February 9, 2011 Peter Kling, ÅF Consult Ltd Vice President, Bio and WtE Consulting



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International WtE projects Project development and implementation February 9, 2011 Peter Kling, ÅF Consult Ltd Vice President, Bio and WtE Consulting 1

ÅF in Energy and Environment World class renown expertise SWEDEN FINLAND SWITZERLAND 125 Experts 225 Experts 220 Experts RUSSIA 280 Experts Consulting Co s Project / Sales Offices Subsidiary companies and branches in Subsidiary companies and branches in Lithuania Estonia Iran Ukraine Italy Latvia Nigeria Poland India Romania Thailand Indonesia Turkmenistan 120 Experts Vietnam Hungary Germany Brazil Chech

Waste-to-Energy Consulting Solutions for waste-to-energy, sludge and biomass applications Project management and engineering services for design and constructing a waste-to-energy plant Over 2 million tons of waste per annum incinerated in ÅF designed WtE Plants Plants and projects in Finland, Sweden, Lithuania,Estonia, Ukraine Russia, South Korea and China. 3 We manage different plant solutions as well as combustion and flue gas cleaning technologies.

Case WtE in Finland Factors which promote utilising waste as energy in Finland: + Targets to decrease waste depositing to landfills + Waste is renewable energy source and it may replace fossil fuels + National waste plan 2016->31 % of MSW should be utilised as energy in 2016 + Three WtE plants in operation, experiences have been positive Factors which trouble utilising waste as energy in Finland: - Costs of landfilling are low (but increasing) - Complaints against environmental permits and problems with land use permissions cause delays - Local people are against plants because of suspicion on flue gas emissions, increase of traffic and odours of the waste storages - Thoughts that recycling will decrease and intentions to minimise waste production would fail 4

Time schedule Preliminary time schedule of a WtE Plant Phase Studies Feasibility study EIA Process Preparation of EIA Programme (5 months) Preparation of EIA (6 months) Waste competition Waste handling tendering Environmetal permit Licencng of Environmenatl Permit (3 months) Handling and complaints (10 months) Pre-engineering Pre-engineering (6 months) Contracts for main equipment Execution Engineering and construction (26-30 months) 2009 2010 2012 2013 2014 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 complaints 5

Processing time of environmental permits for WtE Plants. Status 1.2.2011 Kotka, Korkeakoski 10 17 2 a. 3 m (24.3.2006) Oulun Energia, Oulu 6 41 15 5 a. 3 m (2.4.2009) AYK/YLV Pori, Kaanaa 7 24 complaints VHO KHO Turku, existing 15 23 3 a. 2 m (5.3.2008) Turku, new 18 19 complaints Ekokem, Riihimäki 16 10 8 2 a. 10 m (30.10.2007) 0 12 24 36 48 60 Handling time (months) YLV=Environmental authorities VHO= Regional Court KHO= Supreme Court

III Project execution cases Plant solutions: Kotka, Ekokem and Oulu Combustion and flue gas cleaning technologies ÅF project development and management in project execution Other international WtE projects 7

7 years hard work 2002 spring - Concept development started 2003 EIA 2004- environmetal permit awarded but followed with complaints 2005 - waste supply contracts signed 2006 - construction and environmental permit finally granted 2006 August- start of the project execution. 2008 October - first fire with MSW 8

Project implementation EPCM Multiple purchases Construction cost escalation caused biggest budget problems Equipment budget as planned Biggest problems in turbine and boiler delivery 9

Fuel in Kotka WtE Plant 85 % source sorted MSW; 15% industrial waste Fuel coming from South East Finland - 540.000 inhabitants 84 000 100 000 tpa depending on plant availability and heat value of the waste as received Heat value was some lower than expected 10

Plant characteristics at Kotka 11 CHP plant DH 30% Steam for industry 50% Electricity 20% Keppel-Seghers grate-boiler 100.000t/a of MSW Air cooled grate Fuel effiency 33,7 MWf Steam: 41 bara, 400 C SNCR Alstom semidry flue gas treatment

