BUZZARD BIOMASS BOILER

COMPANY OBJECTIVE
THE ENERGY PACKAGE
Incomes and Benefits
COMBUSTION AND POWER
Rotary Incinerator
Advantages of the Buzzard
Fuel Types
Bales
Combustion
Hot Water
Turbine
Ash Handling
Pollution Control
Equipment Fabrication
Solar Hot Water Option
Gasifier Option
LANDFILLS
Waste Disposal and Landfills
SHIFTS TO CLEAN ENERGY
BUZZARD BUSINESS POTENTIAL
Sales Pitch
Goals
Income Sources
Project Company Structure
Installation and Operation
Financing for Customers

COMPANY OBJECTIVE:


SA (Saladacres LLC) has designed a proprietary (patents pending) biomass boiler that produces heat and electrical energy from renewable fuels such as agricultural and forest waste, factory waste, and sorted garbage or municipal solid waste (MSW).

We call our biomass boiler the “Buzzard” because it will burn a wide variety of biomass fuels with almost no pollution – it will “eat” anything. It was originally designed to provide heat and electricity for our greenhouses. But the Buzzard can also provide heat and electricity to communities who want affordable energy from renewable fuels. The Buzzard is a good performer and the cost is low.

Biomass fuels are renewable wherein they don’t add extra carbon dioxide to the atmosphere. The yearly addition of 10.5 billion tons of C02 into the atmosphere from the burning of fossil fuels (oil, natural gas, coal) is causing global warming.

Buzzard units are relatively small in size and the power output is between 1 and 3 megaWatts (mW). This contrasts with most other renewable fuel electric generation systems that are 30 mW and up. One mW will provide electricity to 500 houses at an average consumption rate of 2 kiloWatts (kW) per hour. The relatively small size makes it ideal for villages and towns, and other applications. The price puts it well within the range of financing by small customers and quotations are invited.

THE ENERGY PACKAGE


We offer the Buzzard to small towns and settlements to enable the production of their own energy (and heat) from biomass fuels – and make money doing it.

Incomes and Benefits

Sales
1. Sales Potential: $800,000 to $1.5M depending on the fuel burned, the Buzzard model, and price per kW
2. Gross profit per year: 40%

Incomes Sources
1. Carbon credits where applicable
2. Pickup fees for some fuels and tipping (offloading or dumping) fees
3. Electricity sales off grid
4. Heat sales to buildings off site

Direct benefits to community and customers
1. Pure, healthy, produce sold locally year round at affordable prices
2. Jobs: construction, production, fuel collection, technical, transport, and sales; year round
3. Jobs: clerical: shift supervisor / secretary
4. Eliminant reliance on diesel electric generators in some community situations
5. Low cost heating and electricity for businesses and homes
6. Reduction in landfill volumes of green waste and regular garbage
7. An option for the survival of individuals and communities
8. Atmospheric pressure heating system: no steam engineer required for operation
9. Fast payback of equipment
10. Income and profits to the community and customers


Benefits to Environment
1. Does not contribute to climate change
2. Local biomass fuels: example: nearby forest, or agriculture fuels that have low transport costs
3. Less carbon dioxide released into the atmosphere through reduced consumption of fossil fuels
4. Reduction in potential ground water pollutants

Example of Costs and Income of 1 mW Project
Sales and Income Summary Example

Mega Watt production 1
kW production per hour 1000
kW production per hour per house 2
House equivalents supplied with electricity 500
Selling price per kW .10
kW hours per year 8,760,000
Revenue from electricity per year 876,000
Carbon credit revenue per year
Waste fee collection revenue per year
Total Income 876,000

Production Costs 622,911

Gross Profit (Ebitda) 253,089
(Earned Before Interest Depreciation Taxes Amortization)
Financing Costs (estimate @ 50% financing) 68,000

Net Profit per 1 year period 185,089

COMBUSTION AND POWER

The Buzzard consists of 3 skids, each 8’ / 2.4m wide and about 24’ / 7.3 m long: 1) rotary incinerator, 2) heat exchanger, 3) turbine.

