Issuu on Google+

TECHNOLOGY | REVIEW | UPDATE

FOCUS

™

A GLOBAL OUTLOOK

DECEMBER 2013

GTS Demonstration Facility under construction in Shanghai, China

GTS: Shanghai, China

Hazardous Waste Destruction

Air Products: Tees Valley Projects, UK

Project Updates

Waste2Tricity: Thailand

The Future Looks Bright


Contents

FOCUS

CEO’s Message ____________________ 3 GTS, Shanghai, China_____________ • Facility

• Tees

4-5

4-5

6-7

Tees Valley:

being Commissioned

Air Products, UK _________________

Shanghai:

Valley Projects

6-7

Waste2Tricity, Thailand______________ 8 • Exclusive

License Agreement

Bangkok:

Alter NRG: Snapshots________________ 9 • GuanChuan, SMS

Infrastructure and CCAT

The Future Looks Bright _______ 10-11 • Looking

forward to 2014 and beyond

Conferences _______________________

12

8 Alter NRG:

10-11

Cover Photo: GTS Demonstration Facility in Shanghai, China Content & Design: Alter NRG Corp. - Corporate Development Team Past Issues: www.alternrg.com/investor_relations/presentations/publications Alter NRG Corp. is a registered trademark. All other company and product names may be trademarks of their respective owners. The information contained herein cannot be reproduced in any format without legal permission from Alter NRG Corp., and is subject to change without notice. Copyright © 2012. All rights reserved.

2

ISSUE | DECEMBER 2013

WWW.ALTERNRG.COM


A message...

from the CEO

2013 marks a significant advancement of Alter NRG and the Westinghouse Plasma Technology. Clear and concrete steps have been achieved in the mainstream adoption of our plasma gasification technology and solutions on an international scale. The delivery of our Model G65 gasifier to Air Products for their Tees Valley 1 Renewable Energy Facility (TV1) in Northeast England was a significant commercial milestone. Air Products’ announcement to proceed with a second plasma gasification facility next to TV1 illustrates their confidence in Westinghouse Plasma’s Technology as a core technology in their facilities. Their investment of nearly $1 billion in two facilities, expected to process 2,000 tons of waste to produce 100 MW of electricity that can power 100,000 homes, shows the world that these advanced facilities are no longer ideas – they are reality. This agreement cements our market leadership position in the next generation waste treatment business. Achieving this success validates the years of effort, investment and innovation our organization has spent to further commercialize the Westinghouse Plasma Technology.

The teams at Alter NRG and Westinghouse Plasma Corporation wish you and your families a safe and joyous holiday season!

We remain focused on a pragmatic approach to balance strategic and tactical priorities to strengthen our industry and market position. Supporting this is the successful agreement with Waste2Tricity, a UK based developer, for an exclusive license to use Westinghouse Plasma Technology in Thailand. This agreement launches us into the first of several such opportunities in the Southeast Asian market. Project economics are positive even though tipping fees are low as the power prices are high and the capital costs are lower in that region. Add to that the successful commissioning of a Westinghouse Plasma torch system in a facility which upgrades an incinerator designed by GTS Energy in Shanghai, China and it becomes clear our momentum is building. The facility will take incinerator ash, considered to be hazardous, as well as other hazardous industrial and medical wastes and, using the Westinghouse Plasma Technology, will convert it into syngas. This is a significant reference facility that opens up immediate market opportunities in China and the rest of the world. As the market leader we work diligently to avoid complacency. Developing customer intimacy is key to our long-term success and for strengthening our brand relative to our anticipated competition. Developing strategic customer relationships with patience and perseverance in a constantly changing market and world will continue to preserve our substantial lead.

Walter Howard, CEO December, 2013

Walter Howard (CEO) of Alter NRG, presented on the first day of the Gasification Technologies Council (GTC) Conference, held in Colorado Springs, CO, USA in October, 2013. Walter Howard presented the Westinghouse Plasma Corporation’s perspective and current initiatives, he also chaired a panel session, and he is a board member of the GTC.

