pre - innea finance - biomethane project (eng) 20170127

www.consorzioinnea.com

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THE PROJECT «InnEA BIOMETHANE»GENNAIO 2017

HIGH EFFICIENCY ANAEROBIC BIODIGESTION OF ORGANIC FRACTION OF MSW AND/OR BYPRODUCTS TO PRODUCE

BIOMETHANE

SUMMARY

www.consorzioinnea.com 2

1. THE PROJECT “INNEA-BIOMETHANE” P. 3

2. CONSORTIUM INNEA AND PROJECT CONTEXT P. 11

3. HIGH EFFICIENCY ANAEROBIC BIODIGESTION P. 22

4. PRODUCTIVITY ANALYSIS P. 58

5. INVEST IN INNEA PLANTS P. 69

6. INVESTING IN INNEA P. 94

7. RESEARCH AND DEVELOPMENT R&D P. 105

THE PROJECT “INNEA-BIOMETHANE”

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THE PROJECT “INNEA-BIOMETHANE”

With this document, starting from the currentmarket environment, it has been tried to givean overview of the project Innea.

THE PROJECT "INNEA-BIO-METHANE"

is to create a business model in partnershipwith the potential investor that starting from

the current situation could define a very

important strategy for development and

growth. Within this document have beenhighlighted the unique and unrepeatablemarket opportunity that are opening at thistime, the rational for a rapid action, as well asthe competitive advantage in choosing the righttechnology / commercial partner as InnEA is.


THE PROJECT “INNEA-BIOMETHANE”TECHNICAL ACTIVITIES

Site identification suitable for the location of biomethane installation Research of biomass for power and contracts with holders Plant feasibility study, economic offer development and business plan Authorizations for the construction of the plant (PAS, EIA, IEA) Technological plant design Assistance as GENERAL CONTRACTOR Works supervision and construction of turnkey Testing, staff training and starter system Possible support to the management of the plantFINANCIAL ASSETS IN COLLABORATION WITH SPECIALIZED PARTNERS

Mapping of available private capital Project the best MIX obtainable funding Acquisition of available guarantees (Guarantee Fund MCC, ISMEA, consortia, etc.) Presentation of practices in the Region and the Ministry for the provision of grants and subsidized

loans Practices for access to medium- and long-term bank loans Project Financing e Crowdfunding


BIO-METHANE: THE ITALIAN NEW MARKET

The LEGISLATIVE MEASURES of the last few years, government incentives and the availabletechnologies have increased the attractiveness of investments in the biomethane market..

In December 2013 it was published on "DECREE BIOMETHANE" that regulates the production ofbiomethane from renewable sources (D. L. Dec. 5, 2013). The legislature imposes to use mainly waste

products (agricultural and zootechnical) and waste (MSW) to be able to have a first environmentalbenefit without taking resources for food crop production. Unfortunately only in May 2015 (Resolution

46/2015/R/Gas) GSE provided the requirements for the placing of biomethane in the network and thefunctional requirements of the incentive to release.

In April 2106 it was published the new "DECREE FORSU" on the management of organic fraction ofmunicipal waste (D.P.C.M. March 7, 2016) which outlines the measures to manage demand and

supply of equipment for the treatment of biowaste. Particular attention was paid to:– the creation of an adequate and integrated system of the organic fraction of municipal waste

management (anaerobic biodigestion);– the existing supply reconnaissance;– identifying the residual requirement of recovery plants of the organic fraction of urban waste

collection in a differentiated manner, for articulated regions.



Within the new market of Bio-methane there is a very important opportunity that allows you touse waste as a major source of supply of biomass.The opportunity to USE THE ORGANIC WASTE AS A SOURCE OF POWER, transforming it intobio-energy and fertilizer for biological agriculture, allows obtain a resource from a refusal andtherefore a benefit for all: the man and the environment.RATES FOR DISPOSAL in Italy are highly variable and higher than the European average, alsovary from region to region, and may range from € 85/ton to 170 €/ton.The CONTRACTS FOR THE COLLECTION AND DISPOSAL, entrusted in public tenders bymunicipalities have a multi-year duration (5-10years), therefore the subjects holding themanagement and the possible use of waste in Italy are already determined and determinable isthe entry point into this market with high entry barriers.The INNEA CONSORTIUM is the ideal partner for these persons who want to enhance theiractivities by using waste as a resource for a new business:• encouraged because it eliminates a problem for the community (disposing of waste);• encouraged because it produces an environmental benefit (clean energy from biomass and

organic soil improvers and not of chemical origin to be used as fertilizers).



At level of technology vendors we face always two approaches:

The first one “STANDARDIZING”, which always focuses on a production module

SINGLE STAGE with central bio-digester that tries to compete with the prices but that hasincreasing difficulties in production (both upstream and downstream) because it is lessflexible in accepting complex matrices biomass in input (as those are now specified in theregulations) and little suitable to produce by-products of digestion sufficiently processed inorder to manage with reasonable costs the digested waste in output from the productionblock production (production of compost from bio-digested).

The second one is “CUSTOM”, proposed by INNEA that exploiting the digestion

process in TWO STAGES, set up in over 35 years of experience, always manages to findmore market shares (even with slightly higher costs of implementation) since it allows toaccept complex matrices of biomass input, ensuring high energetic yields, and then a bio-digested ideal for producing high quality compost with sustainable costs (since perfectlydigested and ready for the market).

The second one is “CUSTOM”, proposed by INNEA that exploiting the digestion

process in TWO STAGES, set up in over 35 years of experience, always manages to findmore market shares (even with slightly higher costs of implementation) since it allows toaccept complex matrices of biomass input, ensuring high energetic yields, and then a bio-digested ideal for producing high quality compost with sustainable costs (since perfectlydigested and ready for the market).


ANALYSIS OF TECHNICAL AND ECONOMIC FEASIBILITY

InnEA has adopted a procedural process structured as follows:

If the tests prove successful, InnEA submits to investor a technical economic report that in theevent of a positive feedback will take through the following steps of the authorization process:

the signing between the customer and InnEA of a CONTRACT for the turnkey plantconstruction subject to obtaining the authorization achievement;

the signing of a LOAN AGREEMENT between the investor and the customer,conditional upon the necessary authorizations achievement.

FEASIBILITY STUDIES

BIOLOGICAL ENGINEERING ECONOMIC

Analysis of the quantity and quality of various substrates

Preparation of the organic mass balance

Site suitability check. Building feasibility. Plant rough layout.

Estimated investment. Business Plan preparation. Analysis of economic

indicators.


OPERATING PROCEDURE

STEP 1 - TECHNICAL FACT FINDING PHASE. Are drawn up the technicaldrawings required to present the project to the authorities involved in theauthorization process, in order to verify the feasibility of the project and obtain therelease of the “non-binding opinions”.

STEP 2 – THE FINAL DESIGN. Are prepared reports and technical annexes,the graphic elaborated and all documentation required by the type of authorizationrequired (Simple Authorization Process / Unique Authorization).

STEP 3 – THE DETAILED DESIGN. Once obtained all authorizations andidentified the necessary financial coverage will proceed to the detailed engineering.

STEP 4 – REALIZATION AND PLANT MANAGEMENT.

InnEA agrees then a OPERATING PROCEDURE in three phases by investing together withthe customer and if necessary involving local technicians in the authorization procedure:

THE CONSORTIUM INNEAAND PROJECT CONTEXT

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FROM WASTE TO ENERGY RESOURCES

Today it is possible to achieve the goal to:

TRANSFORM MUNICIPAL WASTE IN RESOURCES

No longer produced to be "THROWN IN LANDFILL", but resources that allow you to not harm the environment and conserve fossil fuels and raw materials.

With technology it is possible to:

AVOID INCINERATORS

90% REDUCTION IN THE LANDFILLING

AVOID THE PRACTICE OF COMPOSTING AND THE RESULTINGENERGY CONSUMPTION

REDUCE THE PRODUCTION OF CARBON DIOXIDE AND ODORS



TODAY you can do even better by using newstechnologies:

Transform into BIO-GAS ORGANIC matter withhigh-efficiency without waste to landfills, withoutproducing CO2 and especially without producingfoul smells.

Valuing raw materials, such as reclaimed plastic,ferrous metals, glass, paper, cardboard, etc.

Implement a process with high indexE.R.O.E.I. (Energy Return on Energy Investment).

Finally obtain the relationship between positiveoperating costs and revenues.

Reduce management overhead by reorganizingall stages of collection, transport, treatment andrecovery.

In recent years, much has been made of positive developments concerning the COLLECTION ANDDISPOSAL OF MUNICIPAL WASTE.

