feb 20 landsmiths and sentinel presentation to haryana government

“MUNICIPAL SOLID WASTE (MSW) TO RENEWABLE POWER” MEETING BASE LOAD REQUIREMENTS FOR

GURGAON & FARIDABAD CLUSTER, HARYANA

INCORPORATING DEVELOPER, EPC, & WTE TECHNOLOGY PARTNERS

LANDSMITHS

February 20 2016

SENTINEL

SENTINEL & LANDSMITHS1

SENTINEL

AN INDO-CANADIAN INITIATIVE• A joint Initiative by an Indian Start-Up company LANDSMITHS

(Chandigarh, India) and a Canadian Innovative Technology Provider and Systems Integrator SENTI NEL (Toronto, ON, Canada).

• A member company of Canada-India Business Council, • Directly Contributing to the Goal of “Swachh Bharat (Clean India Campaign)”• Indirect contribution to “Make in India Campaign”• For a “First of it’s kind” “Waste Processing to Energy (WPTE)” Project in India

and Haryana based on PPP (P3) Model

SENTINEL & LANDSMITHS 2

SENTINEL and LANDSMITHS Team at the Ontario Premier’s Reception in Chandigarh on Feb 03, 2016

SENTINEL is also in advanced discussion stage for projects in the USA, Ireland, Pakistan, and Abu Dhabi

SENTINEL

Highly Urbanized Demographics

GURGAON

FARIDABAD

SENTINEL

OBJECTIVES & KEY BENEFITS

Contributing to “Swachh Bharat” (Clean India) campaigns Diverting 100% of MSW (2,000-2,400 TPD) away from landfill,

Eliminating landfill operating cost Production of EnerPax+ solid fuel pellets to generate clean and renewable power (80-

100MW) Almost Zero Odour using closed facilities under negative pressure and bio filters Zero waste and no requirement for any sanitary landfill

Long-Term Job Creation (approximately 200-250) including indirect business growth by support and ancillary services

Public Health and quality of life improvement of informal collectors of municipal solid waste

Improving India’s Environmental Footprint Equipment vendors introduced by SENTINEL could partner with local

manufacturers contributing to “Make in India” initiative


SENTINEL

SOCIO-ECONOMIC BENEFITS(Converting Waste to a Commodity)

Reduction of GHG by removing MSW from future Landfill

More efficient in electricity production compared to “mass-burn incineration based” Energy From Waste (EFW) facilities/metric tonne of MSW delivered Less than half of ash produced compared to most EFW facilities

Residue from process and ash from kilns used effectively to produce additional commercial benefit, at the plant

Very high efficiency of plant operation (up time), at approximately 92-95% of available hours, due to process design Tip floor designed to allow additional capacity than contracted, to ensure swings in MSW

delivery are accounted for

Electricity produced available on continuous basis, less agreed times for maintenance shutdowns, to connect to grid as base production


SENTINEL

WHY GURGAON?

SENTINEL

Current Status of Solid Waste Management

Source: Internet Document

SENTINEL

MSW QUANTITY ESTIMATION

Source:

• SENTINEL proposes to use waste generation capacity of 500 grams/capita/day to estimate msw availability at the proposed wast processing and power generation facility, which is expected to be located in between Gurgaon and Faridabad (to be confirmed)

• The assumption is based on the recent report in “The Hindu” newspaper.

