Fuel & Fertilizer from combined processing of waste streams

(municipal solid waste, used tyres, biomass and animal manure)

2013/08/04 rev. 09

© 2012, 2013 by Bionic Group, copy, distribution and publishing permitted

Presented by:

Bionic Laboratories BLG GmbH

(a member of the Bionic Group) 64521 Groß-Gerau, Germany

@ : info@bionic-lab.de web : www.bionic-world.de

based on Bionic‘s microwave catalytic depolymerisation technology

AFFORDABLE ENERGY – A PILLAR OF PROSPERITY

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Public prosperity requires economic growth, which in turn requires sufficient availability of energy.

Raising production requires more automation and mechanization

More production requires more goods to be moved from production sites to markets

More economic growth requires more people to be moved from home to work

More personal prosperity raises private expectations on quality of life

Increasing energy demands from machines

Increasing energy demands of logistic operations

Increasing energy demands of public transportation

Increasing energy demands of private transportation Increasing energy for private housekeeping

Without enough affordable energy national economic growth is highly limited. The right sources of energy must be found for each national economy.

Solar energy Wind energy Water energy Energy from Waste streams

Energy based on fossil fuels

To expensive at this time for emerging countries, cannot be used for all national energy demands

Favorable, but requires back up source of energy depending on weather. Not sufficient for all national energy demands

Favorable, but requires appropriate rivers, cannot be used for all national energy demands

A clear option for the future

High and unstable prices at world markets, continually increasing prices in the future

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ENERGY FROM WASTE

Valuable fuel and chemical products can be recovered through the smart use of household and commercial waste materials.

More than 70% of municipal solid waste can be processed with MWDP. The organic fraction can be converted into a stabilized bio fertilizer*. Mixed with the bio-char fraction a highly valuable soil amendment can be produced.

Instead of destroying waste materials in enormously expensive and complex incineration plants, which still produce large amounts of greenhouse gases, the Bionic portfolio of advanced microfuel technologies allows for a far more cost effective, sustainable and clean solution.

* Bionic has licensed the patented German Bio-Elite process which produces a highly effective Bio-NPK from organic waste combined with animal manure and a proprietary mix of micro organisms

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MICROWAVE DEPOLYMERISATION

In 2003 Bionic initiated the development of its unique proprietary Microfuel Technology. Two depolymerization methods working in principle were combined into a new, revolutionary conversion process capable of transforming any carbonaceous feedstock material into liquid and solid fuel. Bionic merged for the first time the independent direct conversion methods Thermal Catalytic Depolymerization (TCDP) and Microwave Pyrolysis (MP) into a single hybrid process called Microwave Depolymerization or MWDP. While TCDP was known for decades many hurdles for commercial implementation where never overcome. Adding microwaves to the process did not only eliminate all prior design issues of heat application but added also a number of beneficial effects unique to the use of microwaves in chemical reactions. In 2007, after years of R&D in the lab, the first continuous reactor design was ready. Microfuel process and reactor design proved their outstanding capabilities in a pilot plant running 2008/2009. The current design of the standardized commercial MF480 base model followed. In 2013 a technology demonstrator based on the downscaled MF60 goes online marking the final step to commercialization. Highly effective zeolite catalysts and other additives are used in the process assisted by the treatment with advanced, proprietary microwaves. Bionic’s microfuel plants are the most economic and efficient way commercially available to produce clean liquid fuels from biomass and waste materials. With minimal upgrading the liquid product fraction can be used in even the latest diesel engines summer and winter.

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PLASTIC WASTE TO OIL

Common plastics today derive from fossil oil, not surprisingly the plastics fraction of municipal waste can be converted back to oil

MWDP extracts and concentrates the energy locked up in the complex carbonaceous molecules contained in the chosen feedstock. In other words:

Energy contained in biomass and waste materials is transformed into liquid and solid fuels which are

indefinitely storable and have a controlled consistency.

The resulting light oils can be used at a later stage for transportation or heating.

Toxic substances in the plastic waste are either transformed in the process or removed from the liquid fraction. Inert minerals contained in the feedstock remain unchanged and can be removed from the solid char fraction if desired. As a byproduct a combustible gas fraction is produced which fuels part of the internal power generation.