Example for Italy

30,25%

25,40%12,60%

5,10%

3,15%

1,30%

0,30%10,75% 11,15%

Organic Fraction of Municipal Solid WastePapersPlasticGlassMetalsWoodInertsOuthers fractions recyclable



PRE-PROCESSING AND HIGH EFFICIENCY

ANAEROBIC DIGESTION

PRE-PROCESSING AND HIGH EFFICIENCY

ANAEROBIC DIGESTION

ORGANIC SEPARATED FRACTION

ORGANIC SEPARATED FRACTION

Creation of skilled job

Biogas / Bio-methaneBiogas / Bio-methane

Valuable recyclable and reusable materials

Valuable recyclable and reusable materials

SEPARATION, RECOVERY

AND VALORIZATION OF

RECOVERED MATERIALS

SEPARATION, RECOVERY

AND VALORIZATION OF

RECOVERED MATERIALS

Ferrous and othermetals

Ferrous and othermetals

PlastichePlastiche

Carta e CartoneCarta e Cartone

Frazione secca indifferenziataFrazione secca indifferenziata

VetroVetro

Organic fertilizerKemet®

Organic fertilizerKemet®

AEROBIC COMPOSTING

INCINERATORSLANDFILLING

RECYCLABLEDRY

FRACTION

RECYCLABLEDRY

FRACTION

Water for irrigation

INNOVATION FOR ENERGY AND ENVIRONMENT


This "new resource" is able to create skilled jobs and significant economic benefits. All this with technologiesand patents developed and owned by Italian companies belonging to the

THE GROUP “INNEA” – INNOVATION FOR ENERGY AND ENVIRONMENT

The staff of INNEA GROUP designs and manufactures equipment for the production of biogas frombiomass of agricultural origin and / or livestock since 1978; since then over seventy plants have been made,which are still in full working order.

The adoption of policies to stimulate renewable energy production, the untenable situation of wastemanagement in landfills is now exhausted and the impending environmental collapse brought Eng. Vincentiand his staff to develop the patented technology for the production of BioGas directly from the organicfraction of waste, transforming in fact, the waste in resource.

INNEA GROUP has the duty not only to co-ordinate the implementation of individual projects, but to act asa single corporate entity for the promotion of technology on an international scale.

We believe that the scope of the project, the experience gained in the design, the results obtained so far,combined with the technical expertise of individual companies express, in the medium term, one of the mostimportant businesses in the international scene.

ENGINEERING PROCUREMENT & CONSTRUCTION


INNEA GROUP works within the model EPC (ENGINEERING PROCUREMENT & CONSTRUCTION) dealingwith an internal staff of engineers and technical experts in the field, the first two phases and giving partnersthe works to be executed:

CONSULTING AND FEASIBILITY STUDY OF THE SYSTEM

FULL DEVELOPMENT OF THE BUSINESS PLAN

RESEARCH SUPPORT OF FINANCIAL INSTRUMENTS

PRELIMINARY AND EXECUTIVE PLANNING

MANAGING CONSTRUCTION PERMITS

INSTALLATION AND PROJECT MANAGEMENT

TESTING, STAFF TRAINING AND START-UP FACILITY

AFTER SALES SERVICES

MAIN PLANTS CONSTRUCTED IN ITALY AND ABROAD


1978 Landini Farm on LIPPIANO (PG): treatment of 2.000pigs farm effluent - 70 kWe.

1979 Foundation for the agricultural education at theUniversity of Perugia Tenuta di CASALINA (PG):treatment of 2.000 pigs farm effluent - 70 kWe.

1980 COOPERATIVA CILA - REGGIO EMILIA: treatment of 5.000 pigs farm effluent.

1981 POLIKOMBINAT SURCIN - BEOGRAD

(YUGOSLAVIA): treatment of 12.000 pigs farm effluent.

1982 Installation of anaerobic digestion ofzootechnical effluent in the municipality ofMARSCIANO (PG), with net conveyor (36 km)from 86 pig farms and production of 0,7 MWeelettrical, thermal energy for drying agriculturalproducts (tobacco and corn), the heating of 10,000square meters of greenhouses, the production ofagricultural organic fertilizers dried, the irrigationof 3,000 ha with treated water.



1984 SIAI AVEZZANO: treatment of 4.000 pigsfarm effluent with complete purification of waterand production of 180 kWe.

1985 MAMUSA FARM - CAGLIARI: treatment of10.000 pigs farm effluent with production of 0,25MWe.

1988 IL PRATO FARM – SASSARI: Installation ofan anaerobic digestion plant to treat poultry farmeffluent with a capacity of 100,000 laying hens,production of 230 kWe, thermal energy forheating greenhouses, the irrigation of 50 ha withtreated water, production of 200 kWe from windpower, production of organic fertilizers.

1989 IMPIANTO CONSORTILE DI VISANO (BS): treatmentof sewage cattle, pigs, poultry and civilians of the area withconveyance in pipelines and production of 1 MWe.



1990 CHARLES HILFE FARM - BALLARAT

(AUSTRALIA) integrated plant with treatmentof 10.000 pigs farm effluent and production of0,40 MWe, organic fertilizers, treated water forirrigation and thermal energy.

1992 BELICE (SPAGNA): Production ofbiogas plant.

1996 CADÈS DE PENEDÈS (SPAGNA): Plantfor the production of biogas.

1996 MAZZARI: Anaerobic digestion and watertreatment.

1999 TRAPAS (SPAGNA): Production ofbiogas plant

2003 DISTILLERIE CAVIRO – FAENZA (RA):Biogas cogeneration plant powered by borlandefrom distillery - 2,1 MWe.

2004 CADÈS DE PENEDÈS (SPAGNA):upgrading of the plant for the production ofbiogas.



2006 MANTOVA AGRICOLTURA – MANTOVA:powered by corn silage and idrobios - 1 MWe e 1,2MWt.

2010 FAT FATTORIA AUTONOMA TABACCHI –CITTÀ DI CASTELLO (PG): powered by corn silageand triticale - 1 MWe e 1,2 MWt.

2011 SOCIETÀ AGRICOLA POLIZIANA

MONTEPULCIANO (SI): powered by biomass energycrops (silage cereals) - 1 MWe e 1,2 MWt.

2011 AZIENDE AGRICOLE ASSOCIATE GIORGI E

TONELLI TORGIANO (PG): powered by corn silageand triticale - 0,5 MWt e 0,6 MWt.

2011 SOCIETÀ AGRICOLA SEGHIZI – POZZAGLIO

(CR): powered by silage cereals and sewage cattle - 1MWe e 1,2 MWt.

2012 VIRGINIA TRADE – TRESTINA (PG): poweredby silage cereals - 1 MWe e 1,3 MWt.



2012 GREEN WAY S.R.L. LOCALITÀ ACQUAVIVA

MONTEPULCIANO (SI): powered by biomass energycultivation (silage cereals) - 1 MWe e 1,2 MWt.

2012 DISTILLERIE CAVIRO – FAENZA (RA): power byagricultural waste and slaughterhouse waste - 1 MWe e1,3 MWt.

2013 TOZZI ENERGIA S.P.A.- SAN GIOVANNI IN

PERSICETO (BO): powered by silage cereals - 1 MWe e1,3 MWt.

HIGH EFFICIENCY ANAEROBIC BIODIGESTION

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Our system is conceived and designed as an integrated platform to process the Organic Fraction of

Municipal Solid Waste (O.F.M.S.W.), using some of the best available technology to recover themaximum value from waste, minimizing the amount of waste taken to the landfill.The Organic Urban Fraction and other biomass from agriculture or animals are used to obtain:

RENEWABLE ENERGY such as BIO-METHANE or ELECTRICITY AND HEAT;

ORGANIC FERTILIZER (KEMET®);

CO2 pure to 99% for different purpose and commercializations;

The system is organized along two main lines: THE ORGANIC LINE, where the biowaste (O.F.M.S.W.) and other biomass is treated and used

to feed the digesters producing biogas, organic fertilizer and water;

THE BIOMETHANE/COGENERATION LINE, after the process of purification of thebiogas, a section of upgrading remove the CO2 (recovered and not dispersed in the environment)and we get purified natural methane, and/orthe biogas is entered into the co-generator for theproduction of electrical and thermal energy.

A MANAGEMENT SOFTWARE automates the operation of all operating components of the systemand the REMOTE CONTROL SYSTEM allows the supervision and the teleservice.

Primary

digester

Secondary

digester

Water

tank

UPGRADING

BIOGASBIOGAS

Gasometer Biogas purification

Grid feeding Automotive

BIO-METHANEBIO-METHANE

CO2CO2

• Bio-methane production (Sabatier)

• Algae cultivation

• Food use

Centrifugal

Digestate

HIGH QUALITY

COMPOST

«KEMET®»

HIGH QUALITY

COMPOST

«KEMET®»

FLOW SYSTEM SCHEME


Storage

tank

ORGANIC URBAN

FRACTION

ORGANIC URBAN

FRACTION

Organic fluid

Hydrodynamiccentrifugal

bio-separator Plastics, iron,

aluminium and inerts

Water into

sewer

22

OFMSW pre-treatment lines

COMPO-STING

Water treatment

Tank of

hydrolysis

AGRICULTURAL AND ANIMAL BY-PRODUCTSAGRICULTURAL AND

ANIMAL BY-PRODUCTS

aa

aa

bb

BUILDING CONFERRING OF O.F.M.S.W.


The building conferring organic fraction of municipal waste is kept in depressionand the air is cleaned with BIOFILTERS before being released into theatmosphere which prevents odor emissions. Inside they find housing in two separateand distinct areas that could be called pre and post treatment:

BUILDING CONFERRING OF O.F.M.S.W.