ÅF Services for a new Waste-to- Energy Plant in Kotka Project execution period 6/2006-03/2009 Services provided: Feasibility study (grate and fluidised bed were evaluated) Environmental Impact Assesment & Environmental Licensing Pre-engineering, tender evaluation and preparation of contracts for main equipment All design work, purchasing of equipment, delivery control Project and site management, commissioning and performance test 12

Main schedule - Ekokem EIA 2005 September Environmental permit approval 2006 April Construction time 2006 February 2007 June Plant start up 2007 September Environmental permit granted finally 2007 Take over of Boiler delivery 1/2008 13

Plant characteristics at Ekokem CHP Plant 34 MWth Heat; 10 MWe electricity Project main characteristics 150.000 t/a MSW Water cooled grate Fisia Babcock Grate-boiler 55 MWf Steam :320 C, 26 bara SNCR Wet flue gas treatment from existing incineration line 14

ÅF services in building new Waste to Energy Plant in Riihimäki Project exection period 06/2005 12/2007 Services provided Pre-engineering for incineration line #1 Preparation of the inquiry documents Tender evaluation grate incineration line & new flue gas treatment system All design work Purchasing of equipment, delivery control Project and site management Commissioning supervision New project 01/2009 12/2010 Pre-engineering for a line #2 incl. prep. of inquiry documents for main equipment 15

Emission limits to air according to WID Day 30 min 30 min 10 min A (100 %) B (97 %) particles mg/nm 3 10 30 10 Continuous measurement TOC mg/nm 3 10 20 10 Continuous measurement HCl mg/nm 3 10 60 10 Continuous measurement HF mg/nm 3 1 4 2 Continuous measurement SO2 mg/nm 3 50 200 50 Continuous measurement NOx mg/nm 3 200 400 200 Continuous measurement CO mg/nm 3 50 100 150 (95 %) Continuous measurement 30 min - 8 h Cd, Tl mg/nm 3 0.05 Hg mg/nm 3 0.05 Continuous measurement muut metallit *) mg/nm 3 0.5 *) other heavy metals: Sb, As, Pb, Cr, Co, Cu, Mn, Ni, V 6-8 h dioxines and furanes ng/nm 3 0.1 Continuous measurement 16

17

Plant comparison Capacity: 17,4 t/h, 150 000 t/a 10,6t/h, 85 000 t/a Heating value: 8-16 MJ/kg 8-14 MJ/kg Fuel effiency: 53 MWf 34 MWf Availability: 8000 h/a 8100 h/a Incineration technology: Grate, water cooled Grate, air cooled DeNOx: SNCR SNCR Boiler type: 4-pass, horisontalboiler 4-pass, horisontalboiler Steam parameters: 320 C, 26 bar(a) 400 C, 41 bar (a) Cleaning of heating surfaces: rapping and water spraying of empty passes Fluegas temperature: 220 C 160 C Boiler supplier: Fisia Babcock Environment GmbH Keppel-Seghers Flue gas treatment: SNCR + wet SNCR+semidry FGT supplier: FBE (Steinmüller) Alstom Energy production: Combined heat and power Process heat (10-20 MW), DH 33 MW, electricity 10 MW DH (4-20 MW) and electricity (4-9 MW) 18

Fuels Sourcesorted MSW X X Startup fuel oil natural gas Solid industrial waste X X Conatminated wood waste incl. Impregnated wood (i.e CCA) X - Biofuel X X Sludge (municipal and indusrial) X - Heat value as received 8-16 8-14 19

In practice 70,0 65,0 60,0 110% 11 MJ/kg POINT A 9,2 MJ/kg 55,0 100% P4 Overload area P1 P2 105% Thermal input [MW] 50,0 45,0 40,0 P3 Operation area Overload area 105% 35,0 30,0 25,0 20,0 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Refuse throughput t/h 8 MJ/kg 11 MJ/kg 15,9 MJ/kg 9,2 MJ/kg Operation area Overload area LCV_corner

