Biomass Canada Ltd.

10308 - 129 Avenue Edmonton, Alberta T5E 0J9 Tel: (780) 473-6110

Introduction of Biomass Canadas Gasification Unit

Updated March 15. 2007
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Biomass Canada Ltd.

Confidentiality Notice Statement
All information contained in this document is intended for evaluation purposes only. Information, data and graphics exclusively belong to Biomass Canada Ltd., and are confidential and not to be used or copied without written permission from management. No information is to be shared outside of the intended parties. Any misuse of this report is strictly prohibited.
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Biomass Canada Ltd.

Mission and Vision Company Overview Engineering Summary Business Opportunity Capital Cost Industry Overview Gasification Unit Operation overview Models, Products & Service Future Initiatives
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Biomass Canada Ltd.

Mission and Vision
Waste disposal technology of tomorrow, available today at the forefront as leaders in gasification energy technology Providing Solutions make Biomass gasification units available globally as a power source for all energy consumers, notably to those in rural and urban areas, unable to utilize traditional sources such as oil, natural gas or diesel fuel. Responsible Alternatives provide a viable and environmentally sound alternative power source to energy consumers. Employ and recycle waste materials to create socially responsible energy.

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Biomass Canada Ltd.

COMPANY OVERVIEW Biomass Canada Ltd., (Biomass Canada, The
Company), is a privately held company registered in Alberta, Canada. Biomass has developed a patented gasification process, capable of converting waste material into a high-grade synthesized gas (SYN GAS). This gas can be used to generate electricity, supply gas for heating, also can provide an alternative fuel for petroleum. The SYN GAS produced and used in an engine produces less pollutants and emissions compared with those produced for example, by Biomass Canada Ltd. 5 natural gas.

Biomass Canada Ltd.

COMPANY OVERVIEW
Biomass Canada has designed, fabricated and tested a gasification unit and has completed all of the preliminary engineering for a six-foot diameter commercial model. The engineering group Sigma 3 Engineering Limited, (Sigma3) considers a 6 foot diameter gasification unit to be viable.
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Biomass Canada Ltd.

Biomass Canada Ltd.

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Biomass Canada Ltd. Gasifier Meeting Summary FYI
Here is an improved gasification process developed by an Alberta inventor that converts 100% of the biomass into gas without creating any CO. Since it is a closed system the gasifier produces no emissions and the fuel created produces lower NOX emissions than natural gas. This has great potential as a Clean Coal Technology, in addition to it's potential for renewable/or green power (when wood or agricultural residues are used as a feedstock). David J. Patterson RPF #248 Senior Researcher Wildland Fire Operations Research Group Forest Engineering Research Institute of Canada 780-422-4565 Edmonton Office
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BUSINESS OPPORTUNITY AND TIMING
Biomass Canada has pinpointed a need in the marketplace for efficient and cost effective gasification units, and has found this to be an expansive, lucrative venture for potential investors. Biomass Canada plans to offer the most timely, affordable and effective gasifiers available. To date, Biomass Canada Ltd. has cultivated relationships with various interested parties which include Municipalities, Native Bands, Saw Mills, Farming Communities, as well as off-shore interests in Guatemala, Chile, South Africa, and Denmark.
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TIMING

Working to reduce Canadas greenhouse gas emissions by about 65 mega tonnes per year between the years 2008 and 2012, with the remainder of the Canadas Kyoto target to be addressed through future national emission reduction plans;

TIMING

TIMING

TIMING

TIMING

The development of specific key initiatives, include the reduction of motor-vehicle emissions through greater fuel efficiency and the development of new fuels and fuel-cells; the reduction of energy sector emissions (i.e. the oil, natural gas, and electricity industries) by increasing the sectors ability to capture and store carbon emissions during production; the reduction of emissions in the industrial sector.
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INDUSTRY OVERVIEW Biomass Canadas gasification technology is being developed to provide economical and renewable power by eliminating waste disposal problems and at the same time be environmentally friendly. These gasifiers will be invaluable to the people in the communities they serve.

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CAPITAL COSTS
To maximize market potential, Biomass Canada is seeking acquisition of funding to provide a viable up-scaled unit and, in doing so, upgrade their gasification system to a commercial status. The ultimate goal is to build a commercial-sized unit calculated at $58,000,000.00 (CDN), using allnew equipment.
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Biomass Canada Ltd.

INDUSTRY OVERVIEW
Various companies in the United States, Canada, Australia, Germany and other countries are currently working with different gasification models. Many of these companies are faced with challenges such as insufficient heat generation, fabrication quality or high production costs. Biomass Canada has improved this gasification technology with a unique, patented design that can generate and produce more power than any current model.
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Biomass Canada Ltd.

