GLOBOMASS ASIA

CONFIDENTIAL PROJECT INFORMATION PRESENTATION

KINA & SEGUNTOR – SABAH “ RE 11 AND RE 12 “

CONFIDENTIAL AND PROPRIETARY INFORMATION

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1 EXECUTIVE SUMMARY

The developer intends to take ownership and re-develop and operate TWO EFB to energy power
plants with 11.5MW gross capacity each. Both are located in Sandukan District , Sabah, East
Malaysia (RE11and RE12) and in conjunction with our partner(s) we will own and operate the
project power facility.

Status – The project is “ brownfield “ and has a history of operations.

The Plants at Kina and Seguntor have been implemented with the identical design and major
system supported with Vyncke (Bergium) for Boiler System , Jebsen & Jessen (Brazil) for Turbin
System. The Fuel handling system, overall mechanical electrical system have been managed by
Meidensha.

The Fuel handling system is one of the biggest challenges for EFB to energy plants. The treatment
process and Fuel quality of EFB’s were studied and It was decided to build and operate the Fuel
Handling System aside the Power Plant. Feedstock quality is verified on site and with the strategic
positioning of the treatment area, transportation time(s), logistics issues and of course costs have
all been well managed.

The plant is continuously running to date and contributing the base power supply in Saba area.

Table 1: Project Specifications :

Key features of the project include:

ü A long-term contract for offtake of the plant’s electricity and / or heat

ü Large biomass feedstock volumes that justify the technology and scale of plant
operations
ü Secured and stable supply of quality biomass feedstock
ü Back up biomass is available (if required) which can be purchased at relatively low
cost
ü The Fuel Handling System is aside the Power Plant – reducing logistics and delivery
costs
Regulatory environment :

To meet the rapid growth of electricity demand fuelled by the expansion of the Malaysian
economy, securing steady supply sources of electricity is a matter of vital importance.

Currently, the country is relying heavily on fossil fuel combustion, with coal accounting for
almost 70% of the total fuel mix. The Government of Malaysia has placed continuing
emphasis on promoting renewable energy to lower the dependence on conventional
power.

The Energy Commission of Malaysia (“EC”) acts as the chief regulator of the electricity
sector in the country and state-owned utility TNB is the sole-buyer and dominant player in
the power generation sector in Peninsular Malaysia. Around 50% of total electricity installed
capacity in Malaysia is owned by the private sector though Independent Power Producers
(“IPPs”).

In line with the Eleventh Malaysia Plan, renewable energy (“RE”) has been prioritised as an
alternative energy source to support the country’s continuously increasing energy demand.

Currently, Peninsular Malaysia has a total licensed RE capacity of 392MW, comprising solar
PV (235MW); biomass energy (89MW), mini hydro (34MW) and biogas (34MW).

TNB is committed to support development of Malaysia’s renewable energy by investing in

infrastructure that allows more RE to be connected to the grid. TNB’s efforts lend support to
the Government’s renewable energy target, as stated in the 11th Malaysia Plan, to achieve
2,080MW of RE installed capacity by the year 2020. In response, TNB has set its own target,
under “Reimagining TNB,” to achieve a renewable energy capacity of 1,700MW by 2025.

Together with the Sustainable Energy Development Authority (“SEDA”), TNB administers and
manages the implementation of the Feed-in-Tariff (“FiT”) program that is mandated under
the Renewable Energy Act 2011. This program pays Feed-in Approval Holders (“FiAH”) a fixed
price for their electricity as a pioneering incentive. This has led to the commissioning of 7,367
FiT projects in Peninsular Malaysia with an installed renewable energy capacity of 379.4MW as
of July 2017.

Figure 1 – Malaysia: Renewable Energy Capacity Mix (MW) 2015 vs 2016 y-o-y

Globally, energy production has increased steadily in recent years. Malaysia’s electricity
production has grown apace and is projected to increase at an average rate of 5.3% per
annum from 2005 to 2030. Deployment of RE and advances of RE technology will increase
with FiT implementation in Malaysia. RE will contribute significantly to electricity production in
the near future.
Figure 2 - Forecasted global demand for energy

2. Investment highlights - Impact:

§ An attractive Malaysian investment environment: The project provides a good

opportunity to participate in Malaysia’s renewable energy market, which has
attracted considerable investor interest and investments in recent years. Support for
renewable energy in Malaysia is strong and continues to grow, and the Malaysian
government is viewed as a reliable long-term partner.

§ Balanced ownership structure: The current ownership structure combines a highly

experienced renewable energy developer, who deliver a global power plant
operations team and a highly experienced partner with 20 years experience within the
Palm Oil Industry.

§ Proven technology: The suspension-fired Boiler is manufactured by ENCO SDN BHD

and a Siemens Steam Turbine Generator. This equipment has proven track record and
extensive project references. The power plant will operate on a ‘zero-water’
discharge philosophy.

§ Solid fundamentals of Malaysia’s energy market: The growth in demand for electricity
and gas is expected to further increase domestic electricity prices. In addition,
renewable energy capacity is projected to grow strongly, driven by long-term
government policy.

§ Strong Financial Forecast: To apply a 16-year Power Purchase Agreement with TNB to
sell up to 13 MW of electrical power to the grid.