Rotary Incinerator
The Buzzard has a rotary type incinerator that burns biomass to produce heat. The hot air energy produced by the rotary incinerator is converted to hot water in the heat exchanger. The hot water is then directed to the floors of buildings for heating, the turbine for generating electricity, or both.

The rotary incinerator has support equipment. Namely: 1) a tub grinder for grinding up fuel into chips and shreds at the fuel site, 2) a baler to bale the chips and shreds for transport to the incinerator site, 3) a bale winch to handle bales at the fuel source and incinerator site, 4) ash carts to remove the ash.

Rotary Incinerator Specifications

Heating capacity 8,000,000 btuh (British thermal units per hour)
Power production 100 – 1,000 kWh (1)
Length 6 m / 20’
Width 2.43 m / 8’
Height 3.9 m / 13’
Weight 2,600 lbs, 1.3 tons
Mounting Skid on pylons
Shipping to site Container
Assembly at site Non required

(1) Depending on the heat load of the greenhouse which is determined by the site climate

Advantages and Disadvantages of the Buzzard
Advantages
- uses mixed fuels
- fuels are generally always available
- fuels can be shredded and baled at the site of collection into neat, clean, odorless, bales
- bales can be transported easily and quickly
- bales can be pushed into the incinerator whole
- fewer moving parts than a gasifier meaning less maintenance
- can mix fuel type during burning process
- combustion controls are easier to install and monitor because there are fewer control points compared to a gasifier
- horizontally mounted which keeps the overall height of the Buzzard low

Disadvantages
- cannot generate gases for internal combustion engines because all fuel is burned in one stage
- there are limitations to the amount of electricity produced when using hot water in a binary turbine

Fuel Types
The Buzzard can burn a variety of cheap, renewable biomass fuels such as sawdust, agricultural waste, wood chips, “green waste” (tree trimmings), plastics, sorted municipal solid waste garbage (MSW), shingles, tires, carpets, diapers, and manures at high temperatures with almost zero pollution. These fuel options enable SA to use the available fuels in locations of opportunity, and therefore control costs. The burning of sorted municipal waste (MSW) to run all phases of a greenhouse will be a first – “food from waste fuels”.

Bales
Fuel is selected and baled where the fuel originates, whether it be a forest operation or landfill, and then sent to the Buzzard site. MSW is first sorted to remove non combustibles such as metals, stones, and glass. With all fuels the water content will be monitored, and those fuels with water in excess of 10% will be set aside for drying. After sorting and grading, the fuel is ground up into poker chip size in a tub grinder. The fuel is then compressed into plastic covered bales with baling equipment. The advantages of baling fuel at its origin are: fuel access to large and small amounts of fuel, transport ease, elimination of blowing litter, odors, and stacking.

The bales are color coded according to their combustibility. For example, wood chips would be coded as intermediate, and bales containing rubber would be coded highly combustible. Highly combustible fuels would be mixed with fuels of intermediate and low combustibility.
- the standard bale is 14” / 36 cm x 18” / 46 cm x 42” / 107 cm
- standard bale btu value is .49 million btu at 5,000 btu / lb.; weight without water = 98 lbs / 44 kg

Combustion
Baled fuel will be fed into a proprietary (patents pending) ceramic lined rotary incinerator where the fuel will burn and be reduced to its mineral components. The rotary incinerator is designed to convert fuel to heat with a 96% or more efficiency, generating 1700 F heat. The combustion gases will be directed into a heat exchanger where water will pick up the heat. The hot water will then be used to drive a turbine for the production of electricity, and provide hot water heat to buildings. Ash collection equipment will collect the ash. The gas will be cleaned by a cyclone dust separator, a spray scrubber if required, and another final particulate filter.

The fuel is burned with high volumes of air to insure complete combustion. Pure oxygen can be used to insure the complete burning of some fuels such as hazardous biologicals (ex. hospital waste) if there was a specific request to destroy this biomass.