SENTINEL

Gurgaon Demographics

http://www.indiaonlinepages.com/population/gurgaon-population.html

SENTINEL

Faridabad DemographicsDescription 2011 2001Actual Population 1,809,733 1,365,465Male 966,110 747,673Female 843,623 617,792Population Growth 32.54% 58.88%Area Sq. Km 741 741Density/km2 2,442 1,744

http://www.census2011.co.in/census/district/227-faridabad.html

SENTINEL

Demographics Projection

Currently, about 15 lakh people live in Gurgaon. By 2021, that is likely to go up to 30 lakh. Similarly, in Faridabad, the adjoining NCR district, the total population of 18 lakh is likely to grow to 28 lakh in 2021.

http://timesofindia.indiatimes.com/city/gurgaon/Gurgaons-population-to-rise-to-30-lakh-by-2021/articleshow/35800381.cms

A feasibility study conducted for launching intra-bus services in the town, by a private sector company, has warned that the population in Gurgaon is rising at an alarming pace and would touch 58 lakh-mark in the year 2031, from the existing 25 lakh.

http://www.hindustantimes.com/india-news/gurgaon-s-population-set-to-touch-58-lakh-by-2031-study/article1-496015.aspx







SENTINEL

CHALLENGES AND SOLUTIONS Waste Tonnage As specified above, the project requires additional verification of plastic content within the MSW and/or added Third

Party Plastics. A new collection system will ensure the tonnage schedule as requested High Moisture Content (MC) Plastic bags or closed containers could be distributed to the households and commercial areas for collecting of MSW,

to exclude moisture from atmosphere. Target MC for MSW received at plant should be kept below 50%, with plastic content Odour Control The proposed design includes a very effective odour control system including negative pressure HVAC operation,

combined with the aforementioned bio-filtration system Environmental Issues Meeting Pollution Control Requirements. Flue Gas Cleaning process will be designed in excess of that for a standard

coal-fired power plant. Furan & dioxin control is available due to the removal of all PVC material, from the pellets, therefore, lack of chlorine in exhaust gasses, minimizing effect of HCL necessary for production of the above gasses.

Public Health Clean work place safety and health condition Tipping Fee and Project Economics Very low or non-existent. A higher Tariff for producing power and connecting to grid would support the socio-

economic benefit of diverting MSW from landfill Need long-term operational plan (e.g., 30+ Years) for successful implementation

SENTINEL

PROPOSED PROJECT STRUCTURE

Special Purpose Vehicle (SPV)A Local Company Formed to Implement, own and operate the proposed facility

THIRD PARTY INVESTOR,

A SENTINEL Associate

LANDSMITHS (Project Developer)Technology Provider and

Systems Integrator

Gurgaon and Faridabad Municipal

Corporations

SENTINEL

TYPICAL CURRENT PRACTICE IN INDIA

SENTINEL proposal stops the process at this level, and there is no requirement of a sanitary landfill (a major socio-economical and environmental improvement).

Renewable Power from processed fuel by converting MSW

INTEGRATED PROCESS OVERVIEW

SENTINEL

PROCESS SUMMARY (Sample Mass Balance for a 2,000 TPD

Facility)624,000 MTPA (2000 MTPD) of MSW plus plastic to 355,880+ MTPA of

Fuel Pellets (57%) + 150 TPD of Tire Derived Fuel (TDF)

Pellet Plant Residue (±19.5% of total MSW), plus 8% ash content from power plant, used in production of usable “green” aggregate

Fuel Pellets to 90-100 MW of Electricity Potential

Additional Revenue

NOTE: FOR INFORMATION ONLY

Mass Balance (MSW to Pellets:Evaporated – 21.3%, Pellets - 57.7%, Residue – 19.5%,Metals – 1.5%


SENTINEL

PELLETIZATION PROCESS

LINK FOR THE PROCESS VIDEO


SENTINEL

TECHNOLOGY FEATURES

• Patented Pelletizing Technology (Automated)– Dense material, easy to transport and store– Modular, scalable technology– Low moisture content 6-8% in pellet fuel (compared to 18-20% for

RDF)– Low Ash 7-8% produced (compared to as much as 20-25% for WTE)– Pellets were tested in CFB boilers (AES, USA) and also in Rotary Kiln

Gasifiers (HTI, USA). – Use of pellet in combination/replacement of coal reduces NOx and

