©Synova LLC – Proprietary and Confidential

Workshop 2b: Energy Transition Synova Case Study

!(Giffen Ott—28 October 2014)

“If you want to fight climate change, improve public health, find new sources of wealth for poor people and create new entrepreneurs, the closest thing to a silver bullet in the world in most countries is closing all the landfills in all the cities.”

-President Bill Clinton, Clinton Global Initiative 2010

©Synova LLC – Proprietary and ConfidentialSource: What a Waste report, World Bank 2012; From Waste to Resource 2009 world waste survey; Synova analysis

Global waste generation is immense, and most waste ends up in “landfills”, most of which are uncontrolled dumps . . .

10/28/20142

Worldwide MSW Market > 3.7 Million Tonnes Per Day% Disposition Within Each Geographic Area

% Share of Global MSW Generated Per Day

BrazilItaly Russia

JapanOther OECD High WtE

FranceGermany

UKOther OECD Low WtE

United States China Other Non-OECD

Global WTE Penetration ≈ 11% (virtually all incineration)

©Synova LLC – Proprietary and Confidential

A clean, Waste-to-Energy alternative to “landfills” presents a classic “triple bottom line” effect, solving major environmental and health issues as well as clean power . . .

10/28/20143

► Diverts waste; reduces litter, vermin (rats, mosquitoes), and associated disease

► Curtails fugitive emissions; saves up to net 1.4 tons CO2e / ton of MSW diverted

Climate change (methane emissions)

Land pollution (open dumping)

► Reduces water contamination and associated disease

Water pollution (leachate)

► Provides clean (base load) energy to supplant fossil fuels

Air pollution (odors and smoke)

©Synova LLC – Proprietary and ConfidentialSource: World Bank, What a Waste report, March 2012; management calculations

The opportunity (or threat) is massive and growing rapidly; after discounting for current WTE and realistic collection potential, waste volumes imply a build-out of more than €500 Billion . . .

10/28/20144

0

1,5

3

4,5

6

MT / day (000s)

2025 “Available

Market”

2011 Base

Less: Current

Incineration

2011-2025 Expected Growth

80/20 Rule: Assume 20%

Is Not Collectible

@ .880 thousand tonnes per day (average Synova 18 MWe plant) ! ≈ 111,500 MWs !@ € 4.6 MM/MWe ! ≈ Implies investment of > € 500 B

3,682

(405)

2,388

(1,133)

4,532

Non-OECD

OECD

Non-OECD

OECD

©Synova LLC – Proprietary and Confidential

In the non-OECD world, “waste destruction” is insufficient; conversion efficiency must essentially pay the way for sanitary disposal . . .

10/28/20145

0

75

150

225

300

8891

13,3110,89

90,75

77,44 157,8261131,521756,8095

Power €/MWh

Tip Fee €/MT

OECD v Non-OECD Power Prices and Tip Fees (Prime Examples—EUR/MWH and EUR/MT)

€

UK Philippines Thailand

CfD Top-up €/MWh

225

143

8 8

171

Tip Fee €/MWh

Conversion efficiency is fundamental to WTE in developing countries

©Synova LLC – Proprietary and ConfidentialSources: 1US EPA - NEEDS database, pre-sort estimates; at comparable scale

The required breakthrough begins with gasification, a process of gasifying waste and cleaning the “syngas”, which enables more efficient forms of power (or transport fuels) . . .

10/28/20146

IncinerationCommon

Gasification

Synova Gasification

(“IGCC”)Installed Average

New, Pre-Sorted

Waste sorted to remove inorganics or recyclables? No Yes Yes Yes

Gas cleaning stage Exhaust Exhaust Primarily Exhaust

Syngas

Gas cleaning efficacy 1x 1x 1x 10x

Power plant Steam Boiler and Turbine

Steam Boiler and Turbine

Steam Boiler and Turbine

Combined Cycle Gas

TurbineAll-In energy efficiency 18% 24% 24-30% 36%

Conversion to recyclables and

clean energy

Waste destruction, with an energy by-

product

©Synova LLC – Proprietary and Confidential

• Air Intake Filtration

• Gas Treatment

• Exhaust Systems

• Inlet Volutes

• Acoustical

!!

• Enclosures

• (Blow Off) Silencers

• Lube Oil Packages

• Ventilation Packages

Synova has partnered with a 128-year old specialist in gas cleaning, Royal Dahlman, who brings expertise well-suited to Integrated Gasification Combined Cycle systems . . .

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Oil & Gas Industry Power industry Renewable Energy Technology

• Fluidized Catalytic Cracking (FCC)- FCC slurry oil filtration (bottom)- FCC flue gas emission control

• Desulfurization / CO2 removal- Filtration of Amines

• Filtration of Heavy Coker Gas Oil • Filtration of cooling / process water

with Dual Media (sand) filter technology

Hot Syngas Filter System

Delivery of FSS (Hot Gas Filter)

FCC Slurry Oil FIlterGE Quality of Excellence

Award WinnerTurbine Serviced In

Dahlman Shop

Close partnership with ECN • OLGA Tar Removal • Product Gas Filtration and Scrubbing • Energy Recovery • MILENA Gasification • Pipeline of future developments

800 kW MILENA pilot (ECN)

800 kW OLGA pilot (ECN)

4 MW OLGA Portugal

©Synova LLC – Proprietary and Confidential

Together we offer an integrated, modular system that provides an end-to-end solution—from MRF to IGCC—enabled by a breakthrough that removes contaminants from the raw “syngas” . . .

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Proven MRF Hundreds of

successful systems worldwide

Proven Gasifier Track record of

operating successfully on RDF/Biomass

Proprietary OLGA Gas Cleaning

Oil scrubbers proven at countless petro

plants

Caterpillar Solar Gas Turbine

Thousands operating reliably around the

world

MSW, industrial waste, biomass

Power Future Liquid Fuels or SNG

Heavy Tars Light Tars Tar removal is our “special sauce”; it is

what enables high value conversion

©Synova LLC – Proprietary and Confidential

Although its comprised of proven components, financing requires creative solutions . . .

Source: Dahlman BV 10/28/20149

• System is comprised of standard modules • “Breakthrough” gas cleaning is unique, but every

unit is a traditional refinery unit (integration risk, but no technology risk)

• Extensive pilot development at Energy Center of the Netherlands, with meticulously collected data

• 1 MWe demonstration of integrated plant is running smoothly (Tondela, Portugal)

Financing Strategy: • “Belt and braces” strategy--First plants enable underwriting a base case

of low-tech, cleaned gas going to a (pre-existing) boiler; gas turbine serves as an “upside”

• FullCycle—Formed a dedicated yet independent equity fund with Ibrahim Al Husseini, with special terms, to provide equity for initial projects

• Exploring green bonds and alternatives for larger plants

©Synova LLC – Proprietary and Confidential

Thank you!

10/28/201410

Giffen Ott Chief Executive Officer Synova Power Noordzee 8 3144 DB Maassluis The Netherlands giffenott@synovallc.com www.synovapower.com