Ekokem Investor Presentation

Circular Economy VillageSenior Vice PresidentNew Business VenturesMari Puoskari

ContentEkokem & Fortum remarkable international energy and waste management company

Circular Economy why it is relevant now?

Finnish Model of Circular Economy: Our Circular Economy Village as an Example13.10.2016

Ekokem & Fortum remarkable international energy and waste management company13.10.2016

Ekokem & Fortum remarkable international energy and waste management companyTen countries14 waste/multifuel incineration plants5 hazardous waste incineration plants15 material recycling centers

Ekokems Sustainable Services for Total Waste Management13.10.2016

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Circular Economy why it is relevant now?13.10.2016

Megatrend: Decreasing natural resourcesBy 2050, the global population is expected to have grown by 30% to around 9 billion Increasing welfare and consumption levels in developing and emerging economiesIntensive use of the world's resources puts pressure on our planet and threatens the security of supplyIn EU 2,3 billion tons of waste produced annually 1,6 billion tons wastedNecessary to decouple economic growth from resource use and its environmental impact

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Picture: peda.net

How do we define circular economy at Ekokem?As much waste material as possible shall be redirected to the loop, returned in the system. The material that cannot be recycled as material shall be utilised in energy production.Those substances that should not be put back in the circle must be removed and disposed of safely. In this part of the circle Ekokem has a lot of competence, which is still essential.

Business potential in circular economyCompetitive advantage in resource efficiencyRecycled raw materials are cheaper and more energy-efficientEU: BKT + 1%, 2 000 000 FTEs (Ellen MacArthur Foundation)Increase independence from exported raw materialsCost-savings to companies due to material efficiency in EU-level: 600 billion euros or 8 % turnover13.10.2016

Finnish Model of Circular EconomyOur Circular Economy Village as an Example13.10.2016

What is the most efficient way to recycle municipal waste?Depends on target our target is to maxise the tonnage of the material recycledEnergy recovery is very important, but secondary target for recyclable materialWith this system, recycling rate 65-70 % reached13.10.2016

Source sepation at homesCentralized mechanical-biological treatment

E.g. Hazardous wasteSpecific sorting for recyclables e.g. plastics

WTEAsh refining

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Circular economy village a concrete step towards a circular economy societyA new type of refinery complexAn optimal recycling rate designed for each materialThe recycling rate of municipal waste is about 65 %, the recovery rate 9698 %Investment 40 MEUR, permanent FTE 40-5013.10.2016

Yesterday lot of discussion about statistic and calculation methods recycling rate calculated from the end-use13

The streams in the Circular Economy Village

Municipal waste 100000 t/a

Bio

14Plastics53 %37 %10 %Metals3%BiogasFertilizersPackage plastics6000 t/aAgriculture plastics6000 t/a

Recycled plastics

Ekokem WTE20 %Recycled fuel 30 %50 %Eko-refineryPlasticrefineryBio-refinery

CrusherFiltersMagnetsEddy current sepators14

Waste is sorted in EkorefineryAnnual capacity 100 000 tons of municipal and commercial wasteProcess:MagnetsEddy-currentsFiltersRejects to grate kiln13.10.2016

Eko-refinery1050

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First plastic refinery in the NordicsPlastics sorted from municipal waste All separately collected plastic packages in Finland collected by producer organisation The Finnish Plastics Recycling LtdAgriculture and retail plastic wasteRecycled plastic product replaces virgin plastic material in plastic industry CO2 footprint 85 % smallerProcess: Sorting with infra red technologyCrushingWashing and dryingExtrusion

13.10.2016Mari Puoskari

PPHD-PELD-PE

R-HD-PE

Plasticrefinery

16Suomen ensimminen muovijalostamo. Suunniteltu ja mitoitettu suomalaisesta kotitalousjtteest erotellulle muoville.Kapasiteetti n. 20 000 tonnia vuodessa. Arviolta 8 000 tonnia on Ekojalostamossa eritelty muovia, 6 000 tonnia on erilliskertty muovia ja 6 000 tonnia maatalous- sek turvetuotannon muoveja.Investoinnin arvo on noin 14,5 M.Jalostamossa muovit lajitellaan, pestn ja jatkojalostetaan raaka-aineeksi teollisuudelle.Vuoden 2016 alusta Ekokemin muovijalostamolla kierrtetn kaikki Suomessa kotitalouksista kerttv pakkausmuovi. Kuluttajamuovien kermisest vastaa Suomen Uusiomuovi Oy.Kierrtetty muovi korvaa teollisuudessa neitseellist raaka-ainetta. Kierrtysmuovin markkina-alue on Eurooppa. Muovijalostamo tuottaa kalvomuoveja, kovia pakkausmuoveja sek sekalaista muovi

Biogas and fertilizersFirst anaerobic digestion plant in Finland to treat centrally sorted biowaste.Our partner Biotehdas Ltd. investment 14,5 M.65 000 t biowaste / yearBiogas to transportation for over 2000 cars refined and sold by Gasum Ltd.Nitrogen water to fertilizer

13.10.2016Mari PuoskariBio-refinery

alo

17Hausjrven/Riihimen biojalostamo on Suomen ensimminen biotehdas, jossa ksitelln kotitalouksien sekajtteest eroteltua biojtett.Laitos on Biotehdas Oy:n thn asti merkittvin investointi, ja sen arvo on noin 14,5 M.Biojalostamossa ksitelln vuosittain 65 000 tonnia biojtett. Tst tuotetaan:lmp alueelliseen kaukolmpverkkoonshk valtakunnan verkkoonlannoitteita n. 4 000 hehtaarin tarpeisiin.Biotehtaan prosessi on resurssiviisas ratkaisu biojtteen ksittelyyn:Biokaasuprosessi on tehokkain tapa hydynt biojtteet.Prosessissa saadaan talteen ravinteita, kuten typpe. Inertti palautuu energiahydyntmiseenVs separately collected biowaste

Drivers behind the Village investmentTightening recycling targetsLandfill ban for organic waste Package waste decree, 16 % of plastic packages has to be recycled starting 2016Remarkable development in sorting technology during last three years higher precision in infra red sorting and more cost-efficient pricesCustomer demand for recycled materials

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Contact:Ekokem GroupMari Puoskari, Senior Vice President, New Business VenturesTwitter: @maripuoskarimari.puoskari@ekokem.comtel. +358505372595