Municipal solid waste

Basic waste => Basic slag

ÅF Services for a new WtE Plant in Oulu, Finland Project period 2010-2012 Services provided including: Feasibility study (grate and fluidized bed were evaluated) All design work Purchasing of equipment, delivery control Project management Project main scope Project management for the Client to construct a new waste-to-energy plant with a capacity of 120 000 t/year Fuel and slag handling, grate boiler (48+5 MWf), semidry flue gas system, BOP, civil works, electrification, automation and DCS system

Oulu Energia, main milestones 12/04 Application of Environmental Permit 04/09 Final approval of Environmental permit (>>4 a!!) 02/10 Start of plant design 05/10 Building permit 07/10 Start of civil works Scheduled: 03/11 Start of equpiment erection 02/12 Start of commissioning 05/12 First fire with waste 08/12 Start of commercial operation 21.2.2011

Plant characteristics at Oulu CHP plant Baumgarte grate-boiler 120.000 t/a of MSW Water cooled grate Fuel effiency 48+5 MWf Steam 88 bara, 425/515 C SNCR Lühr semidry flue gas treatment+ Metso condenser 25

21.2.2011 Oulu site fall 2009

Basement for bunker ready 10.8.2010 21.2.2011

21.2.2011 Site 21.1.2011

Fortum Klaipeda, Lithuania EPCM contract for a new waste-to-energy cogeneration plant Project period 2007-2012 Services provided Feasibility study (grate and fluidized bed were evaluated) Environmental Impact Assessment Pre-engineering including purchasing of main equipment All design work Purchasing of equipment, delivery control Project and site management Commissioning supervision Project main scope Project management for the Client to construct a new waste-to-energy plant with a capacity of 272 000 t/year Fuel and slag handling, grate boiler (85 MWf), semidry flue gas system, turbine, BOP, civil works, electrification, automation and DCS system

Iru Waste to Energy CHP Unit, Estonia OE contract for building new waste incineration Unit in Tallin Project period 2008-2013 Feasibility and Pre-Engineering EPC tendering & OE Consulting Preparing ITT s for binding EPC tenders; Tender evaluation and Preparation of contract, Owners Engineer for the construction of the WtE Unit 30 Project main scope OE services to construct a new waste-toenergy plant with a capacity of 240 000 t/year Fuel and slag handling, grate boiler (80 MWf), semidry fluegas system, turbine, BOP, civil works, electrification, automation and DCS system

Kenertec and later Hudigm, Korea 2007 2009 Modification of 130 t/h PC boiler with back pressure turbine to BFB for biofuels, sludge and RDF Pre-Engineering for local detailed engineering and purchasing of New Fuel handling New Convective Boiler New Air and FGR system New Flue Gas Cleaning New Ash Handling system DeNOx by SNCR New Combustion Control Turbine modifications Detailed Engineering for the rebuilding of the existing PC boiler to BFB 19

Project development Examples of international cases: Ukraine P.R. of China Russia 32

Donetsk, Ukraine Waste to Energy Project, Proletarskij District Project main scope Client: Swedish company,build and operate WtE plant 450 000 ton/year of MSW Electricity production 30MW District Heating 70MW Commercial operation Q1 2014 ÅF Services provided Project Management Technical, legal and commercial support Preparation of tender documents and EPC turn-key contract negotiations Owners Engineer

Changzhou, China Waste to Energy Plant Project Project main scope Client: Swedish company,build and operate WtE plant for a district in Changzhou >1.350 kton MSW/a CHP Plant ÅF Services provided Prefeasibility study Feasibility study Environmental Impact Assesment 34

Moscow Zavod No 1, Russia Owner s Engineer Services for Waste-to-Energy Plant Project period 8/2006-12/2007 ÅF Services provided Review of pre-design (TEO) by TEP Moscow Preparation of tender doscuments and EPC turn-key contract negotiations Project main characteristics 2*200 000 t/a of MSW Grate Boiler Plant (2*57 MWf) SNCR Semidry FGT Condensing Power Plant (2*13,7 MWe) 35