Business Development Plans of Solar Powered Electrolysis Water Purification System

January 2013

Ver.4

Confidential 2

Contents

1. Introduction 2. Why “Solar and Electrolysis”? 3. Wide Range of Possible Applications 4. Kenya Feasibility Study Trips 5. Result of 1st Trip ①② 6. Result of 2nd Trip ①②③ 7. System Image & Suggestions 8. 12Ft Container Water Purification System 9. Local Production and Consumption of Water 10. Industrial Application (Effluent Treatment) 11. Our Final Goal: Local Industry Development 12. Conclusion 13. Supplementary Information①②

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Introduction

Mr. Ogutu visited Sharp (Sakai Plant) with our business partner First meeting

Investigation trip to Nairobi by Sharp delegation Serious water problem

Launch the development of Solar-powered Electrolysis Water Purification System

Sharp was awarded “Feasibility Study to visualize the contributions by Japanese Enterprises towards the adaptation measures in developing countries” from METI

January 2012

March 2012

April 2012

July 2012

August 2012

First Kenya feasibility study trip: Kitui, Kisumu and Mombasa

October 2012

Second Kenya feasibility study trip: Nakuru

January 2013

Third Kenya feasibility study trip: Forum in Nairobi

His Excellency Ambassador Ben H.O. Ogutu of Kenya visited Sharp’s factory in Sakai (27th Jan 2012)

System under development

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Why “Solar and Electrolysis”?

Solar + Electrolysis System

■ Benefits 1. Driven by solar energy 2. Minimum maintenance required 3. Removes all impurities including

fluoride etc. 4. Compact design

Solar Electrolysis

・Over 20yrs experience ・Many track records in Japan

■Potential Markets Indonesia, Myanmar, India, Vietnam, Middle-East and African regions … We are planning to start from Kenya!

・Over 50yrs experience ・Sales base in Dubai covering entire ME&A

Water＋Electrolysis Adjuvant (NaCl)＋ －

-veelectrode

Active oxygen（O2-）Hydroxy radical（・OH）Hypochlorous acid（HOCl）Sodium Hypochlorite（NaClＯ）

+ve

electrodeAnti-bacterial electrolyzed water

Electrolysis

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Wide Range of Possible Applications

■Purification and disinfection ・Mainly humanitarian support ・Easy operation

■Soil Improvement Effects ・Disinfects the soil and decomposes organic substances ・Prevents allelopathic replant failures

■Sanitation and Hygiene improvement ・For disinfection at schools and hospitals ・Cooking, food processing, hand-wash, washing, deodorizing …

■Industrial effluent treatment

・For factories and business enterprises ・System size can be modified freely

Benefits

■Hotels and Safari lodges

・Reduces maintenance and electricity costs ・Possible operation in remote places

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Kenya Feasibility Study Trips ■Aim: Improving access to safe drinking water and contributing to the nation’s adaptation measures against climate change by introducing our new solar-powered electrolysis water purification system

■ 1st Feasibility Study Trip: 26th August – 8th September 2012 Location: Nairobi, Kitui, Kisumu, Mombasa

■ 2nd Feasibility Study Trip: 21st October – 28th October 2012 Location: Nairobi, Nakuru

1. Borehole / well water contain harmful substances. Water in the Rift Valley regions contained high concentrations of Fluoride, and in the other regions, typically high salt containment.

2. Approx. 70% of national diseases in Kenya are related to water problems.

3. No dominant and effective measure to counter this issue is recognized by the government.

4. Need to propose an acceptable and affordable system cost in consideration of people in need for water.

5. Kenya government is highly aware of the issues, and are interested in our activities.

■Findings:

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Result of 1st Trip ①

Note: Figures above are results of tests and measurements practiced by Sharp Corp. and are only for reference purposes.

Sample No.

Place

TypeDepth (m)

Usage

Comments

Date of CollectionTemperature 24.9 25.2 25.1 23.8 23.6 23.9 23.3 23.4 23.5 23.0 23.1 23.2 22.9 22.9 23.0pH 7.97 7.94 7.96 8.80 8.78 8.80 8.25 8.25 8.27 7.27 7.28 7.29 7.83 7.82 7.84TDS (mg/L) 321 320 320 1436 1434 1435 511 511 512 781 780 781 1234 1233 1233salinity (%) 0.032 0.032 0.032 0.146 0.144 0.145 0.051 0.050 0.051 0.079 0.078 0.079 0.125 0.124 0.125Electroconductivity (μS/cm) 657 659 654 2740 2719 2730 1002 996 1009 1498 1491 1494 2330 2326 2323Mg (ppm) 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Ca (ppm) 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50SiO2 (ppm) 50 50 50 50 50 50 50 50 50 100 100 100 50 50 50F (ppm) 0.4 0.4 0.4 1.5 1.5 1.5 0.8 0.8 0.8 0.0 0.0 0.0 1.5 1.5 1.5

