,189, which is reduced to $6,032,189 in the second year due to the requirement in the first year for additional testing costs. Process Certification After review of the proposed GETH pyrolysis system and witness of a similar system, this process certification confirms the plant will be able to produce the expected range of yields listed above.

GETH will secure material and equipment warranties covering defects in workmanship from the third party equipment manufacturers. The equipment shall be capable of a 90% runtime. Typical warranty periods are 12 months from the equipment acceptance date or 18 months from the delivery date.

A separate certification of performance for the organic chloride removal system will be provided by the supplier. Conditions of Process Certification Below are conditions to the process certification by BHP:

1. As part of this study, BHP witnessed a similar system to the proposed GETH system in China during March 2016 using waste tires from China as feed stock. Data of this particular demonstration run was used as the basis for this certification. Although the tires used at the China plant may have a slightly different chemical composition than the tires from the United States, based on published tire data, any resultant variations


in product yields are expected to remain within the ranges established above. 2. Engineering data used to size the primary reactor, condensers and chloride removal

systems shall be validated by BHP. The secondary fractionation column design shall be produced by BHP.

3. A strict quality assurance/quality control (QA/QC) system administered by BHP shall be used in the Chinese reactor fabrication shop to ensure material and fabrication quality. For the plant construction quality control, Engineering, Project Management and Plant Construction shall also be administered by BHP.

4. Any other system or modification to this system, i.e., refining of oil products and/or continuous reactor is not included in this process certification.

5. The proposed GETH pyrolysis system is also capable of processing plastics into oil. This process certification does not cover using plastic as a feedstock, only tires.

6. The feedstock can be composed of a combination of passenger, truck, agricultural and industrial tires but excludes large off road tires.

7. The main equipment: primary reactors, inductive heating systems, condensers, thermal oxidizer and chloride removal system are all manufactured by third parties and will be supplied with manufacturers’ warranties.

Product Specifications The required oil specification from ConocoPhillips is the following:

Property Units Specification Hydrogen Sulfide mg/kg < 1

Sulfur %(m/m) < 1

API Gravity >25

Organic Chlorides mg/kg < 5

Micro Carbon Res %(m/m) < 1

Total Nitrogen %(m/m) < 10,000 ppm Fe mg/kg < 2 ppm

Ni mg/kg < 2 ppm

V mg/kg < 2 ppm

BS&W vol.% < 5

Mercaptan Sulfur ppm < 100


Vapor Pressure psi < 9

Acid No. mbKOH/g

< 0.5

Process Description Pyrolysis Pyrolysis is an irreversible decomposition of organic material at elevated temperatures and low pressure to change the physical phase of the material. This material does not combust because the decomposition occurs in the absence of oxygen. In this system tires are decomposed to produce oil, syngas and char. Any remaining steel from the tire cord or belting is recovered from the char stream.

Primary Reactor Shredded tires are loaded by an auger type conveyor into a horizontal cylindrical vessel reactor through a pressure sealed access manway. This particular phase of the system is a batch operation. The reactor is mounted on a variable speed motor driven trunnion and rotates slowly during the gasification phase of decomposition. Each reactor is indirectly heated by an electrical induction system that heats the reactor walls transmitting heat into the tires. The induction coils are mounted around the reactor wall with a small clearance to allow the reactor to rotate without moving the induction coils. A transformer is used to convert line power into low voltage, high amperage/frequency power. The reactor decomposes the tire into syngas and char. The syngas leaves the reactor and is piped to a pair of chilled water condensers arranged in parallel. Anything that did not gasify will be char or steel. The reactor has internal flighting to keep the material mixed and tumbling to ensure good heat transfer. When the gasification phase is complete, the reactor is allowed to cool slightly and is rotated in the opposite direction to push the char and steel out of the same exit pipe as the syngas onto an enclosed trough auger conveyor. The char handling system is isolated from the gasification process by a valve. Primary Condensers The syngas is piped from the reactor to a pair of exchangers arranged in parallel that use a closed loop cooling water system to condense the syngas into a liquid. Any gas that condenses is collected in a vessel located below each exchanger. The contents of these two vessels are known as light oil. Non-condensable syngas flows through a water seal vessel. The uncondensed gas may be directed to a gas clean-up system before being incinerated in a thermal oxidizer. Secondary Fractionation Light oil from the primary condensers is piped to a secondary fractionation column (to be jointly engineered by GETH and BHP). The secondary phase includes inductive electric heating and


