USAG Fort Hunter Liggett Solid Waste Recycling Program

and Waste Gasification System for Fixed Installation

On-Site Distributed GenerationEW-201334

Greg ValleryUSAG Fort Hunter Liggett

Director Public Works

Methane = 16% of Greenhouse Gases

Methane is 86x more climate harming than CO2.

Right now is the time to rein in methane.

By 2025 the world will be producing 2.2 billion tons of waste and 7.7 billion tons of CO2 equivalent annually.

QRP Commodity Sales Update

FY15 Total Tons ValueScrap Metal 259,797 127.89 $ 3,010.80

Paper 212,600 106.30 $ 6,996.00 CRV 2,482 1.24 $ 1,347.00

Brass 43,742 21.87 $ 109,789.64TOTAL 518,621 259.30 $ 171,143.44

QRP Commodity Tracking FY17 (in LBS)FY17 Q1 FY17Q2 FY17Q3 FY17Q4 FY17 YTD Tons Value

Scrap Metal 138,050 66,260 66,261 $ Paper 42,820 43,640 44,135 33,120 $ CRV 10,878 0 1,512 $

Brass 11,088 0 9,115 $ TOTAL 202,836 109,900 121,023 $

FY16 Total Tons ValueScrap Metal 488,781 170 $ 20,944.00

Paper 248,975 124.48 $ 7,531.59 CRV 16,086 8.04 $ 4,592.00

Brass 27,592 13.79 $ 65,815.10TOTAL 784,547 392.27 $ 94,782.69

FY14 Total Tons ValueScrap Metal 71,820 35.91 $ 5,061.00

Paper 0 0 $ -Other Assorted 0 0 $ -

Brass 135,179 67.29 $ 190,943.00TOTAL 765,550 103.20 $ 141,746.59

QRP FY17 Current Budget Status REVENUE YTD

Carry-over balance from previous FY $ n/aBrass Recycling $ 21,584.21Scrap Metal Recycling $ 20,255.15Paper Product Recycling $ 7,199.81CRV $ 5,295.81

EXPENSES YTD * Through EOM JULY 17 Labor/Benefits $ 192,941.80Equipment Main/Repair $ 503.94FSA Administration Fee Expense $ 54.28General Entertainment $ 3,304.94Cable/Pay TV Expense $ 1,411.90Contractual Service Expense $ 110.00Payroll Service Expense $ 465.55Supplies $ 5,360.78Commercial Communication Expense $ 7,059.50Linens $ 172.35401K Admin Surcharge Expense $ 87.22Expendable Furniture and Equipment $ 3,794.54Intrafund Transaction Expense $ 152.50

$Account Balance $ 54,335.34 $ 217,419.30 $ 196,969.89 (August)

QRP Financial Update

Conversion Technology Options

Recycle CompostAnaerobic Digestion

Aerobic Digestion

PyrolysisDown Draft Gasification

Up Draft Gasification

Plasma Gasification

Molten BathsFastOx

GasificationFluidized Bed Gasification

Microwave Plasma

Free Radical Gasifier

Thermal Depolymerization

Methane Capture Burn

FastOx Gasification is Not Incineration

Limitations of Conventional Gasification

Plasma Downdraft

Fluidized Bed

High Parasitic LoadsHigh Maintenance

Does Not Produce Inert StoneFeedstock Constraints

Low ConversionLimited Scalability

The Universal Gasifier

InEnTech

Enerkem

Plasma Gasification

Fluidized Bed

Sierra EnergyFastOx™

Low ParasiticLoad

MinimalPreprocessing

Produces Inert Stone

How the FastOx® gasifier works

• Waste is fed into the top

• Oxygen and steam injected at the bottom

• Organics vaporize - recovered as energy-dense syngas

• Inorganics melt - recovered as inert stone and metal

Advantages of FastOx® gasification

• Minimal Emissions

• Heating profile doesn’t generate dioxins/furans

• No ash for disposal

• Scalable unit (based on technology background)

• Low maintenance - no internal moving parts

• Robust: recovers glass & metals

• Produces energy-dense syngas

• Competitive Economics

Waste Becomes High Value Products

Sierra Energy Timeline

FastOx Performance Testing

Testing results from the RETC:

• Can handle wide variety of

feedstocks

• Demonstrated resulting syngas

has high energy density

• Inert stone proven non-leaching,

not hazardous, and can be sold as

a building product.

