HRE

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Renewable Power from Poultry Litter Presentation
by Eric Jenkins VP Commercial Development,
Fibrowatt LLC February 2007
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Outline

• What we do
• How we do it
• How to structure projects
• Why it is worth doing

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1. Fibrowatt has commissioned Americas
firstPoultry Litter Fuelled Power Plant
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The 55MW Fibrominn Plant
Commissioning began in May 2007
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Poultry Litter Fueled Power Plants

• Generating renewable electricity from poultry
  litter
• Well proven technology (14 year operating record
  in the UK)
• Carbon neutral
• Improves and protects water resources
• Improves sustainability and biosecurity for
  poultry farmers
• Recovering value from the nutrients by selling
  the ash fertilizer
• Biomass power has an important place in rural
  communities

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Who is Fibrowatt?

• Fibrowatt LLC, based in PA
• The founders built the worlds first three
  poultry litter fuelled power plants in the UK
• Fibrowatts Minnesota plant is currently being
  commissioned
• A 55 megawatt, 700,000 ton/year turkey litter
  plant
• The first in the US
• Development work began 1999
• Financed with 202m of investment grade rated
  debt in December 2004
• Commercial Operations will commence in August
  2007
• 50MW Projects under development in North
  Carolina, Arkansas, Mississippi and Maryland

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2. How Power From Poultry Litter Works
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Poultry Houses
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Covered Conveyor
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Loading the Truck
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Tarpaulin Cover
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Truck on Scales
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Fuel Delivery
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Trucks Unloading
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Thetford Fuel Hall
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TruckCleaning
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How it Works
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Inside the Boiler
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3. How to Jump-Start Projects
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How Long Does It Take?
1. Development phase 2 - 4 years 2. Constructi
on phase 2 3 years TOTAL 4 7 YEARS
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What Does It Cost?
1. Development phase 3-10M 2. Construction
phase 150-200M
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What are the key requirements?
1. Fuel adequate fuel already
available 2. Sites multiple sites already
offered 3. Electricity contracts federal
incentives needed
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Facilitating the Projects

• 1.9 /kWh Production Tax Credit (45)
• To level the playing field
• Poultry Litter should get the same incentives as
  Wind
• Placed-in-Service Deadline needs to be 7-10 years
  out
• Our plants take 2-4 years to develop, design,
  permit finance
• Construction takes at least a further 2½ years
• Option to select 30 Investment Tax Credit
• Same incentive as Solar Power
• Ability to utilize tax-exempt bonds

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4. Why it is worth doing
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Multiple Benefits of our Plants

• Renewable Energy
• Producing green, carbon-neutral power from
  domestic resources
• 750MW of identifiable projects
• Pollution Reduction
• Reducing groundwater contamination from excess
  animal waste
• Agricultural Sustainability
• Rural economic development
• Enabling the poultry industry to maintain
  sustainable growth
• Enhancing bio-security for poultry farmers
• Supporting the Family Farmer

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Challenge Opportunity

• Renewable Power from Poultry Litter is
  (currently) more expensive than Coal
• There is significant potential
• The poultry industry is concentrated in Southern
  States, which have little wind resource
• A viable renewable energy option for Southern
  States

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The Carbon Cycle
CARBON (CO2)
Flue Gases
ENERGY
BEDDING FEED
ELECTRICITY
MANURE
BIOMASS
Ash
NUTRIENTS