product condensers. The process proceeds on a continuous basis from this point forward. The purpose of this fractionation is to produce a slightly more refined oil to meet the API gravity specification for the oil and to reduce the organic chloride content of the oil. This distilled oil is then pumped to a chloride removal system. Any remaining uncondensed syngas is then combined with the syngas from the primary reactor. Chloride Removal System After the secondary fractionation column the oil is pumped to a chloride removal system. This system requires the oil to be pressurized up to 300 psig and heated, by electric heater, to 500°F. The oil will flow through a reactor bed with a UOP catalyst to reduce the chloride content to meet the ConocoPhillips specification of less than 5 ppm. This catalyst is a non-regenerative type. After the chloride removal system the oil is cooled and sent to storage as the final product. Summary The data gathered from witnessing the testing in China along with analytics from samples taken during these tests accompanied by proposed chloride reduction technology illustrates that this system will produce the expected yields as outlined above and a light oil “blend stock” product consistent with ConocoPhillips specifications.

Very Truly Yours, BHP Engineering & Construction, L.P

Dong X. Pham, P.E

President

Wood Environment & Infrastructure Solutions, Inc. 200 American Metro Boulevard

Suite 113 Hamilton, NJ 08619

USA

T: 609-689-2829

www.woodplc.com

‘Wood’ is a trading name for John Wood Group PLC and its subsidiaries

August 15, 2019 Mr. Gary DeLaurentiis, CEO Green EnviroTech Holdings 210 S. Sierra Ave. — Suite A Oakdale, CA 95361

Subject: GETH Pyrolysis System Process Validation & Verification

Dear Mr. DeLaurentiis, Wood Environment & Infrastructure [Wood] was retained to provide verification of the technology developed by Green EnviroTech Holdings [GETH] as a device to be utilized for pyrolyzing tire rubber in a reverse process to create oil from rubber. The engineers of Wood reviewed the technology and concluded that the technology will in fact produce an oil that will meet or exceed the required specification. The validation did not address the removal of chlorides as verification for this chemical process will be provided by the equipment manufacturer. It is understood that the company [GETH] intends to build and operate a facility to process tire rubber in batch pyrolysis mode and recover the oil, syngas, carbon black and steel. The oil is to be sold to whatever refinery in the immediate area has the requirements for that particular recovered oil. The major equipment of this system is a primary/secondary pyrolysis reactor, condensers, clarifying filters, organic chloride removal system, thermal oxidizer and cooling water system. The equipment will be designed by and purchased from third party suppliers. An oil heater and fractionation column will replace the secondary reactor of the original design. This alteration will be designed by a collaboration of chemical engineers with GETH and warranted by the manufacturer.

Objective The role of Wood was to review, understand and perform the mass balance of the tire pyrolysis system selected by GETH and evaluate the capability of the system to produce the desired products. Having completed the analysis, this letter provides a process certification with appropriate conditions of the proposed system. At this point in time Wood has only been asked to provide a process validation for the system described in this document. Any other system or modification to this system, i.e., continuous reactor is not included.

Green EnviroTech Holdings August 15, 2019

Page 2 of 5

Expected Yields Below is the expected range of product yields based on percent of feed stock. The nameplate capacity of the plant will be 104 tons per day (208,000 pounds per day).

Product Range of Product Yields Mass%

Oil 40-450/0

Syngas 7-12%

Char 32-37%

Steel 5-10%

Project Costs Wood has performed a review of the expected capital cost and the operating and maintenance (O&M) cost for the two cell (eight reactor) system that GETH has supplied and agree with these costs. The expected capital cost is $25,984,500. The first year O&M cost is projected to cost $6,692,189, which is reduced to $6,032,189 in the second year due to the requirement in the first year for additional testing costs.

Process Verification After review of the proposed GETH pyrolysis system and review of a similar system, this process verification confirms the plant will be able to produce the expected range of yields listed above. GETH will secure material and equipment warranties covering defects in workmanship from the third-party equipment manufacturers. The equipment is expected to be capable of a 90% runtime. Typical warranty periods are 12 months from the equipment acceptance date or 18 months from the delivery date.

A separate certification of performance for the organic chloride removal system will be provided by the supplier.

Conditions of Process Certification Below are conditions to the process certification by BHP:

1. As part of this study, Wood witnessed a similar system to the proposed GETH system using waste tires as feed stock. The data of this particular demonstration run was used as the basis for this certification. Although the tires used at the China plant may have a slightly different chemical composition than the tires from the United States, based on published tire data, any resultant variations in product yields are expected to remain within the ranges established above.

2. Engineering data used to size the primary reactor, condensers and chloride removal systems shall be validated by Wood. The secondary fractionation column design shall be produced by a qualified manufacturer.


