Torrefaction at Topell

TOPELL ON TORREFACTION
LEADERS IN TORREFACTION TECHNOLOGY

TOPELL ENERGY HISTORY
GLOBAL TOP 3 UTILITY AS INVESTOR, WORLD’S LARGEST PLANT, VARIOUS REWARDS
2005
3.5 MW biomass
gasifyer on
waste wood
2008
Pilot plant
in operation
2011
Proof of 8 mt/hr+
production
2007
Proof of 100 seconds
torrefaction pilot
2010
65 % senior project
debt ($15 million)
financing by RABObank
2010
Construction finished
6 months
after start
2012
Start of construction of
80.000 mt
systems
2006
Start of torrefaction
R&D
2008
RWE Innogy takes 25%
share in Topell
2009
RWE Innogy and Topell
close B-round
2010
300.000 mt sales
contract with
Essent(5 yrs)
2010
Start construction
Duiven Plant

BIOMASS IS A KEY RENEWABLE FUEL NOW AND IN THE FUTURE, AS
CONFIRMED BY UTILITY SECTOR EXECUTIVES
EU-27 mandated final renewable energy consumption
(TWh)
Hydro
Wind
Solar, geothermal,
tidal and wave
Bio-fuels for transport
Biomass and waste
1,330
20% of final
energy
consumption
3,030
380
370
280
350
“Torrefied biomass provides a great opportunity
not only for RWE but also for the Netherlands as a
whole."
Leonhard Birnbaum, COO RWE
“Electricity generation from biomass has the
potential to grow significantly and make a vital
contribution to meeting the UK’s challenging
renewables and climate change targets at least
cost to UK consumers.”
Dorothy Thompson, Chief Executive of Drax
8% of final
energy
consumption
310
100
30
1,650
90
800
2007 2020 scenario
"The entire Vattenfall Group is fully engaged in
changing our power plants and production
methods such that we can meet the expectations
that world has on us to provide clean,
environmentally friendly energy,"
Hans von Uthmann, VP Vattenfall
Source: ‘Biomass for heat and power: opportunity and economics’. Report by Vattenfall, SÖDRA, SVEASKOG, and the
European Climate Foundation, with the assistance of McKinsey. Published June 10th 2010
3

TORREFACTION PRODUCES COAL-LIKE PRODUCT
INVOLVES THERMO-CHEMICAL TREATMENT OF BIOMASS
Biomass
(pellet, chip)
Torrefied
biomass
Coal
Tough
Yes
No
No
Fibrous
Yes
No
No
Hydrophilic
Yes
No
No
Biodegradable
Yes
No
No
Heterogeneous
Yes
No
No
Poor energy density
Yes
No
No
Sustainable fuel
Yes
Yes
No

TOPELL TECHNOLOGY CHARACTERISTICS
IT TAKES 100 MILLION YEARS TO MAKE COAL NOW TAKES 100 SECONDS
•Process time of 100 seconds.
•No moving parts(low
maintenance)
•Proven reactor technology
•Heat transfer 40++ times faster
than plug flow reactors
•Ability to precisely control
product specifications
• Low energy consumption
•Scalable to 25 mt/hr+

THERMAL EFFICIENCY TOPELL PROCESS IS 95%+
UTILIZATION OF COMBUSTION OF TORREFACTION GASES DRIVES HIGH EFFICIENCY
0,06 0.1
kg
0.52
0.79
MJ
8.3
7.9 MJ/kg ar
Torgas
Combustion
heat
1,00
8.3
8.3
0.94 0.47
0.37
7.8 8.9
8.0
8.3 19.0 21.7
Biomass
Drying
Dried
Biomass
Torrefaction
Torrefied
Biomass
1. Feed is 50% moisture biomass.
2. Biomass co-combustion is zero at 35% or less moisture(autothermal point of
operation)
3. Over 100% thermal effieciency possible due to exponential increase in LHV when
reducing moisture from 50% to 0%

BIOMASS, AND MORE SPECIFICALLY TORREFIED BIOMASS, IS A COST
COMPETITIVE RENEWABLE ENERGY FUEL
ENERGY PRODUCTION COSTS ANNO 2010 (€/MWH)
200
175
150
125
100
75
50
25
0
Coal
Wind
onshore
Gas
Torrefied
pellets
Biomass
dedicated
Wind
offshore
Oil
Solar PV
1. Torrefied biomass: base load + renewable
2. Wind & solar: renewable
3. Gas, oil, coal: base load
Source: Roadmap2050.eu
7

TORREFACTION RESULTS IN SIGNIFICANTLY LOWER
COSTS IN THE ENTIRE VALUE CHAIN
COST COMPARISON BASED ON THE SAME PHYSICAL VALUE CHAIN USD/GJ
12
11.07 $/GJ 9.30 $/GJ
Savings
Logistics
10
8
4,16
2,55
1,01
O&M cost
Financial
cost
Process
cost
Cost of
Biomass
6
4
2
0
0,70
1,77
4,44
Landed costs of
Wood Pellet
2,28
3,45
Landed costs of
Torrefied Pellet
0,53 0,53
1,4 1,4
1,78 1,78
Savings landed costs
Investment cost
Avoided cost at
utility
*Feedstock cost includes: delivered chipped cost of whole logs for wood pellet; whole logs and logging residues for torrefied pellet assuming 50% moisture
content
**Process cost includes: electricity, labour, SG&A, binding agent, royalty and other operating costs
***Financial cost includes: depreciation, interest on debt
****Logistics includes: the cost of transportation and handling from plant to power plant
3.71 $/GJ
Total saving
8

TORREFACTION BASED ON TOPELL TECHNOLOGY
PROVIDES A SOLID VALUE PRPOSITION TO ITS CUSTOMERS
Deapsea freight costs
($/ton)
POSSIBILITY OF LONGTERM TAKE-OFF AGREEMENTS SECURE STABLE CASH FLOWS
Torrefaction plants' IRRs depends on 2 main cost drivers
Assumptions
Biomass (40% moisture, chipped)
($/ton)
Transport costs (EUR/ton) 16 22 28 34 40 45
28 40% 36% 32% 27% 24% 21%
36 38% 34% 29% 24% 21% 18%
44 36% 32% 27% 21% 18% 14%
51 34% 29% 24% 18% 14% 9%
58 32% 27% 21% 14% 9% 2%
• A greenfield project costs $28 mln for
100,000 ton plant
• 40% equity financed, 60% is bank debt
financed
• Sales prices $11.50/GJ CIF Rotterdam.
• Staff 25
likely
either unlikely or not viable
• All costs included
• Average local corporate taxation: 25%
IRR for the plant owner > 20-25%, which is a relevant return
for large number of customers

TOPELL ENERGY HISTORY
FROM A PLAN TO REALITY TAKES 6-8 YEARS AND SIGNIFICANT CAPITAL
Stage I. Stage II. Stage III. Stage IV.
€0.5-1M* €2-3 M* €20-25M* €35-50M*
Idea Pilot Plant Commercial Plant International Roll Out
- Conceptbusiness
plan
- Planning
- License
- Organization
- Engineering
commercial
plant
-IP portfolio
-R&D
- Bank financing
- Commissioning
- Sales contract
- Process know
how
-Organization
-R&D
-Engineering
-Process know
how
* Cummulative capital expenditure

TOPELL TORREFACTION PLANT
PELLETS PRODUCED AND PRODUCTION BOOSTED