§ Added revenue from the sale of by-products: The power plant produces silica-rich rice
ash (“RHA”), used for specialty cement production and other applications.

§ Reduction in carbon footprint: The plant is expected to reduce greenhouse gas

emissions by an estimated 70,000 tCO2/yr, for which carbon credits will be sought.

§ Approved upload capacity with Tenaga is 13 MW. The Plants future added / reserve
capacity, may be sold to Tenaga or other off takers in due course and or added
battery storage
1.3 Project Financial Projections Snapshot

Figure 3
1.4 Project Incentives – Acquisition drivers

The proposition is to acquire 2 current brownfield sites with full licensing and permits in place, and to
re-develop the sites and to have issued a new RE-PPA for 16 years at an FiT rate of .3685 per Kwh.

We will also apply for investment benefit for tax exemption from statutory income, for a 5-year
period. In addition, the project will also apply for a 2% rebate on interest expense from the
GreenTech Financing Scheme (“GTFS”). ( nett debt cost circa 6.3% )

With no construction / costs or risks the investment returns are forecast to be > 27% with a time to
market (COD) of 9-12 months. Equally over the refurbishment period cash flows will accrue from
operations.

1.5 Current ownership and future minority partner

Hualang Renewable Energy Sdn. Bhd. in Malaysia, is a wholly owned subsidiary of Jaya Kuasa
Berhad, a public limited company involved in construction, property development and investment.

Hualang Renewable Energy Sdn. Bhd., currently owns two subsidiary companies, namely, HRE Kina
Biopower Sdn. Bhd., and HRE Seguntor Bioenergy Sdn. Bhd. Both companies currently operating
two biomass power plants of 11.5MW each, based at Seguntor Industrial Estate, Sandakan, Sabah
and is headed by its Executive Director Dato' Ir. Dr. Ali Askar Bin Sher Mohamad who was formerly
the COO of SEDA and also former Tenaga Nasional Berhad Engineer and Senior Management.

http://www.hualang.com.my/about-us.html
2.0 Project Objectives

The objective of the Company is to deliver an operational EFB to Power facility-

Tariff Commercial Operation Date (“COD”) by MAY 30th, 2020 within an overall budget of MYR110
million (USD28 Million)

The Power Plant’s design will meet the following performance criteria:

ü Maximum net power generated of 11.5 MW ( PER SITE )

ü Minimum electrical efficiency (@100% load) of 20%
ü Minimum boiler efficiency (@100% load) of 85%
ü Maximum steam turbo (@100% load) of 15,000 kJ/kWh
ü Generator heat rate (@100% load) of 15,300 kJ/kWh

Figure 4
Table 2 – Development Costs (CAPEX)

Items Cost (MYR) Cost (USD)

Boiler replacement & Steam Turbine refurbishment 61,000,000
Air pollution control system 5,000.000
Civil, structural & building 5,000,000
Cooling water system 2,000,000
Fuel handling & ash delivery system 1,000,000
Electrical plant system 2,000,000
Water treatment plant system 2,000,000
Grid electrical interconnection system 5,000,000
Engineering 11,000,000
Start-up cost (operations & fuel) 11,000,000
Critical spares 5,000,000
TOTAL 110,000,000 28,000,000 $USD

Table 3 – Key Terms of the Renewable Energy Power Purchase Agreement (“RePPA”) –
original and new

Key Terms of Agreement Summary

Date of Original RePPA (executed) 2008
Effective Period 16 years
Approved license number ( original )
Installed Capacity 11.50 MW
Net Export Capacity 10.50 MW
Scheduled Commencement Date December 2019
Post refubrishment
Feed-in Tarif Rate ( NEW ) MYR 0.3685 per kWh

Test Renewable Energy Between the IOD and COD; TNB will buy at 30%
of
prevailing displaced cost
3 BUSINESS OVERVIEW ( structure )

The special purpose vehicle (“SPV”) is already established for development, execution and
administration of the 11.5 MW Biomass Fired Co Generation Power Plant in SABAH. The SPV
will be assigned to the developer with majority shareholding issued to the developer for the
power plant(s) ownership.

The project business model will be based on three sources of revenue: Sales of Electricity to
TNB + Sales of Power to the Palm Mill + Sales of steam to the Palm Mill.

Revenue sources and opportunities :

1) Power sales will all be done via long term off take
2) Both plants are registered with the UN CDM program – we will seek to issue and monetize
the Carbon credits

Kina - cdm.unfccc.int/Projects/DB/DNV-CUK1145620815.98/view
Segnuntor cdm.unfccc.int/Projects/DB/DNV-CUK1145624135.02/view

3) Ash produced will also be sold via long term off take into cement companies and or
agricultural fertilizer producers

Figure 5

I NV ES TOR S TI N S H AR E H O L DE R S

S SPV 2 *

E quity for Proj ect BANKS

7.9 M W s old to T N B
u n d e r 6-year P P A
Supplier
s

Please refer to Annex A for original investment structure that we will seek to duplicate
 Location in Sabah
The biomass power plants are established in matured areas that are connected within easy
reach of highways and access to suitable organic feedstock supplies in the local area.
Sabah has the largest volume of Palm Oil Plantations ( by land area ) and has > 148
commercial palm oil mills in the territory.

