The Renewable, Cleaner, Profitable Choice THE WASTE TO ENERGY - - PowerPoint PPT Presentation

The Renewable, Cleaner, Profitable Choice

THE WASTE TO ENERGY OPTION An Extraordinary Funding Opportunity

Today’s Agenda

• 1. Introductions
• 2. Technical and Business Plan
• 3. Desired financing support
• 4. Q&A
• 5. Next steps
• 6. Adjournment

“Zero Waste” Option by Global Energy Solutions’ Thermal Conversion Technology

PROJECT: Thermal conversion waste-to-energy

• Capacity: 400 t/d; 28.5 MW
• Technology used: combination of gasification, pyrolysis,

high temperature melting - vitrification and filtration of gaseous and solid residual into molten material.

• Location: Pilotage landfill, Barangay San Antonio, San

Pedro, Laguna.

• Type of renewable energy: biomass – msw *

* MSW – Municipal Solid Waste

What is Thermo-chemical Conversion?

• Gasification is the thermal conversion of organic

materials, using indirect or direct heat at 350-500°C with a limited supply of oxygen, producing a syngas.

• Pyrolysis is the thermal degradation of organic

materials, using an indirect source of heat at 750- 1,200°C in the absence of oxygen, to produce a synthesis gas, leaving behind a carbon char.

• Combination of Gasification, Pyrolysis and High

Temperature melting (vitrification at 1,700°C). Thermal depolymerization, and hybrid systems.

Achieving “Zero Waste” Technology

• Thermal Converter technology offers a unique
• pportunity to achieve ―zero waste‖
• Provide capability to eliminate need for land disposal

(landfilling) of MSW and many hazardous waste

• Recover (renewable) energy from MSW and other
• rganic waste while producing salable by-products
• Eliminate landfilling of ash or other residual materials.

MSW is BIOMASS

• COMPOSITION OF METRO MANILA’S MSW

– Food & Kitchen waste 45% – Paper 17% – Plastic 16% – Yard waste (wood/grass) 7% – Rubber/Leather/Textile 5% – Metal 5% – Glass 3% – Others 2% – Total 100% Biodegradable (Organic) – 74%; Hydro Carbons – 90% Non-biodegradable – 26%; Inert/Inorganic – 10%

Cross Section of Thermal Converter

Typical Process Flow

• f Thermal Converter

In a Thermal Conversion process, all syngas and char produce are eventually use as fuel to supplement the fuel oil to maintain the 1700°C

• temperature. All syngas, metallic and inorganic residue are filtered thru

the molten media with dwell time of 6 to 8 seconds before it is release by the system.

Major Features of Thermal Converter

• Totally enclosed, water-tight, multi-chamber system that

processes different types of waste using gasification, pyrolysis, high temperature melting cleaning residuals by filtration into molten lava with dwell time of 6 to 8 seconds.

• Produces temperatures of up to 1,600°C to 1,700°C.
• Complete destruction of waste into elemental components
• r naturally-occurring compound.
• Total elimination of dioxin, furans, ash and fly ash.
• Reduction of waste volume from 2% to 3% sterile, inert, and

vitrified residue.

• Efficient conversion of every types of waste to energy.
• Can produce potable water from the energy production.
• Environmentally-friendly.

• Asbestos
• Chemical wastes & Emulsions
• Contaminated Water
• Hydrocarbons
• Medical & Clinical wastes
• Pharmaceuticals
• Photographic
• Putrescible
• PCB’s & Plastics

Thermal Converter remediation experience

• Classified Nuclear
• Industrial sludge/Slurries
• Municipal solid waste
• Liquid/solid organic wastes
• Toxic slurries
• Oil Products
• Offal
• Used tires/ Rubber

Thermal destruction table for different Waste Materials

Typical Thermal Converter System Layout

Proposed 400 ton per day plant

ROLL-UP DOOR ROLL-UP DOOR

FEED CONVEYOR BOX FEEDER RESIDUE CONVEYOR CONDENSER TURBINE BOILER CHIMNEY 550S CONVERTER UNIT

OVERHEAD CRANE FEED CONVEYOR BOX FEEDER RESIDUE CONVEYOR CONDENSER TURBINE BOILER CHIMNEY 550S CONVERTER UNIT OVERHEAD CRANE GARBAGE PIT GARBAGE PIT

Thermal Converter Plant 400 Tons/Day

ROLL-UP DOOR

FEED CONVEYOR BOX FEEDER RESIDUE CONVEYOR CONDENSER TURBINE BOILER CHIMNEY 350S CONVERTER UNIT

OVERHEAD CRANE GARBAGE PIT TEMPORARY SILO

Plant Elevation

History of the Technology

• 1978 – 1998 Design Services International (DSI),

a UK based company sold 18 installations (25 units) in 6 countries.