GASIFICATION UNIT Operation Overview
Biomass Canada has developed and tested a working model of the gasification unit. The model was found to produce SYN GAS, comprised of approximately 40% Hydrogen. The approximate 1 ft wide * 5 ft high unit was diligently tested and found to produce 318 BTUs per cubic foot This Syn Gas contained no carbon monoxide or noxious materials. The current working model has been used to run a 250-amp gasoline welder that produces 28 kilowatts of power. During the test, SYN GAS had to be burned off due to excess gas generation from the unit. The gasification unit is of a sealed downdraft stratified and patented design made up of zones or layers. These layers consist of the raw material zone, the flame zone, the charcoal zone and the coalzone. Any type of combustible raw materials such as sawmill waste, railway ties, wood demolition material, rubber, oil refinery coke, coal, etc., can be used as fuel.
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GASIFICATION UNIT Operation Overview Gasification Zones
The unit is a closed system and operates on a slight negative pressure so there are no emissions or noxious odors whatsoever. The raw material is loaded into the top of the unit through a rotating valve assembly (much like a revolving door) by conveyor. These materials are fed into the top of the Fuel magazine and work their way down into the flame zone. Here it is combusted by a controlled burn. The smoke and water vapors rise and the remainder is turned into charcoal smoke, tar and water vapor. At this point the oxygen in the air stream is used up, the combustion ceases, and the gasification process commences.
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Biomass Canada Ltd.

Air is drawn into the gasifier through the air manifold into the flame zone where, pure oxygen is added at a rate of 20% to the air stream. This process enhances combustion and also rids the gas of most of the nitrogen that is drawn in with the atmospheric air. At this point the oxygen is used up in combustion and becomes inert. The height and size of the flame zone is controlled by the amount of air and oxygen permitted to enter the gasifier. The vortex tubes serve a dual function. They permit smoke, tar, and water vapor to be reintroduced down into the charcoal zone, which enhances the flame zone efficiency. At the lower end of the tubes the reaction of the smoke, tar and water vapor being cracked into gases creates a slight negative pressure causing a vortex flow in the fuel magazine.

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WORKING GASIFICATION MODEL

2300F to 2600F

The smoke and water vapour rises and revolves back through the re-circulating tubes. Its then drawn back into the unit below the flame zone. This creates a vortex flow, which enhances combustion. At this point the charcoal begins to give off gas, smoke and water vapours which is drawn down through the coal zone. The heat in the coal zone ranges from 2300F to 2600F. As the smoke, water vapour and gas from the charcoal are drawn down through the coal zone; they are broken down and become completely gasified. The process works very much the same way a cracker in an oil refinery operates (only gas is produced, not a liquid). The remaining material turns into ash, 0.25% by weight of the raw material remains, after the process is completed.
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2300F to 2600F
The SYN GAS from the gasification process contains 56% + Hydrogen HHV and 40% + LHV which could be used for hydro cracking of heavy oil in a refinery. (See attached gas analysis that was carried out using wood waste as a fuel source) Biomass Canada does not see any problem handling Coal or Refinery Coke that contains moisture content between 35 to 40%. It would be preferable if the Coal and or Coke had a lower moisture content for the Briquetting process, but we believe that this is not an insurmountable problem.
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3.3 Scale up to a 4 foot Model Biomass Canada is seeking $ 27,967,952.00 cdn dollars to scale up their Gasifier from the small prototype to a 4 foot commercial sized unit. This scaled up gasification unit will be used to accomplish the following steps that are required before these units are placed on the market. 1) To test the quality and quantity of the gas produced. 2) To test the construction materials to ensure that they stand up to the extreme heat that is generated in the Gasifier. 3) To test a wide range of raw materials such as sulphur coal, refinery coke, farm waste, plastics, wood, compost and varying mixtures of the above. 4) To test our concept of sulphur removal from coal and refinery coke in the combustion zone of the Gasifier, thus eliminating the need to scrub the sulphur from the gas prior to combustion in an engine or turbine. 5) To do comprehensive gas analysis of the gas generated from all of the different types of materials to determine exactly what they contain. 6) Do a complete analysis on the exhaust after the SYN GASES are combusted in an engine or turbine, to determine any pollutants and emissions. 7) Confirm our calculations on the amount of power that can be produced from different sizes of gasifiers and raw materials. 8) Confirm yields of gas per pound of material. 9) To test to see if the output of the Hydrogen content will increase by the addition of saturated steam and or water under pressure into the gasification unit. 10) Set up a Data Base for the different materials tested and what type of gas they produce. 11) Use this unit as a Research and Development Centre. 12) Invite potential customer to have their materials tested @ a nominal fee. 13) Have the Gasifier fully automated with all of the analytical equipment to check flows, temperatures, make up of gas, etc. 14) Have the feed and ash removal fully automated. 15) Make the Gasifier available to potential customers for inspection as part of our marketing strategy. 16) Operate our own generator sets so that we are self-sufficient in our power needs. Biomass Canada feels very confident that we have one of Albertas premier Engineering firms (Sigma 3 Engineering Ltd.) to do the as built drawings, and to do all of the engineering necessary to complete this project and make it successful. Check attached Equipment list on Page 17 for details of all of the necessary equipment and quoted cost prices, most of which comes from local suppliers. Due to the high costs involved in producing Hydrogen using electrical power it makes Biomass Canadas Gasification very attractive. Biomass Canada Ltd. 20

