Licence Application Presentation

July 2011

Sherpa Trade and Invest 76 (Pty) Ltd

Forestry and Related Waste Streams for the Production of Renewable Energy

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Agenda

Background

Location - Sawmill Problems and the Ideal Solution

Project

Connectivity

Client

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Background

Sherpa was formed with the main purpose of becoming a Power Utility Company in South Africa to achieve the following Goals:

• To assist Eskom with constant stable Power in the allocated areas

• To assist the surrounding businesses with an environmental solution for the waste streams

To provide South Africa with a new exciting Industry in the Biomass Power Generation sector

To provide a solution to Southern Africa in the form of a waste to energy programe

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Agenda

Background

Location – Sawmill Problems and the Ideal solution

Project

Connectivity

Client

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Northern

Cape

Limpopo

Western

Cape

Eastern Cape

North WestGauteng

Sherpa will convert wood and related waste streams from plantations and sawmill into renewable energy.

• Operations are located in the Mpumalanga Province

Operation Area

Swaziland

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Reason and Method for Power Generation

Eskom power line (GGN 79/5) supply is poor (30%)

Forestry area – Sawmills and Plantation produce waste streams

Power line (GGN 79/5) supply will increase to 52% with the additional Power

Local municipality and outer communities will benefit from the Power Generation and supply in the area

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Forestry Area – Local sawmills (100 Km radius)

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Common Problems caused at sawmills

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Agenda

Background

Location – Sawmill Problems and the Ideal solution

Project

Connectivity

Client

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Project

The Project is to Generate Power through Biomass Gasification using waste streams from the surrounding areas and this will be done as follows:

• Collection of waste streams from several sawmills in the area (Sawdust, Bark and Wood pieces)

• Processing of the waste streams to the correct size and moisture content

– > 10mm x 10mm x 10mm

– > 20% moisture content

• Storage of the wet and dry waste streams

• Gasification of the solid waste streams into a synthetic gas form

• Cleaning and cooling of the synthetic gas

• Power production by means of synthetic gas generators (2.4 Mwe @ 400 VAC)

• Controlling, metering and measuring of the Power produced

• Step up to 22Kv

• Metering, reverse protection and connection to the National grid at point GGN 79/5

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Gasification Power Generation model

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Actual Plant Design - Graskop

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Project Summary

1) Eskom has a 9 Mwe supply line that currently supplies only 2.78 Mwe (30%). An additional 2.0 Mwe will increase the capacity to 4.78 Mwe (52%)

2) The local area will benefit from the additional Power been supplied

3) An Environmental problem that has been ongoing for years will be solved

4) Much needed work will become available directly and indirectly to the project

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Agenda

Background

Location – Sawmill Problems and the Ideal solution

Project

Connectivity

Client

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Connectivity

Eskom has three 22 Kv lines that supply the local area namely:

Graskop town sub station / Venus area

Groothout line to a major sawmill

Pilgrims Rest / Leroro area

Sherpa will produce Power and supply the correct phase, voltage and current to the main GGN line that will feed the above lines

There are four metering point:

Low voltage

High voltage

Eskom point

Client/Eskom point

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Connectivity diagram

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Agenda

Background

Location – Sawmill Problems and the Ideal solution

Project

Connectivity

Client

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Client

The Client is the Listed Company – Carbon Worx

They have agreed to purchase all the Power generated

They will have a meter point at their site and will be credited by Eskom for the Power consumed with accordance to the DUoS (Distribution Use of System) agreement

The DUoS has been drawn up between Eskom, Sherpa and the client

A PPA (Power Purchase Agreement) has been drawn up between the Sherpa and the client

The above mechanism is a Third Party Wheeling arrangement

The tariff has been submitted to Nersa with accordance to the PPA