The combustion gases could reach the 1,750°F level for approximately one second, which is enough time to completely combust any remaining hydrocarbons (“HC”), carbon monoxide (“CO”), and oxides of nitrogen (“NOx”). Carbon monoxide and volatile organic compounds will be essentially eliminated. Once the combustion gases pass through the latter part of the incinerator they will exit the combustion unit, pass over an ash collection area, and enter the heat exchanger.

SA anticipates that the combustion unit will be provided with a fully automatic control system for controlling the combustion process. The variables in the combustion process are: air volume, rotation speed, angle, fuel bale feed rate, and fuel mix.

Hot Water
Hot water is the primary product of combustion. The hot water will drive a turbine for the generation of electricity, and provide heat where and when needed to buildings and homes.


Turbine
SA will use a proprietary binary turbine that is powered by energy in hot water to drive a generator to produce electricity. SA has exclusive distribution rights to this turbine for the world, excepting India, and Asia.
Ash Handling Systems
With the gasification/combustion process taking place in the primary combustion chamber, the fly ash that is generally associated with the biomass combustion process is expected to be greatly reduced. The majority of the ash material will be left in the bottom of the rotary cylinder to be rotated out into the ash pit. The ash produced will be void of organic materials, because all combustible material will consumed in the gasification/combustion process.

Other ash separation areas are located before and after the heat exchanger. Dust is removed by a cyclone particle separator and another filter before being released into the atmosphere. We expect the dust size to be below 2.5 microns in size (human hair is 100 microns or 1/10 of a mm) which conforms to the CWS (Canada Wide Standard). The ash will be removed from the pit and put into containers for transport to facilities that will process the ash materials into organic fertilizer – if the original fuel is free of heavy metals such as lead, mercury, and cadmium.

Pollution Control
Burning biomass fuels produces air pollutants. The largest “pollutant” produced by the Buzzard will be carbon dioxide which is a product of combustion. The combustion of any carbon based fuel produces about twice the weight of carbon dioxide as the weight of carbon in the fuel because oxygen is added to the carbon to produce C02. It only takes 2 days for carbon dioxide to disperse in the
planets atmosphere

The carbon dioxide produced from the burning or decomposing of agricultural, forest, and other plant based organic byproducts, is not a “new” source of carbon dioxide to the atmosphere. It is recycled C02. A plant combines water, sunlight, and C02 from the air to form plant tissues. When the plant dies and is burned or decomposed by bacteria, the C02 is released back into the atmosphere. This is the carbon cycle. During the combustion of organic material, carbon dioxide is released into the atmosphere as a product of combustion. Thus the term, zero carbon emissions because the carbon is recycled and no additional C02 is added to the atmosphere.

New sources of C02 come from the burning of fossil fuels (coal, oil, natural gas) and increase the C02 load in the atmosphere which is causing global warming. SA believes that our biomass boilers will reduce the addition of new carbon dioxide released into the environment by close to 9,000 tons per year per mW produced. Additionally, using biomass fuels instead of fossil fuels will conserve the emissions of carbon monoxide, nitrous oxide, sulfur dioxide, and volatile organic compounds that are associated with the combustion of fossil fuels.

There are 2 ash separators. After the heat exchanger, the air is pulled through a particulate cyclone separator for the removal of fine particulate matter, and finally the air moves through a filter bed that insures the removal of almost all particulate. The air temperate at the end is about 120F / 60C, and clean.
 
It is expected the Buzzard will conform the requirements of the Canadian Stack Emission Limits on renewable fuels of 200 mg / kg of emissions (or cubic meter of stack emission). Zero pollution in this text refers to conforming to stack emission limits of 200 mg / m3 or 200 ppm / m3.


Equipment Fabrication

SA will build the incinerator, heat exchanger, and pollution control equipment.

Solar Hot Water Option
The rotary incinerator and heat exchanger can be replaced with solar hot water panels and a reservoir to collect heat from the sun. The hot water is pumped into a reservoir and used to power the turbine.