Plant Locations –
Seguntor Bioenergy : Jln Ranau Sandakan 9000 Sabah - The coordinates for the power
plant site are: 5.863300 N, 117.986700 E ( Annex B )

Kina Biopower : Batu 10 1/2 off Jalan Labuk, 9000 Sandakan, Sabah. The coordinates for
the power plant site are: 5.876700 N, 118.007200 e ( Annex C )

4. Local Economic Benefits and Costs (IMPACT )

Benefits:

§ The plant will provide a local source of renewable energy for commercial and
residential customers
§ The creation of local jobs (either at the plant or in the agricultural sector)
§ Possible infrastructure improvements, such as grid connection or improved roads for
biomass transport

Costs:

§ Potential environmental impact due to emissions from the plant

Note: The plant is designed to fully comply with all applicable environmental
standards.

5. Macro-level Impacts and Costs

The Project is expected to provide a number of Macro-level benefits, including:

§ Additional production capacity, contributing to a stable energy supply

§ Reduce the need for fossil fuel subsidies in the public budget
§ Improved industrial production and employment creation due to the stable energy
supply
§ Increased energy security, making the country less dependent on fossil fuel
§ Reduction of greenhouse-gas emissions, as energy from biomass typically has lower
emissions compared to fossil-based energy sources
§ More environmental benefits from reducing fossil fuel-based electricity generation
§ Improved air quality and reduced health costs
7. Potential Risks and Mitigants

In the case of biomass energy projects, the supply of raw materials (“feedstock”) is a risk area
that requires careful attention, particularly with respect to feedstock:

• Availability
• Pricing
• Security

In Malaysia, as in many areas of the world, changing weather conditions have directly
affected the availability and price of rice husk.

Table 4 – Potential Risks and Mitigants

RISKS MITIGANTS
Revenue risk - Taking steps to expand biomass energy production,
which will add to electricity sales revenue.
- Additional revenue from the sale of Ash
- Potential revenue from the sale of Carbon Credits

Fuel price and volume risk
Power plant availability risk
Power plant operating risk
Environmental risk
Financing risk
Political risk
Construction risk
Commissioning risk
- Continuous sourcing of EFB and wood chip from
several major suppliers
- Expansion of the current storage capacity (enabling
the stockpiling of additional feedstock)
- Ability to co-fire with other types of biomass (e.g.,
rice straw and wood chips) helps reduce
dependencies
- Long-term maintenance planning
- Experienced O&M team
- Experienced O&M team and organization
- Installation of advanced emissions control equipment
- Continuous monitoring of stack emissions
- Elevation of power plant above monsoon flood levels
- Pay-back of short-term financing by expected expiry
dates
- Pay-back of long-term financing by expected expiry
dates
- Note: The Project’s Debt-Service Coverage Ratio is
1.45x ( average )
- New Malaysian Government is strongly committed
to Green
Technology and Renewable Energy development
- Government committed to long-term PPAs and
extensions
- Good project management team
- Reputable and experienced technology suppliers
- Performance bond in place and specifically
mentioned in EPCC Award Agreement
- Owners are engaged in every part of project
development
- Agreement with Technology Partners obligates them
to commission electrical, mechanical, instrumentation &
controls in accordance with a pre-agreed schedule and
procedures

Fire and Explosion risk - Careful design of the fuel handling and transportation
system and by specifying maintenance and safety
procedures in the plant operation instructions
To mitigate feedstock supply risks. The developer has established a long-term business model
that benefits from secured supply from the on site Palm Oil Mill.

Sabah benefits from 148 other Mills in the State that could supply feedstock and that are within
a 30 Km radius of the project site. The State has production capacity of 10 Million MT of full fruit
BUNCH “ FFB “ equating to > 3 Million MT of empty fruit bunch “ EFB “ - the project requires
63,000 MT per year

Project Incentives:

The project will benefit from an incentive from The Malaysian Investment Development
Agency (“MIDA”) for a 70% income tax exemption from statutory income, for a 5-year period.

In addition, the project will benefit from a 2% rebate on interest expense from the GreenTech
Financing Scheme (“GTFS”).

8. Feedstock Characteristics and Combustion Process

EFB’s compared with other solid fuels, has the following characteristics:

• Its high cellulose content can cause wearing of the components in processing
machines, such as the chopper or grinder. Content of volatile matter in EFB is higher
than in wood and much higher than in coal, whereas fixed carbon is much lower than
in coal.

• The palm ash originated from empty fruit bunch (EFB) also named as “bunch ash”.
Bunch ash is the substance with high level of Potassium. Bunch ash is a demanding
organic fertilizer which act as a supplement besides the NPK fertilizer . Bunch ash can
be collected and on sold under long term agreements.

Figure 6 - Bio-mass Combustion Process

4 MARKET OVERVIEW

4.1 Business environment in Malaysia

Malaysia’s historic May 2018 General Election saw a change in government and the
inauguration of Tun Dr Mahathir as the country’s 7th Prime Minister. The new government has
instituted a corruption-free and business-friendly administration. Malaysia remains resilient and
growth is forecasted to be bullish.