• Combined 1,000 hours run time

• Closed system resulted in zero

emissions from gasifier

FastOx at Fort Hunter Liggett

MSW/biomass conversion to electricity and renewable fuels (diesel/gasoline/hydrogen).

System Components

FastOx Impact at Fort Hunter Liggett

The FastOx Gasification system should help FHL drive towards its NZE goals.

The FastOx project should be able to decrease the amount of Municipal Solid Waste (MSW) landfilled by at least 75%, if not further.

The FastOx system would also be able to accept certain types of Construction & Demolition (C&D) waste and Hazardous Waste streams, once the permitting for these additional materials is approved.

Calculate your own ROI at SierraEnergy.com/calculator

Scenario: Hazardous Waste Elimination

EW-201334: Waste Gasification System for Fixed On-Site Distributed Generation

Technology Sierra's FastOx Pathfinder is a 10-tonne-per-day waste-gasification system that efficiently converts virtually any form of waste into renewable energy. Sierra's initial Pathfinder will produce energy using a commercial off-the-shelf generator system ("genset").

DemonstrationThe objective of the demonstration is to verify that a FastOx gasifier is a cost effective, environmentally-beneficial way to achieve energy resiliency and security. Performance will measure electricity generation capacity, operating costs, environmental benefits and other metrics.

Technical & Economic Results to Date• Sought: Reduction of waste landfilled, reduction in local electrical grid requirement• Achieved: n/a (system not started-up to-date).• Next Phase: Commissioning and demonstration of system

Project Progress and Hurdles to Date• Permitting in CA (completed, even though missed FHL’s NEPA EA)• Final Chemical, Mechanical and Value engineering of system• All major equipment fabricated and majority delivered to project site

Technology Transfer Outlook• Installations in the US of all sizes, forward operating bases, municipalities and private worldwide

Performer: Sierra Energy

Demonstration Site(s): U.S. Army Garrison Fort Hunter Liggett, Jolon, California 5

Project Team

● PI: Mike Hart, CEO, Sierra Energy Daniel Dodd, Lead Engineer, Sierra Energy

● Host: U.S. Army Garrison Fort Hunter Liggett Greg Vallery, Dir. DPW, Fort Hunter Liggett

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Test Design and Objectives● DoD’s mission of energy security and

resiliency prompted utilizing on-site waste to produce off-grid power, avoiding reliance on civilian grids or high-risk fuel transportation

● Embraces DoD installation net zero energy and waste pilot programs

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Demonstration Objective: verify that a FastOx gasifier is a cost effective, environmentally-beneficial way to achieve energy resiliency and security.

Baseline FastOx PlatformSecurity Reliance on unsecured civilian grids.

Fuel delivery requirements.Baseload power independent of civilian grid.Fuel (potentially) generated on-site.

Cost High waste disposal costs and energy prices at remote installation locations.

Savings from reduced/eliminated waste disposal and outside electricity required –typically more than cost to operate system

Environment Use of fossil fuels and waste incineration emits additional greenhouse gases and criteria pollutants locally

Displaces fossil fuel use and saves methane emissions from waste decomposition in a landfill

● FastOx Pathfinder™ System Convert nearly any kind of waste into electricity 10 metric tons per day Compact & modular Can also make diesel substitute or pure hydrogen,

when paired with back-end technologies

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Technology/Methodology Description

Performance ObjectivesPerformance Objective Metric Data

Requirements Success Criteria

Quantitative Performance ObjectivesPeak Specific Renewable Electricity Generation

[kWhe / tonne(material into FastOx gasifier)]

In hourly summations: electricity produced by genset, electricity consumed by process equipment, tonnes of materials entering FastOx gasifier.