NRG FOCUS | BY ALTER NRG

3


GTS demonstration facility under construction in Shanghai, China Inset: Control room of the facility

Facts: Demonstration Plant • Technology:

Incineration Grate Technology

• Integration:

Westinghouse Plasma Gasifier

• Capacity:

40 tpd of MSW, bottom ash and fly ash

• Output:

Steam and syngas

WESTINGHOUSE PLASMA INCINERATOR INTEGRATION Tipping Floor/ Feed System

Steam Turbine Generator

Waste

Syngas

Flue Gas Cleanup

Stack

Incinerator Electricity to the Grid

Bottom Ash

Fly Ash

Waste Water Treatment

Vitrified Slag

Benefits: • Vitrifies hazardous fly ash and bottom ash • Increases the temperature and efficiency of the existing incinerator • Processes additional higher value feedstock

4

ISSUE | DECEMBER 2013


GTS: CHINA

Westinghouse Plasma Technology successfully Integrates with Incinerators The Westinghouse Plasma Gasification Solution has been publicly endorsed by the Government of China as the go to guideline for the treatment and management of municipal, industrial and hazardous waste. This endorsement follows Alter NRG successfully commissioning an incinerator ash vitrification facility in Shanghai, China owned by GTS Energy. The facility is taking incinerator ash as well as other industrial and medical wastes and using the Westinghouse Plasma Technology to convert it into syngas which is intended to be used to augment power within the plant. In China and many other countries, incinerator ash in considered a hazardous waste which is a growing, expensive problem and is only resolved with special treatment. The Westinghouse Plasma Technology is able to treat the ash, turning the majority of it into a benign glass-like slag that can be used in other industries such as construction. The plasma gasifier can increase incinerator facility revenues by taking other high tipping fee feedstock and creating additional syngas or steam which can make the facilities power self-sufficient or increase their output to the power grid. The facility is co-located with Shanghai Environmental (a subsidiary of large, state-owned enterprise Shanghai Chengtou Holding Co. Ltd). Shanghai Chengtou Holding Co. Ltd. is engaged in property development, water supply, sewage treatment, environmental protection, distribution of oil products and engineering. Shanghai Environmental operates businesses that transport domestic wastes to landfills and incinerators primarily in the Jiangsu, Zhejiang, Sichuan and Shandong provinces of China.

Facts: China • Current population:

Per capita (2013):

1.02 kg/capita/day

• Waste generation (2025): 1.4 Million tonnes per day

IMPACT for ALTER NRG: We have opened up immediate market opportunities in China and rest of the world. With the increasing regulations and scrutiny on incineration emissions, we believe that this is a significant advantage to be complementary to the existing 3,000 or more incinerators worldwide.

1.34 Billion

• Waste generation (2013): 520,000 tonnes per day

Per capita (2025):

1.7 kg/capita/day

• Operating incinerators:

• Waste disposal and management:

15%

IMPACT for the World: There is a solution for aging incinerators that both improves their economics and reduces their environmental footprint. Impact for You, our Next Customer At $20 million, this is an economic turnkey solution that can convert 50 tons of hazardous waste, incinerator ash, medical waste or industrial waste into useable energy.

140 units

Landfilled Incineration

85%

NRG FOCUS | BY ALTER NRG

5


AIR PRODUCTS: UK

Tees Valley Projects

TV2

The TV2 project will be a replica of TV1

... And the winner for the second time is... Alter NRG’s Westinghouse Plasma Solution Air Products has doubled down and chosen the Westinghouse Technology to be at the center of their second advanced energy from waste facility in Tees Valley, UK. The first facility (TV1), is nearly completed construction and will begin commissioning in early 2014. The second facility (TV2), will mirror the first and is scheduled to be on stream in early 2016. This move translates to an approximate $1 billion investment for Air Products in both facilities. The second facility is expected to produce 50 MW of electricity capable of providing renewable energy for 50,000 homes safely and reliably. It is notable that Air Products has made this commitment before the first facility is commissioned. It shows their confidence in the Westinghouse Plasma Solution and our ability to deliver on schedule.

