The ArrowBio process

For the Ecological Treatment of

Municipal Solid Waste (MSW)

Proposal for Ukraine – February 2006

Proprietary note:

This presentation is the property of the Company.

It contains information intended only for the person to whom it is transmitted. With receipt of this plan, recipient acknowledges and agrees that:

In the event recipient does not wish to pursue this matter, this document will be returned, at the address listed above as soon as possible.

The recipient will not copy, fax, reproduce, divulge or distribute this plan, in whole or in part, without the expressed written consent of the Company.

All of the information herein will be treated as Proprietary material with no less care than that afforded to your own company Proprietary material.

Executive Summary

Overview

The growing quantity of Municipal Solid Waste (MSW) is one of the biggest ecological problems of our planet.

Landfills, that are the most popular solution, are obsolete. They are polluting well water, demanding unrestricted land resources, creating smell nuisance, and having a growing part of the Global Climate Change.

New methods are being tried in order to solve this huge problem:

Incinerators, biological treatments, recycling by manual sorting and more.

All solutions are expensive and have partial successes or even less.

The ArrowBio process is a unique technology (Registered Patent) that succeeds to treat MSW, to recover materials from the waste and to produce Biogas, that is an alternative, clean and green energy for transportation and power-plants.

The process was tested in the last 6 years in laboratory and field tests at the semi-industrial plant near Hadera, Israel.

The plant in Tel Aviv is operational since December 2003, and is the pride of The Tel Aviv municipality leaders. It was approved, by scientists from Europe, the U.S, Australia and others, as more effective and economically better than all existing methods.

Arrow has recently won, a 150M$ contract in Sydney, Australia, with its local partner – WSN Environmental Solutions. Through Arrow’s local partner in Mexico, the company won a long-term contract for a plant in Pachuca, Mexico, and was declared as one of the two best available technologies by Waste Management Inc. USA, and by the Santa BarbaraCounty Waste association. It is also short-listed in the finals of the tender for NYC.

A recent international review by Juniper from the UK describes the ArrowBio system advantages over all others (see , the MBT report).

Main Advantages:

  • Producing Biogas that is green energy, used for power plants and municipal transportation with much less pollution (Not a fossil fuel).
  • Recovering 70% - 90% of materials (metals, plastics, glass and more).
  • Lowering the effect of Global Climate Change that is caused by the Methane from Landfills.
  • No odor nuisance or other air, water and ground pollutions.
  • No need for pre-sorting, but can maximize the Methane production when receiving sorted organics.
  • Producing clean and stabilized soil improver (fertilizer) and water in high standards.
  • The residue is about 20 % only.
  • Lower costs than the other environmental systems for MSW treatment.

Hydro-Mechanical Sub-System (Wet MRF)

  1. Receiving conveyor, and manual separation lines
  1. Pre-sorting vat and dumping elements.
  1. Heavy stream moving floor.
  1. Light stream moving floor.
  1. Drum & bag opener.
  1. Magnet system.
  1. Eddy current system.
  1. Secondary vat.
  1. Second chance for organics in heavy stream.
  1. Sorting dram & bag opener.
  1. Manual separation of different plastics.
  1. Film plastics removal.
  1. Plastics containers.
  1. Rough shredder.
  1. Hydro-crusher for bio-degradable organics.
  1. Filtering of inorganic residue materials.
  1. Reservoir for liquids and residue Inorganic materials.
  1. Second chance for non-crushed materials.
  1. Liquid reservoir and pumps to Biological Sub-System.

Biological & Energy Sub-Systems

18. From hydro-mechanical sub-system.

19. Acidogenic reactor no.1.

20. Acidogenic reactor no.2.

21. Heater.

22. Methanogenic reactor no.1.

23. Methanogenic reactor no.2 and biogas reservoir.

24. Solids – liquids separator.

25. Water separator and balance tank.

26. Water treatment and reservoir.

27. Water reservoir.

28. To hydro-mechanical sub-system.

29. Biogas generator.

30. Biogas torch.

31. Press machine for sludge-to-compost.

The proposal

Arrow Ecology will design a 2-line ArrowBio plant for the Toronto area, that will receive 20 metric tons per hour, for at least 10 working hours per day.

