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    Biomass Canada Ltd. 1

    Biomass Canada Ltd.10308 - 129 Avenue

    Edmonton, Alberta T5E 0J9Tel: (780) 473-6110

    Introduction of Biomass CanadaIntroduction of Biomass Canadass

    Gasification UnitGasification Unit

    Updated March 15. 2007

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    Biomass Canada Ltd. 2

    Biomass Canada Ltd.iomass Canada Ltd.

    Confidentiality Notice StatementConfidentiality Notice Statement

    All information contained in this document is

    intended for evaluation purposes only. Information,data and graphics exclusively belong to BiomassCanada Ltd., and are confidential and not to be used

    or copied without written permission from management.No information is to be shared outside of the intendedparties. Any misuse of this report is strictly prohibited.

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    Biomass Canada Ltd. 3

    Biomass Canada Ltd.iomass Canada Ltd. Mission and VisionMission and Vision

    Company OverviewCompany Overview

    Engineering SummaryEngineering Summary

    Business OpportunityBusiness Opportunity

    Capital CostCapital Cost Industry OverviewIndustry Overview

    Gasification UnitGasification Unit Operation overviewOperation overview

    Models, Products & ServiceModels, Products & Service

    Future InitiativesFuture Initiatives

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    Biomass Canada Ltd. 4

    Mission and VisionMission and VisionWaste disposal technology of tomorrow, available todayWaste disposal technology of tomorrow, available today

    at the forefront as leaders in gasification energy technologyat the forefront as leaders in gasification energy technology

    Providing SolutionsProviding Solutionsmake Biomass gasification units availablemake Biomass gasification units availableglobally as a power source for all energy consumers, notably toglobally as a power source for all energy consumers, notably to

    those in rural and urban areas, unable to utilize traditional sothose in rural and urban areas, unable to utilize traditional sourcesurcessuch as oil, natural gas or diesel fuel.such as oil, natural gas or diesel fuel.

    Responsible AlternativesResponsible Alternativesprovide a viable and environmentallyprovide a viable and environmentally

    sound alternative power source to energy consumers. Employ andsound alternative power source to energy consumers. Employ andrecycle waste materials to create socially responsible energy.recycle waste materials to create socially responsible energy.

    Biomass Canada Ltd.iomass Canada Ltd.

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    Biomass Canada Ltd. 5

    Biomass Canada Ltd.iomass Canada Ltd.COMPANY OVERVIEWCOMPANY OVERVIEW

    Biomass Canada Ltd., (Biomass Canada, The

    Company), is a privately held company registered inAlberta, Canada. Biomass has developed apatented gasification process, capable of

    converting waste material into a high-gradesynthesized gas (SYN GAS).

    This gas can be used to generate electricity, supply

    gas for heating, also can provide an alternative fuelfor petroleum. The SYN GAS produced and used inan engine produces less pollutants and emissions

    compared with those produced for example, bynatural gas.

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    Biomass Canada Ltd. 6

    Biomass Canada Ltd.iomass Canada Ltd.COMPANY OVERVIEW

    Biomass Canada has designed, fabricated andtested a gasification unit and has completed all of

    the preliminary engineering for a six-foot diametercommercial model.

    The engineering group Sigma 3 EngineeringLimited, (Sigma3) considers a 6 foot diametergasification unit to be viable.

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    Biomass Canada Ltd. 7

    Biomass Canada Ltd.iomass Canada Ltd.

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    Biomass Canada Ltd. 8

    Biomass Canada Ltd.iomass Canada Ltd.

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    Biomass Canada Ltd. 9

    Biomass Canada Ltd.iomass Canada Ltd.Biomass Canada Ltd. Gasifier Meeting SummaryFYI

    Here is an improved gasification process developed by an Alberta

    inventor that converts 100% of the biomass into gas without creating anyCO.

    Since it is a closed system the gasifier produces no emissionsand the fuel created produces lower NOX emissions than natural gas.

    This has great potential as a Clean Coal Technology, in addition to it'spotential for renewable/or green power (when wood or agriculturalresidues are used as a feedstock).

