PROPOSAL FOR BIOMASS BASED POWER PROJECT

CAPACITY 1.0 MWe

June 6, 2010

Basis of Offer Terms of reference Further to the discussions we had with Mr. Kumar we are enclosing a proposal for 1.25 MW of power generation using Coconut Shell as input (others also can be used) to meet captive requirements and excess power generated to be fed to the grid and utilization of associated thermal energy as per details available in our proposal. The residue from the project is Activated Carbon (when coconut shell is input and bio-char a soil enhancer for other inputs). Residue will be approx 5% of input.

PLANT AND MACHINERY Main Plant and Machinery will comprise: 1. Biomass Gasifier 2. Gas Engines of 2 Nos x 750 kg/hr 5 Nos x 240 kW each or any other suitable combination

DELIVERABLES: The proposal envisages supply of plant and machinery capable of delivering the following Peak power output Rated power capacity Captive consumption Net power out put 1200 Kwe 1080 kWe + 5% 140 Kwe + 10 % 940 Kwe

Power output Thermal energy

60,00,000 +3,00,000 units equal to 400 TR from waste heat at full load

Ac tivated carbon output

about 525 tons(6% of biomass input ) per annum with number of 550 if coconut shell is used as the biomass input

iodine

GENERAL DESCRIPTION OF GASIFIER Gasifiers will conform to specifications drawn up by I.I.Sc and manufactured to drawings provided by them. It is specially designed and developed and has state-of-the-art Technology, incorporating a patented system. The gasifier will also include the following sub-systems: 1. Cooling System The cooling system would consist of direct and indirect coolers and would include a chilling plant designed to assist the cleaning operations 2. Cleaning system: The cleaning system would include de-misters; fabric filters and / or an appropriate combination. 3. Flare system: Flare system for gas ignition prior to system stabilization. 4. Measurement system: Consisting of pressure gauges, temperatures indicator and oxygen analyzers. 5. Gasifier Control: Complete automation of start-up operation and shut down sequence including pneumatically actuated devices for top cover lifting, biomass conveyor chute retraction system, Butterfly control valve for Flare system and Main Burner. 6. Electrical System: Gasifier Auto / Manual control system consisting of PLC based control desk with instrumentation, Motor control center and push button station for local operations with complete built in safety features as per IS standards. (Complete plant automation with SCADA can also be considered at the clients option) 7. Biomass processing system: This will include Rotary sieve for Biomass cleaning and Biomass drying equipment. 8. Biomass Conveyor System: The gasifier system will include a hoist, which will carry the biomass from the ground level to the top of the gasifier. Other conveying systems required to convey the biomass from the feed preparation section to the gasifier bottom are not included, as they will depend on the site conditions and have been included separately in the project cost.

9. Water treatment and recycling system: The cooling water from the direct coolers shall be treated to remove tar and other suspended matter for recycling into the system 10. Biomass preparation system: This would be Saw Cutter or Cutting machine, dryer accessories etc. depending on the type of biomass.

In addition to the above, the following ancillary equipments and items will be required and considered separately in the project cost

11. Electrical System: This would cover requirements for feeding the power generated to the point of consumption or the grid depending on the project requirement. Electrical systems relating to the gasifier, accessories and engine controls are however included in the price for gasifier and engine.

Salient Features of the system are given below Open top, twin air entry system, which ensures a better thermal environment compared to the conventional closed top model. Multi-fuel capability wood residues and agro residues in briquetted form with moisture content less than 10%. Permits high gasification efficiency above 85%, with biomass consumption between 0.8 kg to 1.2 kg/KWH Producer gas generated is of a very high quality. It is environment sound with low NOx in the engine exhaust. The gasifier is robust in construction with ceramic lining inside.

Gas Engines Producer Gas Engines Generating Sets are now available from a number of large players and have unique features, with proven technology providing high engine performance, fuel economy, load emission and greater load bearing capacity

Civil Works & Foundation All necessary civil works pertaining to the project and foundation for the major equipments will be handled by and responsibility of the Client. However, M/s. KUBETechnology Services will arrange necessary drawings and specifications. About 15,000 Sq.ft of covered area including temporary raw material storage will be required.

Scope of Services KUBETechnology Services shall undertake turnkey services for the plant. Services shall include: a. Procurement and supply of complete plant and machinery b. Erection, Integration and Commissioning Services c. Complete Project Management Services d. Assistance in obtaining bank funding from promoters bank e. Assistance in recruitment and training of manpower in plant operation f. Assistance in obtaining subsidy, statutory clearances SCOPE OF SUPPLY Supply ATS Client X X X X X X X X

Bio mass processing Biomass cutter Belt conveyor Rotary Sieve Holding bin Screw conveyer Drier Drier blower Drier insulated ducting

Qty 1 1 1 1 1 1 1 1 lot

Gasifier Reactor Shell Main Screw Assembly Wet extraction Multi-clone Raw water scrubber