SO2 emissions in region• Odour controlled at plant level using negative air pressure

combined with bio-filter system


SENTINEL

North America’s Largest Biofilter System

Plant Ventilation and Dryer Exhaust Air Biofiltration Odour Control: Odour produced from the MSW will be controlled by maintaining the facility under negative pressure, with more air exhausted than supplied to the facility. Dependent on regulatory requirements and costs, the plant exhaust air can be routed through exhaust fans, then humidified and allowed to flow through biofilters. Biofiltration is an example of a fixed-film bioreactor. Microbial colonies are immobilized on a support structure or matrix consisting of many different types of materials. Historically, bio-filter media has consisted of wood bark, roots, wood chips, compost or soil. Recent advances with the technology have been made possible with the advent of synthetic or manufactured medias.

Synthetic Biofiltration Material

SENTINEL

Residue Processed to “Green” Aggregates

All residue (18%-20% of MSW received) returned/removed from the process that cannot be made in to a pellet then to production of electricity, will be processed through our partner’s (ASC) patented technology to a useful aggregate used for concrete block. Aggregate Remade uses various patented technologies to convert domestic and industrial waste streams into Artificial Aggregates. First Stage Development The process typically involves the activation of high Lime content ash or waste residue streams mixed together, then activated both chemically and mechanically, to form a product that can be tested to show no leachate properties. This bi-product can then be converted to small usable aggregate pellets or briquettes, the residue having been converted to aggregate . This product can be classified as a green aggregate as it reduces the need to mine or quarry natural aggregate Second Stage Development The ASC group is a world leader in the use of remade and recycled aggregates .The formed aggregate can be incorporated in to concrete mixes and flowing screeds utilizing ASC’s "right mixer", volumetric concrete mixers. These have been used worldwide producing standard concrete, utility concrete, precast concrete, flowing anhydrite screeds and many more construction uses. ASC specialises in using its volumetric concrete mixers to provide a unique alternative to the traditional methods of producing concrete and concrete products. ASC has been operating in this field for over 20 years, operating both in its own capacity in 20 countries world-wide, as well as successfully working with partners operating joint ventures in Europe, Africa, North America and the Middle East.

SENTINEL

Primary Engineering Consultant for

Plant Design and Build

SENTINEL Page 22

CAPEX COMPARISON : TECHNOLOGY TYPES

Note: Based on a publication by CH2MHILL

SENTINEL & LANDSMITHS

SENTINEL Page 23

TEST BURN HTI Certification

A typical Rotary Kiln based power generation scheme

ENERPAX+ Pellets produced using SENTINEL technology at Dongara , ON, Canada plant were tested at the HTI facility in MI, USA


SENTINEL Page 24

The test burn by AES, North America, demonstrated several positive environmental impacts. The diversion of raw materials from landfills, and the replacement of coal using the resulting EnerPax+ fuel

pellets, should create an opportunity to claim benefits for the reduction in anthropogenic carbon emissions. Material decomposing in a landfill releases significant amounts of methane gas, which is 25 times more

reactive as a greenhouse gas as compared to CO2. Furthermore, based on the displacement of fossil fuels, any particular project should also be able to receive

certification for a further reduction in CO2. As an example, and as reported by the U.S. Department of Energy (Database of State Incentives for Renewables and

Efficiency), States such as Maryland, and others have, or are considering, the enactment of S.B. 690 reclassifying waste-to-energy facilities, which were formerly Tier 2, and facilities using refuse derived fuel, which were not specifically mentioned, as Tier 1 renewable energy resources in the state renewable energy program.

Permitting requirements for use of EnerPax+ are expected to be minimal, although they will need to be addressed region by region.

Importantly, the test did not demonstrate an increase in Dioxin and Furan emissions; contrary to typical refuse derived fuel combustion.

A view exists that the EnerPax+ fuel pellets will be capable of being classified as a boiler fuel, in USA, based on the provisions in 40 CFR 241.3(b)(4).

In this rule, the EPA considers discarded non-hazardous secondary materials, which have been sufficiently processed into fuel, and that satisfy certain legitimacy criteria for use in a combustion unit, as not being a solid waste, thus the fuel would not be subject to waste incinerator rules.”