    David J. Patterson RPF #248

    Senior ResearcherWildland Fire Operations Research GroupForest Engineering Research Institute of Canada780-422-4565 Edmonton Office

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    Biomass Canada Ltd. 10

    Biomass Canada Ltd.iomass Canada Ltd.BUSINESS OPPORTUNITY AND TIMINGBUSINESS OPPORTUNITY AND TIMING

    Biomass Canada has pinpointed a need in the

    marketplace for efficient and cost effective gasification units,and has found this to be an expansive, lucrative venture forpotential investors. Biomass Canada plans to offer the most

    timely, affordable and effective gasifiers available.

    To date, Biomass Canada Ltd. has cultivated

    relationships with various interested parties which includeMunicipalities, Native Bands, Saw Mills, FarmingCommunities, as well as off-shore interests in Guatemala,Chile, South Africa, and Denmark.

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    Biomass Canada Ltd. 11

    Biomass Canada Ltd.iomass Canada Ltd.

    Working to reduce Canadas greenhouse gas emissions by about 65mega tonnes per year between the years 2008 and 2012, with the remainder of theCanadas Kyoto target to be addressed through future national emissionreduction plans;

    The development of specific key initiatives, include the reduction ofmotor-vehicle emissions through greater fuel efficiency and the development ofnew fuels and fuel-cells; the reduction of energy sector emissions (i.e. the oil,natural gas, and electricity industries) by increasing the sectors ability to captureand store carbon emissions during production; the reduction of emissions in theindustrial sector.

    TIMINGTIMINGTIMINGTIMING TIMINGTIMINGTIMINGTIMING TIMINGTIMING

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    Biomass Canada Ltd. 12

    Biomass Canada Ltd.iomass Canada Ltd.INDUSTRY OVERVIEWINDUSTRY OVERVIEW

    Biomass Canadas gasificationtechnology is being developed to

    provide economical and renewablepower by eliminating waste disposalproblems and at the same time beenvironmentally friendly. These

    gasifiers will be invaluable to thepeople in the communities they serve.

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    Biomass Canada Ltd. 13

    Biomass Canada Ltd.iomass Canada Ltd.CAPITAL COSTSCAPITAL COSTS

    To maximize market potential, BiomassCanada is seeking acquisition of funding to providea viable up-scaled unit and, in doing so, upgrade

    their gasification system to a commercial status.

    The ultimate goal is to build a commercial-sized

    unit calculated at $58,000,000.00 (CDN), using all-new equipment.

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    Biomass Canada Ltd. 14

    Biomass Canada Ltd.iomass Canada Ltd.INDUSTRY OVERVIEWINDUSTRY OVERVIEW

    Various companies in the United States,

    Canada, Australia, Germany and other countries arecurrently working with different gasification models.Many of these companies are faced with challenges

    such as insufficient heat generation, fabricationquality or high production costs.

    Biomass Canada has improved thisgasification technology with a unique, patenteddesign that can generate and produce more power

    than any current model.

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    Biomass Canada Ltd. 15

    Biomass Canada has developed and tested aworking model of the gasification unit. Themodel was found to produce SYN GAS,comprised of approximately 40% Hydrogen. Theapproximate 1 ft wide * 5 ft high unit wasdiligently tested and found to produce 318

    BTUs per cubic foot This Syn Gas contained nocarbon monoxide or noxious materials. Thecurrent working model has been used to run a250-amp gasoline welder that produces 28kilowatts of power. During the test, SYN GAShad to be burned off due to excess gas

    generation from the unit.

    The gasification unit is of a sealed downdraftstratified and patented design made up ofzones or layers. These layers consist of the raw

    material zone, the flame zone, the charcoal zoneand the coalzone.

    Any type of combustible raw materialssuch assawmill waste, railway ties, wood demolitionmaterial, rubber, oil refinery coke, coal, etc., canbe used as fuel.

    Biomass Canada Ltd.iomass Canada Ltd.GASIFICATION UNITGASIFICATION UNIT

    Operation OverviewOperation Overview

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    Biomass Canada Ltd. 16

    Biomass Canada Ltd.iomass Canada Ltd.GASIFICATION UNITGASIFICATION UNITOperation OverviewOperation Overview

    Gasification ZonesThe unit is a closed system and operates on

    a slight negative pressure so there are noemissions or noxious odors whatsoever. The

    raw material is loaded into the top of the unitthrough a rotating valve assembly (muchlike a revolving door) by conveyor.