Arrow will build it jointly with a construction company nominated by the customer.

Arrow will supply:

  • Specifications of the plant (relevant to the waste characteristics that the customer supplies).
  • Estimated data, needed for the permitting phase.
  • General design and detailed "process related" designs.
  • Design of the machinery.
  • Procurement of the process related machinery (except the "biogas-to-energy" machinery).
  • Integration of machinery (with the customer's contractor teams).
  • Training of local operational team.
  • System tests and startup.
  • Management of the run-up (with the local operations team).
  • Technical assistance for the lifetime of the plant (against annual payments, as will be agreed later-on).

The Customer will supply:

  • Characteristics of the waste and local permits.
  • Design and management of the infrastructure, civil works and constructions.
  • Roads, receiving pit, and waste accumulating space.
  • Buildings, tanks, and pipes, according to Arrow's specifications and local climate conditions.
  • Machinery and equipment relating to service systems (like fire-fighting systems, weighbridge, and other service related elements).
  • Biogas-to-energy systems.

Time-lines and Pricing

The project will take 18 months to beginning of waste receiving, if the permitting procedure will not cause any delays:

2 months for a Pre-Plan study (see appendix B).

4 months for design.

6 months for infrastructure and preparation of machinery.

4 months for integration works.

2 months for system tests and training.

* Starting to receive waste.

6 months of growing quantities of waste, until full spec operations.

Major Elements and Pricing (in Euro)

No. / System / General description / Amount
1 / Receiving systems / Conveyors, vats + supporting elements / 750,000
2 / Sorting systems / Trammels, Drum screens, settlers / 1,500,000
3 / Electric and hydraulic machinery / Shredders, magnets, eddy-current, power systems, crane, etc / 1,750,000
4 / Computers and control systems / Hardware, software, Laboratory and testing systems / 750,000
5 / Machinery for biological systems / Screens, conveyors, sludge treatment, etc / 1,500,000
6 / Pumps, valves,gauges / 500,000
7 / Outputs machinery / Screw presses, belt presses, bailers, etc / 1,500,000
8 / Procurement and management / 8% / 700,000
TOTAL / 9,450,000

Knowledge based activities and Pricing (in Euro)

No. / Activity / Price
1 / Pre-Plan study / 130,000
2 / Knowledge based activities and design / 1,400,000
3 / Integration and management / 700,000
4 / Testing, training and run-up management / 770,000
5 / TOTAL / 3,000,000

Pricing and payments (in US Dollars)

No. / Time / Event / Amount
1 / At beginning of Pre-Plan / Project launch, Pre-Plan initiates / 100,000
2 / At contract signature (CS) / Design starts / 1,000,000
3 / CS + 4 months / Main design ends / 900,000
4 / CS + 4 months / Machinery procurement starts / 2,500,000
5 / CS + 10 months / Main machinery at site / 5,500,000
6 / CS + 16 months / Integration ends, system test end / 1,000,000
7 / CS + 22 months / Full system operates / 1,500,000
TOTAL / 12,500,000

* All the above prices are relevant until 15/5/2006

The Product

The ArrowBio process is an integrated solution that receives unsorted, or sorted, Municipal Solid Waste as an input, eliminating the need for prior separation or classification of mixed waste.

This waste is delivered by trucks and dumped into a large separation-dissolving tank, where bioprocess liquid is already present to assist with the first hydro-mechanical separation process.

The preliminary liquid-based waste preparation and separation stage is based on the principle that inorganic materials, such as metals and glass, have a specific weight that is greater than water, while plastics and biodegradable organic matter have a specific weight that is equal to or less than water.

The heavy components that sunk to the bottom and were subsequently separated from the organic stream include ferrous metals, non-ferrous metals, glass and other inert materials.

These materials travel down a processing line, where they are separated by a number of methods, including a magnetic force, an eddy current and manual means.The remaining materials are returned to the dissolving tank and proceed to the light materials process.