• 1999 GES was Incorporated in Sarasota, Florida and

took over from DSI, started the R&D that maximized heat recovery, improved efficiency and other features

• f the Thermal Converter (TC). Adopted DBOO as the

new marketing strategy while maintaining good attributes of the old TC.

• 2001 to present – GES is actively promoting the TC
• worldwide. New developments like global warming,

renewable energy options, scarcity of landfill areas triggers the resurgence of the TC.

Thermal Converter Facilities Worldwide Installations

Client Location Capacity Type of waste Input

Model tpd

Belgonnucleare Belgium 120S 41 Radio Active Cho Yang Co.

• So. Korea 150M

72 Industrial/ Domestic Continental Tires Germany 150S 72 Motor Tires Derbyshire Waste UK 350S 205 Industrial/ Domestic Derbyshire Waste UK 250S 144 Liquid Waste Ebara-Infilco Japan 120S 41 Pilot/ Industrial Ebara Mfg. Japan 150S 72 Industrial Fujisawa Japan 350S 204 Industrial Hino Cars Japan 200S 120 Industrial/ Auto Japan Gas Corp. Japan 250S 144 Domestic (8 units) Kingsland Waste Malta 150M 72 Domestic mobile Kunahashi Foods Japan 300S 180 Industrial MOL S.C.K. Belgium 150S 72 Industrial Sanyo-Tokyo Japan 300S 180 Industrial Steaveley Chemical UK 300S 180 Industrial/ Domestic Tokyo City Japan 350S 204 Domestic (contaminated) Tokyo Metropolitan Japan 300S 180 Domestic Volkswagen Germany 550S 420 Industrial/ Domestic/ Auto

Marketable Products

• Products/businesses created for every ton
• f MSW processed:

– Electricity — 1,588 KWe for every ton of MSW with average calorific value of 3500 Kcal/kg. – Water — 14,200 gals. (65 cu.m) per ton of MSW – Steam — 7,600 lbs/ton MSW if needed. – Solid Residue — 30 kg of vitrified, inert and sterile

• residue. (2-3% by weight of the processed waste)

– Carbon Credits — 2.60 to 5.286 tons CO2e

Thermal Converter in Operation

Volkswagen Plant in Germany

Commercial 420-ton/day, Model 550S, Thermal Converter System

• Mixed Industrial, Municipal Solid

Waste (MSW) and Automobile Shredder residue.

• Plant is complete waste to energy facility
• Generates 14.0 MW of electricity
• Fully operational for 20 years up to 2001

Vitrified MSW residue

Composition of Inert and Vitrified Residue

The solid residue from 1,000 tons per day plant is normally 30 tons per day of vitrified, inert and sterile materials with a typical analysis as follows: SiO2 24.6% FeO 34.0% Fe2O3 14.2% CaO 7.6% MnO 3.45% MgO 1.48% TiO 3.2% K2O 0.6% Al2O3 7.8% Na2O 1.9% SO3 0.32% Combustible 0.1% Density 2000 kg. /cu.m. Melting point 1420ºC pH 6.7 Humidity 0.21%

Thermal Converter vs. Incineration

THERMAL CONVERSION PROCESS TRADITIONAL INCINERATION * No Pre-sorting required * Non combustibles remain * Most known wastes destroyed * Only solids and combustibles * Operating temperature 17000C. * Usual 10000C Max 12000C * Process- Pyro Thermic Reaction. * Simple combustion * Very low refractory use * High refractory use, high cost * Waste weight reduction 97% * Waste reduction 60-70% * Residue- Inert / Sterile granulates * Un-burnt requires post treatment * Low running cost * Low efficiency, i.e. high running costs * Low maintenance costs, low downtime * High maintenance extended downtime * Space saving * Extensive land requirement * High heat recovery * Low efficiency energy conversion * All international emission standards met * Possibility of toxic emissions due to lower temperatures * Hazardous waste disposed of * This facility not available * Clinical Waste disposed of * This facility not available * Liquid waste disposed of * This facility not available