Inside they find housing in two separate and distinct areas that could be called pre and posttreatment:

CABIN FOR MANAGEMENT AND

CONTROL SYSTEM

BUNKER CONFERRING with hopper for bulk loading and mixing screw

IRON REMOVER for the selection of ferrous and non-ferrous

HYDRODYNAMIC CENTRIFUGAL

BIOSEPARATORS with integrated isolating system of plastics and inert

PUMPS AND PIPELINING

CENTRUFUGAL SYSTEM for solid-liquid separation of the digestate

TREATMENT OF ORGANIC FRACTION OF MSW


TREATMENT OF ORGANIC FRACTION OF MSW


Plastics, iron, aluminium and

inerts

Plastics, iron, aluminium and

inerts

OrganicFluid

OrganicFluid


BIO-SEPARATOR


BIO-SEPARATOR

DISSABBIATOREDISSABBIATORE

METAL SEPARATORMETAL SEPARATOR

The most important link of the treatment isconstituted by the separation of the WETORGANIC FRACTION: is carried out aseparation of waste by anHYDRODYNAMIC CENTRIFUGAL BIO-SEPARATOR that enables to prepare toanaerobic biodigestion the organic fractionsseparating inert and other undesired materials.With such a process is obtained an organic

fluid with a high content of organic biomasswhich has excellent homogeneity and enablesa very efficient biodigestion in high yieldsystems, that we have designed andengineered, with digesters with continuousflow and very low energy costs. The machineis produced in various types and size, withmetal body, easy to maintain and use.



Anaerobic Biodigestion

The amount of raw material, in the period from collection to full use, is stored on the surfaceof land available for storages. The by-product and liquid organic from the O.F.M.S.W., areentered into the alimentation and MIXING TANK equipped with a conical bottom fromwhich, by means of a screw driven by an electric motor, are extracted aggregates (stones andsand) that may be contained in other biomass. The tank is hermetically closed by a steel coverand stirred by agitators helix with an external motor.

PREPARATION OF RAW MATERIALS (case )


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The STORAGE AND

HOMOGENIZATION TANK ismade of stainless steel.The organic liquid from thehydrodynamic centrifugal separator ispumped into the tank with the additionof water recirculated from the process.The liquid should be diluted to bring thedry matter content up to 10% to optimizethe digestion process.The digesters will be powered by a pumpsystem by a liquid, well homogenized andheated that it will improve yield

biomethane, the digestibility andspeed reaction.

THE STORAGE TANK (case )


bb

The TANK OF HYDROLYSIS is made of stainless steel. The hydrolyzation prior toanaerobic digestion allows to obtain a product of excellent quality to digest which determinesan important increase in the quantity and quality of biogas produced.

THE HYDROLYSIS (case )


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The loading system of the mixing tank andpreparation of the raw material will be of themechanical type, whereas the product will passinto the hydrolyser, well mixed and added with asuitable amount of recirculation water extractedfrom the digestate.The digesters will be fed through a system ofpumps with a liquid product well homogenized,heated and hydrolyzed which will improve theyield of biogas, the digestibility and the speed ofreaction.

Our Anaerobic Digestion process is specifically designed to optimize, in qualitative andquantitative terms, the biogas yield from the digestion of press extruded organic liquid.

The section of anaerobic digestion for production of biogas is constituted by :

PRIMARY DIGESTER

SECONDARY DIGESTER

INTERNAL SYSTEM OF

MIXING OF THE RAW

MATERIAL

RECIRCULATION AND

CONTROL PUMPS



The digesters are built above ground

ENTIRELY OF STAINLESS STEEL

(body and roof) to ensure a safe service life for at least 30 years and a simple and cheapmaintenance.



They are built in order to havesealed for both liquids andgases, which are completelyrecovered and used.The digesters will be equippedwith heating coils in whichcirculate the hot waterrecovered by the cogenerator,where present.

The shape coefficient of the digesters, which develop prevalently in height, allows effectivestirring of the microbubbles of biogas, which date back upward, assisted by MIXERS

WITH EXTERNAL INSPECTION, installed externally to the digesters.

MIXING SYSTEM


The mixing system adopted allows the total maintenance of the digesters exclusively from theoutside, avoiding, in this way, their emptying in case of intervention.

To avoid loss of important heat in the digesters, the insulation of the digester will occur withthe use of a layer of rock wool of 15 cm. The digesters are heated by heat recovered from thecogenerator, dall'upgrading or by a natural gas boiler.

SISTEMA DI MISCELAZIONE


Central in the high efficiency operation of the plant is the REDUNDANT SYSTEM

PUMPING for recirculation and flow control which allows not to interrupt the process ofdigestion and biogas production even for the necessary routine maintenance and keep theproduction plant for over 8,500 hours/year.

RECIRCULATION AND CONTROL PUMPS



BIOGAS PURIFICATION

Biogas Purification

The GASOMETER is used to maintain, in the event of fluctuations of the biogasproduction, a constant pressure to the biomethane upgrading system and to allow thecogenerator to always work at maximum speed.

GASOMETER


The gasometer to service the plant has a capacity less

than 100 m3 and is made entirely of stainless steel,against the 1.000 m3 of a typical installation made withplasticized PVC tarpaulins (tarpaulins are not resistantto winds, snow and last for a few years, against 30 yearsof minimum duration of the gasometers in stainlesssteel). It is also not subject to regulation of the

deposits of combustible gases in fixed tanks, or inhazardous activities according to CEI 64-2. Thereforethe system will not need to appropriate storage tanksof water for fire protection with the SIMPLIFIED

AUTHORIZATION OF THE FIRE DEPARTMENT.

Biogas produced in the anaerobic digestion process should be dehumidified, desulfurized

prior to be dispatched to the next unit of upgrading, for the conversion into biomethane. Inthis section we find the following items:

SAFETY TORCH: if operating problems should occur in the cogeneration plant, the torch will burn the biogas produced;

CARBON FILTERS for hydrogen sulphide (H2S) removal;

BIOGAS DEHUMIDIFICATION SYSTEM

BLOWER FOR PRESSURIZATION of biogas for the feeding of upgrading.

BIOGAS PURIFICATION


The UPGRADING SYSTEM OF THE BIOGAS is composed of the following units:

The unit of upgrading andaccessory units require littleintervention for the managementof the process.

The units operate fullyautomatically and the controlsystems guarantee full security andthe eventual stop in case of a fault.

1. Biogas supply pretreated2. Biogas compressor3. Bio-methane4. CO2 gas5. System6. Skid

Units of biogas upgrading, comprehensive of

services and electrical panels and control;

Drying unit of biomethane.

BIO-METHANE UPGRADING


The CO2 RECOVERY AND PURIFICATION PLANTS supply FOOD GRADE CO2

starting from biogas.Thanks to the innovative purification process of activated carbons, the technology usedremoves any kind of impurities and smells, to make a CO2 ISBT/EIGA compliant.This technology incorporates in the liquefaction unit a stripper column where uncondensableimpurities are reduced to acceptable levels. This innovative technical solution enhances theplant recovery capacity up to 99,99 % of the delivered CO2.

This unit consists of:

a compression part

a section of drying and purification

a section of liquefaction and of a cryogenic tank for storage of liquid CO2

CO2 RECOVERY PLANT


The CENTRIFUGAL involves a separation of organic substances in suspension and not in solution in theslurry leaving the digestion. It is a process that operates to difference in specific weight between thesubstances to be separated. The centrifugation is carried out inside a cylindrical-conical container, called adrum, which is rotated at high speed by an electric motor to raise thousands of times the force of gravity.

Inside the drum there is the cochlea, thefunction of which is to transport to theoutside the solid product, which will then bedownloaded from an evacuation system.The solid part is extracted completely devoidof odors; the biodigestion in fact hascharacteristics to stabilize the organic material.The separated water are in part recirculatedhead of the plant for the dilution of theorganic liquid inlet.

SEPARATION AND DIGESTATE MANAGEMENT


The DIGESTATE is the remaining part of the process of anaerobic biodigestion and consists of theindigestible parts of biomass. It’s very valuable material as fertilizer soil, reducing the need for the cultivationof exogenous inputs of chemical fertilizers. It’s reuse on soil that produced the biomass is therefore veryuseful in order to ensure sustainability over time of production and maintain a good level of organic matterin soils, essential for agronomic fertility and reducing erosion risks.

The bio-digestate to be treated is poured onto abed of ligno-cellulosic material of particle sizeand functional characteristics. The fermentationbed, after months of work, is replaced with freshmaterial. The composition of this exhaustedmaterial is such as to make it suitable asHIGHEST QUALITY COMPOST

(KEMET®).Was called Kemet, the fertile land of the NileRiver, in contrast to the red desert land Decheret.

DIGESTATE MANAGEMENT AND COMPOSTING


The DETECTION SHEET WITH THE CHARACTERISTICS OF COMPOST(*) produced with InnEA technologyconfirms full compliance with the limits imposed by DL April 29, 2010 n.75:

(*) The original documentation is available at the Consortium InnEA

DIGESTATE MANAGEMENT AND COMPOSTING

TEST U.M. RESULT LOW. LIM. MAX LIM.Humidity [% tq] 28,7 - 50pH [unit pH] 7,4 6 8,5Total organic carbon (TOC) [% ss] 30,6 20 -Humic acids + fulvic acids [% ss] 7,6 7 -Organic nitrogen / total nitrogen [%] 84,2 80 -Ratio C/N - 16,1 - 25Plastic glass materials and metals with diameter >= 2mm [% ss] < 0,2 - 0,5Inert lithoid with diameter >= 5mm [% ss] < 0,2 - 5Cadmium [mg/kg ss] < 0,6 - 1,5Lead [mg/kg ss] 13,0 - 140Nickel [mg/kg ss] 12,9 - 100Zinc [mg/kg ss] 337 - 500Copper [mg/kg ss] 55,3 - 230Mercury [mg/kg ss] 0,15 - 1,5Hexavalent chromium [mg/kg ss] < 0,1 - 0,5Germination index [%] 62 60 -Escherichia coli [UFC/g tq] < 10 - 1000Salmonella [unit/25 g tq] Absent - 0



WATER TREATMENT WITH VSEP TECHNOLOGYThe filtered water from the digestate is treated with the newmembrane system known as VSEP, (Vibratory Shear EnhancedProcess) that employs torsional vibration of the membranesurface, generating high transverse energy on the surface ofthe same. The result is a considerable reduction of cloggingof the membrane and colloidal polarization caused by theconcentration of waste materials. The performances are 5-15times higher in terms of GMH (liters per square meter perhour) of capacity compared to other types of membranesystems.