The light organic waste, already separated from the heavy components, is transported through a conveyor into a trammel, where strong water streams wash the materials and they entera rough screen where the smaller elements go through the holes to a hydro-crushing unit. The large items proceed to a sorting conveyor, where the PET and HDPE are screened out manually, the metals are taken with a magnet, and the film plastic is blown out by using an air sifter. The rest of the materialsenter into a rough shredder and then to the hydro-crusher.

The biodegradable material enters the filtering systems. Here, the residual contaminations are filtered out, and the grit, sand, broken glass, and small metal elements, are screened out using a settling vat.

Larger elements go through a secondary air sifter and then return for a second cycle in the system, or out to be landfilled.

The remaining energy rich organic watery solution, referred to as biological soup, contains biodegradable material, organic matter, paper and other substances that can now be treated in the bio-reactors to yield fertilizer, water and biogas.

In the biological reactors section the fluid undergoes another two processes, both of which are orchestrated by naturally occurring microorganisms.

In the first bioreactor tank, acetogenic fermentation transforms complex organic material into simpler organic acids and fatty acids. This acid rich organic matter is then heated up to 36-40 degrees Celsius, and transported to the Methanogenic Fermentation reactor, for anaerobic degradation of the organic materials and the generation of clean fertilizer, water and biogas.

The Biogas is used for energetic needs and for heating the Methanogenic tank.

Area occupation: A 2-line plant needs about 12,000 square meters, including ramps and roads.

Environmental impact:

  • No smell or other pollution.
  • Treating the excess water to the municipal/state standards.
  • Organic fertilizer in the highest standards.
  • Arresting all Methane and a torch for excess gases.

Estimated man power: About 12-15 workers (Including Manager, Engineer, and a few sorters).

Average Power consumption: 0.7 MW. Can be self supplied from the power produced.

Bio-gas production: 20,000-30,000 cubic meters daily with about 75% Methane content - depending on the amount of organic part in the waste .

Electricity power produced: 2-2.5 MW with gas generators (38% efficiency) – depending on the amount of biodegradable organic material entered.

Soil ammendment produced: 20-30% of the biodegradable dry weight input (dry weight).

Intellectual Property Protection

The U.S patent was registered on April 2002.

European patent was registered on May 2003.

The Tel-Aviv Industrial plant – Active from 2003

Biological and Energy systems

.

Appendix A

Israeli Municipal Solid Waste reference

Appendix B

The contents of the Pre-Plan

  1. The purposes goals of the Pre-plan phase:
  1. To have a more accurate estimation of the cost to construct the project.
  2. To choose the right positioning of the project (or to suggest alternatives).
  3. To define the infrastructure works needed in order to construct the plant.
  4. To understand the local standards and prepare needed datafor permissions approvals.
  1. In order to achieve the above goals, a study should be started as soon as possible.
  1. This study and pre-project planwill include:
  1. Visiting the proposed site with Arrow's management and engineering personal.
  2. Studying of the site's plans and limitations (local company’s help needed).
  3. Studying of the local regulations and standards (local company’s obligation).
  4. Studying waste characteristics and waste disposal timings and dynamics (local company’s obligation).
  5. Studying the proposed relations between the ArrowBio plant and the landfill.
  6. Meeting the construction and infrastructure people that will work on the project, and meeting with potential sub-contractors (local company’s help needed).
  7. Meeting sub-contractors to estimate their costs and evaluate their capabilities.
  8. Defining the machinery needed and the preferred vendors.
  9. Requesting for machinery price proposals.
  10. Planning alternatives for positioning of the plantat the site.
  11. Calculating estimated products from the plant, according to statistics of input waste (statistics of waste, to be provided by the local company).
  12. Calculating environmental issues concerning the planned plant, andplanning alternatives according to local standards and regulations (local company will provide the local standards).
  13. Making the "first order" of planning that will support the requests for permissions.
  14. Making a "best estimation" of costs and time-lines for the design, construction, procurement, integration, training, operational and technical literatures, management of run-up phase, and technical assistance through the life-time of the plant.
  15. Making a general design, positioning and alternatives of the plant.

Arrow Ecology and Engineering Overseas Ltd Tel: +972-4866-8707 Fax: 4866-3929

Web site: e-mail: