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Turning Sewage into Power or Diesel April, 2010 Highly Confidential W T E IG E
Turning Sewage into Power or Diesel
April, 2010
Highly Confidential
W TEIGE
WET-EIG © 2
Key Points
Produces significant amounts of transportation fuel from almost worthless inputs: Sewage sludge Municipal solid waste (MSW) Low grade coal (lignite) Biomass
WET-EIG provides best technology & develops the project Lower capital, operating, maintenance costs than competitors
Modular from 12 to 600 tonnes/day feedstock Super low emissions, operates too cool to for CO or NOx Best in class @ 65%+ conversion efficiency
WET-EIG ©
Disclaimer
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This presentation (the “Presentation”) is being solely issued to those persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (“Financial Promotion”) Order 2001 (the “Financial Promotions Order”). THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED, CIRCULATED, DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY RECIPIENTS TO ANY OTHER PARTY.
The Presentation does not constitute or form any part of any offer or invitation to sell or issue or purchase or subscribe for any shares in Energy Invest Group (“WET-EIG” or the “Company”) nor shall the Presentation or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract with the Company relating to any securities. Any decision regarding any proposed subscription for shares in the Company must be made solely on the basis of document to be produced in due course. The Presentation is not intended to be distributed or passed on, directly or indirectly, or to any other class of persons. This document is being supplied to you solely for your information and may not be reproduced, forwarded to any other person or published, in whole or in part, for any other purpose.
No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. Any reliance on this document could potentially expose you to a significant risk of losing all of the property invested by you or incurring by you of additional liability. No representation or warranty, express or implied, is given by the Company, its Directors or employees, or their professional advisors as to the accuracy, fairness, sufficiency or completeness of the information, opinions or beliefs contained in this document. No liability is accepted for any loss, cost or damage suffered or incurred as a result of the reliance on such information, opinions or beliefs.
This document is exempt from the general restriction on the communication of invitation or inducements to enter into investment activity and has therefore not been approved by an authorised person as would otherwise be required by section 21 of the Financial Services and Markets Act 2000. Any investment to which this document relates is available to (and any investment activity to which it relates will be engaged with) only to those persons described above. Persons who do not fall within this category of investors should not take any action upon this document, but should return it immediately to WET-EIG, 18b Charles Street, Mayfair, London W1J 5DU. It is a condition of your receiving this document that you fall within, and you warrant to the Company that you fall within, the category of person described above.
If you are in any doubt about the investment to which this Presentation relate, you should consult a person authorised by the Financial Services Authority who specialises in advising on securities of the kind described in this document.
PROCESS OVERVIEWULTRA-CLEAN GASIFIER
SMALL SCALE FT PROCESS
WET-EIG’s Technology
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Human Sludge Processing
Dewater Originally sewage is ~80% water, so de-water to ~40% Waste heat will reduce this to ~30% before entering gassifier
Gasify & Clean Scrub away sulphur (H2S), nitrogen (N2) and oxygen (O2)
Produce clean synthesis gas (CO and H2)
Burn to generate electricity or condense into diesel Generates ~1.2 MWhr/tonne of dewatered sludge, or Produces ~230 litres/tonne of dewatered sludge
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Technology Background
Since 1990 the Company has installed over 1000 low NOx burners It has set the California’s emissions standards 4 times, currently < 9ppm NOx, < 50ppm CO
First experience in gasification in Daoling, China in 1993 Makes 24,000 gals/day of fuel from tyres Pyrolize tyers at 400-450°C to make black oil suitable as coal substitute for power production,
but not good for autos, more like light bunker fuel with ~0.4% sulfur Built a similar 12,000 g/d tyre plan in Nankang, Taiwan in 2000
Produces a cleaner fueld Italy glass recycling plant
Since 4yrs, 100 kg/hr, remove plastic & metals from auto glass Heat used for power generation to run the plant, though still in pilot Larger plant being designed at 500 kg/hr
220 kg/hr plant in Oregon generates 265kW net power Human sludge plant in Los Angeles (Carson), demo plant @ 50 kg/hr
Has led to orders for 4 plants at 1-10 ton/hour for Brazil, China, Malaysia, India
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Pyrolysis Step
Processes carbonaceous material, such as coal, wood chips or sewage sludge into carbon monoxide and hydrogen (CO + H2) Partial vacuum – reduces oxygen content in the chamber
Reducing oxygen content reduces CO2 + SOX formation
Patented burner system leads to lowest NOX emissions in the world
Rotating feed column circulates coal in reactor over a period of time (30mins -55mins)
Inert ash is collected at the base of the reactor Ideal feedstock
Water content ~25% Increases hydrogen production
Low ash / high calorific condition Low Sulphur
Reduce cost of clean up stage
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C + H2O → H2 + CO
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Low Temp Gasifier