Figure 7 – The impact of key issues on Malaysian Businesses

2. Foreign ownership and control

The policy of foreign ownership in Malaysia is set out in the Foreign Investment Committee
Guidelines. Generally, foreign firms are limited to a 49 per cent equity share. Should majority
control be required, preference shares instead are issued to the foreign party delivering
overriding control.

The Energy Commission was established on 1 May 2001, under the Energy Commission Act
2001. The Energy Commission is primarily responsible for regulating the electricity and piped
gas supply industries in Peninsular Malaysia and Sabah, delicately balancing the priorities of
energy providers and the needs of consumers. The Energy Commission is committed to
ensuring reliable, safe and cost-effective supply of electricity and piped gas to all its
consumers.

3. Energy policies and objectives

There are many challenges and issues with regard to energy supply and demand in Malaysia,
including energy security, fuel supply and pricing, especially gas pricing, renewable energy,
energy efficiency and conservation, sensitivities of nuclear energy options and the
restructuring of the electricity supply industry. Energy security has been always been an
important issue highlighted by various agencies in supporting Malaysia’s socio- economic
growth trajectory towards becoming a high-income nation by 2020. A key focus of Malaysia
with respect to energy security is to ensure a continuous supply of energy at affordable
prices, including a growing share of renewable energy, to offset the gradual depletion of
indigenous oil and gas resources.
Malaysia’s energy development is currently guided by the National Energy Policy, which was
introduced in 1979 with three key objectives, namely: Supply, Utilization and Environmental
Protection.

• Supply objective: Ensure adequate, secure and cost-effective supply of energy.

• Utilization objective: Promote efficient utilization of energy and discourage wasteful
and non- productive patterns of energy consumption.
• Environmental Protection objective: Ensure factors pertaining to the environment are
not neglected in the production and utilization of energy.

To achieve these three objectives, various related polices were formulated; the National
Depletion Policy was introduced in 1980 to safeguard the exploitation of natural oil reserves,
and the Four-Fuel Diversification Strategy policy was introduced in 1981 (i.e., oil, natural gas,
coal and hydro). These polices accelerated the transition from a dependence on oil as the
main energy source to natural gas as a cleaner and cheaper source of energy.

This policy was then succeeded by the Five-Fuel Diversification Policy in 2001, with the addition
of Renewable Energy (“RE9”) as a fifth fuel source to complement oil, natural gas, coal and
hydro.

As part of its initiative to ensure adequate, reliable and cost-effective supply of energy, the
adoption of clean- coal power generation technology was also encouraged. All these policy
initiatives were conscious efforts by the Government to diversify fuel sources for power
generation to ensure sufficient and reliable power at affordable prices.

Figure 8 – Evolution of Energy Policies

Biomass-to-energy is recognized as a sustainable solution that can reduce greenhouse-gas
emissions, assuming the use of secondary and tertiary biomass to substitute for the use of fossil
fuels. The country’s agricultural and forest-based generate a substantial amount of biomass
residue and waste that can, in principle, be used for energy production.

Biomass energy projects can provide many advantages, such as:

ü Offering a cheaper and more stable supply of energy (including electricity,

steam and heat) for domestic consumption
ü Additional income from the sale of surplus biomass energy (whether electricity, steam
and/or heat)
ü Providing environment-friendly energy solutions (e.g., district heating or cooling)
ü Reducing greenhouse-gas emissions by using biomass feedstock instead of fossil
fuels such as oil, gas, or coal
ü Reducing the solid waste and waste water disposal problems associated with fossil
fuels

With regard to pursuing green technology growth, Malaysia has set a goal to reduce CO2
emissions per unit of GDP to 40 percent of 2005 levels by 2020 and has laid out the following
four policy measures (IEEJ, 2015):

1. Formulate a demand side management master plan and expand demand side
management in buildings and the industrial and residential sectors.
2. Set the green procurement rate for government agencies at 20 percent
3. Boost renewable energy generation from 243 MW in 2014 to 2,080 MW in 2020.
4. Set the household recycling rate at 22 percent.

Figure 9 – TNB Green Policy

4. Electricity generation, transmission and distribution

Electricity generation, transmission and distribution in Malaysia is dominated by three utilities:

• Tenaga Nasional Berhad (“TNB”) in Peninsula Malaysia;

• Sabah Electricity Sdn Bhd (“SESB”) in the State of Sabah; and
• Sarawak Electricity Supply Corporation (“SESCO”) in the State of Sarawak

TNB, a publicly listed company, has a monopoly over the transmission and distribution of
electricity in Peninsular Malaysia. TNB is responsible for electricity generation, transmission and
distribution and retail supply in Peninsula Malaysia. TNB was formed in 1990, following the
corporatization of the National Electricity Board in line with the implementation of the
Government’s privatization policy. Since 1996, TNB has been undergoing substantial internal
restructuring with the formation of many subsidiary companies. Presently, TNB Generation
Sdn. Bhd. (a wholly owned subsidiary TNB) is entrusted with the function of the generation
business and the transmission and distribution section taken over by TNB Transmission Sdn. Bhd.
and TNB Distribution Sdn. Bhd. respectively.