The transverse sinusoidal waves thatpropagate on the surface of the membrane actto retain the particles suspended above thesurface of same, allowing a free flow of theliquid through the membrane, unlikeconventional ones subject to colloidal fouling,as the suspended matter may attach to thesurface of the membrane and hinder thefiltration.


WATER TREATMENT WITH VSEP TECHNOLOGY

The Cross-flow or tangential flow is used to reduce the effects of thisaccumulation. The result is that the solids are maintained in suspension, suchas a parallel layer, above the membrane where they can be washed away by atangential flow. The anaerobic treatment process filtrate is organized into"multiple barrier", in order to ensure the safety of obtaining excellentlypurified water. The process steps can be related to four main treatments:

3. Ultrafiltration (UF) with VSEP technology. The filtration module of VSEP flat membranes is able to meetthe objectives of the leachate treatment by providing a permeate ideal, devoid of suspended solids andwith very low values of COD, BOD, and heavy metals. The VSEP process does not involve anychemical addition and meets the engineer's need for the process to be able to control productionautomatically via a suitable PLC.

1. Storage and equalization. To cope with the variability of volume and qualityof the liquid digestate is used suitable structure for collection/storage andequalization/homogenization.

2. Oxidation. Admission of air to obtain the stabilization of the wastewaterand its nitrification.


WATER TREATMENT WITH VSEP TECHNOLOGY

The membrane module mod. VSEP 84“ containsabout 1,400 square meters of surface membrane,and installed in parallel, the number needed, canmeet any process flow.This ensures an SDI less than the value “3” on theRO permeate, and it allows to preserve the next stepby the physiological phenomena of fouling.

4. Reverse Osmosis (RO) in the two-stage. This step allowsthe reduction of the cost of the evaporation system.Given the nature of the liquid treated in step 3, theosmosis plant will need a reduced intervention ofcleaning compared to a traditional pre-filtration.

These indicated treatment steps can constantlyguarantee the returns that must be achieved in order tohave an effluent compliant to a drain into sewer.


WATER TREATMENT WITH VSEP TECHNOLOGYIn fact, starting from a concentration of thousands of mg/l of ammonia, these values will be to shrink to15-30 mg/l at the exit, ensuring a greater yield of 98-99% of the conventional type that any conventionalprocess can guarantee. In fact, only by using membranes to clarify biomass, eliminating all suspended solidsand thus making possible the next step reverse osmosis as a hedging treatment, it is possible to guarantee

the residual concentrations permitted by the legislature and respect at the same time the most

stringent environmental regulations.

Permeated UF

COD < 1000 mg/l

BOD < 100 mg/l

SST 0,0 mg/l

N-NH4+ < 300 mg/l

N-NO3- < 200 mg/l

Permeated RO (Water to be sent into the sewer system and surface water body)

Flow 75% ultrafiltrate product

COD < 100 mg/l

BOD5 < 20 mg/l

SST < 0 mg/l

N-NH4+ <10,0 mg/l

N-NO2- <0,6 mg/l

N-NO3- < 20,0 mg/l

Cloruri Cl2 <200 mg/l

Concentrato RO

Flow 25% ultrafiltrate

TS 3-4 %

N-NH4+ 500-120 mg/l Concentrato evaporato

Capacity Reduction from 6 to 8 times conc. RO thermocompression

TS 30-40 %

N-NH4+ 0,5 – 2 %

The facility is equipped with a REMOTE

CONTROL SYSTEM that, using the Internet,allows the operator to monitor the operation ofall operating parameters also from their ownhome and our technicians to intervene at thesoftware level in real time, in telecontrol,without requiring continuous supervision.

Our company guarantees urgent intervention incase of malfunction of equipment and systemswith the replacement of faulty components forthe warranty period.

REMOTE CONTROL SYSTEM



In the case in which the point of release of the biomethane in the gas network is particularlydistant, it is provided for the realization of a building with the purpose of compressing thebiomethane produced by the anaerobic digestion and load the CNG trailers for the next phaseof sale on the automotive market.The arrangement of the necessary equipment is made on looms simply placed on slabs CCA,with partitioning septa in CCA, placed at an appropriate distance from other plants.

COMPRESSION AND STORAGE OF BIOMETHANE

The system, as shown in the figure below, can be inserted into the landscape with a suitableGREEN FURNITURE.

EXAMPLE OF LOCATION


TOTAL ABSENCE OF ODORS

The reception property of the organic fraction is kept indepression and the air is purified by BIO-FILTERS

before being emitted into the atmosphere.Even the part used for the treatment of the dry fractionis equipped with suction systems and filtering the dustto make optimum the working environment.

THE FACILITY’S MAIN FEATURES


LONG EXPECTED LIFE

Plant is made with stainless steel body and aluminum covering; all pipe system, pumpsand mixers are easily accessible from the outside (for inspection and maintenance activities).

HIGH EFFICIENCY IN BIOGAS PRODUCTION

The shape of digester allows a very efficient mixing of the liquid, as it promotes a naturalmixing effect due to the increase of the biogas microbubbles, with a consequent low powerconsumption.

MAINTENANCE LOW COSTS

The fully steel digesters and pipes, minimize the need for ordinary and extraordinarymaintenance operations.

RELIABILITY

The many plants, which have been operating worldwide for over thirty years, reported nomajor damage or unplanned stops.

LOW COST AND EASY MANAGEMENT

Around the world, there are plants which have been working over many years:maintenance has been limited to the change of end-of-life motors, consumables andlubricants. The stainless steel body will keep a good value at the end of the plant’s life.

COMPETITORS ANALYSIS


This document aims to summarize the INNEA’S TECHNOLOGICAL INNOVATIONS in the field ofbiogas/bio-methane production and underline main differences versus the standard technology of thecompetitors in the Italian market.

Process/Phase InnEA Technology Traditional Technology1 PRE-TREATMENT OF OFMSW Bio-separator Shredder

2 DIGESTION Mesophilic Mesophilic / thermophilic

3 PRE-TREATMENT Presence of the hydrolyser Absence of the hydrolyser

4 TREATMENT Two stages Mono stage

5 HEATING Internal integrated classic Internal classic

6 AGITATION SYSTEMS External Internal

7 VIDEO INSPECTION SYSTEMS Present Absent

8 BIOGAS STORAGE SYSTEM By gasometer (100 m3) By gasometric dome

9 SYSTEMS MAINTENANCE Inspection hatches present No inspection hatches

10 CONSTRUCTION METHODS DIGESTERS Steel Concrete

11 MATRIX POWER PLANT Matrix flexible and variable Mono fixed matrix

12 PIPING CONSTRUCTION TYPE Steel PVC

13 PUMPING SYSTEM Redundant No redundant

14 RECIRCULATION MATRIX ORGANIC Yes No



The 14 differentiating features are described below :

1. PRE-TREATMENT OFMSW. With the hydrodynamic Bio-separator is obtained a liquid with high contentof organic biomass and extremely clean with inert plastics and in contrast to the commonly used shredders.

2. DIGESTION. The advantage of operating in mesophilic stage compared to the thermophilic stage consists inmanaging a simplified digestion process and reducing the disintegration time of organic substance.

3. BIOMASS PREPARATION. There are multiple benefits of having a hydrolyser stage of the digestiveprocess:a) Greater efficiency in the use of organic materials, especially in the presence of components of cellulose.b) Through a lower PH there is an abatement of the bacteriological component which improves the digestive

process.c) Keep storage of the raw material already predigested that can enter directly in the digestive process by

improving considerably the response times.4. TREATMENT. The dual stage system allows a better bio digestion by increasing by at least a 15% the biogas

production.5. HEATING. The heating system is of a conventional type, but equipped with control systems related to the

parameters measured in the pre-treatment and treatment stages.6. AGITATION SYSTEMS. Systems of external agitation can be maintained without stopping the digestive

process and the integration within the control system is designed to increase the production flexibility of theplant.



7. SYSTEMS OF VIDEO INSPECTION. In addition to a chemical and physical control of the digestionparameters through electronic probes, within the stages of treatment and pre-treatment, there are cameras thatallow a visual control of the digestive process.

8. BIOGAS STORAGE. Use of the gasometer (much less amount of gas storage than a dome) has the dualadvantage of increasing the responsiveness time of the system and to simplify the administrative procedures forthe management of the gas storage.

9. MAINTENANCE SYSTEMS. The presence of inspection doors improves the system maintenance.10. CONSTRUCTION METHODS DIGESTERS. There are many advantages of having the blocks made of

steel instead of concrete:a) Life span.b) Sealing and reliability.c) Building material recycling (steel can be recycled at premium instead of the concrete cost of disposal).

11. MATRIX POWER PLANT. A flexible and variable matrix allow the recipe to be adapted to the biologicalvariation of the environment.

12. TYPE CONSTRUCTION PIPING. The advantage of having a stronger mechanical resistance and a longerduration

13. PUMPING SYSTEM. A pumping system redundancy can reduce production stops and allow a bettermaintenance program.

14. RECIRCULATION MATRIX ORGANIC. The advantage of having a recirculation system between theprimary and secondary digester allows to vary the speed of the fermentation process and to fully exploit theorganic matter fed.

