Solum - short Company profile

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Solum Gruppen A/S was established in 1986

Solum Gruppen is an owner and operator of material recycling sites in Denmark for professional customers (not households)

Solum Gruppen’s primary business activity is to compost green garden waste into:

– Top soil layers for the sports sector

– Organic fertilizers to the agricultural sector

In addition Solum Gruppen offers:

– Grass maintenance services – Entrepreneurial services in which Solum rents high

end machines to business customers

Description - Aikan A/S Description – Solum Gruppen A/S

The initial steps to the creation of Aikan A/S was made in 1999 through the mutual development project regarding dry anaerobic digestion between Aikan and the partners Aalborg Universitets Center Syddansk Universitet and Landbohøjskolen

More than 8 years of experience in operating facilities in Europe

Aikan’s primary business activity is to provide technology know how regarding the development, construction and operation of Biogas production plants

The purpose of a Biogas production plant is to transfer High solids waste into biogas, heat electricity, compost, recyclables and Residue Derived Fuel (“RDF”)

The strategic basis

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Solum A/S

Solum Gruppen A/S Aikan A/S

Core competence

Knowledge regarding biological processes in the treatment of solid waste

Handle resources astray to add value

Help secure a living earth and soil

Mission

Vision

Mutual board and executive management group. Shared support services (admin. & finance)

No overlap in customers, suppliers, equipment and sales force

Different stages in the life cycle: Solum Gruppen A/S is a mature non-cyclical business with a Danish market focus. Aikan A/S is a clean-tech company with an international market focus

Coverage in the media and from stakeholders

Aikan and Solum Gruppen have received significant attention in the media and from key stakeholders

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Visit by Minister of Energy and Climate, Lykke Friis (2011)

Receipt of Green award given by prime minister, Lars Løkke (2009)

Visit by Minister of Environment, Karen Ellemann (2011)

Participation in BBS World news broadcast (2011)

Two phase dry Batch

Definition of the Dry AD market - Competing technologies within Dry AD

Dry AD is the newest approach to anaerobic digestion Dry AD in batches is the emerging approaches for solid organic waste

Digestion Technology Characteristics Pros/Cons

Anaerobic digestion in the absence of O2

Wet single step

Wet multi step

Dry continous

Dry Batch

Waste is ”liquefied” with water

All biological reaction within one sealed reactor

Lower cost vs. multistep

Waste is ”liquefied” with water

Biological reaction within separate reactors

Maximizes control over process

Waste is fed continuously into the digester

Retention time is shorter vs. dry batch

Waste is handled in separate batches, either with a mix from previous batches or in isolated steps

Process is easier to control vs. dry continuous

Not yet proven commercial in large scale (200,000 Tonne per year)

All systems have pros and cons, depending on the nature of the waste treated. Comparing the alternatives – Dry batch (the Aikan approach) seems to be the most reliable Therefore, all observations indicate that the Aikan technology will be competitive and gain a future share of the market

Aikan focus

One phase dry Batch

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“There is no right or wrong – wet or dry depends on local conditions. Dry systems are typically simpler compared to wet “

Dr. Wolfgang Müller, IGW

Two alternative approaches

Dry AD can be used for Municipal Solid Waste … Wet AD cannot

• Dry AD

– Robust towards impurities.

– Can handle different and fast shifting waste streams.

– Waste is not being moved during the process, avoiding risks for blockages of pumps, moving parts etc.

– Inhibition of biological is avoided due to batch processing

Feedstock Options for Aikan Plant

A waste treatment plant using Aikan Technology can use a very large variety of different organic feedstocks depending on availability. No other system offers the same flexibility. For owners and operators of an Aikan plant, the outstanding feedstock flexibility means a substantial reduction to market and supply risks. Usable feedstocks for an Aikan plant include: -Source-separated organic household waste -Municipal solid waste* -Park and Garden Waste -Farm waste -Food waste, including food wrapped in plastic -Catering kitchen waste -Grease trap waste -All kinds of horticultural waste -Organic residues from industrial food processing -(vegetables, oil, meat) -Organic waste from agriculture -Energy crops -Screenings from other plants -Dewatered sludge from sewage treatment plants**. * Best performance is obtained with source-separated organic waste. Aikan Technology is able to process MSW if allowed in national/local regulations. ** No biogas produced from dewatered sludge, only compost.

The basic activities in the Aikan Dry AD concept

1. Aikan can treat any type or organic waste

2. The waste is mixed with structural material

3. The mix is loaded into the modules

4. The percolate from the reactor tank washes through the waste and extracts feed stock to create methane in the reactor tank

5. After hydrolysis in the module, air is sucked through the module and the remaining biomass is composted. After composting the module is emptied

6. The compost can be refined of used as an organic fertilizer

Further description, see next page

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The Aikan Technology is a unique integrated dry AD and in-vessel composting (“IVC”) process which allows for the solid waste to remain untouched inside the process module during methanization and composting Raw organic waste goes in, 5 weeks later compost comes out – in between, methane is extracted from the biomass Both the biogas and composting process take place in the same controlled chamber providing significant odor and environmental control

Waste in the module is washed with percolate from the reactor tank

Nutrient rich percolate produces biogas in the reactor tank

After the methane production air is sucked through the biomass for composting and sanitization. Air cleaned in the biofilter

The biological processes in the Aikan Dry AD concept

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Aikan® stepwise - Simple and efficient

The input-output processes in Aikan

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Food packaging/ processing plants

Grocery stores

Hospitals

Hotels, clubs and resorts

Restaurants

Universities

Industrial recyclers

Process Output Customers Generators

Organic waste

Shred-ding & presor-ting

Final sorting

Mixing & loading

Anaerobic digestion

Composting

Screening

Metal Plastic Glass

RDF

Landfill (cost)

Biogas

Elec- tricity

Heat

Compost

Industrial energy consumers

Landfill operators

The grid (Energy providers)

Industrial off takers (energy providers)

Agricultural sector

Input

Revenue Cost Revenue

Aikan

features for

pr ton of Biowaste

in a Scandinavian climate

1000 kg Biowaste

200 kg Woody Structure

400 kg Compost

50 kg of waste

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The Aikan System consumes relatively little energy to produce renewable energy and compost – around 50% of the main competitors.

The mass and energy balance in the Aikan Dry AD concept

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Input – waste structure

Compost yield

Energy consumption

Energy yield

Aikan’s Value proposition to the customers

o Proven 8+ years in operation

o Price competitive Negotiations have shown that Aikan is price competitive

o Unique Design Proprietary 3-step integrated HSAD and in-vessel compost technology

o Robust Designed to manage wide range of feed stocks and contamination levels

o Scalable Modular design – efficient future expansion

o Flexible Can be modified to maximize financial performance based on local conditions

o Methane Rich, Clean Biogas

70% methane; no need to clean or condition

o Efficient Footprint Significant processing capacity on 5 acres

o Odor Control Nearly a decade of proven odor control

o Zero Waste Process Recycling of inorganic contamination Fully closed loop system – no waste water

The Aikan Dry AD concept - Value proposition

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