The other main electric utilities, SESB and SESCO, are involved in the generation, transmission
and distribution activities in the East of Malaysia. To keep pace with the goal of making
Malaysia a developed nation by the year 2020 and meet the expected national demand for
electricity, the Government has turned to the private sector to supplement the supply of the
required generating capacity with the introduction of IPPs. As a result of pressure for extra
capacity in the early 90’s, IPPs were introduced into Malaysia in 1994. IPPs were to
complement the national utility (TNB) in meeting the increased demand for electricity.

Under current regulations, IPPs are allowed to sell electricity to two of Malaysia’s three utilities,
namely TNB or SESB.

5. Utilities interconnection policies

There is no domestic interconnection among Malaysia’s 3 utilities, as historically and

geographically, each utility is responsible for supplying electricity within its own geographic
region, namely:

• TNB - Peninsular Malaysia;

• SESB - Sabah and Labuan;
• SESCO - Sarawak.

Malaysia currently has two cross-border interconnections, namely between Peninsular

Malaysia and Singapore and Peninsular Malaysia and Thailand.

The Peninsular Malaysia interconnection to Singapore is between TNB and Singapore Power
(“SP”). The interconnection is from Plentong in Southern Malaysia to the Senoko Power Station
in Singapore via an overhead line and submarine cable.

The Peninsular Malaysia interconnection to Thailand is between TNB and the Electricity
Generating Authority of Thailand (“EGAT”). The interconnection is between Chuping in
Northern Peninsular Malaysia and Sadao in Southern Thailand via an overhead line.
6 POWER PLANT OPERATIONS

The power plant uses EFB as the main fuel and diesel as a supporting and start-up fuel. The
plant can also utilize rice straw and wood chips to fire its boiler.

Figure 10 - Process Flow Diagram

The table below shows the minimum and maximum values of the main components of EFB’s
which are considered key factors in designing and delivering the new hardware at the plant.
An alternative fuel scenario is a 70:30 mixture of EFB and wood chips. Limited pre-treatment is
required in both primary and secondary fuel scenarios.

Table 5 – EFB physical properties

The power plant is designed to produce a net power output of 13 MWe. The boiler capacity is
50.0 t/h with steam parameters of 52 bar(a) and 425 °C. The steam turbine is a condensing
extraction type and the electrical system is based on a 12.4 MVA generator.

The majority of the power will be transformed to a voltage level of 33.0 kV by the step-up
transformer and exported to the distribution network.
Table 6 – Key features of the MEE plant boiler and steam turbine generator

Boiler Summary
Manufacturer ENCO SDN BHD http://enco.com.my/
Capacity 50.0 t/h
Design pressure 52 bar (a)
Design temperature 425 +/- 10 deg C
Steam turbine generator
Manufacturer SIEMENS
Turbine type Horizontal, impulse, multi-stage, multi-valve, axial
flow,
condensing, extraction, geared (down exhaust
type)
Turbine inlet steam pressure & 40 Bar (g) / 420 deg C
temperature
Turbine exhaust steam pressure 0.2 Bar (a)
Turbine maximum inlet steam flow 49.5 t/h
Turbine speed 7,800 RPM
Generator type 4 pole synchronous generator
Generator rated voltage 11 kV
Generated speed 1,500 RPM
Rated output (at generator terminal) 12,437.5 kVA

6.2 Emissions

Waste Water: The plant design reflects a ‘zero-discharge’ philosophy, meaning there will be
no waste water discharge from the plant into the environment under any circumstances. To
achieve this, all plant waste-water (including the boiler blow-down, the cooling tower blow-
down and the demin water plant regeneration water) will need to be directed to an
evaporation pond for the water to be evaporated into the air.

Table 7 – Air and Noise Emissions

Emission Design Criteria

Particulates 50 mg/Nm3
NOx as NO2 300 mg/NM3
Sox as SO2 100 mg/Nm3
Noise level of equipment Not exceeding 85 dB
Noise level at the boundary of the power Not exceeding 65 dB
plant
Unburned carbon in bottom and fly ash 55.0 t/day

Source: Plant Design Data

3. Operation and Maintenance

Post successful commissioning of the plant, the Operations and Maintenance activities of the
plant will be executed by three departments as below:

1. Operations
Operations personnel will consist of a 24-hour operations team and a day
operations team working during normal hours.

The 24-hour operations team will comprise 3 shifts of 8 hours each, consisting of 1
Operator and 1 Patrolman. A roster will be kept to ensure that at any time, 1 shift
will be on duty, 1 shift will be off duty and 1 shift will be on standby. This team will
be responsible for the main power island operations, power evacuation and all
balance of plant systems and chemical monitoring.
6.4 – Overall Power Plant Process Description

Fuel Feeding System

The main fuel for this plant is EFB. The EFB will be transported to the power plant by truck via
weight bridge station, where the delivered amount of EFB and the moisture content per truck is
registered. Upon delivery, the EFB can either be sent to the storage area or to the one-day
storage building for immediate use. The average EFB flow at 11.5MW net output is 23t/h(400
tonnes per day).

Flue gas systems

After the fuel has entered the boiler furnace via the burners it is burned in the furnace area of
the boiler. During this process, as a by-product of the combustion, ash is produced. The heavy
parts of the ash (about 5- 10%) will fall to the furnace floor, where it will be extracted from the
boiler by a water-cooled screw conveyor. From there the ash will be transported to the ash silo.
The hot air and lighter ash particles will be drawn from the furnace area together with the hot
flue gases towards the second pass of the boiler by the under pressure in the flue gas path,
which is created by the induced draft (“ID”) fan. The hot air will give part of its heat energy to
the wall tubes, which work as the evaporator of the boiler.