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HOW IT WORKS

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PROCESSING OF WASTE STREAMS

Processing of various waste streams:

Plastics, Textiles, Scrap Tyres (RDF) conversion to -> oil und char

Organic Waste, food waste, biomass processing to -> Bio-Elite fertilizer

Anorganic Waste, ceramics, metals

Separation and Recycling Water

Usage as process water, cooling etc.

~ 32%

~28%

~14%

~26%

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MSW used tyres plastic waste organic waste

manual presorting

shredding and sorting

metals PET glass + stones

organic waste & manure

High caloric Fractions (RDF)

Bio-Elite composting Bio fertilizer

light oils for power generation

char for power generation

heating oil, electricity and heat

decentralized generators & power plants coal power plants

grid

BIONIC WASTE SYSTEM

ADVANTAGES OF BIONIC‘S NETWORK

Bionic waste systemdecentralized tyre processing facilities

Input:municipal waste streams

Output:Oil, Char, Gas

decentralized CHP plants existing charcoal power plants

power generation

Bionic‘s innovative proprietarycatalytic microwave depolymerisation process

Germany‘s leading technologies forwaste processing and engineering & logistics

decentralized power generation

150 years of production know-howfrom Czech Republic, delivery of core reactors

deep involvement oflocal production industry

unique system for fertilizer productionwith experience of more than 20 years

proof of concept by proof of viability by small available units

cooperation of local partners inthe bionic network

exclusive granting of licenses from Bionicfor production and exporting the system to support local Industry

electric energy, fuel and fertilizers to the people out of municipal waste streams

(based on bionic‘s innovative microwave depolymerisation process)

financing provided byinternational partners

following the international attempts of generatingenergy from waste streams with environmentalfriendly solutions

extensive know-how transfer from Germany

fertilizer production

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ENVIRONMENTALLY FRIENDLY

Fully contained processing system Near emmission free technology (except exhaust gases from power generation) Low temperature, oxygen free processing (< 400°C) All outputs are usable – no residual waste High conversion rate for storable fuels Small footprint Local industry involvment Job creation No water or air pollution Decentralized implementation Minimal transport requirements Highly innovative technology developed in Germany

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MICROFUEL BTL REACTOR

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The complete high tech assembly is fully contained in a reactor housing. A single unit has a capacity of up to 80 tons of feedstock per day.

Zeolite Catalyst

oil

char

Waste containing hydrocarbons

modulated pulsed microwaves

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MICROFUEL PROCESS

The microfuel system was developed by Bionic with R&D starting as early as 2001. Microfuel is the most sophisticated TCDP process technology available worldwide ready for commercial deployment.

The waste material is shredded to a fragment size of 40 mm2 or less. Then the shredded chips are mixed with additives and pelletized before conversion in the microfuel reactor into oil and char. Valuable by-products are often found – for example, glass & metals – which can be sold to the respective markets.

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FLOWDIAGRAM

Gas 264 kg Oil 1584 kg Char 1386 kg Water 66 kg Heat

preparation conversion output

3.300 kg/h Dried feedstock separated from municipal solid waste

~ 8,0%

~48,0%

~42,0%

~2,0%

microfuel MF 480w

1.500 kW CHP

material flow per hour for a single reactor

600 kW (el) 250 kW (therm)

~ 8 % of liquid fuel for internal

energy

~ 500 kW @ 90°C (from energy recovery)

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MASS BALANCE

QUALITY OF THE OIL

Oil from the microfuel process meets relevant standards for transportation and heating fuels. It can be used for energy production in stationary diesel engines. With common blending methods and hydro-treatment quality can be upgraded to low sulfur transportation fuels. Exact oil quality depends on the chosen feedstock. The table shows oil analytic results from a biomass feedstock. Oil from plastic waste has similar properties.