Water Quality Test Results (Aug 31 2012 to Sep 05 2012)

2012/8/31 2012/8/31 2012/8/31 2012/8/31 2012/8/31

- Village near KituiSalty

Land owned by Mr. MwanaiSome coloration even after

filtering

UNICEF fundingSolar pump

4 tanks = 3KSH60~70 ppl/day

Hand pump

Not for drinkingNot for drinking

For farming For drinking For drinking For drinking

15 15 10 100 15Shallow well Shallow well Shallow well Borehole Shallow well

5Kitui/Green Africa

Foundation #1Kitui/Syokiomo village #1 Kitui/Ilooi Kitui/Tungutu Water Project Kitui/Syokiomo village

#2

1 2 3 4

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Result of 1st Trip ②

Note: Figures above are results of tests and measurements practiced by Sharp Corp. and are only for reference purposes.

Sample No.PlaceTypeDepth (m)Usage

Comments

Date of CollectionTemperature 22.9 22.9 22.7 22.8 22.7 22.8 22.4 22.2 22.3 24.9 24.9 24.8 22.6 22.6 22.6pH 7.52 7.52 7.51 7.80 7.78 7.80 7.46 7.45 7.44 7.68 7.68 7.67 7.59 7.60 7.59TDS (mg/L) 359 359 359 503 504 503 272 272 272 790 791 790 716 716 716salinity (%) 0.036 0.036 0.036 0.050 0.051 0.050 0.027 0.027 0.027 0.079 0.080 0.079 0.072 0.071 0.072Electroconductivity (μS/cm) 704 708 703 977 982 980 532 534 530 1576 1582 1574 1368 1360 1366Mg (ppm) 10 10 10 10 10 10 5 5 5 10 10 10 - - -Ca (ppm) 50 50 50 50 50 50 50 50 50 50 50 50 - - -SiO2 (ppm) 50 50 50 50 50 50 50 50 50 100 100 100 - - -F (ppm) 0.4 0.4 0.4 0.8 0.8 0.8 0.0 0.0 0.0 1.5 1.5 1.5 - - -

2012/8/31 2012/8/31 2012/8/31 2012/9/1 2012/9/5

Not for drinking For drinking For drinking For drinking For drinkingHand pump

Some filament in the water,no mud

Hand pumpElectric pump cost

8-900,000KSH2m3/hr pumped

Hand pump Electric pump20L=5KSH

Borehole Shallow well Borehole Borehole BoreholeN.A. 20 110 N.A. 50

6 7 8 9 10Kitui/Green Africa Kitui/Syokiomo village #3 Kitui/Green Africa Kisumu Kaloleni

■Conclusions of 1st Trip: In the areas other than Rift Valley, salt concentration is a more serious problem than fluoride. Sharp will develop a system to purify water by basically using filtration to remove the salt, and kill the bacteria by the electrolysis device

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Result of 2nd Trip ①

If water has very little fluoride, the color stays red

High concentrations of fluoride, over 3mg/L, well over the WHO Drinking Water guideline (1.5mg/l)

1～8

10

9

■Aim: Typical problems in Rift Valley confirmed by our 2nd trip delegation Partly the fluoride containment seems to be excessive

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Result of 2nd Trip ② ■A lot of potential demands in Nairobi for industrial applications 1. Unreliable municipal water supply 2. Development of boreholes costs extra electricity required for pumping and treating the water. 3. Water and electricity cost is a common big problem among the factories and companies in

Nairobi. 3. Using the same technology, our system can be adopted in industrial application to minimize all

the related costs.

■Conclusions of 2nd Trip: In the areas of Rift Valley, fluoride is indeed a serious issue and this problem must be solved through a system of a reasonable cost. Sharp will also develop the system to remove the fluoride using electrolysis technology in a special way to purify the water by filtration (modification is necessary from the one developed based on 1st trip result)

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Borehole Water Sample from Special Hill School, Nakuru

1) Water quality test using UV

2) DB-6 Type Electrolysis Test Took 50cc out of 440cc of the sample and carried out 15 mins.of electroysis with an electric current of 12A/dm3. (50cc = 1 unit)

3) Coagulation and Sedimentation Measure fluoride concentration by adding aluminum sulphate to the 400cc sample.

