Landfill Gas To Energy (LFGTE) Solutions. 2 1. An Independent global leader in LFGTE projects.

Landfill Gas To Energy (LFGTE) Solutions

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1. An Independent global leader in LFGTE projects

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Sourcing/analysis, financing, construction of landfill gas projects CDM registration with UNFCCC

Feasibility study, financing, installation of waste-to-energy units

Carbon credit related high value-added services for third parties

Overview of activities

‘Phase 1’ Green-house gas abatement‘Phase 2’ Electricity generation ‘Services’ Consulting business

Sale of servicesSale of electricity & heatSale of CERs

Operation & Maintenance of proprietary landfill gas flaring units

Continuous compliance with UNFCCC regulations

Operation & maintenance of proprietary power generation units

Consulting fees Percentage of clients projects CERs

Production of electricity & heat Issuance of additional CERs by UNFCCC

Issuance of CERs by UNFCCC

CDM consulting services CDM outsourcing services

Advisory on corporate carbon strategies

18 landfill gas exploitation contracts signed in 10 emerging countries (6 in Latin America, 4 in South-East Asia)

9 biogas flaring units already in operation and 7 under construction

50 biogas projects at various stages of evaluation or prospection, in over 15 emerging countries

Phase 2 was launched in November 2010 at the KPS site in Thailand

11 prospective projects expected to reach phase 2 by 2013, for a total installed capacity of 30 MW

Unique expertise in Clean Development Mechanism registration & compliance

A team of dedicated experts with a track record of successfully registering the world’s largest CDM proprietary landfill gas project portfolio

Recognized by market leaders such as Rhodia, Air Liquide…

1. An independent global leader in LFGTE projects

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3 3 3

2 2

1 1 1 1

Bionersis Shimizu Eco-securities

(J PMorgan)

Cantor Green Gas IBRD KMDC DONG Santech CarbonCapital

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World’s most active LFG project registrant

Bionersis expetise covers the entire value chain…

A unique vertically integrated developer and operator

Expertise in site identification and evaluation− 7 dedicated employees− Expertise in gauging output of sites and necessary

investments based on extensive experience and in-house developed evaluation models

Source: UNEP RISØ

LFG projects registered with UNFCCC in 2009

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3 3 3

2 2

1 1 1 1

Bionersis Shimizu Eco-securities

(J PMorgan)

Cantor Green Gas IBRD KMDC DONG Santech CarbonCapital

Source: Company information

… with a significant track record

16 landfill gas exploitation contracts signed in 10 emerging countries (6 in Latin America, 4 in South-East Asia)

9 LFG units already in operation and 7 under construction

50 LFG projects at various stages of evaluation or prospection, in over 15 emerging countries

1st French promoter of Clean Development Mechanism (‘CDM’) projects through the Kyoto Protocol, in terms of the number of Letters of Approval

Leader in the sector of Landfill Gas CDM projects with 22% of global market in 2009 (in terms of projects registered during the year)

Most importantly, an operator with a unique experience in managing CDM projects since the implementation of the Kyoto Protocol

LFG projects registered with UNFCCC in 2009

Operation & Maintenance of sites− 23 dedicated employees− Extensive experience in operation & maintenance of LFG

capture and utilization projects− O&M supported by remote monitoring of units

Site development & construction know-how− 11 dedicated employees− Negotiation of contracts with landfill operators− Equipment sourcing and installation execution know-how

Expertise in CDM registration process within the UNFCCC framework− 7 dedicated employees− 100% of submitted projects successfully registered− Registration process twice as fast as industry average

1. An independent global leader in LFGTE projects

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2. Business Description

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Business process


CER clients:

Others (market buyers)

Carbon trading

Carbon trading

Electricity offtakers:

• Local Utilities & distributors

• Industrial partners

Green-House

Gas Emission reductio

ns

Gas acquisiti

on

Sale of CERs

Sale of electricit

yPhase 1

Phase 2

Services

Service clients

• CDM project developers

• Large industrial

Sale of services

Certification

Carbon consulting & outsourcing

Carbon consulting & outsourcing

CER issuanc

e

Cash

Cash

Cash & CERs

Electricity generation


Intra company

CER transfer

Landfill gas capture

Landfill gas destruction

Landfill Operator

Gas exploitatio

n right

Cash

7

Project operations & CDM compliance

Source: AEI Affiliated Engineers

1 Landfill gas capture though a network of wells

2

3

4

7

Gas cooling & condensation

Gas flaring (methane destruction)