When reaching the top of the boiler, the hot air and particles will pass the primary and
secondary superheaters, which are located at the top of the boiler between the furnace area
and second pass (the so- called ‘convection pass’). Here energy is transferred to the super-
heated steam, which will drive the steam turbine. in the second pass of the boiler and in the
ducting between boiler outlet and stack, the flue gas and particles will pass a number of steps.
Economizer

The flue gas is directed to the economizer. In the economizer, the flue gas transfers its energy
(heat) to the boiler feed water coming from the boiler feed water pumps. The feed water
control valve will be placed after the economizer in order to prevent steaming in the
economizer during start up.

Electrostatic Precipitator

After having gone through the Economizer the flue gas reaches the Electrostatic Precipitator
(“ESP”), where the ash particles will be almost all removed from the flue gas flow. Initially, the
flue gas flow enters the mechanical pre-collector which is located at the entrance of the ESP.
The larger particles are heavier and will go straight while the flue gas is re-directed. These
particles fall in the hopper, from where they are evacuated by the ash handling system.

After having gone through the mechanical pre-collector, the flue gases enter the ESP. The ESP
extracts the smaller ash particles from the flue gas. This is done by charging the ash particles.
A large number of electrical wire (electrodes) are located in the ESP. These wires get
energized by applying a high voltage to them. Large steel plates are also located in the ESP.
The high voltage of the wires charges the ash particles which are then drawn on to the
plates. With certain time intervals a hammer falls on to the system and the ash falls off the
plates into the hoppers of the ESP. The hoppers are equipped with electrical heaters, which
are used at start up. During normal operation, the heaters are not required because of the
relatively high temperature of the ash itself. The ESP consist of three independent fields, which
can be switched on or off independently. After coming out of the ESP, the ash content will be
almost completely removed from the flue gas and the emission of dust particles at the outlet
of the stack will be below 50 mg/Nm3.

Induced draft (ID) fan

Before the flue gas reaches the chimney or stack it has to pass the louver damper of the
induced draft (ID) fan and the ID fan itself. The purpose of the ID fan is to create a draft
through the flue gas systems by creating a pressure differential or “under pressure.” The under
pressure in the systems depends on the pressure in the furnace, which is measured and which
is the control parameter for the ID fan. The under pressure in the systems (= air flow through
the systems) is controlled by the louver damper upstream of the ID fan.

A higher airflow (louver damper more open) will create a higher under pressure in the furnace.
The open position of the louver damper depends on the boiler load, which determines the
heat input and thus the amount of fuel burned and the amount of flue gases produced. The
ID fan is always running at the same speed while the louver damper is used to control the
pressure by opening or closing it.

Chimney or Stack

After having passed through the ID fan the flue gas is directed towards the stack. From there
the flue gases will enter the atmosphere from the top of the stack.

CEMS

The Continuous Emission Monitoring System (“CEMS”) is located in the stack and measures the
different emission components from the flue gas. The components measured are NOx, SOx,
CO, CO2 and O2. Besides these components, the opacity is also measured. Opacity is an
indication of the particle emissions of the power plant. The CEMS system is a complete
standalone system, including sampling, flue gas conditioning, analysers and a data
acquisition system, which is able to automatically generate reports for governmental institutes
and monitoring purposes. In addition, the CEMS will send the emissions levels to the Distributed
Control System (“DCS”) via a hardwired connection and the emission levels will be shown on
the DCS.

Bottom ash conveyor

During the combustion process, ash will be produced. The heavier particles will fall down on
the furnace and will get collected in the hopper at the bottom of the boiler. From there the
ash will be removed by a water- cooled screw conveyor. This screw conveyor is located in
the bottom of the boiler hopper. A dense phase pneumatic system transfers the ash from the
outlet of the screw conveyor to the ash silo.
ESP ash removal system

A number of hoppers are located underneath the ESP and the pre-collector. Ash from the flue
gas flow is collected in these hoppers. A dense phase ash removal system is installed at the
bottom of the hoppers. Using compressed air as a medium, the removal system transports the
ash from the hoppers to the ash storage silo. A dense phase system consists of a vessel
underneath the hopper, which is filled up with ash.

When the vessel is full, then the inlet will be closed by an automatic gate valve and the vessel
will be pressurized with compressed air. The expanding air pushes the ash out of the vessel
through a pipeline into the ash silo.

Ash handling system

The ash is collected in the ash bunker. The ash can be disposed of by two separate methods.
One is the bagging of the ash in large plastic bags. After the bag is filled up, it will be carried
away with a fork lift to the ash storage yard. The second possibility to dispose of the ash is via
trucks. The ash handling system also includes a truck loading facility with an ash conditioning
system for dust prevention.

Thermal Deaerator

The thermal deaerator removes the non-condensable gases from the condensate and make-
up water flow and maintains maximum oxygen content. The thermal deaerator consists of
two parts: the deaerator dome (top) section and the feed water storage tank below the
dome. Condensate water coming from the condensate pumps enters the dome at the top
via a spray water valve.