Page 3 of 5

3. A strict quality assurance/quality control (QA/QC) system administered and overseen by Wood shall be used in the reactor fabrication shop to ensure material and fabrication quality. For the plant construction quality control, Engineering, Project Management and Plant Construction shall also be administered by Wood.

4. Any other system or modification to this system, i.e., refining of oil products and/or continuous reactor is not included in this process certification.

5. The proposed GETH pyrolysis system is also capable of processing plastics into oil. This process certification does not cover using plastic as a feedstock, only tires.

6. The feedstock can be composed of a combination of passenger, truck, agricultural and industrial tires but excludes large off-road tires.

7. The main equipment: primary reactors, inductive heating systems, condensers, thermal oxidizer and chloride removal system are all manufactured by third parties and will be supplied with manufacturers' warranties.

Product Specifications The required oil specification from ConocoPhillips is the following:

Property Units Specification

Hydrogen Sulfide

mg/kg <1

Sulfur %(m/m) <1

API Gravity >25

Organic Chlorides

mg/kg <5

Micro Carbon Res

% (m/m) <1

Total Nitrogen % (m/m) < 10,000

Fe mg/kg < 2 ppm

Ni mg/kg < 2 ppm

V mg/kg < 2 ppm

BS&W vol.% <5

Mercaptan Sulfur

ppm < 100

Vapor Pressure psi <9

Acid No. mbKOH/ <0.5


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Process Description Pyrolysis is an irreversible decomposition of organic material at elevated temperatures and low pressure to change the physical phase of the material. This material does not combust because the decomposition occurs in the absence of oxygen. In this system tires are decomposed to produce oil, syngas and char. Any remaining steel from the tire cord or belting is recovered from the char stream.

Primary Reactor Shredded tires are loaded by an auger type conveyor into a horizontal cylindrical vessel reactor through a pressure sealed access manway. This particular phase of the system is a batch operation. The reactor is mounted on a variable speed motor driven trunnion and rotates slowly during the gasification phase of decomposition. Each reactor is indirectly heated by an electrical induction system that heats the reactor walls transmitting heat into the tires. The induction coils are mounted around the reactor wall with a small clearance to allow the reactor to rotate without moving the induction coils. A transformer is used to convert line power into low voltage, high amperage/frequency power. The reactor decomposes the tire into syngas and char. The syngas leaves the reactor and is piped to a pair of chilled water condensers arranged in parallel. Anything that did not gasify will be char or steel. The reactor has internal flighting to keep the material mixed and tumbling to ensure good heat transfer. When the gasification phase is complete, the reactor is allowed to cool slightly and is rotated in the opposite direction to push the char and steel out of the same exit pipe as the syngas onto an enclosed trough auger conveyor. The char handling system is isolated from the gasification process by a valve.

Primary Condensers The syngas is piped from the reactor to a pair of exchangers arranged in parallel that use a closed loop cooling water system to condense the syngas into a liquid. Any gas that condenses is collected in a vessel located below each exchanger. The contents of these two vessels are known as light oil. Non-condensable syngas flows through a water seal vessel. The uncondensed gas may be directed to a gas clean-up system before being incinerated in a thermal oxidizer.

Secondary Fractionation Light oil from the primary condensers is piped to a secondary fractionation column (to be jointly engineered by GETH and BHP). The secondary phase includes inductive electric heating and product condensers. The process proceeds on a continuous basis from this point forward. The purpose of this fractionation is to produce a slightly more refined oil to meet the API gravity specification for the oil and to reduce the organic chloride content of the oil. This distilled oil is then pumped to a chloride removal system- Any remaining uncondensed syngas is then combined with the syngas from the primary reactor.

Chloride Removal System


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After the secondary fractionation column, the oil is pumped to a chloride removal system. This system requires the oil to be pressurized up to 300 psig and heated, by electric heater, to 5000

F. The oil will flow through a reactor bed with a I-JOP catalyst to reduce the chloride content to meet the ConocoPhillips specification of less than 5 ppm. This catalyst is a nonregenerative type. After the chloride removal system, the oil is cooled and sent to storage as the final product.

Summary The data gathered from witnessing the testing on a bench scale demonstration unit specifically built for this purpose along with analytics from samples taken during these tests accompanied by proposed chloride reduction technology illustrates that this system will produce the expected yields as outlined above and a light oil "blend stock" product consistent with ConocoPhillips specifications.

Do not hesitate to contact me at (609) 631-2918 or via email at [email protected]. Sincerely, Wood Environment & Infrastructure Solutions, Inc.

Robert A Feller Associate Scientist

mailto:[email protected]

Date post:	18-Mar-2020
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