A Unique Way To Produce Energy ‘Turning Waste Into Energy’

Cracking Energy Machines Limited

Proposal for the conversion of Car Tyres and other waste into energy

Technological Innovation for reconcilable development

Cracking Energy have created a patented process

Thermodynamic Cracking

The process of ‘thermodynamic cracking’ breaks down complex organic molecules or hydrocarbons into simpler molecules by breaking the carbon-carbon bonds; i.e. the breakdown of long chain hydrocarbons to shorter ones.

The process is for materials that become viscous during processing through heat and friction, such as plastics and tyres.

No harmful emissions are produced and the capital cost of the plants support commercial operation.

Why are we unique?

Thermodynamic cracking is not Pyrolysis; cracking enables a complete decomposition of plastics/rubber or RDF without any emissions into the atmosphere (see Appendix I)

It is an extremely commercially viable solution that can take many different materials as input to produce combustible hydro carbons (see Appendix III)

We believe that no-one else has these particular technologies

How does it work?

Transforms synthetic resins andrubber into combustible hydrocarbons

The plastics or rubber are degraded and fedinto a horizontal, dual cylindrical reactor which

Is devoid of oxygen.

Specially shaped rotors generate friction

Externally, heating bands provide additionalheat.

.

The high temperature generated, together with lack of oxygen inside

the reactor, causes molecular cracking of the compound and theformation of organic products made up of carbon molecular chains

bonded to other H2 molecules. These products are analogous tonatural hydrocarbons; in these conditions, the formation of both

dioxin and oxidation products is impossible.

How does it work?.... continued

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Ouputs for different materials

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The Environmental Problems

End of Life Tyres

• The Facts• Over 3 billion tyres are discarded worldwide each year• In the European Union 250 million tyres are accumulated each year

expected to rise by 4% per annum (EU Statistics & Freedonia Report)

• European Landfill Directive (199/31/EC) states that whole tyres were banned from landfill in 2003 and shredded tyres in 2006

• Piled tyres may trap water, becoming breeding grounds for mosquitoes and bacteria, or they can present a fire hazard

• Tyres not in controlled environments have adverse effect on local water courses

• Stockpiled tyres can easily combust causing long term smouldering generating toxic smoke that impacts on the environment and local communities

• Tyres are very difficult to recycle profitably • Governments and Industry are keen to find a commercially viable

solution

Environmental Directives

• EU Member States will be responsible for their own waste recycling

• U.K. Government reviewing what can & cannot be landfilled

• Plastic is under review with regard to landfill

• Land Fill Tax Escalator Extended to 2014

• Increase by £8 per tonne per annum to £80

• Stricter Controls on level of End of Vehicle Recycling

The Perfect Response

• The Landfill Directive represents a step change in the way we dispose of waste in the EU

• The CEML process is the perfect answer to EU directives by creating a “Virtuous Cycle”, a closed loop recycling process

• An Environmentally Friendly solution that reduces the Carbon footprint effectively

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End of Life Tyres

•End of Life Tyres UK•In the UK we produce 46,000,000 used tyres per annum•Used tyres from cars equates to 27,000,000 per annum•The above totals balance to 100,000 tyres per day taken off vehicles that have to be recycled.•In weight there is 450,000 tonnes to reprocess•It is expected that Vehicle ownership will increase between 30 to 40 %.

Figures from Environment Agency

How?

In the European Union 55 million discarded tyres are recycled every year!

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Recycling through grinding

Recycling through microwave technology

Breaks the tyres into their original components, the grade A steel can be sold for recovery, the carbon and oil are also reusable.

Recycling through de-vulcanisation

Energy Recovery through pyrolysis

A self contained process which avoids the release of large volumes of combustion gases.

Can be used to replace part of the virgin material in automotive and cycle tyres, conveyor belts and footwear.

Used in sports and play surfaces, brake linings, landscaping mulch, carpet underlay, shoe soles and absorbents for waste.

Energy Recovery

Tyres have a high calorific value, about 20% higher than coal, which on burning can be harnessed to produce energy.

Recycling through cryogenic fragmentation

Used for athletics tracks, carpet underlay, playground surfaces and rubberised asphalt for road surfaces.

Energy Recovery through incineration in cement kilns

Tyre Recycling Options

An Environment Friendly Solution

•No Emissions•Minimal operational noise•A Completely Clean Process•Reduced planning permission requirements•Output Fuels meets Strict EU Standards•No requirement to stockpile Large Volumes of Feedstock's•Reduces Carbon Footprint Substantially

That is Economically Viable•Gate Fees•Sale of Energy•Sale of Scrap Steel•Sale of Carbon Black

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What revenue could the use of a tyre cracking plant attract?