    These materials are fed into the top of theFuel magazine and work their way down intothe flame zone. Here it is combusted by acontrolled burn. The smoke and watervapors rise and the remainder is turned into

    charcoal smoke, tar and water vapor.

    At this point the oxygen in the air stream isused up, the combustion ceases, and thegasification process commences.

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    Biomass Canada Ltd. 17

    Biomass Canada Ltd.Air is drawn into the gasifier through the air

    manifold into the flame zone where, pure oxygenis added at a rate of 20% to the air stream. Thisprocess enhances combustion and also rids thegas of most of the nitrogen that is drawn in with

    the atmospheric air.At this point the oxygen is used up in

    combustion and becomes inert. The height andsize of the flame zone is controlled by the amountof air and oxygen permitted to enter the gasifier.

    The vortex tubes serve a dual function.They permit smoke, tar, and water vapor to bereintroduced down into the charcoal zone, whichenhances the flame zone efficiency. At the lower

    end of the tubes the reaction of the smoke, tarand water vapor being cracked into gases createsa slight negative pressure causing a vortex flow inthe fuel magazine.

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    Biomass Canada Ltd. 18

    Biomass Canada Ltd.WORKING GASIFICATION MODELWORKING GASIFICATION MODEL

    The smoke and water vapour rises andrevolves back through the re-circulating tubes.Its then drawn back into the unit below theflame zone. This creates a vortex flow, which

    enhances combustion. At this point the charcoalbegins to give off gas, smoke and watervapours which is drawn down through the coalzone. The heat in the coal zone ranges from2300F to 2600F. As the smoke, water vapour

    and gas from the charcoal are drawn downthrough the coal zone; they are broken downand become completely gasified.

    The process works very much the

    same way a cracker in an oil refineryoperates (only gas is produced, not a liquid).The remaining material turns into ash, 0.25% byweight of the raw material remains, after the

    process is completed.

    2300F to 2600F

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    Biomass Canada Ltd. 19

    Biomass Canada Ltd.2300F to 2600F The SYN GAS from the

    gasification process contains 56% +

    Hydrogen HHV and 40% + LHV whichcould be used for hydro cracking ofheavy oil in a refinery. (See attached gasanalysis that was carried out using wood

    waste as a fuel source)Biomass Canada does not see

    any problem handling Coal or RefineryCoke that contains moisture content

    between 35 to 40%. It would be preferableif the Coal and or Coke had a lowermoisture content for the Briquettingprocess, but we believe that this is not an

    insurmountable problem.

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    Biomass Canada Ltd. 21

    Biomass Canada Ltd.

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    Biomass Canada Ltd. 22

    Biomass Canada Ltd.

    A-1 Welder Exhaust20 cfm Oxygen added to incoming airA-4 Welder Exhaust no OxygenAir into Welder 58 cfmExhaust from Welder 168 cfm

    SYN GAS is very clean and contains no carbon monoxide or noxious material.

    Biomass Canada has tested air quality

    levels using AGAT Laboratories.

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    Biomass Canada Ltd. 23

    Biomass Canada Ltd.ECONOMICS: - competitive production of reliable electricityfor industrial sites, small municipalities, and developingcountries and synthetic natural gas and hydrogen $$$$$$$$$

    ADAPTABILITY: - gases produced can be used in internalcombustion engines, gas turbines and fuel cells with minimalconversion. The gas produced can also be used fortraditional heating, kiln drying.

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    Biomass Canada Ltd. 24

    Tested And Approved Raw Fuel SourcesTested And Approved Raw Fuel Sources WOOD CHIPS AND WASTEWOOD CHIPS AND WASTE from pulp mills (ideal for remote location/islandelectricity generation).

    LOGGING CLEARCUT RESIDUELOGGING CLEARCUT RESIDUE

    Biomass Canada Ltd.

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    Biomass Canada Ltd. 25

    Biomass Canada Ltd.iomass Canada Ltd.

    RAILWAY TIESRAILWAY TIES (high creosote content is ideal for burning) As a result ofthe decommissioning of the railroads, these ties have been stacked in greatpiles. The high creosote content has created a challenge for disposal, whichhas posed an environmental hazard problem. These ties would be ideal, asthey have been found to produce a high-grade SYN GAS and potentially lowemissions.