Benefits of Thermal Converter

• Increased Recycling.
• Generation of Renewable Energy.
• Elimination of Landfill and Landfill Impacts.
• Offsets to Fossil Fuel Usage.
• Lower Air Emissions.
• Reduced Carbon Emissions.
• Zero Waste.
• Additional Income to the LGU.
• No Capital Cost to the LGU.
• Increased environmental and economic sustainability

Technology Approval

ECC Approval

GES Thermal Converter Zero Waste – Total waste management

Thermal Conversion Waste to Renewable Energy Financial Projection for 400-ton per day Operation

Project Cost (USD)

Equipment $66,000,000 Bldg & Land Development $5,000,000 Power Transmission $650,000 Technology Franchise $5,000,000 Project Cost $76,650,000 O & M $5,500,000 Working Capital* $10,500,000 Total Funding $92,650,000

* Includes 12% interest on capital for 24-month construction period

Funding Requirements

Equity (35%) USD $32,427,500

NDC /RRERI $5,000,000 GES (Supplier’s Equity ) $7,427,500 Local Investors $20,000,000

Debt (65%) $60,222,500

SYNDICATE OF BANKS $60,222,500

Total Funding $92,650,000

Marketable Products

Production per ton of MSW processed:

• Electricity – 1,588 KWe for every ton of MSW

with average calorific value of 3,000 Kcal/kg.

• Water – 14,200 gals. (65 cu.m) per ton of MSW
• Steam - 7,600 lbs/ton MSW if needed.
• Solid Residue – 30 kg of vitrified, inert and

sterile residue.

• Carbon Credits – 2.60 to 5.286 tons CO2e

Projected Annual Income (USD)

Power Production $25,692,000 Tipping Fee $730,000 Residue $427,000 Carbon Credit $3,825,000 Total $30,674,000

Other Income Sources: Industrial, Hospital , Hazardous Waste $803,000 Steam $2,920,000 Desalinated/Purified Water $14,600,000 Sub Total - $18,323,000 Total PAI (including other sources) $48,997,000

Projected Operating Expense (O&M)

Operating Cost $ 2,615,000 Insurance & Bonds $1,640,000 LGU Fund $440,000 PR, Entertainment & Misc. $200,000 Utilities $100,000 Contingencies $500,000 Total $5,500,000

Projected Annual Capital Cost

Assumptions:

• Interest at 12 per cent per annum
• 10-year term, 2-year moratorium on principal
• Total capital cost is $76.650 Million

ACC = (76.650 x 0.12) / {1 – [1/ (1.12)10]} = 9.198 / [ 1- 0.322] = $13,566,000

Projected Net Income Before Tax

Projected Annual Income - $30,674,000 Annual Capital Cost - $13,566,000 O & M Cost - $5,500,000 Net Income before Tax - $11,608,000 ROI1 35.8%

Note: ROI to improve when other income sources are tapped.

Projected Cash Flow (USD)

PROJECTED CASH FLOW in $000 Period Pre-op Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 SOURCES OF FUNDS Cash, Beginning 1,246 8,556 16,829 26,081 36,337 47,618 60,947 74,836 87,585 108,332 Equity/Cash Infusion 32,428 Bank Loans 60,222 Income from MSW 730 730 730 730 730 730 730 730 730 730 Income from RE (power) 25,692 25,692 25,692 25,692 25,692 25,692 25,692 25,692 25,692 25,692 Income from Residue 427 427 427 427 427 427 427 427 427 427 Income from CER 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 Total Sources of Funds 92,650 31,921 39,230 47,503 56,755 67,011 78,293 91,621 105,511 118,259 139,007 USES OF FUNDS: Capital Expenditure 71,650 Franchise Cost 5,000 Operating & other Expense 5,000 5,250 5,513 5,788 6,078 6,381 6,700 7,036 7,387 7,757 Lease on Land 300 155 155 171 188 206 227 250 275 302 332 Contingency 500 500 500 500 500 500 500 500 500 500 NDC's Interest on Investment 1,956 1,645 1,292 899 468 NDC Equity Divestment 1,000 1,000 1,000 1,000 1,000 Bank Loan-Interest 14,453 7,227 6,323 5,420 4,517 3,613 2,710 1,807 903 Bank Loan-Principal payment 7,528 7,528 7,528 7,528 7,528 7,528 7,528 7,528 Taxes 1,685 1,738 1,698 Total Uses of Funds 91,403 23,365 22,401 21,422 20,419 19,393 17,346 16,785 17,926 9,927 10,286 Cash Balance, End 1,246 8,556 16,829 26,081 36,337 47,618 60,947 74,836 87,585 108,332 128,720

