THE PLASCO CONVERSION SYStEM

The Plasco Conversion System

About PlascoEnergy
PlascoEnergy is an environmentally focused waste conversion company. The Plasco Conversion System converts solid waste into an energy rich synthetic gas (syngas) and other valuable products. The syngas is produced with no air emissions. A 400 tonne per day (TPD) - 150,000 tonne per year (TPY) facility can generate approximately 21 MW net of green electricity. More than 99.8% of the waste processed is converted into syngas and other marketable products. PlascoEnergys build, own, and operate business model ensures there are no capital costs for the community. PlascoEnergy takes all financial responsibility and risk with respect to the construction, commissioning, and on-going operations of the facility. A 400 TPD facility consists of four 100 TPD strings which are assembled in the Plasco Manufacturing and Assembly Plant (PMAP). The PMAP enables Plasco to achieve fast commissioning times and superior quality and consistency in plant construction. A commercial facility can be operating at full capacity approximately 15 months after all permits have been obtained. While current applications focus on converting municipal solid waste, future applications could include converting biomass or biosolids. A 100 TPD commercial-scale demonstration facility has been built and is in operation in Ottawa, Canada, and it is converting Ottawa municipal solid waste into clean gas that operates engines to produce electricity. Discussions for commercial facilities are in progress in Canada, the United States, the United Kingdom, France, Spain, Asia, and Mexico.
SULFUR (AGRICULTURAL FERTILIZER) 5 kg
*Based on typical Canadian municipal solid waste with a net calorific value of 16,500 MJ/T.

One tonne of MSW results in the following saleable products:

SYNTHESIS GAS 12,273MJ* (1.2MWh of Power) POTABLE QUALITY WATER 300 L

COMMERCIAL SALT 5 - 10 kg

RECYCLABLE METALS 7 - 15 kg

SLAG (CONSTRUCTION AGGREGATE) 150 kg

Complete Recycling
The Plasco Conversion System converts more than 99.8% of the waste it processes into marketable products. The Plasco Conversion System uses recovered heat to gasify the waste and plasma arc technology to refine the gaseous product into a clean, consistent, syngas. Our syngas is a quality fuel source that can be used to power internal combustion engines to produce electricity. The process also yields other valuable products including construction aggregate, commercial salt, agricultural sulfur and potable quality water.

Conversion Efficiency

Yesterday...

TODAY

The Plasco Conversion System

THE PROPOSAL
A ZERO COST WASTE CONVERSION FACILITY

Your Community provides A suitable site of 3 hectares A 400 TPD supply of waste Support for permitting and power contract negotiations

We will provide A cost-effective, expandable waste management solution that will divert 400 TPD from landfills >99% diversion from landfill > 50 full time jobs More than 20 MW of distributed base load clean power An architectural icon designed by Douglas Cardinal that fits seamlessly into its surroundings

COMMUNITY BENEFITS:
A cost-effective green alternative technology to landfill with NO capital investment from the community Diverting 400 TPD of waste from landfill or incineration An operational facility within 15 months of acquiring permits, with no operating risks to the community A conversion facility that will show the world how to become clean and green Green power to replace fossil fuel power generation A tipping fee that is competitive and predictable for 20 years

The Plasco Conversion System

Complete Recycling
> 99% diversion from landfill Materials recovered from 1 tonne of waste: Aggregate: 150 kg/T Metals: 7 15 kg/T Salt: 5 10 kg/T Sulphur: 5 kg/T Potable Quality Water: 300L Net power of 1.2 MWh/T

Environmental Excellence
No emissions from waste conversion to syngas Ultra-low engine exhaust emissions No water consumption No wastewater discharge requiring treatment Reduced trucking distance of waste

THE PLASCO ADVANTAGE

Milestones for Commercial Sized Demonstration Facility

September 2006: Groundbreaking June 2007 (9 months): Construction completed January 2008 (16 months): Facility first processes MSW February 2008 (17 months): First sale of electricity

Technical Experience
No scale-up risk, modular expansion Operational data for easy permitting 20+ years of experience Patented technology in 14 countries

Investor Backing
Investors with assets managed > $500B

The Plasco Conversion System

Simplified Flow Diagram

Refining Chamber Shredding / Metals Recovery Conversion Chamber Carbon Recovery Vessel
RECYCLABLE METALS AGGREGATE PRODUCT SULPHUR AGRICULTURAL FERTILIZER COMMERCIAL SALT POTABLE QUALITY WATER

Design Specifications for a Typical 400 TPD PlascoEnergy Facility

Parameter Gross Energy Produced Net Energy Exported Construction Aggregate for sale Commercial Salt for sale Sulphur for sale Potable Quality Water Recyclable Metals Heavy Metals and Particulate* Amount 27 21 60,000 2,000 - 4,000 2,000 120,000 1,400 - 3,000 520 Units MW MW kg/d kg/d kg/d L/d kg/d kg/d

