Slide 1 - NEPIC

							   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
                        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
     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
Building Critical Mass in NE England
   Building Critical Mass in
   North East England
                      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
                         Overview of Biorefining Classification System




International Energy
Agency (IEA) Bioenergy
Task 42 Biorefinery
Document
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               Lignocellulosic Crops and
                                          Waste                              Residues



                                    Pre-treatment e.g.
                                         Graphite
                 NWL                   Resources,
                                     Premier Waste

                                                             Gasification
                                                                                                                                      Sembcorp/ SITA
                                                                                                                                      Wilton 11
                 Anaerobic
                 digestion                                      Syngas




                  Biogas
                                           Fuels                        Hydrogen e.g
                                            e.g.                        Air Products
                                         Ineos Bio
                                                                                                                                                   Combustion
                                                          Chemical
                Combustion                               Feedstocks                       SNG                  Bio
                                                          e.g. Tees                     (NEPIC               Methanol
                                                            Valley                     feasibility
                                                                                         study)
                                                                                                                                                  Electricity and
               Electricity and                                                                                                                        Heat
                   Heat
            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.
NEPIC Support to PYReco

     Richard Tweddle
     Wilton Manager
          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.
    NEPIC - Introductions to supply
                 chain
• Engineering companies
• Logistics suppliers
• Feedstock suppliers
• Potential employees and recruitment
  advice
• Local councils
• Local infrastructure
• Advice on the area.
       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!
     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.
    NEPIC - Introductions to supply
                 chain
• Engineering companies
• Logistics suppliers
• Feedstock suppliers
• Potential employees and recruitment
  advice
• Local councils
• Local infrastructure
• Advice on the area.
   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
  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
              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.
    Paul Watts
Chief Operating Officer
        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
  Second stage finance

 7MW power generation with CHP

 10,000 MT oil processing on site
             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
    Future Expansion

 Up to 50 MW power generation on site

 100 acres of zoned development land