6

ISSUE | DECEMBER 2013


Westinghouse Plasma Gasifier at TV1

TV1

Aerial view of the Tees Valley Projects (TV1 and TV2).

IMPACT for Alter NRG: This second order enhances Alter NRG’s substantial lead in the plasma gasification industry.

Walter Howard, Chief Executive Officer of Alter NRG comments that “having an industry-leading company like Air Products commencing construction of a second facility utilizing our Model

IMPACT for the World: One step closer to making traditional landfills obsolete; clean renewable power is a reality.

G65 gasifier solution is a significant commercial milestone. This

Impact for You, our Next Customer: The Westinghouse Plasma Technology is commercial at a scale that provides meaningful energy output and associated cashflow.

other customers worldwide. We look forward to supporting Air

illustrates Air Products’ confidence with and commitment to the Westinghouse Plasma Technology and is encouraging to our Products as they continue to expand their plasma gasification energy from waste business.”

NRG FOCUS | BY ALTER NRG

7


WASTE2TRICITY: THAILAND

Exclusive License Agreement for the Thailand Market Alter NRG negotiated an exclusive License Agreement with Waste2Tricity and opened the Thailand market. Waste2Tricity is a UK based developer that is actively developing projects in Thailand using the Westinghouse Plasma Technology owned by Alter NRG. Thailand is just one example of many SE Asian countries that have dense populations resulting in significant power demand and high power prices. However, the market has low tipping fees like much of the region. This is a new paradigm for emerging markets where low tipping fees are overcome by high power prices to allow for suitable project returns. The plasma gasification projects are especially promising because they are set to take advantage of two regional benefits specific to Thailand. First, the government of Thailand has an Adder program available to facilities which generate power from renewable sources that brings the total power price in the range of $200 / MW hour. The Adder program is in place for 7 years which is an incentive for developers to get the facilities up and running to receive this premium on the price of power. The second regional benefit is the efficient way developers can work with the state-owned power authority, EGAT (Electricity Generating Authority of Thailand), to enter into long-term power sale contracts. IMPACT for Alter NRG: Opens a new market with a seriously committed and highly incented developer to deliver large scale projects in an area with fewer regulatory challenges than other countries. IMPACT for the World: A replicable facility that helps resolve the issues inherent in relying on landfilling waste in regions with dense populations. IMPACT for the World: There is a viable solution, with positive economics, for waste management in regions with explosive population growth, expensive power prices but low tipping fees. Photo below: (Third from left) Ken Willis (VP, Strategic Alliances & Business Development) of Alter NRG, and (fourth from left) Piangkwan Thummukgool (Director and Lead Co-ordinator) of Waste2Tricity at the Renewable Energy Industrial Club Meeting, Thailand held in December 2013.

Facts: Thailand • Current population:

67.4 Million

• Waste generation (2013): 39,000 tonnes per day

Per capita (2013):

1.76 kg/capita/day

• Waste generation (2025): 56,000 tonnes per day

Per capita (2025):

1.95 kg/capita/day

• Operating incinerators:

3 units

• Waste disposal and management:

5%

5%

10% Landfill Compost Others 80%

8

ISSUE | DECEMBER 2013

Incineration


ALTER NRG: CHINA, INDIA & USA

Project Snapshots GuanChuan: Plasma Torches for Industrial Furnace Applications in China: Alter NRG delivered 4 of its MARC 3 Westinghouse Plasma torch systems to be used for GuanChuan’s industrial furnace applications related to the steel and iron industry in China. This industry is massive and we have a replicable solution that reduces pollution and increases facility economics.