Technology Gasifies organic matter, coal or pet-coke at 750-1000 F to produce syngas (H2, CO and CO2) Syngas used to create synthetic diesel and other petroleum products Remainder used to generate electricity for plant
Operates too cool to for CO or NOx 400-650°C (750-1200°F) vs 980-1650°C (1800-3000°F)
12 proven units in the field operating various feedstock Coal, pet-coke, municipal solid waste (MSW), tires, plastics
Automatic augur system removes slag Less maintenance, longer catalyst life
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Steam Reforming step
The F-T process requires a ~2:1 hydrogen to carbon monoxide ratio
Most coal types do not produce enough hydrogen Additional hydrogen is created in the reforming step
Pyrolysis step also produces a large amount of methane, perfect for reforming with steam CH4 + H2O 3H2 + CO
CH4 + 2H2O 4H2 + CO2
Depending on operating conditions either reaction 1 or 2 will be favoured. Reaction 2 generates more hydrogen but as a consequence generates more CO2
Hydrogen 23.4112
CO 16.7571
Methane 31.7013Ethane 0
Propane 1.7765
i-Butane 0.9432n-Butane 0.2282
i-Pentane 1.3242n-Pentane 1.0329C6+ 1.7787Oxygen 1.0731Nitrogen 9.0869CO2 6.2899Ethylene 4.5968
Total 100
% gas composition after pyrolysis
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Fischer-Tropsch Process
As previously stated the H2 and CO must be fed into the reactor as 2:1 ratio to maximise conversion efficiency
All sulphur and other contaminants must be removed to prevent poisoning the catalyst
The process uses a floating bed reactor with a high boiling point fluid to transport the F-T catalyst Encourages mixing and reduce chance of carbon deposits on catalyst
There are 2 types of catalyst WET-EIG Asia promotes Iron Oxide
Cheaper but more susceptible to pressure changes. Produces lighter hydrocarbon chains Cobalt
Produces a constant stream of product not depending on pressure. Also catalyst tends to produce heavier compounds, ideal for refinery specification
Reaction formula:
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(2n+1) H2 + nCO → CnH2n+2 + nH2O
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50kg/hr Test Plant
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Burner / Gasifier Fischer Tropsch Unit Synthetic Diesel
Test burn of synthesis gas
In addition to sewage sludge, the company has gassified over 75 types of coal, a dozen different plastics, rubber, rail road ties, municipal solid waste, medical waste and biomass (rice straw, grass, wood chips, soy bean shells, switch grass), chicken manure, cow dung, etc.
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Sewage Sludge-to-Diesel Pilot Plant
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Human sludge plant in Los Angeles (Carson), demo plant @ 100 kg/hourHas run 24 hours/day almost continuously since January, 2009Avoids $70/ton transport charge to San DiegoReduces volume by 92%, lose 1.8%, remaining residue (carbon/phosphorus) makes good fertilizer
Give back surplus waterCurrently planning for 60 ton/hour plant for 3.5 million population of Long Beach and surrounding area
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1,500 L/day modular plant
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2 pyrolysis units @ ½ ton/ hr capacity 2 venturi scrubbers
Remove particulates Cool syngas
1 gas compression unit 1 desulphurization unit
3 towers if sulphur content is over 1% 1 reforming step – hydrogen
production Steam injection
2 PSA (Pressure swing adsorption) units Captures and separates H2 and CO Enables plant operator to control gas
ratio in F-T process 1 F-T reactor for liquid fuel production
Final liquid upgrade and distillation
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Sludge Plant @ ~150,000 L/day
Footprint: 12,000 ft2 (1,115 m2 )
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Once started the plant is Auto-Reforming.Output depends upon feedstock.For 150,000 litres/day: 370 tons of Plastic 540 tons of Coal (8,000 btu/lb Lignite) 700 tons of human sludge (@ 40% water) 750 tons of BiomassNote: plant can be configured for 75,000 L/day or 35,000 L/day
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Sewage Plant Capacity
Plant size depends upon size of legacy deposit and on-going population needs
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Note: on a wet basis the figures above will be 5x larger
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Versatile FT system
No water for sewage sludge Other feed stocks require little water (1.5 litres water / litre diesel)
Competing systems use up to 24 L water / L diesel
High yield (~65% efficiency, best in class) Actual conversion depends energy content of the feedstock Testing with many dozen types of coal, waste, biomass and sewage sludge Sulphur content easily removed
Coal illustrates that yield depends upon heat value of feedstock Sewage sludge varies by diet, but is roughly 10,000 BTU/lb or 5,600 kcal/kg
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Coal/Day, Short & Metric Tons 6,000 5,500 5,000 4,500 4,000 3,600Coal/Yr, Mln Short & Metric Tons 2.1 1.9 1.8 1.6 1.4 1.3Heat Content, BTU/Lb & Kcal/Kg 8,000 4,400 10,000 5,600 12,000 6,700Yield, Gallons/Ton & Litres/Tonne 67 280 86 360 103 430 Diesel/Year, million gallons & litres 140.7 532.5 150.5 569.6 144.2 545.8
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Plant can be configured to produce just electricity, just fuel or a combination
Factors to consider Generating electricity is less expensive, but power is
very difficult to store Better overall conversion efficiency, though it also
depends upon turbine efficiency A range of fuels can be produced
In addition to diesel, the plant can produce gasoline, jet fuel and, if there is demand for it, then certain waxes
Output: Power vs Fuel
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Sewage to Power Economics
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Note: Capex depends turbine cost (ranges $0.7-1.3m/MW); returns also depend upon sales price of power ($/kWhr).