The disadvantages to a solar hot water system are: 1) sunlight in sufficient intensity and duration must be available and this is not the case in many areas; 2) sunlight is available only during the day. Number 1) can be overcome by locating subtropical and tropical areas. Number 2) can be overcome by storing hot water during the day and using it at night. In high sunlight locations, a combination could be used. The rotary incinerator burning biomass fuels could be used at night, and the solar hot water system used during the day.

Gasifier Option
There is a choice between a gasifier and rotary incinerator for the production of heat in the power package. We will reserve the use of the gasifier type and promote the use of the rotary type. The following is a summary of both types indicating the major advantages of the rotary in bold type.

Advantages of Gasifier:

- Gas from the first stage burning can be filtered and burned in an internal combustion engine
- Potentially harmful exhaust pollutants are known, however these would be burned up in the second stage

Disadvantages of Gasifier:
- two chambered combustion process
- best operated with homogenous fuels which may not be available
- uses a rotating grate that can get plugged
- higher maintenance compared to rotary incinerator; the grates need periodic replacement
- cannot use mixed fuels containing non burnable materials such as ceramics, concrete, glass, foils, or metals that will plug the grate
- single fuel type such as straw, wood chips, sawdust, coal, or agricultural waste are used in a gasifier for consistent gasification. These fuel types will burn at the same rate and intensity and will have no non burnable components. When used in the gasifier, all ash is expected to fall through the grate.
- fuels are fed into unit in a loose form that creates handling problems

LANDFILLS

Waste Disposal and Landfills
In the early days of waste disposal, trash was burned and the ashes buried. Problems with the settling of landfill sites did not develop, and the land under which the ashes were buried was suitable for development. This is not the case for existing landfill operations. During the decomposition of trash at a landfill, the landfill will “sink” in on itself to some degree, rendering the site useless for development. With more and more families moving to suburban locations, the development of new landfills has slowed and closures of landfills currently in use have been expedited. The “not in my back yard” cry of residents often prevents new landfills from being permitted or significantly slows the process. Public opposition to landfills and transfer stations serves to push waste disposal costs higher because waste must be transported to more distant landfills.

Green Waste & Biomass Renewable Energy Opportunity
Green waste, destined for landfills, is a good fuel source for the Buzzard. Green waste is comprised of trees, grasses, and other foliage. Green waste will naturally decompose over time. From an environmental standpoint, burning green waste at high temperatures is a much cleaner process than landfill decomposition or composting.

SA will negotiate preliminary supply agreements with local landfill operators with the expectation of being paid to accept the local landfill operators’ pre-sorted green waste. This arrangement will allow the landfill operators to conserve valuable landfill space, while at the same time providing the SA with fuel.

Fluidized bed combustors are industrial burners used for the burning of coal. If used for biomass they cannot accept much of the solid waste fuel that can be burned in the Buzzard, including plastics, food waste, diapers, and ground tires.

Paid for Accepting Fuel
Garbage is typically given to waste disposal companies who can reliably remove the waste and dispose of it lawfully. The average tipping fee at landfills in Southern California is approximately $34/ton for green waste and trash, and $45/ton for sludge (substantially higher in other parts of the U.S.). We will enter agreements with local landfill operators with the expectation that we will be paid tipping fees of $11/ton or more to accept the local landfill operators’ pre-sorted green waste.

SHIFTS TO CLEAN ENERGY


“Clean” energy, includes “conventional” renewable energy such as wind and solar, but also recoverable energy feed stocks such as biomass, agricultural / feedlot byproducts (manures and straw) and municipal waste.