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Inputs Outputs

PlantShredded rubber or

pellets from

car tyres ton/PA

MWh Carbon(solids) produce

d23%

Quantity of gas ton/pa

15%

Quantity of diesel ton/pa

52%

MWhr achievable

from the gas and diesel

pa

MWhr for

export pa

Generator size

C750 5,900 3,320 1,357 885 3,068 16,602 13,282 1 x 2,000 KVA1 x 600 KVA

C750/2 11,800 6,640 2,714 1,770 6,136 33,205 26,565 5 x 1,000 KVA1 x 600 KVA

C1500/2 25,200 14,183

5,796 3,780 13,104 70,913 56,730 5 x 2,000 KVA1 x 800 KVA

Using the example of scrap tyres, the input/output from the plants, assuming 350 days per year

16The real difference is the result of molecular cracking rather than burning

How does that compare?

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The Environmental Problem

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Figures from Tri study report - DEFRA

End of Life vehicles (ELT)

The End of life Vehicle directive (2000/53/EC) is the framework of disposal and has been adopted by the UK Government

•In Europe 9,000,000 tonnes of ELV’s arise each year•In the UK there are approximately 2 million tonnes ELV’s per year currently•400,000 are premature i.e. scrapped due to Accidents (17%)•1.5 million are natural ELV’s disposed responsibly (71%)•200,000 are abandoned(11%)1%• equates to illegal parts resulting from stolen vehicles

European Legislation Directive 2000/53/EEC

•The Directive aims to decrease the quantity of waste arising from vehicles by weight•The rate of re-use and recovery:• 85% no later than 1 January 2006• 95% no later than 1 January 2015•Vehicles built prior to 1980 have different targets.•There are key processes that ELV’s are subjected to prior to final breakdown

The diagram below shows the various materials from a vehicle

End of Life Vehicles

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End of Life Vehicles

• End of life vehicles have to be processed via an Authorised Treatment Facility

• Recycling processes are sophisticated delivering a large volume of product

• Car Fluff has been filtered to a very fine degree however there is plastic left that cannot be recycled

• Non recycled plastic goes to landfill incurring a substantial cost• Current charges are £56 per tonne rising by £8 per annum through

to 2014

An Environment Friendly Solution to Car Fluff Waste

Cracking Energy Machines Ltd

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• No Emissions• Minimal operational noise• Reduced planning permission requirements• Output Fuels meets Strict EU Standards• No requirement to stockpile Large Volumes of Feedstock's• Reduces Carbon Footprint Substantially

Economically Viable• No fees to landfill• Sale of energy• Using a totally non recyclable waste

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The Environmental Problem

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Rigid Plastics

There are a range of different plastics that can be recycled; in order to assist recycling they are marked with an agreed code located in the recycling triangle

Recyclable Rigid Plastics

•PET – Polyethylene Terephthalate – Code 1•HDPE – High Density Polyethylene – Code 2•PVC – Polyvinyl Chloride – Code 3•LDPE – Low Density Polyethylene – Code 4•PP – Polypropylene – Code 5•PS – Polystyrene – Code 6•Other Plastics – Code 7

Relative Occurrence

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UK Plastic Waste VolumesThe most recent review of UK plastic waste volumes was carried out in 2006 by WRAP

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Global Volumes

The global consumption of plastics is over 200 million Tonnes pa and growing. Based on the experience of several European countries with a strong domestic recycling activity; from a technical perspective is would seem practical for well over 20% of global consumption to be met by recycled plastics – at least 40 million Tonnes pa.

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CEML Technology

CEML Technology• CEML’s thermodynamic cracking technology can use waste plastic

as a feedstock. After transformation, the waste plastic is converted into:-

• Diesel that complies with specification EN:• Liquefied Petroleum Gas (LPG – Propane) that complies with EN:

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The input/output characteristics of the CEML C750 and C1500 machine using plastic as a feedstock

are as follows;Input Output Data Sheet – typical mixed plastics

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Machine Configuration C750 C750/2 C1500 C1500/2INPUT – Typical Mixed Plastic Volumes of plastic shreds per hour - kg/hr 700 1,400 1,500 3,000 Assume 24 hours operation – Tonnes/day 16.8 33.6 36.0 72.0 Assume 350 days pa Operation - Tonnes pa 5,880 11,760 12,600 25,200 OUTPUTS - Percentage by weight Diesel 35% 35% 35% 35%Gas 45% 45% 45% 45%Carbon 19% 19% 19% 19% Ash 1% 1% 1% 1%