PRODUCTIVITY ANALYSIS

FRO

MW

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…44


PRODUCTION BY PLANT OF 180 TON/D OF BY-PRODUCTS


BIO-METHANE9.000 mc/day

(3.000.000 smc/years)


(3.000.000 smc/years)

CO29.800 kg/day

CO29.800 kg/day

SolarGasWindGasSolarGasWindGas

PhotobioreactorsPhotobioreactors

AutomotiveAutomotive

Food useFood use

Bio-sieved Compost KEMET®

13.000 ton/yearBio-sieved Compost KEMET®

13.000 ton/year

(*) average amount based on the products available

BY-PRODUCTS180(*) ton/day

BY-PRODUCTS180(*) ton/day

BIOGAS15.000

smc/day

BIOGAS15.000

smc/day

PRODUCTION BY PLANT OF 36K TON/Y OF O.F.M.S.W.


Annual operating hours 8.500 [h/year]

Yearly biogas 5.000.000 [m3/year]

BioMethane per hour 350 [m3/h]

Daily BioMethane 9.000 [m3/d]

Yearly BioMethane 3.000.000 [m3/year]

Daily CO2 9.800 [kg/g]

Yearly bio-sieved Compost Kemet® 13.000 [t/year]


Yearly CO2 1.700.000 [m3/anno]

Considering 180 tons/day of BY-PRODUCTS, our technology is able to provide thefollowing results:



KEMET®18 ton/d

KEMET®18 ton/d

BIOGAS15.000

smc/day

BIOGAS15.000

smc/dayWater 70 mc/d

Water 70 mc/d

M.S.W.110 ton/day

(300.000 people)

M.S.W.110 ton/day

(300.000 people)

Organicliquid

100 t/day

Organicliquid

100 t/day


(3.000.000 smc/years)


(3.000.000 smc/years)

CO29.800 kg/day

CO29.800 kg/day

SolarGasWindGasSolarGasWindGas

PhotobioreactorsPhotobioreactors

AutomotiveAutomotive

Food useFood use



Annual operating hours 8.500 [h/year]

Yearly biogas 5.000.000 [m3/year]

BioMethane per hour 350 [m3/h]

Daily BioMethane 9.000 [m3/d]

Yearly BioMethane 3.000.000 [m3/year]

Daily soil fertilizer (Kemet®) 18 [t/d]

Yearly soil fertilizer (Kemet®) 6.300 [t/year]

Daily water 70 [m3/d]

Yearly water 26.000 [m3/anno]


Yearly CO2 1.700.000 [m3/anno]

Considering incoming 110 tons/day of organic liquid from OFMSW (300,000 people), theplants designed by InnEA are able to return the following output:

INNEA’S PLANT PRODUCTIVITY


The biodigestion of organic waste produced by that plant, would not only permanently solve critical wastemanagement in the area, but also result in the production of :

3.000.000 SMC OF BIOMETHANEAble to supply in a year (*):

5.000 CNG CARS - 1.000 TRANSPORTERS TRUCKS - 100 CNG BUS

(*) Economy car Annual average mileage = 12.000 km/year – biomethane consumption = 24,6 km/kg

Transporter trucks Annual average mileage = 9.000 km/year – biomethane consumption = 4 km/kg

Bus Annual average mileage = 40.000 km/year – biomethane consumption = 1,9 km/kg



It may be advantageous to convert the company car park to DIESEL METHANE SYSTEM (DDF),the innovative injection system for the conversion of diesel engines in engines able to work with a mixture ofOil and Natural Gas.

+ Saving

Reduction of operating costs :

up to 20% for vehicles Medium

up to 15% for Heavy Vehicles

Pollution reduction :

Emissions CO2: up to -14%

Emissions PM10: up to -40%

Emissions NOx: up to -20%+ Autonomy

Overall increased autonomy

Reversibility :

The system also works with diesel only

Easy installation



LIFE-CYCLE ASSESSMENT (LCA) COMPARISON :The LCA (Life-Cycle Assessment) identifies the analysis of the environmental sustainabilityof different forms of biofuels and highlights such as biomethane is comparable electric car :



The SURVEY SHEET OF FUNCTIONALITY AND EFFICIENCY OF THE SYSTEM(*) madewith technology InnEA and signed by our customers shows the following results in productivity:

CUSTOMER SURVEY SHEET

Location: Lombardia

Supply: Agricultural by-products and

slurry / manure cattle

Installed electric power: 999 kW

Energy produced in 2014: 8.637.686 KWh

Operating hours in 2014: 8700 h

Internal power consumption in 2014 : 11,7%

(*) The original documentation is available at the Consortium InnEA



With management software, we can display the GRAPH OF PLANT PRODUCTIVITY:

The graph shows that the average power in the range considered (12 months) is still around to the maximumof 1,000 kW and the average energy produced in a year is more than 8.600.000 kWh which is equivalentto a maximum production of over 8.700 h of operating.



The table below indicates the average of the last three years on three plants monitored compared with theItalian average :

AverageINNEA

Italian average(Source TERNA 2015)

Monitored systems 3

Sample years 3 2013 2014 2015

Operating hours 8.582 6.505 7.196 7.200

Equivalent days 358 271 299 300

Average electricity produced (kWh) 968

Production efficiency (referred to a maximum installed capacity of 999 kW) 98,9%

INVEST IN InnEA PLANTS

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EXAMPLES OF INVESTMENT – BIOMETHANE FOR VEHICLES


Assumptionsvalue CIC

375 € Range of reference values of CIC based on the draft ofthe new DM 13 December 2016 on Biomethane.It is expected to rise with the obligation of release forconsumption of biofuels, the value increases.600 €

1 CIC 10 Gcal

10 Gcal 11,63 MWh

CIC_10 value32,24 €/MWh

[production of natural gas for automotive]51,60 €/MWh

CIC_5 value64,49 €/MWh

[double counting - raw materials Table 1A and 1B]103,18 €/MWh

CIC_5+ value70% cost of

construction of gas station [up to a

maximum of € 600.000]

[owned gas station]

CALCULATION OF THE VALUE OF CIC (Certificati di Immissione al Consumo)

EXAMPLES OF INVESTMENT – BY-PRODUCTS PLANT


INVESTMENT

9 Mln.€ (including composting & sieving plant)

LOCATION

Italy

SUPPLYBY-PRODUCTS 60.000 t/years

PRODUCTION CAPACITY

350 smc/h

BY-PRODUCTS PLANT – BIOMETHANE FOR VEHICLES (GSE)


OPEX - Operative Expenses

GENERAL COSTS AND PROVISIONS

Energy costs and fuel € 284.350 9%

Transfer and disposal € 460.380 15%

Allocation funds € 84.081 3%

Management and insurance € 291.786 10%

€ 1.120.597 37%

GLOBAL SERVICE

Ordinary maintenance € 128.000 4%

Chemical analysis and control € 132.000 4%

€ 260.000 8%

Total OPERATIVE COSTS € 1.380.597 45%

REVENUES – DEDICATED DELIVERY (GSE)

GSE biomethane sales [ 22,55 €/MWh ] € 634.049 21%

CIC trading [ 375 € ] [ 64,49 €/MWh ] € 1.814.479 59%

«Sieved» Compost sale (Kemet®) [ 47 €/ton ] € 611.000 20%

Total REVENUES € 3.059.529

INVESTMENT VALUE (CAPEX) € 9.000.000EQUITY € 9.000.000 100%

GSE biomethane

sales21%

CIC trading [ 375 € ]59%

«Sieved» Compost sale

(Kemet®)20%

REVENUES



Financials - BIOMETHANE (GSE)EBITDA - MOL (average) € 1.853.211

EBIT - RICAVI (average) € 1.403.211

NPV - VAN € 24.091.018

IRR - TIR 20,74%

ROI 71,40%

PAY BACK PERIOD (years) 5,2

€ 1.678.932

€ 1.700.325

€ 1.717.328

€ 1.734.502€ 1.751.847

€ 1.769.365€ 1.787.059

€ 1.804.929€ 1.822.979

€ 1.841.209€ 1.859.621

€ 1.878.217€ 1.896.999

€ 1.915.969€ 1.935.129

€ 1.954.480€ 1.974.025

€ 1.993.765€ 2.013.703

€ 2.033.840

€ 1.228.932€ 1.250.325

€ 1.267.328€ 1.284.502

€ 1.301.847€ 1.319.365

€ 1.337.059

€ 1.354.929

€ 1.372.979€ 1.391.209

€ 1.409.621€ 1.428.217

€ 1.446.999

€ 1.465.969

€ 1.485.129

€ 1.504.480

€ 1.524.025

€ 1.543.765

€ 1.563.703

€ 1.583.840

€ 0

€ 500.000

€ 1.000.000

€ 1.500.000

€ 2.000.000

€ 2.500.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Margine Operativo Lordo (EBITDA) Risultato Ante Imposte (Taxable) Pay-back Period

BY-PRODUCTS PLANT – CNG FOR VEHICLES (OWNED GAS STATION)


REVENUES - CNG (OWNED GAS STATION)

