8. Mark Green

Resource Recovery in Puerto Rico Demand and Development Overview Solid Waste Association of North America Puerto Rico

AGENDA

I.

Situational Assessment

II. Recovery vs. Disposal Philosophy III. Reference Projects IV. Project Description

V. Approval Process VI. Project Financing

SITUATIONAL ASSESSMENT

ENERGY CRISIS

Demand for Energy in Puerto Rico

Dramatic Increase in the Cost of Energy

Fuente: AEE, 2010

Need for Energy Diversification

Fuente: AEE, 2010

SOLID WASTE DISPOSAL CRISIS

Disposal Capacity is Rapidly Declining

Compliance Issues Pose Risk to Human Health

Recovery vs. Disposal

Recovery vs Disposal 8,000 tpd de basura representa: • 10,000 barriles de aceite • 900 toneladas de agregado • 50 toneladas de metales no-ferrosos • 500 toneladas de acero

12.6 acres de terreno cubiertas por un pies de basura cada día con problemas ambientales a largo plazo.

Resource Recovery Process

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PRF SPREADER STOKER BOILER

Advantages of Semi-Suspension Combustion of PRF and Other Processed Wastes: • • • • • • • •

More complete combustion Better combustion control Higher energy recovery rates Lower capital cost Less combustion ash Greater ash reuse potential Less excess air Less contaminants to remove from combustion gases

REFERENCE PROJECT

Start of Full Commercial Operations – Feb. 6, 1989

PROJECT DESCRIPTION & SITE LOCATION

Arecibo – Former Global Fibers Paper Mill, Cambalache Arecibo

The Facility

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PROJECT

• 80 megawatts power generation • 2,100 tons of PRF processed daily used as fuel

• Classified as a renewable alternate energy production project • Recovery of ferrous and non-ferrous materials and production of Boiler Aggregate™

APPROVAL PROCESS

REQUIRED PERMITS

• Puerto Rico Environmental Quality Board (EQB)

Environmental Impact Statement

• Puerto Rico Planning Board Siting Consultation

• U.S. EPA Prevention of Significant Deterioration (PSD) • Puerto Rico EQB Location &Construction Approvals

• FEAM Floodway Construction/Map Revision • U.S. Army Corp of Engineers Wetlands Permit • OGPe Construction Approvals

PROJECT FINANCING: A UNIQUE OPPORTUNITY

Financing • Total project cost - $500 million.

• 80% / 20% Debt Equity Split.

• Revenues include: Energy Sales, tipping fees and recovered metals sales.

• Debt and equity to be sold in the U. S. capital markets and among limited number of local investors.

• Project eligible for 30% Production Tax Credit Grant, equal to approximately $100 million. To be used to lower tipping fees.