MSW

Gas Cleaning/ Cooling

Syngas Product Storage POWER

* These heavy metals are due to improper disposal of hazardous waste, such as batteries, by the public and not due to the Plasco Conversion System. ** Based on a calorific value of 16,500MJ/T of MSW

The Process
PlascoEnergys patented process technology allows it to achieve the highest energy yield of any waste conversion technology presently being used at a commercial-scale. PlascoEnergy has invented, developed and patented a process using plasma arc technology for the conversion of waste material into a synthetic fuel gas, or syngas, and other valuable products. The conversion of waste represents a 99.8% diversion from landfill with NO air emissions during the conversion of the waste to syngas. The synthetic fuel gas is used to run internal combustion engines to produce electricity with recovered heat used to operate combined cycle generation. The Plasco Conversion System has been perfected through many years of focused research in conjunction with and supported by the Canadian National Research Council (NRC) and the Ontario Ministry of the Environment (MOE). The waste conversion process begins with MSW being trucked to the facility and dumped on the tip floor of the MSW storage building. Large metal objects and materials with high reclamation value are removed from the waste stream and collected for recycling. Once these high value products are removed, the MSW is shredded and any remaining ferrous materials are removed magnetically and sent for recycling. Though sorting is not required, PlascoEnergy will work with the community to achieve its recycling goals. Current and future recycling programs initiated by the community have the full support of PlascoEnergy. The MSW stream enters the conversion chamber where the material is gasified using recovered process heat. The crude gas flows to the refinement chamber where plasma torches are used to refine the gas into a cleaner, lighter syngas. Process air combined with the catalytic properties and heat associated with plasma torches are used to break all long chain hydrocarbons, leaving an energetic synthetic fuel gas. The solid residue from the gasification chamber is sent to a separate high temperature Carbon Recovery Vessel (CRV) equipped with a plasma torch where the solids are melted. Plasma heat is used to stabilize the solids by driving off any remaining volatile compounds. Any volatilized gas is passed through several cleaning steps before being combined with the main syngas stream. From the CRV, the liquid slag pours into a water bath where rapid cooling creates small slag pellets. This vitrified residue is an inert, clean aggregate product. Leachability tests have been conducted on slag emerging from the process and have confirmed that the slag does not leach and is non-toxic.

The Plasco Conversion System

The Process Continued

Now refined, the syngas is sent through a Gas Quality Control Suite to recover sulphur, remove acid gases and segregate heavy metals found in the waste stream. The result is a clean, energetic syngas created from the conversion of waste with NO air emissions. The synthetic gas is used to fuel internal combustion engines that generate electricity. Waste heat recovered from the engines is combined with waste heat recovered from cooling the syngas in a Heat Recovery Steam Generation (HRSG) unit to produce steam. The steam can either be used to generate additional electricity using a turbine (combined cycle generation, 21 MW net of green power), or it can be used for industrial processes or district heating (cogeneration, 16MW of electricity and 22 MW of heat). The above process is continuously monitored by a proprietary control system that ensures sufficient syngas stability to fuel internal combustion engines regardless of the variations in the energy content of the MSW. One way this is achieved is through the use of a secondary waste stream called Consistent Carbon Feed (CCF); CCF is comprised of waste that has consistent energy content. Based on the operation of the Trail Road facility, CCF accounts for approximately 0-3% of the waste in our process. The Plasco Conversion System is the only waste conversion technology that can generate more than a megawatt-hour of net power per tonne of waste processed.

100

TONNES PER DAY Power generated locally and used locally

Trail Road Facility in Ottawa, Ontario

The Plasco Conversion System

Environmental Performance
There are no air emissions during the conversion of MSW to syngas. In a PlascoEnergy facility all air emissions are associated with engine exhausts. Below are PlascoEnergys emission profiles for the production of electricity. The PlascoEnergy Regulation Limit column represents the emission limits that PlascoEnergy proposes to be regulated against regardless of whether a jurisdiction has less strict standards . The PlascoEnergy Target column illustrates the limits PlascoEnergy is committed to meet or work towards.