TEST BURN RESULTS – AES CFB TEST


SENTINEL Page 25

TEST BURN RESULTS – AES CFB TEST


SENTINEL Page 26

SENTINEL OFFERINGS• Foreign Direct Investment (FDI) of INR +4,000 Crores (based on the project size)

• Our Investor Partner is backing the Sentinel Technology as a proven one based on EnerPax+ pellets used for producing power. EnerPax+ as a processed fuel has environmental advantages over the old incineration based technology

• Proposed Project size will have a better scale of economy,

• The facility would also incorporate an aggregate system to collect both residue from MSW processing and ash from power plant, used to produce aggregate that may be used in concrete block production.

• Additional design and engineering service for implementing a state-of-the-art solid waste collection system contributing to the goals of “Swachh Bharat”.

• Proposed project will be implemented through a Consortium of Canadian and Indian Companies and involving local universities and research institutions.

• Project implementation will be through a PPP model, with the local Government and the related Municipalities as the “Public” component and the consortium of private investors, developers, and design/build companies will comprise the “Private” component.


SENTINEL Page 27

SENTINEL REQUIREMENTS• State/Federal level approval and recommendation

• Long-Term (30 years) contract for MSW (approximately 2,400 TPD having 18-25% of plastic content) and Waste Tires (150 TPD).

• An acceptable Power Purchase Agreement (“PPA”), for delivery of electricity on a continuous basis, as produced at this facility, to the grid, with the grid receiving all net electricity produced at the facility,

• An acceptable starting rate of 10.25 to 11.00 INR/kWh (2018-19) for electricity produced at the facility, (Assuming zero Tipping Fee)

• An escalable component of the rate agreed as 45% of the starting rate of each year, with only that portion escalated at a CPI annually, set as a minimum of 5%, or as accepted by SENTINEL in discussions with the relevant authorities,

• Land provided, on the basis of 20-25 Acres at the Plant, free of charge, by the Municipality, others, or State of Haryana to locate the facility

• Site to have access • to acceptable roads to allow truck delivery of waste,• to all required utilities, including water, natural gas (if available), • electric grid to receive high voltage connection directly accessible

from the site,• with capacity to receive up to approximately 80-100MW

instantaneous,


SENTINEL Page 28

ADDITIONAL REQUIREMENTS


• No restrictions on SENTINEL’s ability to bring required SENTINEL technical staff to assist TPL in constructing its Process Equipment, as well as assisting in managing the Project, with no tax implications to such labour,

• Ten (10) year income tax holiday,• Accelerated Depreciation Benefit,• Exemption from Service Tax,• Exemption from Excise Duty,• Exemption from Central Sales Tax,• Exemption from any State Sales Tax,• Electricity Duty Exemption and landed duty for equipment delivered to the

facility from Europe or North America,• VAT exemption on manufacturing & receipt of Process Equipment and

devices required for processing waste or production of electricity,• Stamp Duty exemption,• Government assistance to gain all necessary approvals including

Building Permits, Environmental Permits, Site Plan Approval Permits, and any other permits required to start and complete the Project on a “FAST TRACK” and “SINGLE WINDOW” basis

Fed support of 20% to State towards Capex (Feb 12 2016 news)?

SENTINEL Page 29

CONCLUSIONS

A specific technology based solution for the growing MSW problem in the Municipalities of Gurgaon and Faridabad

The proposed PPP model could be applied to other projects in the State

Expected project design and procurement programme kick-off – mid 2nd Quarter 2016

Expected completion of commissioning no later than mid-4th Quarter 2018

A FORMAL TECHNO-COMMERCIAL PROPOSAL WILL BE SUBMITTED (on or around February 29, 2016) BY LANDSMTHS GROUP INCORPORATING SENTINEL TECHNOLOGY AND SYSTEMS INTEGRATION