Specific net export of electricity of at least 700 kWhe / tonne (material into FastOx gasifier)

Specific Operating Cost [$ / kWhe] Complete system stream data to formulate empirical ‘mass and energy balances’. Logging of maintenance events. Fort Hunter Liggett’s average costs of electricity and waste hauling/disposal during testing period.

Operation costs achieve parity with Fort Hunter Liggett’s electricity costs: $0.150/kWhe(annual average cost)

Environmental Benefit [g(pollutant) / kWhe] Real-time exhaust analyzer data as well as a single third-party EPA-approved stack testing to measure release of the selected criteria pollutants from IC genset exhaust (the only emission point from the enclosed FastOx system). The gross power output of the genset.

Criteria emissions to meet or exceed:CO: 2.918 g/kWhe a 45% decrease*VOC: 0.462 g/kWhe a 20% decrease*NOx: 1.262 g/kWhe a 90% decrease*SOx: 0.001 g/kWhe a 65% decrease*PM: 0.214 g/kWhe a 10% decrease*

10*decrease in the criteria pollutants before emissions control equipment relative to a mixed portfolio of conventional fossil fuels usage (diesel, gasoline and natural gas).

Performance Objectives, continuedPerformance Objective Metric Data

Requirements Success Criteria

Quantitative Performance ObjectivesSystem Turndown [%] Complete system stream data to

formulate empirical ‘mass and energy balances’ when operating system at different throughput rates with the same feed material.

A turndown of 90% of system throughput/capacity (1.0 MTPD) without a greater than 25% reduction in specific net electricity output (to clarify –specific net electricity production should remain above 562 kWhe/tonne (into FastOx gasifier).

Landfill Diversion Percentage

[kg(waste diverted from landfill using FastOx system) / kg(waste that was destined for landfill)]

Logged data of mass of waste material received by the FastOx system and mass of any waste material that still must be landfilled after FastOx processing.

Landfill diversion will be a minimum of 75%weight of material received by the FastOx system.

Total Mass of Material Gasified

[tonnes (material into gasifier)]

Logged data of mass of material placed into the FastOx gasifier

At least 275 tonnes of material gasified over the duration of the demonstration program.

System Uptime [%] Hours FastOx system is operational and consuming waste materials. Hours of maintenance conducted on FastOx system.

Greater than 75% System Uptime

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Performance Objective Metric DataRequirements Success Criteria

Qualitative Performance ObjectivesSeasonal Operations Robustness

Satisfactory System Operation

Operational log of operators and quarterly visitations/observations by expert culminating in survey/report.

No qualitative adverse effects of operating the system during different weather and seasonal conditions.

Odor and Noise N/A Survey base personnel No complaints.

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Performance Objectives, continued

Technical Approach

● Sierra Energy’s FastOx gasification technology will be demonstrated at U.S. Army Garrison Fort Hunter Liggett in Monterey County, California.

● The equipment will be located next door to current recovery and recycling operations (QRP).

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Site for Demonstration at Fort Hunter Liggett

Location within Monterey County, California

Technical Approach – Tools and Methods

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Feed Prep and

Handling

FastOxGasifier

Air SeparationUnit (ASU)

Oxygen

Waste Heat Boiler

Steam Isle

Steam

Final Gas Cleanup

Steam

Waste Material

Recovered Water

Recovered Heat

SyngasPolisher

Oxygen

Electricity Production

Gross Electricity Produced

[A]

[B]Additional

Recyclables

[L]

[C]

[D] [E]

[G]

[F]

[H]

[M]

[I]

Final Exhaust Emission

[J]

[K]

