Strictly Confidential

Kwinana Waste to Energy Project

WA Power and Gas Conference

Phoenix Energy Australia Pty Ltd

16th March 2016

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Who is Phoenix Energy?

Phoenix Energy is a privately owned Australian Waste to Energy (WtE) project development company

Our role is to develop WtE projects from conceptual stage through to Final Investment Decision (FID) by:

• Using proven WtE technologies provided by reputable technology providers, and

• Partnering with international experts and local & international professional services firms with expertise in WtE

We are technology agnostic, but performance zealots……least risk, with highest outcomes for clients.

• By not having our own technology, we are free to choose a ‘best for application’ approach in the selection of the technology.

• Therefore we ‘own’ the outcome for the client.

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Benefits to WA

• A step change in the diversion of municipal solid waste from landfill.

• A new source of renewable energy at a low price.

• Support economic activity and jobs in the Kwinana area.

• WA being the first State in Australia to successfully develop a large-scale waste to

energy plant.

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Key Milestones Achieved

• Execution of the City of Kwinana Waste Services Agreement

• Execution of the Rivers Regional Council Waste Services Agreement

• EPA part IV Environmental Approval

• Development Approval by JDAP

• Equity agreements with Covanta Energy, LLC and John Laing

• Early Contractor Involvement (ECI) completing

• Exemption of the process plant area from a building permit

• Submission and acceptance of EPA part V Works Approval application

• Obtained Ministerial Approval for Exemption of a Generator License (Governor

signed off Jan 5th and gazetted)

• WEMS generator registration complete

• Submission of Grid Connection Application to Western Power

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What is the technology selected for Kwinana?

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Our core technology is

mainstream

• Martin Grate combustion technology

supplied by Mitsubishi

• Over 1000 of these type of plants

operating around the world [source:

WSP UK Limited for EPA WA, 2013]

• 435 Martin Grate plants operating or

under construction world wide

(~700kW/t of waste)

• 123 processing between 200,000t/y

& 400,000t/yr of MSW residuals

• 38 plants processing more than

400,000t/yr. The largest is five times

the size of proposed Kwinana Plant

this is a very low-risk solution!

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Key control systems

Refuse firing control (60%-110% of Maximum

Continuous Rating (MCR))• Feedstock specific heat content varies continuously

• Grate control system adjusts throughput to maintain heat release

necessary to attain a target steam rate

• Automated grab crane premixes feedstock in the waste bunker and

feeds refuse to the feed chute

Combustion temperature control• Primary (underfire) and Secondary (overfire) combustion air

• Minimum 850oC to be maintained in the burnout zone for 2 seconds

• Auxiliary burners (NG fired) also act to maintain minimum combustion

temperature

• bottom ash Total Organic Carbon (TOC) content is to be less than 3%

(or loss on ignition is less than 5%) of the dry weight of the material

CEWB 2005

Rated continuous

operating range

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Compatibility to Recycling

Does this discourage waste reduction,

reuse or recycling?

Not in the US.

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Key to eliminating landfill in the EU

Achieving sustainability in managing waste can only

be achieved with WtE as an integral component of the

waste strategy.

WtE is targeted at the

residual or general

waste bin

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Ash & Slag Reuse Options

Ash Handling (~5% by volume of feedstock)

• Option 1: Vitrified and/or turned into bricks and pavers• Already in operation in Japan and the US

• Meets all US EPA leach testing

• More economical and energy efficient than raw brick manufacturing

• Option 2: Used for construction as an aggregate• Used globally. US EPA and UK EPA have significant data on effective reuse.

• Used in Japan for creating new land

• Option 3: Landfilled• Used as daily cover. Rarely contemplated for new plants

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Environmentally Proven

• Denmark - a leader in green energy, population 5.5million – has 29 WtE’s!!

• Japan, Europe, UK, US, and most of the world except Australia!

The plants will be designed to stringent EU Emissions

standards for gaseous and aqueous emissions, using Best

Available Air Pollution Control Technology

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Typical Emissions Profile

The Air Pollution Control technologies are well established in the global power generation, Waste to Energy and gas processing

industries.