OUTPUTS – Weight and volume Diesel weight, kg/hr 245 490 525 1,050 Diesel volume, Litres/hr 288 576 618 1,235 Diesel volume, Litres/pa 2,421,176 4,842,353 5,188,235 10,376,471 Propane Gas weight, kg/hr 315 280 300 600 Propane Gas volume, m³/hr 420 147 158 316 Propane Gas volume, m³/pa 3,528,000 1,237,895 1,326,316 2,652,632 Carbon weight, kg/hr 133 350 375 750 Carbon weight, kg/pa 1,117,200 2,940,000 3,150,000 6,300,000

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C750

Cracking machine efficiency 81%

Cracking machine power demand, kW inc processing? 89

Total available diesel generation – gross kW 1,383Total available gas generation – gross kW 1,680

Total available net export power ekW 2,974

Input Output Data Sheet – typical mixed plastics

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Appendix I – Emissions from Pyrolysis versus Cracking

Appendix II – composition of fuel and testing• Liquids

– Tested to EN590:2009.01– EN590 describes the physical properties that all automotive

diesel fuel must meet if it is to be sold in the EU, Iceland, Norway and Switzerland

– It allows for blending up to 5% Biodiesel for a 95/5mix– Tested to EN14214. The standard for Biodiesel

• LPG– Tested to BS EN 589:2008 – BS EN 589:2008 specifies requirements and test methods for

marketed and delivered automotive LPG (Liquefied Petroleum Gas)

• Carbon Black– Tested to BS ISO 6209:2009– The standard for Rubber compounding ingredients

Material ExamplesPolypropylene Food containers, particularly those that need to be

dishwasher safe

Polythene Shopping bags

Polycarbonate Sports bottles, baby bottles, food containers

Polystyrene Disposable cutlery, CD & DVD cases, smoke detectors

Natural rubber Rubber bands, hoses, elastic, wetsuits

Synthetic rubber Bicycle tyres, car dashboards, shoes

Scraps from leather industry

Diaries, bags, belts, chairs

Organic matter Wood, vegetables, vegetation

Polyurethane Drainpipes, luggage, non food packing

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% of output depends on materials used % of output depends on materials used

Appendix III – Other Materials We Can Process

750 750/2 1500 1500/2INPUTS

Volumes of rubber shreds per hour - Kg/hr 700 1,400 1,500 3,000

Assume 20% of tyre is steel - rubber and steel 875 1,750 1,875 3,750

Assume each car tyre is 9kg - Tyres per hour 97 194 208 417

Assume 350 days pa Operation - Tyres pa 816,667 1,633,333 1,750,000 3,500,000

Assume 350 days pa Operation - Tonnes pa 7,350 14,700 15,750 31,500 Percentage by weight output Diesel 55% 55% 55% 55%Gas 20% 20% 20% 20%Carbon Black 25% 25% 25% 25%

OUTPUTS

Diesel Litres/hr 453 906 971 1,941

Diesel Litres/pa 3,804,706 7,609,412 8,152,941 16,305,882

Gas Volume/hr - M3 74 147 158 316

Gas Volume/pa - M3 618,947 1,237,895 1,326,316 2,652,632

Carbon Black Kg/hr 175 350 375 750

Carbon Black Kg/pa 1,470,000 2,940,000 3,150,000 6,300,000

Appendix IV Input Output Calculator - Based on Tyres

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Assume 1 litre of Diesel will produce 4.8KWhr

Assume 1cubic meter of gas will produce 4KWhr

Assume generation powerfactor 0.8 0.8 0.8 0.8

Machine efficiency 81% 83% 88% 89%

Machine load- KW 469 839 635 1,164

Diesel generated Power 2,174.12 4,348.24 4,658.82 9,317.65

Gas generated Power 294.74 589.47 631.58 1,263.16

Total 2,468.85 4,937.71 5,290.40 10,580.80

eKW to export from generator - KW 1,975.08 3,950.17 4,232.32 8,464.64

Output power after machine loading - KW 1,506.00 3,110.76 3,597.47 7,300.76

Appendix V Electricity Generation.

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Contact

Cracking Energy Machines Ltd UK Agents The Office Building Harman Martin LtdGatwick Road Robin MartinCrawley 07967 233062West Sussex Steve HarmanRH10 9RZ 07528 208387

Tel: +44 (0) 1293 847480

info@ceml.euwww.ceml.eu