Almost all steam will condensate in the deaerator dome. A small amount of steam will leave
the deaerator through a vent valve at the top of the dome, taking the non-condensable
gases with it. The pressure in the deaerator at base load operation will be 3.0 barg. Before the
condensate reaches the deaerator, the line has a connection with the make-up water line.
This line comes from the demin water pumps and a control valve in the line controls the level
in the feed water tank and adds water to the system, when the level in the feedwater tank
comes below its set point.

Another connection to the deaerator is the connection from the flash tank, which introduces
the flashed out continuous blow down steam back in to the deaerator for re-use. Another
connection which feeds back the drain of the soot blower system and the atomizing steam
system back in to the deaerator. A safety valve is located on the top of the deaerator to
protect the deaerator from over pressurization.

Boiler feed water (BFW) pump

There is one BFW pump to boost the feed water in the feed water tank to the required
pressure for the boiler. The BFW pump takes the water from the demin feed water tank.

Boiler

From the BFW pump, the water enters the economizer (where the water is heated to
approximately 110 degrees Celsius) via the feed water control valve, which regulates the
water level in the steam drum. The feed water is fed into the steam drum. A number of tubes
connect to this drum. They are located in the flue gas path and work as evaporators. From
the drum the water is let in to the wall tubes of the boiler. The wall tubes also work as an
evaporator. The dried steam leaves the drum at the top and enters the superheaters. The
superheater consists of a primary and secondary superheater. After having gone through the
primary and secondary superheaters, the steam leaves the boiler at a maximum temperature
of 425 degrees Celsius.

The boiler will be a Sub Critical Stoker Fired Biomass Boiler due to its simplicity of the boiler, and
“fit for service”. The major concern of utilizing Rice Husks is the high amount of silica in ash,
which can cause erosion of tubes. The boiler furnace will be designed such that the flow of
flue gas will be slowed down to reduce the impact of erosion.
Table 8 - Boiler Specifications
UNITS NOTES

Boiler Type Sub Critical, Natural

Circulation, Balanced
Draft, Pneumatic
Spread Stoker Boiler.
Economizer and Gas
Preheater Included.
Main Steam Flow (@ Kg/hr 76 000 10% margin over
BMCR) 100% Load

Main Steam Pressure Bar(a) 42

at
Rated Load
Main Steam Deg C 425 At Boiler Steam
Temperature Outlet

Feedwater Deg C 110 Optimization to be

Temperature carried out
(Economizer Inlet) during
detailed
design

High Pressure (“HP”) steam line

The HP steam line transfers the steam from the boiler to the steam turbine. A couple of devices
are located on this line. First, a safety valve is located on the HP steam line. The set point of
this valve is lower than the setting of the safety valves of the steam drums minus the pressure
loss in the superheaters. This to ensure that in case of over-pressurization there will always be a
steam flow through the superheater of the boiler and in this way protecting the superheater
tubing from overheating.

Second, there is a flow measurement installed in the line, together with pressure and
temperature measurement for the correction of the measured flow value. This value is shown
in the DCS. Finally, just before the steam turbine stop valve, a drain valve is installed for
warming up the line during start-up. The steam drained is fed into the steam turbine blow
down tank. Where required, steam traps will be installed to remove any condensates from
the steam line. In addition, the HP steam line a start-up vent valve and a branch off to the
steam turbine bypass.

Steam Turbine Generator

The steam turbine is a horizontal, impulse, multi-stage, multi-valve, axial flow, condensing,
extraction, geared (down exhaust type) with a rated output of 12 437.5 kVA. The steam
turbine will be running at a speed of 7,800 revs per minute (rpm), while the generator is a 4
pole type and will be running at a speed of 1,500 rpm.

A gearbox between the turbine and generator converts the 4,900 rpm of the steam turbine
into 1,500 rpm of the generator. The gearbox is a horizontal single reduction, double helical
gear type. At the inlet of the turbine, one emergency stop valve and one governor valve are
installed. The governor valve controls the actual steam flow to the turbine itself. The governor
controls the power output of the steam turbine. On the steam turbine there are two
extraction ports installed. The extraction at a pressure level of 40 barg is installed, but is not
connected. The extraction at a pressure level of 3.0 barg is actually connected and will be
used for providing steam to the deaerator. The lube oil system of the steam turbine consists of
a main lube oil pump, an auxiliary lube oil pump, a main oil control pump, an auxiliary oil
control pump and an emergency oil pump. The main lube oil pump is shaft driven. The
auxiliary lube oil pump, a main oil control pump and the auxiliary oil control pump are driven
by AC motors. The emergency oil pump is driven by a DC motor.

The gland steam system uses steam extracted from the HP steam line. Two exhaust fans are
installed on the gland steam condenser, one running and one stand by. The steam turbine
generator is a four pole generator,
which operates at a speed of 1500 rpm and a voltage level of 11.0 kV.