Qty 2 2 2 2 4

ATS X X X X X

Client

Chilled water scrubber Moisture traps Fabric filter Filter internals incl. Fabric Water tanks/dumpsGasifier Structure Top cover system SS Ducting Air nozzles+ water piping Fasteners Top feeding arrangements Platform gratings Refractory Brick lining Stand by chilling plant- 10 TR Blowers Air compressor+ piping Hoist Pneumatic items Inverters Oxygen monitor Electrical and instrumentation PLC cont. panel Laboratory equipment Flare burner system

2 4 8 8 sets 8 1 set 2 1 lot 2 sets 1 lot 2 1 set 1 set 1 3 1 1 1 set 3 2 1 set 1 set 1 lot 2

X X X X X X X X X X X X X X X X X X X X X X X X

Water treatment Piping Main water pump Secondary cooling pump Cooling tower Treatment plant pumps Chilled water circulation pump with drive Slurry pumps with drives Water pump SS auto valve SS manual valve MS manual valve MS Auto valve Ash extraction valves Knife gate valve NRV HDPE pipes and fittings

Qty 3 2 3 2 3 1 2 1 lot 1 lot 1 lot 1 lot 2 1 lot 1 lot 1 lot

ATS X X X X X X X X X X X X X X X

Client

Pressure & temp. gauges Main water tank 60 cu.m-civil Intermediate storage tank-10 cu.m Settling tanks Soft water storage tank Chilled water tank Drying beds-civil Cold & hot insulation

1 lot 1 1 2 1 1 1

X X X X X X X X

However, KUBEreserves the right to change the scope of supply and the configuration without in any way compromising the deliverables BOUNDARY LIMITS FOR GASIFIER SUPPLY

Exhaust gas piping

Bio mass cutter Bio mass Water treatment

Drier

Biomass sieve & conveyors

Make up Water chemicals

Gasifier and accessories

start up power & charcoal

VAM

Engine & Accessories

Electrical Evacuation

VAM for AC

Clients scope a. All civil constructions/foundations masonry tanks and sumps b. All bulk raw material handling c. Transportation of material d. Unloading of equipment at site e. All insurance from dispatch till erection f. Start-up power, lighting and water for erection and site fabrication wherever required g. Food & Accommodation at site for workforce during erection h. Responsibility for obtaining statutory clearances i. Absorption chiller for clients application

Details of Plant and machinery 1.00 MWe Sl No Description Amount in Rs Gasification System Gasifier/Reactor, support Structure, Blower and Feeding system Cooling and cleaning sub System with PLC Based Automation 2,25,00,000 System. Biomass Preparation, conveying Dryer & 26,00,000 Accessories. Water treatment and recycling system. 24,00,000 Total Gasifier Package alone 2,75,00,000

A.

B. C

ENGINES & ACCESSORIES

D E

Gas power generating set consisting of Cummins Engine model GTA1710G with gas control and Accessories complete Electrical panels and Sync system 5 Nos Absorption chiller

4,15,00,000 (Budgetary)

40,00,000 (Budgetary)

Grand Total
The proposal is made for plants to be supplied in India.

7,30,00,000

Duties & Taxes - Will be extra at actual (Present rate of ST is 4%. The gasifier and engine are exempt from ED for IPPs, whereas ED @ 16% is applicable on engines for captive power plants) Service Tax Please note that statutory Service Tax @ 12 % or as amended will be payable on Service charges Validity: 30 days from date of offer Delivery Within 24-30 weeks from date of order with advance for gasifier and accessories and engines as per engine suppliers terms

Terms of Payment Advance along with order Progressive payment on deliveries On erection On Commissioning 30% 60% 5% 5%

Note: The Ministry of Non-conventional Energy Sources offers subsidy of Rs.10.00 lacs per 100 kW amounting to Rs. 100 lakhs for the project as per norms in force for captive plants. If it is a grid linked project, subsidy of Rs. 150 lakhs can be availed. This amount is available only after project is commissioned.

PROFITABILITY PROJECTIONS - 1.0 MW

Operation in No. of Hr/annum I Cost of project Plant and machinery Land and building less Subsidy Less depreciation benefit Effective project cost Output power Captive consumption kW Net power output kW Charcoal output at 6% of biomass input - kg II Capacity Power generation (kWh)-per Annum Net power available for export III Cost of operations using gasifier a. Fuel cost Cost of Biomass @ Rs 4.20/kg ( 1kg/unit) b. Operation & Maintenance cost @ 75 paise/unit Labour 30 paise,Maintenance 30 paise & consumables 15 paise c. Miscellaneous Water - 20 M3/day @ Rs. 40 Total Direct cost ( III a+b+c ) Interest on investment of @ 10% p.a.(5% effective) Total Cost of Production Cost of power generated Revenue from sale of power @ Rs. 4.50/unit to EB Add Carbon credit @ 0.50 paise per unit Add revenue from sale of carbon @ Rs. 25/kg Total revenue Cost of power generated after recovery Net savings Cash Payback incl. Subsidy and depreciation (In years)
Rs. 73,000,000 Rs. 7,500,000 Rs. 15,000,000 Rs. 17,520,000 Rs. 47,980,000 1100 140 960 522720 7920000 6912000 7200

29937600 5940000

3,00,000 35877600 3275000 39152600 5.66 31104000 3960000 15681600 50745600 2.82 11593000 4.14