Gas extraction and transmission using a blower

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Electricity transmission to power grid or on-site use6

Heat generation [possible development of CHP on selected sites]

Monitoring of volumes & methane content of the extracted LFG

ii

iii

Verification through an independent review

Certification of emission reductions & Issuance of CERs

Mon

i Preparation & submission of Monitoring Reports

Phase 1

Phase 2

1

2

3

4

5

7

iii iii

iii iii

Landfill gas

Landfill site

Gas chiller & condenser

Flare

Heat exchangers

Mon

Mon

Blower

Generator

set

Engine exhaust

Air separatorExpansion

tank

Water circulation

pump

6Power grid


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4. Phase 1

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Global resources for emission reductions

Note (1): CER total = CER registered + CER in the CDM pipeline according to PDD

CER registered:

9,099,000 Average lifespan:

8.3 years CER total(1):

11,875,000

Total

Status:regis. Jul 08 CER:247,000 Lifespan: 10 years

Punta Arenas - Chile

Status:regis. Jul 08 CER:323,000 Lifespan: 10 years

Vina Del Mar - Chile

Status:regis. Jan 09 CER:144,000 Lifespan: 10 years

San Felipe - Chile

Status: regis. Jan 09 CER:125,000 Lifespan: 10 years

Quilpue - Chile

Status: regis. Feb 09

CER: 772,000 Lifespan: 10 years

La Habana - Cuba

Status: regis. Sep 09

CER:306,000 Lifespan: 10 years

Mendoza - Argentina

Status: compl. check


Villavicencio - Colombia

Status: regis. Apr 10 CER:2,519,000 Lifespan: 7 years

La Duquesa – Dom. Rep.

Status: regis. Aug 10


Bucaramanga – Colomb.

Status: regis. Nov 09


Pasto – Colombia



Cucuta – Colombia



Manizales – Colombia

Status: regis. Sep 09

CER:1,186,000 Lifespan: 10 years

KPS – Thailand

Status: regis. Oct 10 CER: 2,579,000 Lifespan: 7 years

Hanoi – Vietnam

Status: validation CER:307,000 Lifespan: 7 years

Batam – Indonesia Status: validation CER:1,562,000 Lifespan: 7 years

Penang – Malaysia

4. Phase 1: Emission Reductions

Registered projectsProjects under registration or

validation

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Project process (1/2)

Project Design

&National approval

Project validation

by independen

t auditor

Registration by UNFCCC Executive

Board

Project identificati

on & evaluation

Construction of site

Testing

Negotiation with site owner/operator

Operation

Monitoring, Verification & Certification

6 – 12 months 3 – 6 months 1 month1 – 2 months

1 month 1 – 2 months 7 – 10 months

Project lifecycle

Project lifecycle

321

1 2 3 4

Headed by Regional Directors Pascal Le Mélinaire (LatAm) & Pascal Voisin (S-E Asia)

43 dedicated employees worldwide

Headed by Stéphane Vidaillet 7 dedicated employees worldwide

Prospection & Construction process

CDM validation & registration process


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Project process (2/2)

Project identification & evaluation

Identification of landfills for potential projects based on a wide variety of criteria

Evaluation of methane potential using 3 international methodologies (FOD, MEX and CAM) relying on conservative estimates

Due to its recognition, Bionersis is now directly invited to bid for projects

1 Negotiation with site owner/operator

Negotiation of gas exploitation contracts for a period of 10 years with landfill owner/ operator

Negotiation of gas supply price

− Usually based on volumes to be produced

− Contracts sometimes include a small participation in carbon credit price upside

2 Site construction

Landfill shaping to facilitate future operations (rainwater evacuation, gas circulation within the pipe network, leachate management…)

Landfill cover with a layer of clay to contain the methane and prevent GHG emissions

Construction of a concrete slab to support the flare unit

Drilling of vertical wells inside the landfill at regular intervals to extract the gas