CIC trading [ 375 € ] [ 64,49 €/MWh ] € 1.814.479 48%

CNG sales at Gas Station [ 0,55 €/Smc ] € 1.636.250 43%

Opex Gas Station [ 0,1 €/Smc ] -€ 297.500 -8%

«Sieved» Compost sale (Kemet®) [ 47 €/ton ] € 611.000 16%








€ 1.120.597 30%

GLOBAL SERVICE



€ 260.000 7%




CNG sales at Gas Station

40%

«Sieved» Compost sale

(Kemet®)15%

REVENUES

BY-PRODUCTS PLANT – CNG FOR VEHICLES (OWNED GAS STATION)


Financials - CNG (OWNED GAS STATION)EBITDA - MOL (average) € 2.518.224EBIT - RICAVI (average) € 2.068.224NPV - VAN € 35.810.321IRR - TIR 26,78%ROI 105,24%PAY BACK PERIOD (years) 4,4

€ 1.444.945

€ 1.849.584€ 2.399.722

€ 2.423.720€ 2.447.957

€ 2.472.436€ 2.497.161

€ 2.522.132€ 2.547.354

€ 2.572.827€ 2.598.556

€ 2.624.541€ 2.650.787

€ 2.677.294€ 2.704.067

€ 2.731.108€ 2.758.419

€ 2.786.003€ 2.813.863

€ 2.842.002

€ 994.945€ 1.399.584

€ 1.949.722€ 1.973.720

€ 1.997.957€ 2.022.436

€ 2.047.161

€ 2.072.132

€ 2.097.354€ 2.122.827

€ 2.148.556€ 2.174.541

€ 2.200.787

€ 2.227.294

€ 2.254.067

€ 2.281.108

€ 2.308.419

€ 2.336.003

€ 2.363.863

€ 2.392.002

€ 0

€ 500.000

€ 1.000.000

€ 1.500.000

€ 2.000.000

€ 2.500.000

€ 3.000.000

€ 3.500.000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20


BY-PRODUCTS PLANT – FACILITATED PUBLIC FINANCING


INVESTMENT VALUE (CAPEX) € 9.000.000

EQUITY € 2.250.000 25%Tasso

interesseAnni

TRADITIONAL FINANCING € 1.192.500 13% 3,5% 10

EASY-TERM LOAN € 444.600 5% 0,5% 10

PUBLIC FINANCING € 5.112.900 57%

CAPEX (BIOMETHANE) EQUITYTRADITIONAL

FINANCING

€ 1.590.00025,0% 75,0%

397.500 1.192.500

CAPEX (FACILITATED FINANCING) EQUITY PUBLIC FIN. EASY-TERM LOAN

€ 7.410.00025,0% 69,0% 6,0%

1.852.500 5.112.900 444.600

FACILITATED PUBLIC FINANCING ASSUMPTIONS (INVITALIA)





NPV - VAN € 29.014.920

IRR - TIR 99,66%

ROI 101,14%


€ 1.678.932

€ 1.700.325

€ 1.717.328

€ 1.734.502€ 1.751.847

€ 1.769.365€ 1.787.059

€ 1.804.929€ 1.822.979

€ 1.841.209€ 1.859.621

€ 1.878.217€ 1.896.999

€ 1.915.969€ 1.935.129

€ 1.954.480€ 1.974.025

€ 1.993.765€ 2.013.703

€ 2.033.840

€ 1.440.617€ 1.465.785

€ 1.486.689€ 1.507.893

€ 1.529.403€ 1.551.226

€ 1.573.368

€ 1.595.836

€ 1.618.636€ 1.641.777

€ 1.665.266€ 1.683.862

€ 1.702.644

€ 1.721.614

€ 1.740.774

€ 1.760.125

€ 1.779.670

€ 1.799.410

€ 1.819.348

€ 1.839.485

€ 0

€ 500.000

€ 1.000.000

€ 1.500.000

€ 2.000.000

€ 2.500.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20


EXAMPLES OF INVESTMENT – O.F.M.S.W. PLANT


INVESTMENT

13 Mln.€ (excluding composting plant)

LOCATION

Italy

SUPPLY

F.O.R.S.U. 36.000 t/y - 80 €/ton

PRODUCTION CAPACITY

350 smc/h

I.E. O.F.M.S.W. PLANT – BIOMETHANE FOR VEHICLES (GSE)








€ 1.384.963 26%

GLOBAL SERVICE



€ 738.110 14%


REVENUES – DEDICATED DELIVERY (GSE)

O.F.M.S.W. disposal [ 80 €/ton ] € 2.904.000 54%

GSE biomethane sales [ 22,55 €/MWh ] € 633.649 12%

CIC trading [ 375 € ] [ 64,49 €/MWh ] € 1.813.333 34%


O.F.M.S.W. disposal

54%

GSE withdrawal

12%


REVENUES


I.E. O.F.M.S.W. PLANT – BIOMETHANE FOR VEHICLES (GSE)


€ 3.227.908

€ 3.237.469

€ 3.240.804

€ 3.244.172

€ 3.247.574

€ 3.251.009€ 3.254.479

€ 3.257.984€ 3.261.524

€ 3.265.099€ 3.268.710

€ 3.272.357€ 3.276.041

€ 3.279.761€ 3.283.519

€ 3.287.314€ 3.291.147

€ 3.295.019€ 3.298.929

€ 3.302.878

€ 2.577.908€ 2.587.469

€ 2.590.804€ 2.594.172

€ 2.597.574

€ 2.601.009

€ 2.604.479

€ 2.607.984€ 2.611.524

€ 2.615.099€ 2.618.710

€ 2.622.357

€ 2.626.041

€ 2.629.761

€ 2.633.519

€ 2.637.314

€ 2.641.147

€ 2.645.019

€ 2.648.929

€ 2.652.878

€ 0

€ 500.000

€ 1.000.000

€ 1.500.000

€ 2.000.000

€ 2.500.000

€ 3.000.000

€ 3.500.000

€ 4.000.000

€ 4.500.000

€ 5.000.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20




NPV - VAN € 45.481.246

IRR - TIR 27,65%

ROI 87,80%


I.E. O.F.M.S.W. PLANT – CNG FOR VEHICLES (OWNED GAS STATION)


REVENUES - CNG (OWNED GAS STATION)

O.F.M.S.W. disposal [ 80 €/ton ] € 2.904.000 48%

CIC trading [ 375 € ] [ 64,49 €/MWh ] € 1.813.333 30%

CNG sales at Gas Station [ 0,55 €/Smc ] € 1.635.216 27%

Opex Gas Station [ 0,1 €/Smc ] -€ 297.312 -5%


O.F.M.S.W. disposal

46%


CNG sales at Gas Station

26%

REVENUES







€ 1.384.963 26%

GLOBAL SERVICE



€ 738.110 14%



I.E. O.F.M.S.W. PLANT – CNG FOR VEHICLES (OWNED GAS STATION)


€ 4.532.164€ 3.930.634

€ 3.922.767

€ 3.932.954

€ 3.943.244

€ 3.953.636€ 3.964.133

€ 3.974.734€ 3.985.441

€ 3.996.256€ 4.007.178

€ 4.018.210€ 4.029.352

€ 4.040.606€ 4.051.972

€ 4.063.451€ 4.075.046

€ 4.086.756€ 4.098.584

€ 4.110.530

€ 3.882.164

€ 3.280.634€ 3.272.767

€ 3.282.954€ 3.293.244

€ 3.303.636

€ 3.314.133

€ 3.324.734

€ 3.335.441

€ 3.346.256€ 3.357.178

€ 3.368.210

€ 3.379.352

€ 3.390.606

€ 3.401.972

€ 3.413.451

€ 3.425.046

€ 3.436.756

€ 3.448.584

€ 3.460.530

€ 0

€ 1.000.000

€ 2.000.000

€ 3.000.000

€ 4.000.000

€ 5.000.000

€ 6.000.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20


Financials - CNG (OWNED GAS STATION)EBITDA - MOL (average) € 4.035.882EBIT - RICAVI (average) € 3.385.882NPV - VAN € 59.228.932IRR - TIR 36,23%ROI 113,59%PAY BACK PERIOD (years) 3,2

RISK ANALYSIS


A) COUNTRY RISKSA) COUNTRY RISKS

INCENTIVES EVOLUTION – FEED-IN TARIFF VARIATION – TAXATION REGIME CHANGE –INCENTIVES HORIZON VARIATION.

Mitigations:• The incentive on bio-methane is based on different rationales compared to other incentives on

renewable sources. The Kyoto’s protocol establishes the thresholds applied to the state members forenergy produced by renewable sources. The countries that have not reached those thresholds aresubject to infringement procedures and may either pay for the infringement or allocate such amountto incentives aimed at the production of renewable energies. The rule was conceived and designed tofacilitate productions of bio-energies from waste in general, trying to generate in the medium-longterm a cost rationalization of the management and disposal of waste; therefore it’s unlikely thatreductions can be applied to the existing incentives.

• The possible maximum production volumes are already determined: in Italy the produced O.F.M.S.W.if fully directed to bio-digestion would allow the construction of facilities capable of producing about6 billion cubic meters of bio-methane, equivalent to about the 8% national demand of natural gas,managing to double the car fleet currently circulating on methane.

