Glycol Recovery, Recycle and Reuse

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Glycol Recovery, Recycle and Reuse Airports Council International - NA By Sam Charbel Michel Barrette May 2015

Agenda Aero Mag 2000 Brief history of our expertise Project Conception & Design Project purpose Closed loop process Related technologies Fluid certification Recycling Projects Recovery, Recycle & Disposal Ottawa International Airport (YOW) Recovery, Recycle & Reuse Montreal Pierre-Elliott Trudeau International Airport (YUL) Financials Main Considerations Challenges Overview of the construction, financial and operational hurdles Your Questions

Brief History Overview (De-icing) First company to introduce and receive approval for Engines Running Deicing to all aircraft types Kick off of inhouse operational & management software Designed the first Centralized Deicing Facility in Canada (Montreal) still considered the one of the most technologically advanced in the world. Introduction of forced air Live view of aircraft movement while on pad/gate 1994 1995 1996 1997 2000 2005 2010 2011 Established Canadian company dedicated exclusively to aircraft de-icing. First company to introduce the one-man Vestergaard Beta in North America Indoor parking facilities and glycol storage tanks Use of concentrate type 1 fluid and central blending and heating Online proportional mixing (de-icing units) Airline online access to operational data & reports Fully integrated operation including buying, applying, recovering, recycling and re-using of aircraft de-icing fluid Over 300,000 aircrafts de-iced safely and efficiently across 12 national airports Over 300 years of overall airline management experience Industry recognition for most extensive truck maintenance program

Brief History Overview (Recovery, Recycle & Disposal) YUL Recovery and Disposal and glycol management Pad construction with recycling in mind RRR The Idea kick off YVR Recovery, Fluid management & Disposal Arrival of Concentrators for YUL & YOW 29Oct 2014 Official opening of the RRR project Construction of the RR&D facility in YOW 1994 1997 2005 2010 2011 2012 2013 2014 YMX Recovery and Disposal YOW Recovery & Disposal YEG Recovery & Disposal RRR approval for YUL Processing in YUL Processing in YOW YVR Annual reduction in cost for airlines of over $1.2Million YOW Annual reduction in cost for airlines of over $0.5Million Recovery & Disposal of over 700Million liters of fluid from YMX YUL YVR YOW & YEG Over 4.5 Million liters of processed 50/50 fluid Esteem relationship with airlines, airports & Environmental regulatory agencies Compliant with the National, Provincial and Municipal by-laws Environmental concern was the main drive of most of the Canadian CDFs

Why Recycle? Environmental Recertifying collected processes fluid Achieving above and beyond compliance Minimum disposal of glycol to city sewage Decreased emission of CO2 Operational Self sufficient Energy recovered used to heat the facilities Financial Reduction in disposal fee to the city Heat/Energy cost savings Reduction in glycol transportation costs Reduced glycol price to airlines Reduced disposal costs of spent fluid

Closed Loop Process Aero Mag and its partners have developed a closed loop process to recycle glycol in a cost efficient way Complete solution for recycling glycol Glycol is collected at the Gate/Pad and recycled in a process using filtering, evaporation and distilling Recycling reduces need for waste water treatment Process is based on proven technology

Related technologies - VILOKAN Processing Ultra Filtration Distillation Tower as well as the blending system for final phase of virgin glycol

Fluid Certification LNT Solutions Establish the parameter for production Certification of the recycled product Approval of virgin fluid produced at the plant Certification of Type 1 concentrated Quality control and quality assurance procedure materials Blending certification under the LNT banner

Recycling Operated Stations A combination of passive underground piping at the CDF and the assistance of 2 GRV to ensure all high concentration of sprayed glycol is recuperated at the core YOW Passive collection designed under the CDF with access to technoloy to segregate collected fluid based on their content of glycol YUL YEG An extensive GRV operation that allows for all sprayed fluid to be recuperated A combination of passive collection and GRVs utilization to sweep the glycol at the core location of de-icing YVR Recovery Disposal and/or Treatment of Effluent Aircraft De-icing Fluid Services YMX A combination of passive and active recovery to ensure maximum collection at CDF & Gates Passive collection Active collection

Recovery, Recycle & Disposal YOW Construction project in progress planned to complete by Jun. 2015 Ultra filtration with a capacity of 1600 liters/hour Best in class fully automated processing equipment Storage capacity of 3.5M liters of fluid Annual contribution to the YUL RRR project of ~1M liters of the processed 50/50 fluid Ultra Filtration Processing Building Layout

Recovery, Recycle & Disposal YOW (Cont d) Location Permanent Storage Proximity to CDF & Pad Maximum utilization for GRV due to short distance User friendly design geared toward operational requirement Input at planning stages from City of Ottawa and Airport Authority Slush Bucket for easy GRV dumping Overview from CDF

Recovery, Recycle & Reuse YUL 10,000 Square feet over a two story facility Concentrators Evaporators Distilling tower Quality control tanks Blending tanks EG storage

Recovery, Recycle & Reuse YUL (Cont d) Overview look of the facility reflecting Tanks and Distill tower Arial view of the facility location Vs the line of sight of the Nav Canada radar

Recovery, Recycle & Reuse YUL (Cont d) Initial Distill Tower Design Revised Distill Tower Design

Recovery, Recycle & Reuse YUL (Cont d) Elaborate laboratory onsite for accessibility to immediate testing Rigorous quality control process Storage of sampling specimens

Recovery, Recycle & Reuse YUL (Cont d) First of its kind in the world: spray, recover, store, process, distill, reproduce & certify, blend & re-spray Fully automated state of the art technology Installation complete Expected output of 2M Litres of 99.5% Ethylene Glycol Significant cost reduction to the airlines

Glycol Management Fluid collected coming from YMX shipped to YUL Fluid collected and processed to 50/50 from YOW shipped to YUL Fluid collected in YUL, processed to 50/50 then to the final stage of a minimum of 99.5%

Financial Consideration Pricing Operating Costs Financial Partners Invoicing structure & Breakdown Energy (natural gas, electricity) Airport of Montreal Equal or below market Repair and maintenance Aero Mag Volume of used fluid Chemical & waste CapEx & OpEx Reduction in disposal fee to city Additive package Certification incl. laboratory testing cost Type 1 price at YUL is 30% lower than current market price

Challenges YUL Designing the proper plant size Airline Acceptance Airport cooperation and by-in Collecting enough glycol to be self sufficient Completing the project on time Completing the project on budget Glycol management and storage of excess capacity Unforeseen construction obstacles

Conclusion The focus for Aero Mag, since it s inception 20 years ago, is improving the standard of living, conserving the environment, using resources efficiently and advancing long-term economic competitiveness. Project provides a totally Integrated solution for de-icing operation for the benefits of all interested parties Initiative required a lot of time, dedication and forcefulness to get the support of all parties to proceed, namely: Airlines Airport Authorities The right equipment provider Fluid manufacturer Environmental agencies Ultimate goal is to promote and expand this approach for the benefits of our communities and the de-icing industry This project was selected as part of the finalists in the Mercuriades for the Federation of the Chamber of Commerce of the Province of Quebec

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