Linking of gas pipes into main pipe

Installation of flare, blower, monitoring equipment

Connection of main pipe to the blower & flare

3

Project design & National approval

Preparation of a project design document (PDD) making use of approved emissions baseline and monitoring methodology

Securing a Letter of Approval (LoA) from the Designated National Authority (DNA) of the host country

1 Project validation

Independent evaluation of a project activity by a designated operational entity against the requirements of the CDM, on the basis of the project design document

2 UNFCCC registration

Formal acceptance of a validated project as a CDM project activity

Registration is the prerequisite for the verification, certification and issuance of CERs UNFCCC registration is effective for either 1x10 years or 3x 7years

3

Testing

Testing & validation of major operating assumptions and technical settings to be applied to equipment (pipe network, blower, flare, leachate management system)

Stabilization of gas flow for future operations

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Prospection & Construction process

CDM validation & registration process


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Landfill gas – a significant and recognized GHG abatement source

Source: EPA, UN World Urbanisation Prospects, 2009 revision, UNEP RISØ

100216

1,180 1,276 1,328 1,3481,468

2,400

2,716

LFG - flaring LFG -generation

Geothermalelectricity

Bagassepower

LNG plant Hydro Natural gasplant

Wind Cogeneration

Source: UNEP RISØ, capex of all projects (registered & rejected) based on PDD

Indexed capex (€/CO2t/year) Landfill gas destruction is incentivized for a variety of reasons:

− Valorization of environmental nuisance (GHG emission reductions & potential power generation)

− Biogas destruction is based on a quantifiable and verifiable methodology

− An alternative to CO2-intensive waste incinerators

Recognized by UN’s Clean Development Mechanism (CDM) and Joint Implementation (JI) schemes:

− 171 CDM landfill gas projects registered to date

− 50 JI landfill gas projects registered to date

Under US carbon credit scheme

− Landfill methane covered in Waxman-Markey and latest Kerry-Lieberman bill

Recent developmentsRecognized by Carbon Credit schemes

Increasing number of landfill sites due to global urbanization

Urban population by region (billions)

Number and size of landfill sites will match growth of urban population

2,275 cities of more than 100,000 people in 2009, expected to increase to 2,943 in 2015

1.8

0.5 0.4

3.5

0.7

1.2

Asia LatAm & Carribean Africa

2010

2050

Landfills - a major source of greenhouse gas emissions

14% of GHG stem from methane (CH4), of which 15% are from landfills

Methane has a global warming potential (GWP) of 21, i.e. it is a greenhouse gas 21 times more potent than carbon dioxide

Methane, which is less soluble in water than CO2 and lighter than air, is likely to migrate out of landfills

Global anthropogenic GHG emissions (2004, in terms of

CO2-eq.)

CH4 (methane)

14%

CO2 other

3%

CO2

deforestation

17%

N2O

8%

F-gases

1% CO2 fossil fuel

use

57%


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5. Phase 2

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Global resources for emission reductions and potential installed capacity

Note (1): Gas reserves of current portfolio over 2011-2020, based on PDD data

Methane reserves(1):

1,014m cbm 28 units for potential 31MW

capacity

Total

Start year: n/a Reserves: 16.7m

cbm Units: 0

Punta Arenas - Chile Start year:n/a

Reserves: 20.0m cbm

Units: 0

Vina Del Mar - Chile

Start year: n/a Reserves: 8.8m cbm Units: 0

San Felipe - Chile

Start year:n/a Reserves: 7.3m cbm Units: 0

Quilpue - Chile


cbm Units: 0

La Habana - Cuba


cbm Units: 0

Mendoza - Argentina

Start year: 2013 Reserves:21.3m

cbm Units: 1

Villavicencio - Colombia

Start year: 2011 Reserves: 263.9m

cbm Units: 9

La Duquesa – Dom. Rep.


cbm Units: 1

Bucaramanga – Colomb.


cbm Units: 1

Pasto – Colombia

Start year:2012 Reserves: 28.4m

cbm Units: 1

Cucuta – Colombia


cbm Units: 1

Manizales – Colombia


cbm Units: 3

KPS – Thailand


cbm Units: 7

Hanoi – Vietnam


cbm Units: 1

Batam – Indonesia Start year: 2012 Reserves: 145.2m

cbm Units: 2

Penang – Malaysia

Registered projectsProjects under registration or

validation


cbm Units: 1

Nonthaburi – Thailand

5. Phase 2: Electricity Generation

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Landfill gas: a unique alternative power source