Example: Data from Brescia WTE

(Mass combustion) facility in Italy,

processing MSW and biomass

Stack Emissions

(Martin GmbH Brescia

(Italy))

Plant

Approva

l Limits

1993

Plant

Design

Data

1994

EUROPEA

N UNION

Limits

2000

Actual

Operating

Data

Particulate Matter 10 3 10 <0.5

Sulphur Dioxide 150 40 50 10

Nitrogen Oxides (NOx) 200 100 200 80

Chlorine acid (HCl) 30 20 10 5

Fluorine acid (HF) 1 1 1 0.2

Carbon Monoxide 100 40 50 20

Heavy Metals 2 0,5 0,5 0.01

Cadmium (Cd) 0,1 0,02 0,05 0.002

Mercury (Hg) 0,1 0,02 0,05 0.002

PAH (Polycyclic

aromatic hydrocarbon)

0,05 0,01 - 0.001

Dioxin (TCDD Teq)

ng/Nm3

0,1 0,1 0,1 0.01

Example: The Japanese Dioxin Experience

Dioxin emissions are now barely detectable

in the flue gas emissions from the 21 WtE

plants (and 2 support plants) operating

within the 23 Wards of the City of Tokyo)

Expressed in ng-TEQ/Nm3 (FY2012 Ave. values)

Plant Actual Plant Actual Plant Actual Plant Actual

Suginami Under re-construct-ion

Chitose 0.000022 Toshima 0.000030 Shinagawa 0.000018

Hikarigaoka 0.000015 Edogawa 0.000021 Shibuya 0.000013 Katsushika 0.0000081

Ota 0.000022 Sumida 0.000014 Chuo 0.000009 Setagaya 0.000011

Meguro 0.000015 Kita 0.000017 Itabashi 0.000074 Chubo Ash Melting Plant

0.000085

Nerlma Under re-construct-ion

Shin-koto 0.000019 Tamagawa 0.000074 ChuboPulverization Plant

0.000046

Ariake 0.000010 Minato 0.000019 Adachi 0.000014

The Perth Australia Day Fireworks releases more Dioxins than the Kwinana

WtE Plant will in Four Years

Seven trucks driving past the plant in an hour will release more particulates than the

plant will in that hour

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Lifecycle Carbon Emission Study Results

RTI International Solid Waste Modeling Support example for: Net Total Carbon Equivalent Emissions by Scenario for Maryland (US) WtE proposed plant (for Frederick and Carroll Counties, where their MSW is being trucked across the border to an out-of-State landfill for disposal)

A second example from a proposal for the

Viridor Trident Park EfW facility in the UK

-35,000

-30,000

-25,000

-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

Local Landfill Local WTE Out-Of-State Landfill

An

nu

al

Carb

on

Em

issio

ns (

MT

CE

)

Kwinana Project has potential to reduce the carbon emissions equivalent to removing

250,000 cars from the road

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What will the Kwinana Wte Plant Look Like?

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What will the Kwinana Wte Plant Look Like?

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What will the Kwinana Wte Plant Look Like?

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What will the Kwinana Wte Plant Look Like?

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Who are the Key Contractors?

Mitsubishi Heavy Industries Environment and Chemical Co. (MHIEC) part of the MHI Group

In the role of Technology provider, Engineering and Procurement for Plant (excluding civils).

MHIEC: is also the Technology license holder and have built over 180 WtE plants, 90 of which are the same technology as

proposed for the Kwinana Project.

• Tried and proven WtE technology with a tried and proven technology provider and engineering capabilities.

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Who are the Key Contractors?

POSOC E&C

In the role of Engineering Procurement & Construction provider (EPC)

• Nearly $8.0bil USD turnover, one of the worlds largest steel manufacturers

and third largest Korean construction company

• Have constructed over 15 WtE plants

• Proposing to use BGC as civil contractor

• Proposing to transfer team current on the Krakow WtE in Poland to the

Kwinana WtE project

• Tried and proven WtE technology with a tried and proven WtE construction

company.

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Who are the Key Contractors?

Covanta

In the role of Operations and Maintenance (O&M)

• Own and/or Operate over 43 WtE plants

• Over 22 are Martin Grate

• Tried and proven WtE technology with a tried and proven WtE O &M contractor. THIS IS ALL THEY DO!

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Summary of Key Facts

• Worldwide there are over 1000 thermal waste to energy plants, but none in Australia.

• Fits Renewable Energy policies as a renewable electricity generation technology

• Their emissions are well below the most stringent EU or US standards

• They reduce waste going to landfill by 95% or more

• From one tonne of waste they produce enough energy to power an average house for 7 weeks in Australia. This is

14% of a households needs

• From one tonne of waste processed it avoids one barrel of oil or ¼ tonne of black coal or ¾ tonne of brown coal

• A tonne of waste processed at a Waste to Energy facility generates 9 times more energy than the same tonne

produces in landfills that capture the methane from buried waste

• A tonne of MSW processed at a Waste to Energy facility avoids one tonne of carbon dioxide equivalent emissions due

avoidance of methane generation at landfills, the offset of greenhouse gases from fossil fuel electrical production, and

the recovery of metals

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KARA-Roskilde, Denmark

Thank-you! Questions?

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