EMERGENCE BIOENERGY INC.

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Emergence Bioenergy Inc’s

«Waste4Energy» Project

from Principle

to Prototype

andPilot

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EBI Concept & Project Presentation1. Challenge and Project Background2. Technology Solution and Project Rationale 3. Business Concept4. Risks and Mitigation5. Project Milestones6. Comparsion of EBI/Solar/Diesel Alternatives7. Exclusive EBI Project Contributors, Side Effects8. Pilot Objectives, Farmer/EBI/MNO9. Pilot site #1, Bir Uzali – Dhaka, photo session

Market for Distributed Micro-Power• Only 41% people have access to Electricity*

• Per capita electricity consumption is 279 kWh*

• Pre-paid electricity is increasing in popularity

• < 50 kW generation is unregulated

• High availability of biomass feedstock (cattle and agri waste) across country

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* Source: http://data.worldbank.org/indicator/EG.ELC.ACCS.ZS/countries

Core Technology• Micro-Combined-Heat-and-Power

(micro-CHP) Cogeneration• External combustion, can run on

• biogas / biofuels• any liquid or gaseous fuel

• Continuous Operation 24/7• > 70,000 hours lifetime (compared

to 5,000 hour for diesel generator)• No noise, < 60dBA• Low Maintenance• 3.5 to 7.5 kW electric + heat

• Heat to be used for cooling

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Project RationaleMain market segments for power supply:

• Telecom power – reduce cost of remote telecom power by 40%. Provides significant increase in reliability of services.

• Rural Dairy / Agricultural Supply Chains – Dairy sector in Bangladesh is inhibited by lack of supply chain infrastructure including cold storage and power

• Remote Consumer / Light Commercial Power for hotels, hospitals, innovative small commercial operations that require less than 10 kW of reliable, continuous power

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Business Concept7

Dairy/Chicken FarmCommercial Customer

man

ure

Micro-CHP

biogas

Electricity

Electric

ity

Additional Waste:•Used cooking oil•Kitchen Waste•Crop Waste

Backup Fuels:•Natural Gas•CNG / LPG•Diesel•Solar Array

heatcooling

Telecom

Dairy

Consumer

Village Power

Risks and MitigationRisks Mitigation

Fuel Availability Need regular supply of waste in excess of 1 ton per day. Farmer to invest for active involvement; Engine can run on multi-fuels to ensure operations 24/7

Cost of Engine Manufacturing in India and volumes would drive down costs

Credit Risk Agreed tariffs with telecom operators on long-term Pre-paid electricity for consumers

Telecom companies

Bangladesh telecom companies are profitable; Multiple operators expressed interest to implement renewable energy solutions

Site Selection Management has deep understanding and experience;have past set up nation-wide operations;

Cooling Solution Explore to commercialize solution to for additional revenues from the existing installations

Digester Maintenance

To invest in low maintenance digesters which accepts multi-feedstock.

Control over Engines

Remote control and analysis of engines possible, by available built-in CPU and utilizing access to telecom

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Project Milestones9

• Initial 1 kilowatt prototype in Bangladesh operated 5+ hours / day for 6 months powering telecom tower + power to consumers from 1,200 bird chicken farm.

• Commercial 5 kilowatt demo unit deployed Nov 2014 to supply 24/7 power to telecom and consumers from biogas

• In discussions with IDCOL, Bangladesh energy financing group backed by Asian Development Bank, to provide financing for farmer’s investments

• Formal expression of interest (MoU) for orders from Grameenphone, largest telecom company. Pilot-Phase Cooperation at 3 selected telecom sites

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Sub-10 kilowatt Continuous PowerEBI SG (Raw

Biogas)Solar Diesel

Intermittency Multi-fuel 6 hours peak sun Supply chain issues

Backup Requirement

Battery bank (200 ah) for transient loads

Full diesel backup + battery

Battery Bank (500+ ah)

Maintenance Limited Minimal Significant

Heat Recovery Yes No No

Capex Moderate High Moderate

Opex Low Minimal High

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Leveled Cost of Electricity over 10 YearsEBI Stirling Solar +Diesel Backup Diesel

Cost / kW hour $0.32 $0.44 $0.86

EBI Stirling (3 kw) Solar PV (10 kW) + diesel backup Diesel (20 kW) $-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

Levelized Cost of Electricity Breakdown

Capex Maintenance Battery Fuel

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Net Present Value Comparison

Revenue / kW hour EBI Stirling Solar + Diesel Diesel

$ 0.45

27,542

(9,275)

(48,347)

$ 0.50

34,605

(2,247)

(41,378)

$ 0.55

41,667

4,780

(34,409)

$ 0.85

84,042

46,944

7,404

Key Assumptions: • Discount Rate: 9%• Duration: 10 years

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Impact vs. Solar• EBI installations provide the

following community benefits not possible through solar installations:• Job creation through processing of waste• Direct payments to farmers for biogas

production (increasing the productivity of existing farms)

• Reduction of methane emissions in atmosphere through processing of biomass into biogas

• Removal of pathogens through remediation of waste in digester

• 24/7 operation, no intermittency issues, no need for diesel backup

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Impact vs. Solar (cont.)• EBI installations add-ons: Production and sales of organic fertilizer

provides manual human healthy works Locally produced organic fertilizer replace

energy intensive chemical fertilizers Procedures by handling of manure

leading to improved animal welfare and hygienic conditions for farmer and hurdle

Heath converted to cooling at the farm will improve food condition and quality

Excess Gas volumes may be used for cooking, instead of firewood that pollutes both air and human lounges

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Farmer’s Pilot Objectives: • Find optimal build principle and materials for power plant

building and biodigester • Find optimal mix of waste ingredients and test add-in of

materials to obtain maximum biogas production• Determine the market price for biogas • Identify potential farmers to sell off overload of fertilizer • Investigate market for commercial fertilizer sales• Explore potential of maintenance support for EBI & MNO

(power/telecom)

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EBI’s Pilot Objectives:• Validate business model and technology• Determine commercial applications for power including

irrigation pumping, ICT applications, electric devices battery charging and other revenue generating services

• Learn the requirements and costs for mini-grid deployments and associated (pre-) payment transactions for customers

• Validate seamless shift in fuel alternative supply, continuous 24/7 power supply – minimize engine stoppage time/year

• Determine price of power required for adequate financial returns and overall company scalability

• Cooperation for synergies w/externals like Vekst Foundation

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MNO’s Pilot Objectives:• Operational expectations and experience from each power

plant site. Potential testing of hybrid solutions• Remote access for verification and management of

operation, potential on site maintenance coop with farmer • Validation of business case, decrease opex and power cost,

increase site reliability and service availability to 99.5%• Improvement in relations with local communities where cell

towers are located. Recognition of social responsibility• EBI coop to explore potential sites for commercial phase

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EBI Project Site – Bir Uzali Bangladesh

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EBI’s micro-CHP in equipment room

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EBI’s Project team – Saidul Islam C.Mgr

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EBI Project Site – Controlling supply

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EBI Project Site – Distribution/Control

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EBI Project Site – Engine control

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EBI Project Site – Lamp empowering

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EBI Project Site – Biodigester w/manure

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EBI Project Site – Water supply

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EBI Project Site – Boys at Playfield

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Bir Uzali – Local Community

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EMERGENCE BIOENERGY INC.

THANKING YOU !

Svein Gaute Bleivik, CTO