Project Analysis Boundary

Recovered Metals and Slag

Schematic of Analysis Boundary

Technical Progress

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● All Major Equipment Fabricated and Procured● Onsite interconnections 95% finalized (PG&E delays)● Subsystem Commissioning 65% complete

Technical Progress

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Technical Progress

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Technical Progress

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Technical Progress

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Technical Progress

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Technical Progress

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Technical Progress

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Updated Task Schedule

Technology Transfer

● Sierra Energy has received interest from hundreds of potential customers around the world DoD programs within Navy, Army, Air Force for pilot programs and installation

use: DLA (SBIR P1 completed for production of PEM-quality H2) U.S. Air Force Deployed System Test Navy Net Zero Waste pilot facilities including Fort Hood San Antonio Air Force Base

DoD forward operating bases, example Bagram Air Base, Afghanistan Civilian waste stream customers of all sizes and feedstocks

Hundreds of potential project leads from all over the world

● Technology transfer activities-to-date Sierra Energy developed online calculator for economic viability projection

http://www.sierraenergy.com/build/calculate-your-roi/

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Technology/Methodology Transfer

Target Audience Planned Tech Transfer Tool/Action

Status of Implementation

DoD Installations Seeking established 3rd-party partners with deep experience providing energy innovation to defense facilities. Calculator tool, tours of demonstration, soldier training opportunities.

Inquiries fielded, tentative demonstration tours scheduled for Q4 2017.Already hosted a number of FHL DPW scheduled tours for DoD personnel.

DoD Forward Operating Bases

Tour demonstration to FOB energy managers and interested parties

Inquiries fielded, tentative demonstration tours scheduled for 2017. Will require process intensification/ MIL-spec’ing

Worldwide Municipalities, Private Waste Generators

Technology licensing and potentially complete systems (if small enough)

Preparing licensing strategy and agreements

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Social Media ContentSierra Energy News – sierraenergy.com/news

● 27 Feb 2017– Sierra Energy featured in Sacramento Business Journal● 08 Feb 2017- Sierra Energy wins Innovation Award from Roddenberry Foundation ● 20 Dec 2016 - CEO Mike Hart featured in Crain's If I Knew Then... article series

Facebook and Twitter● Twitter 13 Sep 2017– Take a peek at our first FastOx gasification plant design at

@FtHunterLiggett! Visit our YouTube page for full video https://youtu.be/0vlicfUlzAw

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● Facebook 04 Oct 2017 – Another fantastic visit to our headquarters with energy leaders represented from…

● Facebook Event 12 Oct 2017 – Central Valley Summit● Facebook 27 Sep 2017 - Sierra Energy speaks at Career Day● Twitter 08 Sep 2017- @FastOx's VP Torgny Nilsson receives

First Chair Award for significant contributions to the legal…● Twitter 17 Oct 2017 - "The FHL gasifier project sets a new

mile marker on the @USArmy’s path to zero waste". Read full article that covers key visit to @FastOx's plant…

Leveraged Project Support

FY15 FY16 FY17 Task(s) Supported

California Energy Commission

$0 $2,648K* $910K* Major Equipment Modules and Installation.

Sierra Energy $1,343K* $3,980K* $2,343K* Unfunded development expenses, construction and commissioning costs

Fort Hunter Liggett $350K** $350K** $0 Concrete Pad, BldgElec and Fire Sup.

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* Direct funding support** In-kind support

Summary

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● Completed the majority of Subsystem Commissioning (excl. D-R IC Genset), full Plant Performance Testing being initiated in the coming month/s.

● Contract extension (completed Summer 2017) allows for full operations and evaluation of the Performance Objectives.

● Technology has significant potential for solving a number of energy, waste and environmental issues.

● Next units/systems will need optimizations (compaction, simplification of controls, MIL-SPEC’ing, heat recovery and utilization, JP-8 genset etc.), most of which we’ll want the DoD departments to assist/direct/include as part of the design basis for v2.

Questions?