RISK ANALYSIS


ADMINISTRATIVE AUTHORIZATIONS – LENGTHY PROCESS: THE RELEASE OF AUTHORIZATIONS

REQUIRES DIFFERENT PROCEDURES DEPENDING ON WHETHER IT IS AN O.F.M.S.W. PLANT OR A

BY-PRODUCTS ONE. THE PROCEDURES IN TERMS OF THE TYPE OF DOCUMENTS TO BE SUBMITTED

VARY FROM REGION TO REGION.Mitigations:• A special procedure of internal rating is applied to pre-select projects, based upon a set of objective

and subjective requirements, in order to increase the probability of being authorized.• Management of a portfolio of multiple projects with different administrative practices (Simple

Authorization Process for by-products, about 30 days – technology upgrade for those alreadyauthorized to produce electricity and move to bio-methane, about 30 days – Unique Authorization,different for each Italian region with variable times, usually ranging between 90 and 180 days).

LOCAL COMMUNITIES – POSSIBLE OPPOSITION.Mitigations:• There have already been set up activities of communications and public relations suitable to sensitize

local communities about two fundamental aspects: no combustion and no smell. As well ascommunication activities with committee and stable organizations like LEGAMBIENTE, ZEROWASTE and others.

• There are patented technological solutions from partners like Solvay-Bicarjet for eliminating any odour.

RISK ANALYSIS


B) TECHNOLOGICAL RISKSB) TECHNOLOGICAL RISKS

DUE TO THE DELAY IN IMPLEMENTING THE RULES, IT HAS NOT YET BEEN POSSIBLE TO

REALIZE BIO-METHANE PLANTS POWERED BY OFMSW, MADE BY: RECEIVING – BIO-DIGESTION -COMPOSTING – BIOGAS PURIFICATION. Mitigations:• The members and partners of Innea hold each of them, their own specific skills, know-how and

implementation capabilities, consolidated in several years of activity, for each part that will form thenew plant.

PRODUCTION STOPS. Mitigations:• The hydraulic systems are all redundant and maintainable from the outside• Each process and component of the plant, thanks to an own dedicated software, is constantly

monitored, both on site and remotely by the Innea’s engineers from the control room. It is expected aplanned maintenance plan. The software integration guarantees that all of the ordinary maintenanceis run on time and it also gives advices about when preventive and predictive maintenances need to becarried out. The software, in case of either failure or anomaly, promptly sends an appropriatenotification to the dedicated and/or on duty engineer.

• There will be environmental monitoring accessible to the relevant authorities (ARPA) e to the citizens.Possible transfers of some benefits to the neighbouring communities can be granted, such asdiscounted gas prices in the event a gas station is built connected to the plant (the legislator hasprovided more incentives in this case).

RISK ANALYSIS


C) MATERIALS SUPPLY RISKSC) MATERIALS SUPPLY RISKS

PROBLEMS IN THE SUPPLY OF RAW MATERIALS.Mitigations:• Thanks to the technological flexibility, it’s possible to use different organic matrixes to feed the bio-

digester.• Specific geo localization studies, allow the highlight, within a given geographic area, of both the types

of organic matrices available and the raw materials suppliers. This approach offers a flexibility supplyin case a source should be either reduced or modified.

• A proper insurance contract is drawn up (All Risks insurance).

BURST AND FIRE RISK.

Mitigations:• There are in place all of the preventive measures as expected by the current regulations.

• Low risk of outbreak, thanks to design solutions that provide a low on site storage of theaccumulated biogas and a gasometer (gas buffer storage), having capacity below 100 m3.

• Special liability insurance subscription.

RISK ANALYSIS


NON CONFORMITY OF THE RAW MATERIALS EITHER CONFERRED OR PURCHASED, AS FUEL FOR

THE PLANT.

Mitigations:• Management of compliance protocols within the contracts for conferred products and purchased by-

products sent to the bio-digester; whereas regarding the OFMSW are expected within the existinglegislation, waste protocol treatments that impose controls on organic matrices in input to the plant.

CHANGE IN THE COST OF RAW MATERIALS: BY-PRODUCTS AND DEDICATED FARMING MATRIX.

Mitigations:• Planned budget allocations to compensate for any fluctuations in raw material costs.

• It is preferred to locate plants in a geographic area that has several sources of raw materials and fromdifferent manufacturers.

• The owned bio-digestion technology allows accepting a flexible input matrix.

• Pre-selection of suppliers that ensure a solid supply for the duration of the conferment agreement.

• A good delivery / conferment contract, based on time horizons covering at least the paymentschedule, with any possible request against insurance guarantees (e.g. insurance on crops for cornsilage production, sureties, etc.).

RISK ANALYSIS


CHANGES IN RAW MATERIAL COSTS: O.F.M.S.W.Mitigations:• The prices for OFMSW disposal by municipal authorities are fixed for the duration of the contract and

the quantities produced are linked to the number of inhabitants in the area, therefore they remainconstant over time.

• The conferred price curve has been rising for the past two decades.• The business plans are drawn with the OFMSW charged price below the national average one.

DIFFICULTIES IN OFMSW SUPPLY.Mitigations:• The subjects authorized to the construction of a plant (that have been pre-selected by Innea), have

already the availability of long term contracts ranging between 5 and 10years. The minimum contractduration of a supply contract for OFMSW, it’s in the worst case scenario higher than the pay back onthe expected investment. Moreover a facility approved for OFMSW may use as a matrix source even afraction of by-products.

• National legislation, concerning waste management, it requires municipalities to deliver its wastecollected within the municipality to any existing structures responsible for processing waste.

• The national legislation, concerning waste management, requires municipalities to deliver their waste,collected within the municipality to any existing structure responsible for waste processing.

RISK ANALYSIS


D) FINANCIAL RISKSD) FINANCIAL RISKS

CUSTOMER DEFAULT.Mitigations:• Pre-selection of clients according to the requirements of financial strength, expertise and proven

experience in the AD field.• Management of specific guarantees which can be integrated, case by case, according to the criteria

defined by the investor and according to the characteristics of the client.• Financial cash flow capable of guaranteeing consistent reserves to be put aside.

CURRENCY EXCHANGE RISKS.Mitigations:• There are coverage policies available with financial institution.• Within the BP is inserted a risk foreign exchange devaluation.

E) LOCALIZATION RISKSE) LOCALIZATION RISKS

BARYCENTRIC GEO-LOCALIZATION FOR BY-PRODUCTS PLANTS.

RISK ANALYSIS


Mitigations:• Good knowledge of the area and scouting activities for the selection of the best sites.• Innea has access to software connected to different databases, which enables the visualization in

advance of the availability of biomass, present in a given geographical area.

LIMITED NUMBER OF OPTIMAL SITES FOR OFMSW PLANTS.

Mitigations:• The market has not yet started in Italy (the implementing rules were only approved in June 2015) and

therefore it exists the opportunity to be the first to choose the best sites.

F) TIMING RISKSF) TIMING RISKS

THE CURRENT GOVERNMENT INCENTIVES ARE REGULATED UNTIL 2018.

Mitigations:• Multi-revenue plant, for OFMSW only plants, the revenues deriving from the incentives are about 30%

of the total (with conferment tariffs calculated well below the national average). For those plants basedon by-products the dependence on incentives reaches the 50% of total revenues.

RISK ANALYSIS


G) ENVIRONMENTAL RISKSG) ENVIRONMENTAL RISKS

• The decree establishing the value of the incentives is updated to December 2013, whereas the latestimplementing rules were published in May 2015, it is therefore expected an extension of such valuesup to December 2020. At today there are on-going parliamentary questions on the matter.

• Speeding up the project implementation through a management "roll out" of projects with multiplestrategy and standardization of the business model as well as the planning of the proposed plantsresulting in a shorter time required for the preparation of construction permits.

LONG PLANT CONSTRUCTION TIMES.

Mitigations:• Implementation of an efficient project and site management, as well as the cash flows of the contract.

AIR POLLUTION.Mitigations:• There are technological solutions in place (in addition to those imposed by regulations) to prevent any

leakage of gases and odours into the atmosphere.

RISK ANALYSIS


GROUNDWATER POLLUTION. Mitigations:• The entire facility is served by sewage and a water purification system capable of satisfying all the

requirements of the current legislation.

NOISE POLLUTION. Mitigations:• The mechanical parts have been specially soundproofed to reduce the noise emissions.

H) RISCHI SICUREZZAH) RISCHI SICUREZZA

SABOTAGE RISK. Mitigations:• There are insurances coverage against theft and sabotage both during the construction phase of the

plant and after its start.• The plant will be equipped with video surveillance system and technical rooms fully alarmed

I) VENDOR RISKSI) VENDOR RISKS

FINANCIAL INSOLVENCY. Mitigations:• Each order is handled on dedicated current accounts and there is no possibility, by a resolution of the

Board, of financial commingling between a contract and the other.

RISK ANALYSIS


• The business activities costs are paid in advance by the consortium members in the consortium fund.Therefore the operating expenses are fully covered.

• The contract management is linked to a detailed cash flow analysis prepared according to thedemands of suppliers / partners and to the payment terms agreed with the client.

• In order to support the project order and any potential delays in the progress reports, credit lines areprovided for each single order (advance contracts, invoices advance payments) equal to 10% of theproject value.

CAPACITY LIMITS AND BOTTLENECKS RESOURCES.

Mitigations:• Innea has structured the plant engineering in a flexible manner. The members of the consortium are

able to carry out all the activities and to provide all of the resources needed to complete the project.• The consortium corporate form is by its nature open and pliable, therefore able to expand and

contract according to the production requirements. The founding members are the key contacts foreach single plant’s component and implantation; they can either produce directly the single part ofthe plant or when necessary can select and coordinate subcontractors abroad, while still guaranteeingon their own the realization quality.