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A-1 Welder Exhaust 20 cfm Oxygen added to incoming air A-4 Welder Exhaust no Oxygen Air into Welder 58 cfm Exhaust from Welder 168 cfm SYN GAS is very clean and contains no carbon monoxide or noxious material. Biomass Canada has tested air quality levels using AGAT Laboratories. Biomass Canada Ltd.

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ECONOMICS: - competitive production of reliable electricity for industrial sites, small municipalities, and developing countries and synthetic natural gas and hydrogen $$$$$$$$$ ADAPTABILITY: - gases produced can be used in internal combustion engines, gas turbines and fuel cells with minimal conversion. The gas produced can also be used for traditional heating, kiln drying.

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Tested And Approved Raw Fuel Sources
WOOD CHIPS AND WASTE from pulp mills (ideal for remote location/island electricity generation). LOGGING CLEARCUT RESIDUE

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RAILWAY TIES (high creosote content is ideal for burning) As a result of the decommissioning of the railroads, these ties have been stacked in great piles. The high creosote content has created a challenge for disposal, which has posed an environmental hazard problem. These ties would be ideal, as they have been found to produce a high-grade SYN GAS and potentially low Biomass Canada Ltd. 25 emissions.

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Gas Usage
The SYN GAS created from these materials is ideal for providing heat and electrical power in any instance where natural gas, diesel or bunker oil is used. Every pound of wood waste processed, generates 35

cubic feet of SYN GAS.

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Potential Raw Fuel Sources
These resources are in the preliminary stages of testing. Biomass Canada and research staff feels extremely optimistic the following fuel sources will be just as efficient as the tested materials. Energy has been produced but emission testing is pending (upon completion of a full-sized working model). - Plastics (Over 800 varieties to be tested) - Rubber (Stock pile of used vehicle tires) - High Sulfur Coal - Agriculture Waste (Manure and other organic waste materials - Garbage (MSW) - Compost - Old Carpet (Left from renovations - 2,500,000 tonnes of used carpet per year is placed in landfills in N. America)
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MODELS, PRODUCTS and SERVICES
Biomass Canada will offer the following models and services: 3 ft gasification unit 4 ft gasification unit 6 ft gasification unit Yearly testing and maintenance services Inventory warehouse to house spare parts and equipment Multi-units Gasifier Unit Production: It is the intention of Biomass Canada to build the gasifier units on a contract basis by outside fabrication shops until such time that the Company is able to develop in-house Biomass Canada Ltd. fabrication facilities.

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FUTURE INITIATIVES
Biomass Canada has already made contact with numerous sawmills and other companies/communities who produce enough additional waste to potentially become self-sufficient in their everyday energy needs (i.e. generating heat for dry kilns at sawmills). Once the full-sized units have been fully tested, various groups have expressed keen interest in purchasing models. Some of these include: - Six sawmills in Northern Canada have expressed interest in forming a gas Co-op to run their operations - Many communities in Northern Ontario currently generate power with diesel fuel. Likewise, many northern reserves consisting of 200-250 people utilize 22.5 megawatts of power per day the amount just one 4 ft Gasifier has the ability to generate. These groups are looking into using SYN GAS to power their communities as a power alternative. - Two of Canadas major railroads expressed a keen interest in gasification technology as a means of disposing of old railway ties and creosote timbers in an environmentally friendly manner. - Test results were shown to a Caterpillar dealer who thought SYN GAS would be an alternative fuel to diesel and could be incorporated into their engines with modifications.
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BENEFITS OF THIS GASIFICATION PROCESS
1. No Emissions from the Gasification Process. 2. The SYN GAS is environmentally friendly when used as a fuel in an Engine and or Turbine bringing the emission levels below regulatory limits. 3. Each sawmill can be self sufficient by using the SYN GAS instead of Natural Gas and or Diesel as a fuel source to dry their lumber plus develop their own power source, and receive payment for extra power developed if connect to a power grid. 4. The payout period for the capital cost layout is less than 5 years on the investment. To discuss this process in further detail, please call the President of Biomass Canada Ltd. Mr. Lyle Carnegie 10308 129 Avenue, Edmonton, Alberta, T5E 0J9 Phone: (780) 473-6110
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Click here to view Gasifier Demonstration.IFO

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Biomass Canada Ltd.

10308 - 129 Avenue Edmonton, Alberta T5E 0J9 Tel: (780) 473-6110

Introduction of Biomass Canadas Gasification Unit

Updated April 5, 2006
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