Excellent Performance against the Toughest Regulations Parameter

Particulate Matter Organic Matter Hydrogen Chloride (HCl) Sulphur dioxide (SO2) NOx expressed as NO2 Mercury (Hg) Cadmium (Cd) Lead Dioxins and furans

Units
mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 ng/m3

Ontario
12 49 19 37 207 0.020 0.014 0.142 0.040

California
14 27 56 202 0.035 0.007 0.098 9

EU
9 9 9 46 183 0.046 0.046 0.9

PlascoEnergy Regulated Limit

9 9 9 37 13 0.005 0.007 0.02 0.01

PlascoEnergy Target
3 7 2 11 9 0.0005 0.001 0.012 0

Values are at 101.3kPa, 11% O2 and 250C

The PlascoEnergy Guarantee

If we fail to meet the PlascoEnergy Regulated Limit we will: remove the plant at no cost and return the land to its original state, end the supply agreement without penalty

Reduced Green House Gases

With the Plasco Conversion System, waste is not buried in a landfill. This ensures harmful methane gases are not released into the
GHGs (CO2e per tonne of waste)

Greenhouse Gas Reductions per Tonne of Waste 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5

atmosphere. Further, PlascoEnergy envisions multiple small facilities in a given area rather than one larger facility. This allows facilities to better serve their neighbourhoods and minimizes truck traffic _ a major contributor to global warming, poor air quality, and road congestion. It also means that the power produced can be sent to the local distribution grid. This eliminates transmission losses and with multiple sites in operation, reduces the likelihood of widespread power outages. Power from a PlascoEnergy facility also displaces other power sources that have higher greenhouse gas intensity such as coal or LNG.

0.6 + + =

-1.5

-1.2 -2.1

Power + Avoided + Displaced = Total GHG Production Methane Coal Power Emissions

The Plasco Conversion System

>99% Diversion from Landfill

Less than 1.3 kg per tonne of MSW converted will require solid waste disposal. This residual waste is the segregated heavy metals, caught by filter media, due to improper disposal by the public of hazardous waste (ie. batteries). These metals are not created by the Plasco Conversion System but are captured by the system to permit safe disposal. This material represents a reduction >99% in waste going to disposal and once segregated by the Plasco Conversion System, can be disposed of safely.

Easy Expansion
A typical 400 TPD (150,000 TPY) facility is comprised of four 100 TPD modules. Each module is a repeat of the commercial demonstration facility that PlascoEnergy designed, constructed and operates in Ottawa, Canada. Since all facilities are built in modules, there is no scaleup risk with the PlascoEnergy solution and our facilities are easily expandable. Therefore, municipalities do not need to speculate about waste generation trends in the future to ensure adequate capacity is built beforehand.

Public Consultation
The outreach efforts prior to construction completion will include:

Public meetings and the creation of a public advisory committee Presentations to community groups An informative website with opportunities for public questions and answers Public commitments to exceed environmental standards The best monitoring equipment possible Reporting results publicly Support for Plasco Concept
Ottawa (n=552) Toronto (n=649)

Social Acceptance / Community Values

PlascoEnergy recognizes the importance of being a good neighbour and citizen. It takes more than technical proficiency to run a successful project. Success also depends on understanding the local communities in which we work, communicating openly and designing attractive sites. PlascoEnergy worked closely with communities during the design and construction of the 100 TPD demonstration facility in Ottawa, Canada. As a result, PlascoEnergy achieved 95% public approval for its Ottawa facility. PlascoEnergy conducts on-going market research to help better understand and improve public perceptions.

97% 98% 0% 20% 40% 60% 80% 100%

Part of the Community

Douglas J. Cardinal, a renowned Canadian architect, has been commissioned to design the site architecture. His unique designs have earned him some of the most prestigious national and international awards. Some of his accomplishments include the Museum of Civilization in Quebec, Canada and the Smithsonian Museum in Washington, USA. A Canadian legend, Douglas Cardinal provides an artistic interpretation to the facility, making it an architectural asset for its community. In each community local architectural and engineering firms will be contacted to participate in the design of the facility.

Respondents were asked whether they would support the use of plasma gasification to dispose of garbage if doing so cost each household an extra $5 or $10 per month. (If dealing with garbage this way instead of putting it in landfills cost your household the equivalent of $5 or $10 more a month in municipal taxes, would you strongly support, support, oppose, or strongly oppose the city entering into contracts to dispose of garbage this way.) (Half the sample was asked the questions at $5, the other half at $10.) 85% of Ottawa and 87% of Toronto residents support the idea at $5 per month. 82% of Ottawa and 86% of Toronto residents support the idea at $10 per month.

P1/Q12. Assuming that this technology to convert garbage into gas to generate electricity the way it is intended, do you think the (City of Ottawa/my city) should support and expand the use of this technology?

The Plasco Conversion System

10 The Plasco Conversion System

Company Experience / Success

Management Strength
PlascoEnergy boasts a management team with a track record of delivering large capital projects on schedule and within budget. From negotiating power pricing for the largest waste-to-energy company in the world to facilitating public participation to designing and operating conversion processes, the Executives at PlascoEnergy are not only experienced, but impressive. The PlascoEnergy Project Finance Group has a significant and successful history in raising both construction funding and long-term funding for energy related projects around the world. Each of the parties that would be involved in the construction of this facility have been intimately involved with the construction and operation of the Trail Road facility in Ottawa, Canada.