Bio-Oil Analyticscomparing to ASTM specifications for low-sulphur fuel

Parameter Method Unit eucalyptus wood chips Specification ASTM D975 1-D S500

Flash point ASTM D 93 / DIN 2719 °C 56,5 52,5 min 38Kin. Viscosity (40 °C) ASTM D 445 / DIN 3104 mm2/s 1,126 1,319 1.1 - 2.4Lubricity HFRR 60°C ASTM D 6079 µm 389 357 max 520Ash content ASTM D 482 / DIN 6245 % (m/m) < 0,005 < 0,005 max 0.01Sulfur content ASTM ASTM D 2622 % mass 0,044 0,007 max 0,05Density (15 °C) ASTM D 1298 kg/m3 832,9 852,6 820 - 845Distillation temp ASTM D 86 correlation °C 204,4 368,8 max 288Cetane index ASTM D 976 - 40,1 40,3 min 40Nitrogen content ASTM D 4629 mg/kg 2500 177 no specificationCooper strip corrosion ASTM D 130 Corr Degree 1A 1A max No 3PAH content (Aromates) ASTM D 1319 / DIN 12916 % (m/m) na 0,9 max 35Cloud point ASTM D 2500 / DIN 23015 °C -16 -16 < 35°CCFPP ASTM D 6371 / DIN 116 °C -49 -55 < - 20 °C for winter gasoilCalorific value, lower ASTM D 240 DIN 51900 J/g 39797 37158 -Calorific value, upper ASTM D 130 / DIN 51900 J/g 42053 39684 -

need to be adjusted by additives

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QUALITY OF THE CHAR

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Analytical Results for charcoalFeedstockcontent Unit raw material char raw material charHo wf kJ/kg 18720 24380 19970 26885Hu wf kJ/kg 17530 23990 18870 26485Cl wf Mass.-% 0,11 0,05 0,01 0,08Cr Mass.-% 0,15 0,04 0,14 0,032C wf Mass.-% 49,0 61,1 50,9 72,9F wf Mass.-% < 0,005 < 0,003 < 0,005 0,009H wf Mass.-% 5,8 2,3 5,9 2,2H2O Mass.-% 16,5 4,4 15,6 3,4K2O Mass.-% 14,96 5,68 10,13 3,85MgO Mass.-% 6,08 2,09 9,8 4,01Mn Mass.-% 0,21 0,06 0,17 0,02N wf Mass.-% 0,8 1,3 0,2 0,9O wf. Mass.-% 42,15 11,27 41,99 8,99P wf Mass.-% 0,065 0,275 0,007 0,111Pb wf Mass.-% 0,0022 0,0073 < 0,0005 0,0392SiO2 Mass.-% 13,5 40,2 14 30,5

Wood ChipsEucalypthus

The microfuel process concentrates the energy content of the feedstock. Char, the main byproduct, can be used replacing anthrazite coal as a solid fuel. Exclusive use of biomass as feedstock will result in a perfect biochar for soil enhancement. Char from waste streams is a high energy solid fuel.

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FEEDSTOCK PREPARATION

Bionic is using high quality preprocessing equipment from German market leaders. Degree of mechanization depends on local conditions and client preferences. Available equipment can be integrated.

MANUFACTURING

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Bionic‘s microfuel system is manufactured adhering to the highest technical standards: - Manufacturing of core units by SMERAL a.s., BRNO, Czech Republic - Feedstock preparation equipment, vacuum system, generators and

control units come from leading German suppliers. - All suppliers are approved by Bionic‘s quality control.

Bionic‘s microfuel system complies with all major technical standards: DIN EN ISO 9001 ASME Div 01, Div 02 (AIA TÜV, Germany) CE conformation declaration ATEX 94/9/EU explosive protection conformity Machinery directive EU 2006/42/EU Dual radiation protection by special Faraday cages Double insulation of all oil containing parts Advanced fire protection system Hazard protected electronic control equipment Redundant process emergency control system Automatic emergency shut down process Unit made from high quality stainless steel Production and installation certified by German TÜV or SGS 19

TECHNICAL STANDARDS

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FERTILIZER FROM ORGANIC WASTE

Bionic licensed the patented Bio Elite – waste-to-fertilizer technology for its process train. Bio Elite, with more than 20 years experience, is a composting method which allows controlled treatment of the organic fraction of MSW. The mix of municipal waste and specially selected bacteria and funghi under a controlled climate converts the organic content of waste into a high value normalized Bio-NPK fertilizer. Contaminations of the organic waste, such as germs, antibiotics or virusus will be destroyed during the process. All types of animal manure can be added to improve quality for direct use on field as a soil-enhancer. Bionic Char can be added for innovative soil improvement products. Several studies from public institutes have validated the process and demonstarted that Bio Elite fertilizer can substitute synthetic fertilisers. A license model allows for the production of sufficient amounts of fertilizer at low cost. Sale of biologically produced fertilizer from municipal waste generates additional income instead of loading up landfills. The Bio-Elite composting system is also available for processing of animal manure as a standalone system with many advantages.