Financial Highlights

MITIGATING PROJECT RISKS

Solutions Against Perceived Problems

Technology

• Successful track record of operating facilities in two

continents – Europe and Asia

• These operations were certified from environmental

consultants i.e., Lansdown Consultants Ltd.

• DENR-EMB Technology Approval for non-emission
• f harmful gases; continuous emission monitoring

system is part of the system. Environmental Clearance Certificate (ECC) was also issued for the operation.

• With fail-safe mechanism to mitigate technological

accidents.

• Obsolescence - Unlike electronics, the technology does

not change very much for decades, the only changes are due only to increase in efficiency and appearance.

Project Merit/Credit Justifications

• Projected Balance Sheet strength
• Solid collaterals
• Guaranteed unlimited, long-term waste supply from within

the landfill

• Renewable Energy Payment Agreement (REPA); through

Feed In Tariff rules of RE law

• Guaranteed power purchase
• Emission Reduction Purchase Agreement

(ERPA-CERs)

• Positive cash flows, P&L (debt-service capacity)
• Incentives (tax holidays) from laws: Renewable Energy,

Clean Air and Ecological Waste Management

Revenue Security

• Guaranteed, fresh waste supply – from Metro Manila;

8,000 tons per day, higher as population booms;

• Non-intermittent supply from landfill stockpile
• Affordable tipping fees for LGUs (assured of no limit and

continuing service); better tipping income from industrial, hazardous and toxic waste sources

• Base load RE plant inside Meralco franchise area; may also

sell to bulk power users thru WESM’s ―Open Access‖ policy

• RE generators – first priority dispatch; non-RE generators

required to purchase 10% from RE generators; savings from tax incentives; applicable FIT rates from ERC

• CER income from LFG mitigation and displacement of fossil

fuel from the grid

Market Competition

• Methane capture – low recovery of LFG because
• f excessive fugitive emissions; will not eliminate

many waste materials

• Bagasse to Energy – dependent on smaller supply
• f raw materials; less efficient
• Geothermal, Wind, Hydro, Solar – intermittent source
• f power; limited capacity utilization (30% only)
• Other Biomass – negligible volume power supply
• Landfill – not sustainable; waste diversion, not a permanent

solution; contributes to leaching of precious water table

• Incineration – banned; produces ash, fly ash, furans, dioxins;

expensive to operate producing less power

Future Use

• Technology can retrofit in an old set up of a coal plant
• Increase efficiency of the old coal plant, will improved

power production, less CO2 therefore viability

• Treatment of waste and coal as feedstock will have no

harmful emissions nor ash residues

• This is what they call

The Clean Coal Technology!

The Needed Support:

A Long Term Project Finance Facility

Omnibus 10-Year Loan

• Short-term P300M Bridge Loan

– Permitting & Licensing – Filing fees, doc stamps, taxes – Project development costs, including social engineering – Project administration (technical, legal, etc.), consulting and professional fee – Equity build-up and loan transaction costs

• 10-year P2.830B Syndicated Term Loan

(USD60.222 M @ USD1:P47)

Proposed Collateral Pool

• 31 has. Cavite Property
• Project Assets
• Negative Pledge on Shares of Key Shareholders
• Portion of Free Cashflows
• Sinking Fund

Desired Repayment Terms

• Tenor: On Bridge – 2 years or on Tranche 1 of

Syndicated Term Loan, whichever comes first; On Main Loan – 10 years

• Interest Rate: Most favorable
• 2 years’ moratorium on principal – Main Loan
• 20 Equal Semestral Repayments Commencing

at End of 2/H of Year 2 – Main Loan

Project Status

• GES Technology Asian franchise obtained
• 25-year lease on Miranda landfill signed
• Technology approval obtained
• ECC approval obtained
• R/E Service contractor filings under way
• Efforts to obtain LGU endorsement commenced
• Equity build-up ongoing and Project debt-financing

arrangements commenced

Thank You