Agenda Background, Overview, Investment Opportunities (Renewable Energy/Materials) – John Brady (NEPIC)

1. NEPIC Investment Support Seminar Sedgefield Racecourse – May 12, 2011 Agenda Background, Overview, Investment Opportunities (Renewable Energy/Materials) – John Brady (NEPIC) Regional Growth Fund – Programme Bid – John Brady (NEPIC) PYReco Company Overview and Investment Support – Richard Tweddle (PYReco) Verta Energy Company Overview and Investment Support – Paul Watts (Verta Energy) Bioresources Activity in NE Region – DVD

2. Background • NEPIC – strategic deliverers for One North East Regional Biofuels Project • £1.7M public sector funding April 2008 – March 2011 • Co-incided with UK legislation – RTFO; European legislation - RED • Sustainability criteria • Vision – for NE to become a global hub for biofuels/renewable energy • Underpinned by a number of strategic initiatives • In order to build critical mass, recognised the need to focus on a wider bioresources sector incorporating fuels, chemicals, heat, electricity, AD and solar

3. Size of Challenge – Scale of Opportunity • 30% electricity, if all wind, will require ~15,000 turbines • 12% heat target, if met by biomass alone, will require ~20 million tonnes of wood in UK by 2020 • 10% transport target, if met by biofuel alone, will require ~6.5 billion litres bioethanol and biodiesel in UK by 2020 In all the above, opportunities exist in either supply chain, technology deployment or technology development

4. Building Critical Mass in NE England Building Critical Mass in North East England

6. What Next ? Develop a regional roadmap Access to feedstock – NESRB; www.nesrb.org.uk Maintain and build upon connectivity to supply chains Seek and develop relationships with potential investors – build on NEPIC relationship with UKTI – Brazil, China, India, USA Access (via NEPIC) to a range of political contacts

7. Overview of Biorefining Classification System International Energy Agency (IEA) Bioenergy Task 42 Biorefinery Document

8. NE current activity Activity: separation and autoclaving, NIBF demonstrator facility, AD Plant Location: Gateshead, Durham, Tees Valley Lead organisations: Graphite Resources, Premier Waste, CPI, Northumbrian Water NE proposed activity Activity: fuel production, hydrogen production, anaerobic digestion R+D, fuels/chemicals biorefinery, Bio SNG feasibility study. Location: Tees Valley, Cockle Park Lead organisations: Ineos Bio, Air Products,Sembcorp/SITA, CPI (ADDC), Newcastle University (AD), IBS Project c/o NEPIC and NEB, NEPIC Bio SNG. Organic Residues and Waste Lignocellulosic Crops and Residues Pre-treatment e.g. Graphite Resources, Premier Waste Gasification NWL Anaerobic digestion Syngas Sembcorp/ SITA Wilton 11 Biogas Fuels e.g. Ineos Bio Hydrogen e.g Air Products Chemical Feedstocks e.g. Tees Valley SNG (NEPIC feasibility study) Combustion Combustion Bio Methanol Electricity and Heat Electricity and Heat

9. RGF Bioresources Programme Bid • Some key/strategic activities • Securing a sustainable long term supply of raw materials • selection of the optimum proven technology and process • a plan for the handling, storage and distribution of all identified raw material • feedstock, intermediate, primary and co-products, • Building market opportunity and demand for the new green/low carbon products. • Key outputs are 4 - 6 major high impact investments in the low carbon economy.

10. NEPIC Support to PYRecoRichard Tweddle Wilton Manager

11. PYReco Introduction • A new company formed to exploit patented pyrolysis technology to convert waste rubber to its constituent parts: carbon black, oil, gas and steel. • First plant planned for Wilton site • 60ktes of used tyres producing • 20ktes carbon black • 8ktes of steel • 32 ktes of oil and gas • Phase 1 will utilise oil and gas to produce green electricity • Phase 2, double size, may use oil as a valuable feedstock for other processes.

12. NEPIC - Introductions to supply chain • Engineering companies • Logistics suppliers • Feedstock suppliers • Potential employees and recruitment advice • Local councils • Local infrastructure • Advice on the area.

13. PYReco Introduction • Phase 1 will employ >60 people + Several hundred construction jobs • Currently raising funds for first plant (£100m) • Site identified • Ground studies complete • Planning permission sorted • Start building later this year!

14. NEPIC - Political Lobbying • The PYReco project does not fit within the existing waste hierarchy, being neither recycling, recovery or waste to energy. • NEPIC recognised the difficulties faced by PYReco in explaining the project to Government and discussing which legislation should apply. • NEPIC organised and facilitated • introduction to the local MP • meeting with the Chief Whip in the House of Commons • meetings and correspondence with Ministers from DECC, DEFRA • meetings with Senior Civil Servants within DEFRA.

15. NEPIC - Introductions to supply chain • Engineering companies • Logistics suppliers • Feedstock suppliers • Potential employees and recruitment advice • Local councils • Local infrastructure • Advice on the area.

16. NEPIC Assistance in Overseas Activities • obtaining UKTI financial support for travel • introductions to possible overseas investors in the project through arranging inward missions. • finding opportunities for the project during outward missions

17. NEPIC Assistance in Obtaining a £2m RDA Grant • Identifying the opportunity for a Grant from One North East. • Provided local information • Advised on the process • Assisted with the application form itself • Lobbied for support for the application

18. Conclusion • PYReco not alone in being bewildered by the array of organisations offering business support. • NEPIC was a one stop shop whose assistance was invaluable in helping the project come to fruition and locating the project in the North East.

19. Paul Watts Chief Operating Officer

21. Financing complete for phase I ($3.5m) • Test units for Power Generation and Crush Facility • Continuing supply chain negotiations • Planning consents are in place • OFGEM process • EA Permits

22. Second stage finance 7MW power generation with CHP 10,000 MT oil processing on site

23. Expansion Up to 20 MW power generation with CHP 30,000 MT oil processing on site 10,000 MT oil processing off site 60,000 MT crush facility 20,000 MT oil 40,000 MT animal feeds

24. Future Expansion Up to 50 MW power generation on site 100 acres of zoned development land