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    Biomass Canada Ltd. 26

    Gas UsageGas Usage

    The SYN GAS created from thesematerials is ideal for providing heatand electrical power in any instance

    where natural gas, diesel or bunkeroil is used. Every pound of woodEvery pound of wood

    waste processed, generates 35waste processed, generates 35

    cubic feet of SYN GAS.cubic feet of SYN GAS.

    Biomass Canada Ltd.

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    Biomass Canada Ltd. 27

    Biomass Canada Ltd.Potential Raw Fuel SourcesPotential Raw Fuel Sources

    These resources are in the preliminary stages of testing. BiomassCanada and research staff feels extremely optimistic the following fuel sourceswill be just as efficient as the tested materials. Energy has been produced butemission testing is pending (upon completion of a full-sized working model).

    - Plastics (Over 800 varieties to be tested)

    - Rubber (Stock pile of used vehicle tires)

    - High Sulfur Coal

    - Agriculture Waste (Manure and other organic waste materials

    - Garbage (MSW)

    - Compost

    - Old Carpet (Left from renovations - 2,500,000 tonnes ofused carpet per year is placed in landfills in N. America)

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    Biomass Canada Ltd. 28

    Biomass Canada Ltd.iomass Canada Ltd.MODELS, PRODUCTS and SERVICESMODELS, PRODUCTS and SERVICES

    Biomass Canada will offer the following models and services:3 ft gasification unit4 ft gasification unit6 ft gasification unitYearly testing and maintenance services

    Inventory warehouse to house spare parts and equipmentMulti-units

    Gasifier Unit Production:It is the intention of Biomass Canada to build the gasifierunits on a contract basis by outside fabrication shops until

    such time that the Company is able to develop in-housefabrication facilities.

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    Biomass Canada Ltd. 29

    Biomass Canada Ltd.iomass Canada Ltd.FUTURE INITIATIVESFUTURE INITIATIVES

    Biomass Canada has already made contact with numerous sawmills and othercompanies/communities who produce enough additional waste to potentiallybecome self-sufficient in their everyday energy needs (i.e. generating heat for drykilns at sawmills). Once the full-sized units have been fully tested, various groupshave expressed keen interest in purchasing models. Some of these include:- Six sawmills in Northern Canada have expressed interest in forming a gas

    Co-op to run their operations

    - Many communities in Northern Ontario currently generate power with dieselfuel. Likewise, many northern reserves consisting of 200-250 people utilize 2-2.5 megawatts of power per day the amount just one 4 ft Gasifier has theability to generate. These groups are looking into using SYN GAS to powertheir communities as a power alternative.

    - Two of Canadas major railroads expressed a keen interest in gasificationtechnology as a means of disposing of old railway ties and creosote timbers inan environmentally friendly manner.

    - Test results were shown to a Caterpillar dealer who thought SYN GAS would be

    an alternative fuel to diesel and could be incorporated into their engines withmodifications.

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    Biomass Canada Ltd. 30

    Biomass Canada Ltd.iomass Canada Ltd.BENEFITS OF THIS GASIFICATION PROCESSBENEFITS OF THIS GASIFICATION PROCESS

    1. No Emissions from the Gasification Process.

    2. The SYN GAS is environmentally friendly when used as a fuel in an Engine andor Turbine bringing the emission levels below regulatory limits.

    3. Each sawmill can be self sufficient by using the SYN GAS instead of NaturalGas and or Diesel as a fuel source to dry their lumber plus develop their ownpower source, and receive payment for extra power developed if connect to a

    power grid.

    4. The payout period for the capital cost layout is less than 5 years on theinvestment.

    To discuss this process in further detail, please call the President of BiomassCanada Ltd.

    Mr. Lyle Carnegie10308 129 Avenue, Edmonton, Alberta, T5E 0J9

    Phone: (780) 473-6110

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    Biomass Canada Ltd. 31

    Click here to view Gasifier Demonstration.IFO

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    Biomass Canada Ltd. 32

    Biomass Canada Ltd.10308 - 129 Avenue

    Edmonton, Alberta T5E 0J9Tel: (780) 473-6110

    Introduction of Biomass CanadaIntroduction of Biomass Canadass

    Gasification UnitGasification Unit

    Updated April 5, 2006