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FERTILIZER PRODUCTION

CONTINUOUS SOIL IMPROVEMENT

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Eroded soil Soil stabilization with agro-forestry

Recovery and continuous improvement of eroded soils to valuable farmland can counter the current global desertification trend

With continuous soil improvement farming becomes sustainable again: • 2-3 time faster growth of bio mass • up to 3 crops under irrigation

Continuous addition of Bio-Elite

No synthetic fertilizers required

RECLAMATION OF DEPLETED SOILS

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Raising the amount of biomass grown CO2 absorption volume will be constantly increased from the very beginning of farming on formerly depleted soils Significant positive overall CO² footprint

Eroded savanna soil depleted through unsustainable farming or mining activities

Soil stabilization through agriforestry backbones

Growing high value foodcrops between hedges

Growing maize and other grains between hedges

Low impact clearing

No-till farming

Organic fertilizer, bio-char

DECENTRALIZED POWER GENERATION

The Finnish company Wärtsilä is a world leader for large stationary Diesel and Gas Engines and CHP Power Plants. Ready concepts have been developed for Bionic fuelled decentralized power generation providing electricity and heat to municipalities.

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REQUEST FOR INFORMATION

To prepare an orientation offer the following information is needed:

Client contact details Detailed information about client‘s intentions and background exact geographical location of the project annual expected waste streams including monthly deviations feedstock analysis reports (plastics, synthetics, organics, mineralic) local climate conditions description and plan of location description of available waste processing technology description of available waste collection logistics Pictures/video of available waste processing technology and landfill local wholesale price for heating oil (per liter, low-sulphur,> 40 MJ/kg cal. value) local supplier price for electric power(per kWh, electric load 500 kWh) local wholesale price for NPK fertilizer recycling facilities for PET, PVC, glass and metall near location (<80km) distance to next cement factory or solid fuel power plant distance to next oil refinery type of operator: municipal, public or private company

All information in German or English please.

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INVESTMENT BUDGETS Project planning: Project pre-feasibility, qualification and calculatio 25.000 € Original feestock, in/output qualification (excl. Shippi 75.000 € Detailed feasibility study approx. 350.000 € Typical turn-key facility single reactor: (semi-automatic sorting equipment, reactor, 1,2 MW genset, composting facility, oil-condensation) MSW capacity: 220 MT/day input, > 25 to oil output approx. 17.500.000 € > 100 to fertilizer output > 45 to char output Typical turn-key facility 4-reactor cluster: (sorting equipment, 4 reactors, 3 x 1,5 MW generators composting facility, oil-condensation) MSW capacity: 880 MT/day Input, > 100 to oil output approx. 57.000.000 € > 400 to fertilizer output > 140 to char output Budgets listed above are for standard MSW and for orientation only. Not included are expenses for land, infrastructure and product upgrading. Capacity is highly dependent on actual feedstock composition.

FINANCIAL FEASIBILITY - EXAMPLE

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Business Plan (condensed) Bionic mf480KR Municipal Waste processing rev 35 20.08.2012

Input Capacity Municipal Waste 73.100,00 [ tons / year ] Annual calculation assuming 7310 Hours operating time per year

Investment volume: 17.401.871 €

OutputsOutput of Oil 7.953 [ tons / year ] Process lost ( water ) 15.205 [ tons / year ]Output of char 13.567 [ tons / year ]Output of usable fertilizer 33.158 [ tons / year ]Valuable Byproducts (metals & glass) 3.216 [ tons / year ]

IncomeIncome from municipality for waste (Germany ~ 150€) 25,00 € [ €/t ] 1.827.500 € Sale of Oil (Heating Oil quality, 1% Sulphur) 350,00 € [ €/t ] 2.783.648 € Sale of Char ( 22MJ/KG ) 40,00 € [ €/t ] 542.694 € Sale of fertilizer (similar NPK) 60,00 € [ €/t ] 1.989.490 € Sale of heat, metal & glass waste 562.870 €