Prompt Delivery and Superior Quality Control

Our environmental performance enables a streamlined process. The PlascoEnergy Manufacturing and Assembly Plant (PMAP) will provide PlascoEnergy with significant advantages for both timely plant installation and commissioning and quality control. First it will allow PlascoEnergy to be operating facilities in approximately 15 months after all permits are obtained. Second it will allow PlascoEnergy to have superior quality control of the assembling, testing and commission of each 100 TPD string. Each string will be kitted and ready to go as needed by a customer to provide ease of shipping and installation at the predetermined site.

Proven Credibility
PlascoEnergy has secured the confidence of public stakeholders, governments, and investors. After its rigorous evaluation and screening of the technology, Sustainable Development Technology Canada (SDTC), a federal not-for-profit foundation that supports clean technologies, committed $9.5 million for the Trail Road facility. This is the largest contribution ever made by SDTC to any project. The Ontario Ministry of Research and Innovation also provided a $4 million loan, with forgivable interest for the first four years, for the facility. More than $90 million of private equity has been invested in PlascoEnergy during the past two years. Groundbreaking - September 19, 2006 (Trail Road, Ottawa, Canada)

Project Team
The PlascoEnergy project team combines the technical and operational management experience of Plasco Energy Group with a proven construction and project delivery track record. PlascoEnergy has expertise in project management, engineering design, and operation of conversion facilities. Construction Complete - June 2, 2007 (Trail Road, Ottawa, Canada)

The Plasco Conversion System 11

Financial Background
As a privately held company, PlascoEnergy has been primarily financed through private equity, attracting investments from major funds and investors with global perspectives and business expertise, including the alternative energy sector. Significant funding was necessary and secured to bring the PlascoEnergy technology to the point of commercialization. PlascoEnergy was successful in attracting this investment on the strength of its technology, management team and a business model with attractive economic returns. PlascoEnergys equity investors have brought strong financial resources to the table allowing the company to provide the project support necessary to implement its Finance, Design, Build, Own and Operate strategy. In addition to private equity, the Company attracted significant financial support from Canadian federal and provincial governments to assist with the construction of its Ottawa commercial demonstration plant.

Zero Risk / Revenue Sharing

PlascoEnergy can fulfill all financial responsibilities required to create a business arrangement with no risk to the community. The community will not be obliged to: commit any debt to the project, take any operational risk or environmental risk. The companys equity investors have brought strong financial resources to the table, facilitating the companys Finance, Build, Own, and Operate business model. A partnership with PlascoEnergy pays off. PlascoEnergy is committed to sharing revenues in excess of contrated amounts. This includes revenues from carbon offsets, sales of commercial products, and clean energy incentives. PlascoEnergy will take all the downside risk and the Community will share in the upside potential. The income earned through PlascoEnergys revenue sharing can

First Reserve is investing C$35 million now and has allocated a further C$115 million for investment in PlascoEnergy during 2008 to fund the commercialization and construction of facilities that will be owned and operated by PlascoEnergy.
- Glenn J. Payne, Director, First Reserve, December 3, 2007
Plasco Energy Group has raised a total of $90 million in investments since 2005. In 2007, PlascoEnergy raised $70.5 million in equity. First Reserve Corporation, the worlds leading private equity firm from Greenwich, Connecticut invested $35 million in PlascoEnergy common stock in 2007. First Reserve allocated an additional $115 million for investment in PlascoEnergy during 2008 to fund the commercialization and construction of facilities that will be owned and operated by PlascoEnergy. The California State Teachers Retirement System (CalSTRS) and the California Public Employees Retirement System (CalPERS), the two largest public pension funds in the United States, both invested in PlascoEnergy in 2008. Additional major investors include Black River Asset Management, an independently managed subsidiary of Cargill based in Minnetonka, Minnesota, Hera Holdings S.A, the second largest Spanish waste management company, and RAB Capital of London.

be used by the municipality for its priorities, potentially including support for recycling and public communication/education programs.

We invite you to learn more about PlascoEnergy by visiting our operations in Ottawa, Canada.

Conclusion
Waste is a resource. PlascoEnergy will work with your community to make sure your resource does not end up in a landfill or an incinerator. We urge you to contact us to find out more about how the Plasco Conversion System can help your community meet your diversion targets in an environmentally superior and energy efficient manner.

PLASCO ENERGY GROUP 1000 Innovation Drive, Suite 400 OttAwA, ON, CANADA K2K 3E7 t. +1 613-591-9438

plascoenergygroup.com