Landfill gas Solar Wind Hydro

Energy output for a 1MW capacity standard unit

8,000 MWh/y 6,000 MWh/y2,800 MWh/y1,300 MWh/y

Independence to weather / baseload capacity

√ √ √ X X √

Low capital cost per output √ √ √ √X √ √

Proximity to consumption centers

√ √ √ X X√ √

Resource availability √ √ √ √ √ √ √

Low balance of system costs √ √ √ √ √ √ √

Source: Bryan Garnier

5. Phase 2: Electricity Generation

Methane powered electricity generators can run 24 hours a day, 7 days a week (excluding maintenance downtime)

Waste-to-energy units are always located near densely populated areas and do not require costly infrastructure to deliver electricity directly to consumers

Landfill gas generation units consist of fairly common technology (gas engines), easily accessible from emerging countries, so that sourcing, operation and maintenance don’t require any specialized engineering

Though there are only limited quantities of landfill gas – as opposed to infinite potential reserves of sunlight or wind – the resource remains widely untapped and generation capacity from solid waste worldwide is far from ever reaching the level of landfill gas reserves turnover…

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Glossary of terms

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Glossary

Appendix

AAU: Assigned Amount Unit. Allowances for carbon emissions allocated to developed countries up to their target level under the Kyoto Protocol. These allowances are tradable under Kyoto's international emission trading mechanisms in place from 2008 to 2012. Each AAU equates to one tonne of CO2e.

Annex I, Annex B: The signatory nations to the Kyoto Protocol that are subject to caps on their emissions of greenhouse gases and committed to reduction targets – countries with developed economies. Annex I refers to the 36 countries identified for reduction in the UNFCCC while the Annex B is an adjusted list of 39 countries identified under the more recent Kyoto Protocol. Annex B countries have their reduction targets formally stated.

CDM: Clean Development Mechanism. A Kyoto Protocol initiative under which projects set up in developing countries to reduce greenhouse gas emissions generate tradable credits called CERs, the first step towards a global carbon market. These credits can be used by industrialized nations to offset carbon emissions at home and meet their Kyoto reduction targets. The projects include renewable energy generation, reforestation and clean fuels switching.

CER: Certified Emission Reduction. A credit generated under Kyoto’s Clean Development Mechanism (CDM) for the reduction of emissions of

greenhouse gases equal to one tonne of CO2- equivalent. They are designed to be used by industrialized countries to count toward their Kyoto

targets but can also be used by EU companies and governments as offsets against their emissions under the EU Emissions Trading Scheme.

Copenhagen Accord: The four-nation agreement struck by the US, China, India and South Africa at the 2009 Copenhagen climate conference and noted by the UN climate convention Council of the Parties. A limited political deal that the signatories hope will form the basis of a new global climate agreement from 2013.

ERPA: Emissions Reduction Purchase Agreement. Contracts governing the sale of CER carbon credits from UN CDM and JI projects. Heavily used for forward sales of CERs not yet issued, in projects under development, as a means of project financing. The price of such primary CERs is discounted in ERPAs to reflect the risks of non-delivery.

ERU: Emission Reduction Unit. Tradable credits generated from activities to reduce greenhouse emissions in in industrialized countries, particularly those of the former Soviet-bloc, under the Kyoto Protocol’s Joint Implementation (JI) mechanism.

EU ETS: EU Emission Trading Scheme. In 2005, the European Union introduced a market in carbon dioxide emissions for major emitting industries. The scheme is based on the allocation of carbon emission allowances, called EU Allowances (EUAs), to specific industrial sectors through national allocation plans (NAPs) that cap the total level of emissions at levels which reduce over time. The EU ETS applies to 7,300 companies and 11,500 installations in sectors with high carbon dioxide emissions across the 27 nations of the EU. These include: energy utilities, oil refineries, iron and steel producers, the pulp and paper industry as well as producers of cement, glass, lime, brick and ceramics. Aviation and aluminium are to be included in future years. The scheme is regulated by the European Commission (EC).