Fluoride after coagulation and sedimentation will be processed by 0.1μm membrane

Conductivity SaltConcentration

Temperature Fluoride

μS/cm ％ ℃ ppm8.57 2270 0.14 16.3 18.93

pH

ElectricCurrent

Voltage Conductivity SaltConcentration

Temperature Fluoride

A V μS/cm ％ ℃ ppm- - 8.57 2270 0.14 16.3 18.93 -

- - 8.34 1140 0.09 17.7 - -24.2 7.68 8.26 13170 0.72 17.9 - -

- - 9.3 11470 0.61 40 - 2775

pHResidual

Salt

Borehole water ①Borehole water① diluted by double

0.7% Salt addedAfter Electrolysis

1000ppm adjustment/440cc sample

Adjust to neutral pH/16% caustic

Aluminiumsulphate

8%5cc 0.4cc

Conductivity SaltConcentration

Temperature Fluoride

μS/cm ％ ℃ ppmCoagulation

andSedimentation

6.97 13,270 0.73 21.3 0

pH

Result of 2nd Trip ③ (Water Quality Test) WHO drinking water guideline is ＜1.5ppm!

Fluoride

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System Image & Suggestions

■Features 1. Operates on solar power 2. Minimum maintenance required 3. Disinfects the water and decomposes organic substances 4. Compact design and customizable

System image

Borehole / well (Water source)

12Ft Container Diagram

Water point for community

Electricity could be used for Barbershops too

Pilot Plant image: Designed to fit into a 12Ft container for easier operation and maintenance.

Confidential 13 ※Details and specification is liable to change without notice

12Ft Container Water Purification System

本体設備 範囲内

12 ft Container Water Purification System

Container size: 12ft (Width: 3.7m)

Process quantity: 1m3/hr

Operation hours: 20hrs/day

Process quantity: max. 25m3/day (*subject to water quality)

Electricity Consumption: Approx. 3kW

Underground water pump: 1.5kW

Filtration pump: 0.45kW

UF membrane pump: 0.45kW

Electrolysis device: 0.3kW

Chemical feed pump: 0.3kW

Basic Components

Sand Filtration

Intermediate Tanks

Sedimentation Tank

Electrolysis Device

UF Filtration

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Local Production and Consumption of Water Our intention is to create and support new business mechanisms for water based on the purification system, instead of just simply selling out the system.

MPesa Water vendor

<Local SPC>

Local Bank

Equipment lease /O&M Technical training

Delivery business

Anti-bacterial

water

Safe drinking water

Soil improvement

End-consumer

Water vending business

Water delivery business

Payment

New businesses using the electricity generated by the solar power could develop.

Sharp

Local Partner

■An example of a new business mechanism

Different functional water can be produced. If the demand grows, the system can be easily customized and expanded to meet the demands.

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Industrial Application (Effluent Treatment) ■Many track records in Japan (restaurants, hospitals and swimming pools). ■We expect a growth in demand for effluent treatment. ■700 companies are members of the KAM (Kenya Association of Manufacturers).

Borehole

Municipal water

100% drained out

Water purification

system

Effluent recycled

Water for washing Water for

washing

Less water consumption

Electricity bills to pump up the water

could be saved

Effluent treatment

～Now～

Electrolysis +

After-treatment

After installation Approx. 2.9 million KSH could

be saved annually.

■An example of a dairy factory in Nairobi

～After installation～

Water ConsumptionFuel and electricity cost to pump up

the waterWater + Pumping

Cost

30,000m3/month(30M litres/month)

Diesel 10,000 l itres/month(Electricity consumption

288MWh/month)(Approx. 2MW of solar)

$30,000/month

90% for washing

Recycled Water(10%)

Fuel and electricity that could besaved

Water andPumping cost that

could be saved

3,000m3/month(3M litres/month)

Diesel 1,000 l itres/month(Electricity consumption

29MWh/month)$3,000/month

Diesel Engine

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Our Final Goal: Local Industry Development ● We aim to aid effective growth of primary industries in developing countries.

Solar Electrolysis

Application to Agriculture

Prevents allelopathy

Modernization of Agriculture Systems to counter food shortage issues.

Application to Aquafarming Increase productivity Mass production and

diversity of export goods

Development of Fishing Industry

Initially use ODA’s for humanitarian support → Industrial effluent treatment facilities, and business expansion.

1st Stage 2nd Stage

Aquaculture tray

Aquaculture tray Water purification

Air

Optimal for growing 射

LED lighting

LED lighting

Airflow

Sterilize with strong acidity

Functional electrolyzed water

Air Purification

Neutralize with alkaline ions

（Highly insu- lated outer wall

Air

Airflow

Functional electrolyzed water

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Conclusion

● Solar＋Electrolysis would contribute to countering Kenya’s water issues. ● Support in the form of ODA may still be required since locally there is still lack of funding. ● Japan’s technology can contribute to the industrial development, employment-promoting, and economic development of Kenya. ● We aim to build a long-term, mutually complementary and amicable relationship between Kenya and Japan.

We aim to counter water issues worldwide, and to contribute to industrial and economical development in various countries.

“Blessings of the sun to energy and water”