Wet Sludge (% moisture) 80% 375 750 1,125 1,500 1,875 2,250Dewatered metric tons / day 25% 100 200 300 400 500 600Capex
Dewatering $0.3m $0.5m $0.8m $1.0m $1.3m $1.5mGassification $6.0m $10.0m $14.0m $16.8m $20.5m $24.2mPower Generator $1.0m $6.0m $9.9m $14.9m $17.9m $21.8m $25.7mStart-up & Training $0.1m $0.1m $0.1m $0.2m $0.2m $0.2mContingency 10% $1.2m $2.1m $3.0m $3.6m $4.4m $5.2mTotal Power Capex $13.5m $22.6m $32.8m $39.4m $48.1m $56.8m$/capacity ton $135,000 $113,000 $109,000 $99,000 $96,000 $95,000
Operating DataOutput kWhr/d 119,000 238,100 357,400 476,400 595,400 714,500Sales $/day @ $/kWhr $0.07 $8,300 $16,700 $25,000 $33,300 $41,700 $50,000Operating costs/day -$1,900 -$3,700 -$5,600 -$7,400 -$9,300 -$11,100
$6,400 $13,000 $19,400 $25,900 $32,400 $38,900$2.2m $4.6m $6.8m $9.1m $11.3m $13.6m
ReturnsPayback Yrs 6.0 5.0 4.8 4.3 4.2 4.2IRR 16% 20% 20.2% 22.6% 23.2% 23.6%NPV 10% $6m $16m $25m $38m $48m $59m
Operating income/dayAnnual pre-tax income (350 days)
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Sewage to Fuel Economics
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Note: Returns depend upon sales price of fuel ($/L).
Wet Sludge (% moisture) 80% 375 750 1,125 1,500 1,875 2,250Dewatered metric tons / day 25% 100 200 300 400 500 600Capex
Dewatering $0.3m $0.5m $0.8m $1.0m $1.3m $1.5mGassification $6.0m $10.0m $14.0m $16.8m $20.5m $24.2mFT unit $5.9m $9.8m $13.7m $16.4m $20.0m $23.7mStart-up & Training $0.1m $0.1m $0.1m $0.2m $0.2m $0.2mContingency 10% $1.2m $2.0m $2.9m $3.4m $4.2m $5.0mTotal Fuel Capex $13.4m $22.4m $31.4m $37.8m $46.2m $54.5m$/capacity ton $134,000 $112,000 $105,000 $95,000 $92,000 $91,000
Operating DataFuel output - L/d 29,600 59,200 88,800 118,400 148,000 177,600Sales $/day @ $/Litre $0.56 $16,600 $33,200 $49,700 $66,300 $82,900 $99,500Operating costs/day -$5,100 -$10,200 -$15,300 -$20,400 -$25,500 -$30,600
$11,500 $23,000 $34,400 $45,900 $57,400 $68,900$4.0m $8.1m $12.0m $16.1m $20.1m $24.1m
ReturnsPayback Yrs 3.2 2.7 2.5 2.3 2.2 2.2IRR 31% 37% 40% 44% 45% 46%NPV 10% $22m $49m $75m $105m $132m $160m
Operating income/dayPre-tax income (350 days)
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Summary
WET-EIG offers best in class technology Has set strict California emissions standards four times
Smaller scale and modular Major supplier Sasol/Lurgi plants start at 6,000-10,000 tons per day
with capital cost of $750-$1,000 million WET-EIG’s technology ranges from 24-600 tons per day @ $6-60
million
Feedstock determines yields High calorific, low moisture, low ash feedstock produce more diesel Conversion efficiencies of ~65% feedstock calories to diesel