INVESTING IN InnEA

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REGULATORY SYSTEM FOR OFMSW


Decree of the Council of Ministers President, March 7, 2016

Measures for the implementation of an adequate and

integrated system dedicated to the management of the organic

fraction of municipal waste, the reconnaissance of the existing

supply and detection of residual requirement for the recovery

of the organic fraction of the municipal waste, collected in

different ways, divided by region.

(GU General Series n. 91 of 19 April 2016)

In force since: the 20/04/16



DECREE FORSU (DPCM March 7, 2016)

Art. 1Purpose and

object

1. To prevent and minimize the negative effects on the environment and humanhealth resulting from the management of the organic fraction of municipalwaste, and to achieve the objectives set by the EU in the field of recyclingand reducing the landfilling of biodegradable waste, this decree shows the

system needs for proper management of organic waste collected in

different ways:a) making the existing supply reconnaissance systems;b) identifies the theoretical requirement of treatment of the organic

fraction;c) identifies the remaining requirements.

Art. 2 Definitions

1. For the purposes of this Decree shall apply::a) «Recovery plants»: aerobic treatment plants for composting and

anaerobic digestion of the organic fraction.

ORGANIC FRACTION PLANTS OPPORTUNITY


N°Average Capacity

(ton/year)

EstimatedPlant Value

Overall Estimated

Value

Existing composting plants to be reconditioned

133 36.971 € 13.000.000 € 1.729.000.000

New AD plants to be realized

96 36.000 € 16.000.000 € 1.536.000.000

229 € 3.265.000.000



NORTH REVAMPING NEW

VAL D’AOSTA

1 0

PIEMONTE 13 1

LIGURIA 1 5

LOMBARDIA 21 14

VENETO 13 1

FRIULI V. G. 3 1

EMILIA ROMAGNA

15 2

TOTALE 67 24

Mln. € 871 384

CENTER REVAMPING NEW

TOSCANA 14 4

UMBRIA 3 0

LAZIO 9 12

MARCHE 4 3

ABRUZZO 6 2

TOTALE 36 21

Mln. € 468 336

SOUTH REVAMPING NEW

CAMPANIA 3 25

MOLISE 1 1

BASILICATA 0 2

CALABRIA 5 4

PUGLIA 6 1

SICILIA 5 13

SARDEGNA 8 1

TOTALE 28 47

Mln. € 364 752



1.255

804

1.116

148

NORTH CENTER SOUTH Others

ITALIAN MARKET IN Mln. €

0

10

20

30

40

50

60

70

KIND OF INTERVENTION

REVAMPING NEW

CLIENT PORTFOLIO


AUTHORIZED AND IN PHASE OF AUTHORIZATION

(ACHIEVABLE IN THE NEXT 12 MONTHS)10 Plants100 Mln. € estimated

FEASIBILITY STUDIES INPROGRESS

(ACHIEVABLE IN THE NEXT 12 MONTHS)

15 Plants150 Mln. € estimated

BE IN CONTACT ANDFEEDBACK

(36 MONTHS)Over 40 plantsEstimated amount can not be determined at present.

PLANNING PLANTS (ITALY)


AUTHORIZED AND IN PHASE OF AUTHORIZATION

PLANT SUPPLY Q.TYPRODUCTI

ONAUTHORIZATION FINANCING AMOUNT NOTES

CALABRIA OFMSW 120 t/d BIO-METHANE AUTHORIZED FINANCED € 12.400.000 IN NEGOTIATION

CAMPANIA BY-PRODUCTS 300 Nmc BIO-METHANE AUTHORIZED TO BE

FINANCED € 7.000.000 PENDING FINANCING

PUGLIA BY-PRODUCTS 350 Nmc BIO-METHANE AUTHORIZED TO BE


MARCHE OFMSW 100 t/d BIO-METHANE

AUTHORIZATION IN PROGRESS

(SUBMITTED)FINANCED € 8.000.000 PENDING

FINANCING

SICILIA OFMSW 200 t/d BIO-METHANE TO BE AUTHORIZED TO BE

FINANCED € 14.800.000 IN NEGOTIATION



SICILIA OFMSW +BY-PRODUCTS

250-450 Nmc

BIO-METHANE TO BE AUTHORIZED TO BE


LAZIO OFMSW 140 t/d BIO-METHANE

AUTHORIZATION IN PROGRESS

(SUBMITTED)FINANCED € 10.000.000 PENDING

ENGINEERING



LAZIO OFMSW 120 t/d BIO-METHANE AUTHORIZED TO BE


TOT. € 113.200.000

PLANNING PLANTS (ITALY)


FEASIBILITY STUDIES IN PROGRESS

PLANT SUPPLY Q.TY PRODUCTION AUTHORIZATION FINANCING AMOUNT NOTES

LAZIO (1+1) BY-PRODUCTS 500 Nmc BIO-METHANE AUTHORIZED TO BE FINANCED(EQUITY) € 18.800.000 PRELIMINARY STEP

CAMPANIA (1+1) BY-PRODUCTS 300 Nmc BIO-METHANE TO BE AUTHORIZED FINANCED € 15.000.000 PRELIMINARY STEP

SICILIA OFMSW 140 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 12.000.000 PRELIMINARY STEP

SICILIA OFMSW 140 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 12.000.000 PRELIMINARY STEP

LAZIO OFMSW 300 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 20.000.000 PRELIMINARY STEP

CALABRIA OFMSW 100 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 12.000.000 PRELIMINARY STEP

CALABRIA OFMSW 140 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 12.000.000 PRELIMINARY STEP

SARDEGNA OFMSW 30 t/d BIO-METHANE TO BE AUTHORIZED FINANCED € 5.600.000 PRELIMINARY STEP

PUGLIA OFMSW 50 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 8.000.000 PRELIMINARY STEP

VENETO OFMSW 200 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 14.800.000 PRELIMINARY STEP

EMILIA ROMAGNA OFMSW 100 t/d BIO-METHANE TO BE AUTHORIZED TO BE FINANCED € 12.000.000 PRELIMINARY STEP

TOT. € 142.200.000

PLANNING PLANTS (FOREING MARKETS)


FEASIBILITY STUDIES IN PROGRESS

PLANT SUPPLY FINANCING AMOUNT NOTES

ERITREA (ASMARA) OFMSW FINANCED € 9.000.000 PENDING APPROVAL

ALBANIA (TIRANA) OFMSW FINANCED € 34.000.000 IN NEGOTIATION

ALBANIA (DURAZZO) OFMSW FINANCED € 15.000.000 IN NEGOTIATION

EL SALVADOR OFMSW FINANCED € 19.500.000 IN NEGOTIATION

PORTOGALLO (PORTO) BY-PRODUCTS TO BE FINANCED € 8.000.000 IN NEGOTIATION

PORTOGALLO OFMSW TO BE FINANCED € 12.000.000 CONTACT IN PROGRESS

PORTOGALLO OFMSW +BY-PRODUCTS TO BE FINANCED € 12.000.000 CONTACT IN PROGRESS

MALTA OFMSW TO BE FINANCED € 25.000.000 CONTACT IN PROGRESS

ECUADOR (N.6) OFMSW TO BE FINANCED € 81.000.000 CONTACT IN PROGRESS

TOT. € 215.500.000

RESEARCH AND DEVELOPMENTR&D

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RESEARCH AND DEVELOPMENT


INNEA GROUP supports various Italian universities for the research of new projects to be interfaced with atypical installation for the treatment of OFMWS and biomethane production.An important resource, often overlooked, is represented by the CO2 that can be used for variousapplications. Following are the important projects, of which the consortium is a supporter.

PHOTOBIOREACTORPHOTOBIOREACTOR

The project proposes the reuse of CO2 to enter it in

photobioreactors in which algae with a high contentoleic are grown. The algae metabolize CO2 tosynthesize the molecules of which they are made.Photobioreactors are cheap, have an importantproductivity per hectare, much more than allocate soilto specific oleic crops.Algae do not need nutrients but only of CO2 recovered from upgrading and sunlight. From algae vegetableoils can be extracted that can be turned into bio-diesel by transesterification, or by entering them in thedigesters, are derived considerable amount of biogas to be allocated to the production of biomethane.This will close the cycle of matter and energy.

RESEARCH AND DEVELOPMENT


SOLARGAS-WINDGAS PROJECT - UNIVERSITY OF PERUGIASOLARGAS-WINDGAS PROJECT - UNIVERSITY OF PERUGIA

The project proposes the reuse of CO2 (capture and storage) from fossil sources, output from thesystem for upgrading of the methane. Si ha la produzione diretta di metano It has the direct production ofmethane by use of CO2 and hydrogen (H2) by the reaction of Sabatier (CO2 + 4H2⇒ CH4 + 2H2O).The reaction takes place in T between 250-400°C and using a metal catalyst, is lightly exothermic andtherefore easily sustainable from the thermal point of view. The central point is the supply source forhydrogen. The technology in question uses the surplus of renewable electricity (solar photovoltaic or windpower) in the hours of low demand to split water (electrolysis) and produce electrolytic H2. Once thehydrogen product, it is used for the reaction of Sabatier that provides CH4 and H2O. The methane ispurified and, for example, injected into the network.

Interfacing the biomethane system with the production andutilization of hydrogen allows increase yields in methane anduse the CO2 removed from the biogas, making the project evenmore sustainable. These are examples of projects that show thepotential of a Research and Development departmentinterfaced to a plant producing biomethane from MWS.

www.consorzioinnea.com

THANKS FOR YOUR ATTENTION……TO THE ENVIRONMENT

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pre - innea finance - biomethane project (eng) 20170127

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