7.706.202 €

Costsoperation costs, including addons, employment costs, office and maintenance 3.357.289 € financing costs, including repayment, interest & debriviation, Base 10 years 1.183.327 €

4.540.616 €

EBIT 3.165.586 €

Based on standard municipal waste: ( 26% water / 28% organics / 6% sand / 5% glass / 3% metals / 32% plastics )Calculation hardly dependet on contents of feedstock.

viability in detail

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business calculation (sample) municipal waste processing rev 35 20.08.2012

year 0 1 2 3 4 5 6 7 8 9 10 Totalfigures setup startup year full productionnumber of reactors 1 ( production period) 50% 100%runtime [hrs] (85% availability) 7310 hinput capacity feedstock total (German standard contents) 10,00 t / hInput capacity Total per year t / h 36.550,00 73.100,00 73.100,00 73.100,00 73.100,00 73.100,00 73.100,00 73.100,00 73.100,00 73.100,00 694.450 input capacity feedstock / hr for depolymerisation 3,2 t / h - 1,60 3,20 3,20 3,20 3,20 3,20 3,20 3,20 3,20 3,20 input capacity dry per year for depolymerisation t / a - 11.696 23.392 23.392 23.392 23.392 23.392 23.392 23.392 23.392 23.392 222.224 Output capacity fertilizer per year t / a 16.579 33.158 33.158 33.158 33.158 33.158 33.158 33.158 33.158 33.158 output oil per hr 34% kg / h 0,54 1,09 1,09 1,09 1,09 1,09 1,09 1,09 1,09 1,09 output capacity oil per year t / a 3.977 7.953 7.953 7.953 7.953 7.953 7.953 7.953 7.953 7.953 75.556 output capacity char per year 58% t / a 6.784 13.567 13.567 13.567 13.567 13.567 13.567 13.567 13.567 13.567 128.890

investmentEngineering & Permissioning ( German Engineers ) € 1.071.343 € 1.071.343 Feedstock preparation, Sorting & Fertilizer Production € 3.471.038 € 3.471.038 Feedstock mixing & separation € 174.416 € 3.471.038 molecule disintegrator & housing € 3.766.632 € 174.416 residue handling € 271.362 € 271.362 distillation, petro separation € 1.967.007 € 1.967.007 control system € 1.013.014 € 1.013.014 fire protection € 243.050 € 243.050 post processing, tanks € 806.957 € 806.957 petro laboratory € 367.500 € 367.500 chp/power generation, 1.5 MWh € 2.474.304 € 2.474.304 Licenses, Installation, Insurance, Transportation, Misc. € 1.775.250 € 1.775.250 total € 17.401.871 € 17.401.871

operating costs rip 3,00%rent of real estate for operation & office 250.000,00 € € / a - 250.000 257.500 265.225 273.182 281.377 289.819 298.513 307.468 316.693 326.193 2.865.970 company operating costs 150.000,00 € € / a 75.000 150.000 154.500 159.135 163.909 168.826 173.891 179.108 184.481 190.016 195.716 1.794.582 salaries (3 shift) 24 15.000 € 360.000,00 € €/MA/a 72.000 180.000 360.000 370.800 381.924 393.382 405.183 417.339 429.859 442.755 456.037 3.909.278 energy costs, transporting & fertilizer addons 1.462.000 0,08 € € / kWh 58.480 116.960 120.469 124.083 127.805 131.640 135.589 139.656 143.846 148.161 1.246.689 production costs of fertilizer 33.158 22,06 € €/t 365.792 731.584 768.163 806.571 846.900 889.245 933.707 980.393 1.029.412 1.080.883 8.432.650 catalyst 0,50% 23.392 4.250,00 € €/t 248.540 497.080 521.934 548.031 575.432 604.204 634.414 666.135 699.441 734.414 5.729.625 residue handling (water&tar) 15.205 10,00 € 76.024 152.048 159.650 167.633 176.015 184.815 194.056 203.759 213.947 224.644 1.752.591 maintenance 6,25% % / a - - 1.087.617 1.120.245 1.153.853 1.188.468 1.224.122 1.260.846 1.298.671 1.337.632 1.377.761 11.049.216 total 147.000 1.328.836 3.357.289 3.485.622 3.619.185 3.758.206 3.902.919 4.053.572 4.210.422 4.373.741 4.543.809 36.780.600