The “clean energy” market is projected to grow substantially over the next 10 years, from $55.4 billion in revenues in 2006 to more than $226.5 billion in 2016.
The shift to clean energy is happening because:
1. Burying waste in landfills is no longer considered a healthy option
2. MSW can be used as a renewable energy source to replace the burning of fossil fuels
3. Transport costs to landfills are increasing
4. Fossil fuel burning is causing climate change and must be replaced with renewable forms of fuel
5. Landfills pollute the air, ground, and water tables

BUZZARD BUSINESS POTENTIAL

Sales Pitch
1. Offer customers low cost electricity derived from the burning of renewable fuels. The source is a rugged, reliable, low cost, biomass boiler we call the Buzzard. Buzzard models will be between 500 kW and 1.5 mW. Up to 3mW models available on request.

2. Our operation could provide the following:
- Energy: From renewable fuels to generate affordable heat and electricity on site
- Independent utility production for affordable heat and electricity
- Jobs and job security: Jobs in fuel collection and power generation
- Sustainable: No depletion of land, low water consumption, zero pollution
- Markets: Be self sufficient, and develop exports
- Money income for community

Goals
1. Develop, construct, and operate facilities under Power Purchase Agreements (PPA’s) with the local existing utility company.
2. Build where regulatory conditions permit.
3. Develop and promote projects in locations that are in need of low cost electricity and heat
4. Establish business relationships in the energy and waste disposal industries and regulatory bodies that will allow new
projects.

Income Sources
Projects can benefit from multiple sources of revenue including:
1. Sale of electricity
2. Sale of hot water heat in housing and buildings
3. Tipping fees for accepting biomass waste that would otherwise be dumped in landfills
4. Fees from maintaining energy equipment at working facilities.
5. Income from burning renewable fuels. Each ton of C02 that is prevented from entering the atmosphere by the burning of renewable fuels will be sold as a carbon credit to companies that burn fossil fuels, thereby, “offsetting” the new carbon released into the atmosphere from the burning of fossil fuels. SA will administer the sale of carbon credits and split the revenue with the project.

Company Structure of Projects
1. Projects can be owned by a number of partners.

Installation and Operation

Installation
1. Containerized units will be delivered to the site, assembled and ready for connection
2. The unit is covered with a warrantee agreement

Duties of SA
1. Monitor operation 24/7; mechanical consultation will be available: the first year is free; a qualified company mechanic will supervise maintenance and performance
2. Advise of problems or maintenance tasks
3. Operator training
4. Scheduled overhauls and parts installation
5. Equipment inspections
6. Backup turbine and equipment will be supplied when required

Duties of Customer
1. Collect power and heating bills from customers
2. Remit maintenance fees
3. Fuel collection and storage
4. Care and security of equipment and buildings

Financing for Customers
1. Types Possible: P3 or Public+ Private Partnership; or Private + Private Partnership
Initial cost of equipment: Please request quotation for 1 installed 1 mW Buzzard, 1 baler, 1 tub grinder, 40’ x 100’ metal building with office
2. Additional Costs: These costs are listed separately in the quotation because they will differ from site to site; for example: land, reinforced concrete flooring, perimeter fencing, security, front end loader, forklift, scale, truck, and other equipment.
3. Financing for partner: 50% of the total cost
4. Financing costs can be paid by the difference in current costs of electricity and the 10¢ per kW charged with the
Buzzard; thus financing costs are nil; for example, if 3¢ per kW are saved on 1 mW of electricity, the yearly total saving would be (1,000 kW x .03 x 24 hrs x 365 days) $262K. This would pay for the financing costs for the Buzzard with some savings, with lower costs of electricity
5. Payback period: 3 years
6. After payback of financing: The going rate of 10¢ per kW can be charged or the cost lowered, because the equipment is owned by the partnership
7. SA would receive a maintenance fee, based on a percentage of gross sales for R&D, sales and promotion, and servicing

Electrical costs
1. Suggested at a low at 10¢ per kW during the payback period;
2. After the financing is paid back, the partners earn money on the sale of electricity and have the option to lower the cost per kW to customers

(1) Definitions:
1 mW: 1 mega Watt or 1,000,000 Watts
1 kW: 1 kilo Watt or 1,000 Watts
Btu British thermal unit; the average house will consume 22,000 Btu per hour (Btuh)