EUA: European Union Allowances. Tradable emission credits from the EU Emissions Trading Scheme. Each allowance carries the right to emit one tonne of carbon dioxide.

GHG: Green Houses Gas. The three most important greenhouse gases are: carbon dioxide (CO2), the biggest contributor to global warming;

methane (CH4), eg. from decomposing landfill and flatulent cattle; nitrous oxide (N20), eg. from vehicle exhaust fumes. There are also three

other industrial gases that contribute to global warming: hydrofluorocarbons (HFCs), used for refrigeration; perfluorocarbons (PFCs), produced in

the making of semi-conductors; sulphur hexafluoride (SF6), a by-product of aluminium manufacturing and the electronics industry.

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Glossary

Appendix

JI: Joint Implementation. A Kyoto Protocol mechanism which allows developed countries, particularly those in transition to a market economy, to host carbon-reducing projects funded by another developed country. The arrangement sees the credits generated, called ERUs, go to the investor country while the emission allowances (AAUs) of the host country are reduced by the same amount.

Kyoto Protocol: This agreement, which came into force in 2005, commits developed nations collectively to cut their greenhouse gas emissions to 5.2 per cent of 1990 levels by 2012. By 2007, 175 countries had ratified the agreement, including most of the world's developed nations. The Kyoto Protocol was struck in 1997in Kyoto, Japan, when member nations of the United Nations Framework Convention on Climate Change (UNFCCC) agreed that developed countries must reduce their emissions of six greenhouse gases to meet the overall target, with specific targets varying from country to country. The Protocol came into force in February 2005 and includes 35 developed countries that account for 61.6 per cent of total world carbon dioxide emissions.

Leachate: Liquid (usually from rainwater) that percolates through waste material in a landfill. As the water moves through the waste, it picks up contaminants from the waste material, and it must be collected and properly disposed of, to avoid transferring the contaminants to groundwater.

LoA: Letter of Approval. With the issuance of a Letter of Approval the Host Country formally approves the project for the purposes of Article 6 or 12 of the Kyoto Protocol, and confirms that the project assists the Host Country in achieving sustainable development. A Letter of Approval is a requirement for all JI and CDM activities under the Kyoto Protocol and is therefore a prerequisite for the signing of an ERPA with the CFU Trustee.

Offsets: Carbon offsets, offset credits. Credits issued in return for a reduction of atmospheric carbon emissions through projects such as the provision of renewable energy to replace fossil fuel energy, or reforesting cleared land to create a carbon sink. By paying for such emission reducing activities, individuals and organisations can use the resulting credits to offset their own emissions, either voluntarily or under the rules of most emissions trading schemes. One offset credit equates to an emission reduction of one tonne of CO2. See also CER.

PDD: Project Design Document. The official application drawn up by an entity applying for project approval under the UN Clean Development Mechanism (CDM) or a verification standard in the voluntary carbon market. PDDs must be validated by an independent third party, then approved and registered by the CDM Executive Board or voluntary standard provider before a project qualifies as a CER or VER carbon credit earner.

RGGI: Regional Greenhouse Gas Initiative. A ten-state regional US emissions cap-and-trade scheme covering power plants from 2009. Scheduled to run until the end of 2018 unless superseded by a federal scheme, current members are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.

tCO2e, MtCO2e: Tonnes of carbon dioxide equivalent, and millions of tonnes of carbon dioxide equivalent. This is the metric measurement unit

for greenhouse emissions. The global warming impact of all greenhouse gases is measured in terms of equivalency to the impact of carbon dioxide (CO2). For example, one million tonnes of emitted methane, a far more potent greenhouse gas than carbon dioxide, is measured as 21 million tonnes of CO2-equivalent, or 21 MtCO2e.

UNFCCC: United Nations Framework Convention on Climate Change. Also referred to informally as the UN climate change convention. It is the international agreement for action on climate change and was drawn up in 1992. A framework was agreed for action aimed at stabilising atmospheric concentrations of greenhouse gases. The UNFCCC entered into force on March 1994 and currently has 192 signatory parties. The UNFCCC in turn

Landfill Gas To Energy (LFGTE) Solutions. 2 1. An Independent global leader in LFGTE projects.

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