The steam turbine has its own independent turbine control panel (simplex type) and
generator control panel. The panels are connected with the DCS, where the most important
data are visual and from where the turbine can be operated. The critical signals are
hardwired with the DCS, while the less important signals are exchanged via a modbus
connection (a serial communications protocol). A vibration monitoring system is installed on
the turbine and generator bearings to sound an alarm when any excessive vibrations occur in
the steam turbine or the generator. The vibration monitoring consists of X-Y probes. These
data will also be available in the DCS. An alarm will be sounded when the value exceeds a
certain level, while an automatic shutdown will be initiated at a second, higher vibration
level.

The steam turbine will also include a Water-Cooled Surface Condenser, utilising closed-loop
cooling water circulation. The water will be cooled by air-cooled heat exchangers.

Condensate system

The condensate system extracts the condensate from the condenser hotwell. From here the
condensate flows through the gland steam condenser and the air ejector steam condenser.
After passing through these two condensers, the condensate either flows back to the main
condenser or is directed to the deaerator. This is controlled by the condensate circulation
valve, which controls the level in the hot well. The level in the hot well is kept always constant.
The surplus water which is not required to maintain the hot well level is transferred to the
deaerator.

Water Pre-Treatment System

Water to be utilized at a steam plant has to achieve a certain level of quality. This ensures the
boiler tubes and piping are protected from corrosion. Water quality is also controlled to
ensure the steam turbine is not damaged by impurities, which at high pressures can damage
the system. Water is circulated in a closed loop cooling water system for the condenser, and
has to be of good quality to prolong the life of the condenser tubes, piping and cooling
tower. Intake water for the steam plant will be treated to meet set specifications.
The demin water plant has a capacity of 6 m3/h. Each train consist of a carbon filter, a cation
exchanger, an anion exchanger and a mixed bed exchanger. The treated water pumps
pump the water through the carbon filter and the cation and anion exchanger and mixed
bed exchanger to the demin water tank. The demin water tank consists of two tanks each
with a capacity of 45 m3.

Electrical systems

The steam turbine generator operates at a voltage level of 11.0 kV. From the generator, the
majority of the power is transformed to a voltage level of 33.0 kV by a step-up transformer
located in the switchyard. From the high voltage terminals of the step-up transformer, the
power is exported to the TNB distribution network via the switchyard.

Synchronization of the power plant to the TNB grid can be done at 11.0 kV generator circuit
breaker. During start up, the power plant will receive power from the grid. Once the steam
turbine is started and the generator is ready to produce power, the steam turbine generator
will be synchronised to the grid via the generator circuit breaker when all conditions are met.
When the power plant is running in island operation, the transformer circuit breaker will be
opened.

The plant is controlled from the control room by the operations staff. An overall distributed
control system (DCS) has been installed to give the operators in the control room all
information required for the operation of the plant. Some of the equipment has its own
control systems (e.g., the steam turbine, electrostatic precipitator and the water treatment
plant). From these individual control systems, the important parameters are visible on the
DCS. Alarms by the individual systems (sometimes common alarms) will be transferred to the
DCS to alert the plant operators.
7 FINANCIALS

The financial projections have been prepared based on the terms of the Company’s
Policies, RePPA and the Operations and Maintenance planning established by the
operations team.

Table 9 – Key assumptions underlying the financial projections

No. Item Assumptions

1. Electricity generation @ 330 days operations per year
2. Feed-In 11.5MW capacity @USD 0.0899 per kWh
Tariff Pricing Power producers are paid in MYR
Projections assume revenue remains
constant every year. A 10% power
output increase is allowed and will be
bought by SABAH ELECTRIC
3. EFB pricing and consumption MYR 5.00 per mt; annual consumption
65,000 mt

4. Operations and maintenance costs Approximately USD 300 K per annum with
2% increase every year
5. Other operating costs Approximately USD 60 thousand per
annum with 5% increase every year
6. Taxes Net of Tax Incentive; assumed at 15%
effective
tax rate per annum
7. CAPEX – on 2 plants USD 28 million
8. Finance cost 6.3% per annum; net of interest rebate of
2% from GreenTech Financing Scheme
9. Loan Tenure 7 years with 2 years grace period
10. Accounts Receivable Days 45 days
11. Accounts Payable Days 30 days

We seek to secure majority ownership from the current developers.

Delivering our project management team and engineers into a highly scalable project.

Your investment is sought to support this exciting development.

We will be glad to address any relevant questions

Conclusion - Investment Offers Significant Upside Opportunities

§ The brownfield status is an opportunity – Eliminating

associated construction risks and costs
§ Presenting an accelerated time to market and
achievement of COD of 9-12 months
§ From the existing PPA cash flows can be generated from
day 1

§ The investment will deliver significant yield returns

and an early return on investment

§ Significant brownfield Competitive Advantage

- Proven Technologies
- Existing operating Technologies
- Superiority to competition in key areas

§ Financially Attractive Business Model

- Strong revenue returns
- Guaranteed pricing to upgrade the plant

§ Highly Scalable, Global Business Model

- Tremendous upside potential with further opportunities Globally Addresses Multiple Economic, Social
beyond the base business plan and Environmental Issues
- The company continues to develop additional business
lines and new energy data measurement technologies
in the renewable energy space

• Committed Experienced Management and

Leadership Team with an Exceptional Track
Record
 Annex A

The Previous Investment structure

 Annex B

Locations - SEGUNTOR
 Annex C

Locations - KINA