capital / interestcapital investment / loan 100,00% % 17.401.871 15.661.684 13.921.497 12.181.310 10.441.122 8.700.935 6.960.748 5.220.561 3.480.374 1.740.187 0 0 interest loan 8,50% % 1.479.159 1.331.243 1.183.327 1.035.411 887.495 739.580 591.664 443.748 295.832 147.916 0 8.135.375 subsidizing& grants (repayment after 10 years) 0,00% % - - - - - - - - - - - - interest subsidizing loan 0,00% % - - - - - - - - - - - - banking fees 2,00% % 348.037 348.037 repayment of capital/loan (10 years) 10 years 1.740.187 1.740.187 1.740.187 1.740.187 1.740.187 1.740.187 1.740.187 1.740.187 1.740.187 1.740.187 17.401.871 linear depreciation 10 years 1.740.187 - 1.740.187 - 1.740.187 - 1.740.187 - 1.740.187 - 1.740.187 - 1.740.187 - 1.740.187 - 1.740.187 - 1.740.187 - 17.401.871 - total 1.827.196 1.331.243 1.183.327 1.035.411 887.495 739.580 591.664 443.748 295.832 147.916 - 8.483.412

income rip 5,00%payments for feedstock (raw material, comparung Germany 140€) 25,00 € €/t 913.750 1.827.500 1.918.875 2.014.819 2.115.560 2.221.338 2.332.405 2.449.025 2.571.476 2.700.050 21.064.796

fertilizer productionsale of fertilizer production (comparing to NPK) 33.158 60,00 € €/t 994.745 1.989.490 2.088.964 2.193.412 2.303.083 2.418.237 2.539.149 2.666.106 2.799.412 2.939.382 22.931.980

oil & char depolymerisationoil (crude to raffinerie, heating oil quality, 1%sulphur) 7.953 350,00 € €/t 1.391.824 2.783.648 2.922.830 3.068.972 3.222.421 3.383.542 3.552.719 3.730.355 3.916.872 4.112.716 32.085.898 char (char to powerplant, ~22 MJ/kg) 13.567 40,00 € €/t 271.347 542.694 569.829 598.321 628.237 659.648 692.631 727.262 763.626 801.807 6.255.402

heat balance and additional contentssale of heat 3.655.000 [kWh] 0,08 € 146.200 292.400 307.020 322.371 338.490 355.414 373.185 391.844 411.436 432.008 3.370.367 sale of separated glass 1.023 [ t / year ] 50,00 € 25.585 51.170 53.729 56.415 59.236 62.197 65.307 68.573 72.001 75.601 589.814 sale of separated metals 2.193 [ t / year ] 100,00 € 109.650 219.300 230.265 241.778 253.867 266.561 279.889 293.883 308.577 324.006 2.527.776 total - 3.717.866 7.706.202 8.091.512 8.496.088 8.920.892 9.366.937 9.835.284 10.327.048 10.843.400 11.385.570 88.690.798

Profit/Loss 1.974.196 - 1.057.787 3.165.586 3.570.479 3.989.407 4.423.107 4.872.354 5.337.964 5.820.794 6.321.743 6.841.761 43.426.786 % from income 28,45% 41,08% 44,13% 46,96% 49,58% 52,02% 54,27% 56,36% 58,30% 60,09% 48,96%

Based on standard municipal waste: ( 26% water / 28% organics / 6% sand / 5% glass / 3% metals / 32% plastics ) final repayment of loan after 10 years 0 € Calculation hardly dependet on contents of feedstock. ROI after 10 years 43.426.786 €

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GLOBAL PARTNER NETWORK

Bionic is developing a global partner network to accelerate its presence worldwide: - Sales partner with a strong position in a relevant industry - Project development and installation - After sales customer care, maintenance and supply of expendables - Local sourcing and procurement - Joint Venture for manufacturing If/when certain conditions are met exclusivity will be granted for a defined area.

Bionic Group of Companies represented by:

Bionic Laboratories BLG GmbH, Germany

For more information visit us at www.bionic-world.net

THANK YOU FOR YOUR ATTENTION

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