SMS Infrastructure: Finalized scope with SMS (who has already constructed two hazardous waste facilities utilizing Westinghouse Plasma technology) on two projects which have advanced into the formal regulatory approval phase. These are the more advanced projects within a larger pipeline of projects which SMS is developing and marketing in India and the Middle East. SMS is a licensee of the Westinghouse Plasma Gasification Technology and provides turnkey hazardous waste facilities to the market.

Connecticut Center for Advanced Technology, Inc. (CCAT): Completed testing services for CCAT. The contract is took various combinations of coal and municipal solid waste and converted it into syngas for testing as part of the carbon capture, sequestration, reuse, and usage in liquid fuel technologies on behalf of the US Department of Defense.

NRG FOCUS | BY ALTER NRG

9


ALTER NRG:

The Future Looks Bright Alter NRG has the dominant plasma conversion technology. Through a more than 20 year evolution of technology development, numerous reference facilities, and expanded product design we have mastered this art and ensconced ourselves at the center of projects in many sizes in many regions.

“ The challenges surrounding municipal solid waste are going to be enormous, on a scale, if not greater than, the challenges we are currently facing with climate change. It’s a relatively silent problem that is growing daily”. – Dan Hoomweg – lead author of the World Bank Study “What a Waste – A Global Review of Solid Waste Management”

Westinghouse Plasma Gasification Solution: Key Benefits The Westinghouse Plasma Technology owned by Alter NRG Corp. is commercially proven and has lower emissions than conventional energy technologies. Advantages of the Westinghouse Plasma Gasification Solution include: • Enjoying

viable project economics • Tackling worldwide waste issues • Creating superior environmental performance • Qualifying

10

ISSUE | DECEMBER 2013

for financial incentives and credits


UK

UK AND THAILAND

AIR PRODUCTS WASTE TO ENERGY PROJECTS:

WASTE2TRICITY WASTE TO ENERGY PROJECTS:

TEES VALLEY 1 AND 2, TEESSIDE, UK

BILSTHORPE, UK AND BANGKOK, THAILAND

INDIA SMS INFRASTRUCTURE HAZARDOUS WASTE TREATMENT TO STEAM PROJECTS: KARNATAKA AND GUJARAT, INDIA

CHINA WUHAN KAIDI

CHINA GREEN ENERGY SOLUTIONS

CHINA

BIOMASS TO FT LIQUIDS PROJECT: WUHAN, CHINA

GTS SHANGHAI

WASTE TO ELECTRICITY PROJECT:

HAZARDOUS WASTE & INCINERATOR FLY ASH TO STEAM PROJECT:

BIJIE, CHINA

SHANGHAI, CHINA

“ Waste generation levels are expected to grow by 69% by 2025”.

– World Bank Study

NRG FOCUS | BY ALTER NRG

11


ALTER NRG:

Conferences October 13 - 16, 2013 2013 Gasification Technologies Conference (GTC) Colorado, USA Attendee: Walter Howard (CEO) November 19-21, 2013 Ecochem - The Sustainable Chemistry & Engineering Event Basel, Switzerland Attendee: Richard Fish (President) November 18-20, 2013 Renewable Energy from Waste Conference Florida, USA

Alter NRG provides clean energy solutions that are economically viable and environmentally sustainable. Westinghouse Plasma is the industry leading plasma gasification technology that provides clean and renewable energy solutions by converting all types of waste and biomass into high value energy - like electricity, ethanol or syngas. With plasma systems in operation for 20 years and converting waste into energy since 2002, the technology is commercially proven and produces lower emissions than other conventional energy technologies.

Attendee: Bruce Leonard (Director, Corporate Development) December 3-5, 2013 LD Micro Conference Florida, USA

POWER

Attendees: Walter Howard (CEO) and Danny Hay (CFO)

FUEL OIL REPLACEMENT

BIOFUELS

verting the

orld’s waste

clean energy

lternrg.com

W W W.A LT E R N RG.CO M W W W.W E S T I N G H O U S E - P LA S M A.CO M

SYNGAS

EVO

A


Alter NRG Focus: December 2013 Edition