Cambi AS Skysstasjon 11APb 78 N-1371 Asker Norway

www.cambi.comE-mail: office@cambi.noTel: +47 66 77 98 00 Fax: +47 66 77 98 20

Cambi Business in AsiaIN Asia Days in Oslo 11 June, 201311.06.2013, OsloBy Norman Weisz, Director Contracts

AGENDA, Cambi Business in Asia

1. Introduction to Cambi

2. Background of the establishment in Asia

3. Status in selected Asian markets

4. Corporate Social Responsibility (CSR) challenges in Asia

5. Cambi's experiences / interactions with Innovation Norway

Biosolids: • Plants for enhanced biogas production from municipal & industrial

sludge

Biowaste:• Plants for biogas fertilizer from source-separated organic waste

Operations:• Cambi Operations provides support and operation services to

maximize plant performance

CAMBI’S BUSINESS AREAS

CAMBI THP

SLUDGE BEFORE AND AFTER THP

BEFORE AFTER

Source: Cambi THP at Geiselbullach WWTP, Olching, Bayern, Germany. Operator and owner: Amperverband

Thermal hydrolysis disintegrates the cellular structure of bacteria and solubilizes exopolymers to yield an easily digestible product

Cambi Cake Quality – Aberdeen Scotland – 10 years successful recycling

• It is stackable, stable (no smell) and safe

• No complaints at all by customers or neighbours

INCREASING BIOGAS PRODUCTION

1,600 t DS/yearextended aeration sludge

SMALL PLANTS: NAESTVED (DK)

Cambi sells three types of THP:

• B2

• B6

• B12

CAMBI XXL: DAVYHULME, UK, 91,000 t DS/year

Cambi THPB12-4x5 reactors

8 x 7500 m3 digesters

LARGE CAMBI, BIOWASTE, OSLO EGE

ACHIEVEMENTS

Cambi has built some 30 plants worldwide with

• Total treatment capacity of about 800,000 metric tons of DS (dry solids)/year

• Treatment capacity equivalent to 26 million people

• Production capacity 2 TWh thermal energy (biogas) and 800 GWh electrical energy, when using gas engine cogen

• Green energy replaces 800,000 tonnes of fossile CO2 emissions.

» Cambi is a world leading player on Thermal Hydrolysis

CAMBI PLANT LOCATIONS

1. Water pollution is first solved by sewer infrastructure to lead the wastewater away

2. Then at the end of the pipe, wastewater treatment plants will sooner or later be needed

3. Wastewater treatment plants generate sludge

4. After a while sludge becomes a problem (volume-smell)

5. Then sludge handling costs will increase.

6. Eventually Cambi has a market

Development cycle of Cambi’s market drivers

Japan – slow and thorough

• We sold a license to Kobelco in 1999.

• They built a demonstration plant in Niigata in 2001

• The technology is approved for Japan

• A well developed country with high financial drivers.

• But very closed and conservative.

• In 2009 Kobelco renewed the license (we had some assistance from IN)

• In Japan we have to work through a well established Japanese company.

South Korea – comming quickly

• Banned dumping of sludge at sea

• Investing heavily in sludge treatment

• Cambi has set up a Joint Venture company with a Korean partner

• Cambi expect the first contract soon.

The Midle East – high risk

• In 2007 we sold a plant to Dubai.• Our customer was an international world class company in the

water business.• The end client went broke during the plant construction phase

(2008 finance crisis).• We got out of it without loss.

• Several project developments over the years

• Cambi has several agents.

• It seems best to work through international players

India – is it ready for Cambi?

• Pollution, health and sanitation are serious issues and high on the political agenda.

• Enormous infrastructure investment needs

• 24 cities with more than 1 million inhabitants, and more than 4.000 cities have no wastewater treatment

• All large cities are upgrading to modern wastewater treatment with resulting sludge generation, currently 100 wastewater plants are in construction

• Strict sludge treatment regulation is being developed in parallel

NORAD study of Delhi’s Okhla STW Advanced Digestion Upgrade

”Culture is more often a source of conflict than of synergy.

Cultural differences are a nuisance at best and often a disaster."Prof. Geert Hofstede, Emeritus Professor, Maastricht University.

Cultural difference is a major challenge:

Business culture in India vs. Norway

India Norway AdviceDecision process Improvisation Carefully developed

plansYou need to be flexible

The way we dobusiness

Trust through personal relations

Trust through contracts and company reputation

Long term development of personal relationships

Hierarchy Top down Flat and consensus Make sure you negotiate with the decision maker

Corruption Difficult to avoid No tolerance Use official channels, understand the process

Corporate Social Responsibility (CSR) challenges in Asia

• India has increased emphasis on important CSR issues, e.g.:• Greater emphasis by the government to regulate CSR.

• Increasing number of laws and regulations contain CSR elements and requirements

• Greater awareness of business and government organizations impact on the environment

• Increased awareness by consumers of their rights and their requirement

• In reality one needs to carefully pick partners; worker exploitation is prevalent.

• There is a challenge to not fall in the «corruption trap». One strategy to avoid corruption is to be sub-supplier to large international contractors.

START WITH A MARKET STUDY: List of main AD projects for WWTPsin China, possible improvements/upgrades

Shenyang Beibu 80(O)Dalian Xiajiahe 100(O)

Beijing Gaibeidian 220 (O, P/T)Xiaohongmen 160 (O, P/T)Zhengwangfen 80 (P,T)Qinghe No2 80-120(P, T)

Tianjin Jizhuangzi 180 (P/C, T?)Xianyanglu 120 (S)Dongjiao 80 (O, P/T)

Shijiazhuang Qiaodong 90(S)

Jinan 40(S) Jining 30(S) Qingdao 110(O), Yantai 50(O?S?)

Taiyuan Yanjiabao 45(S)Zhengzhou Wangxinzhuang 150(O,P)Matougang 160 (P)

Xi’an No 4. 80(S), No.5. 40 (S), Dengjiacun 30 (S)

Sludge center 200 (P/T?)

Nanjing Jiangxinzhou 100(S)Shanghai Bailonggang 204(O)490(P/T)Hangzhou Sibao 100(S), Ninghai 30(O)

Wuhan Sanjintan 60(S), Xiangfan 60(O/T)

Nanchang Qingshanhu 50(O)Changsha 100(C/T)

Shenzhen Lisai 100(P/C/T)

Hongkong Shatin 50(O) 80(P/T)

Lanzhou Qilihe 50(S), Yanerwan 40(S)

Chengdu Sanwayao 30 (S)

Chongqing Jiguangshi 90(S)Tanjiatuo 40(S)

Kunming 90(C/O)

Haikou 50(C/O)

17 AD projects in operation14 AD projects stopped

Legend: O-operation, S-Stop, C-construction, P-planning, T-THP type, xxx TDS/d

China

• Enormous investments in big cities are on-going– WWTPs in all large cities cover 60%– Increased population in cities– Improved treatment quality needed

• sludge management is a headache, – Sludge amount 6 million tons dry solids/year, – to increase at 10% per year

• Cambi intends to help to solve it– Establish a representation office in 2012– High focus on intellectual property rights– Learning the market– Active sales work through local and international players– Considering future production

Cambi's interactions with Innovation Norway• Cambi and IN goes a long way back

– Cambi has employed som experience people from NE– SND was a minority share holder– Financial support to develop the first projects– Market research and practical assistance throughout the world

• Cambi continue to seeks grants and soft funding– Participation in IN Match-making program (India)– Similar considered for China, etc. – Funding from NORAD (Delhi sludge center study)– Funding from NORFUND (China and India) for initial study of market entry/establishment– We apply for «Miljøteknologi» grant to establish new technology demo.

• Cambi seeks advice from IN consultants in various countries,

• Participation in IN organized conference participation (joint booths) including:– Poleko, Poland– Seminar in Shanghai (with Green Business Norway)

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