1. MINISTRY OF NATURAL RESOURCES AND ECOLOGY FEDERAL SERVICE FOR SUPERVISION OF NATURAL RESOURSCES USE Waste management in Russian Federation Chief Vladimir Vladimirovich Kirillov Belgium 28 October 2010

2. Currently, in the territory of the Russian Federation in waste dumps and stockpiles are accumulated more than 94 billion tons of solid waste Over the past 5 years the total amount of waste produced in Russia increased by 1.5 times General situation in waste management 2

3. City Population Volume of waste (t/year) Volume of SDW (t/year) Waste paper (t/year) Ferrous metal (t/year) PE (t/year) LPP+ HPP (t/year) Base metal (t/year) Glass (t/year) N.Novgorod 1 311 000307 026220 336102 6253 9354 32055110 492 Samara 1 158 100271 218 9 26923193 47638164879 269 Omsk 1 133 900265 550190 5719 0752 2703 4033 7374769 075 Rostov 1 070 200250 632179 8668 5652 1433 2123 5274508 565 Ufa 1 047 600245 340176 0678 3842 0973 1443 4524408 384 Volgograd 1 012 800237 190170 2188 1062 0283 0403 3384268 106 Perm 1 100 000257 611184 8748 8042 2023 3013 6254628 804 Ykaterinburg 1 293 000302 810217311102 5893 8814 26154310 348 Kaluga 334 75078 39656 2612 6796701 0051 1031412 679 Tver 408 90095 76168 7233 2738191 2271 3481723 273 Total109772502570285184491687853218973294536175461287853 Assessment of volumes of MSW and secondary resources for several cities of Russia 3 Note: PE – polyethylene LPP – Low-pressure polyethylene HPP – high-pressure polyethylene

4. Disposal and utilization of MSW 4

5. The most widely used ways of storing and processing of MSW 1. Pre-sorting 3. Incineratio n 2. Sanitary dirt fill 5

6. The main economic benefits of pre-sorting 1.Return of recycled materials in processing due to what saving of natural resources of oil, ferrous and nonferrous metals is made, which are irreplaceable natural resources, and also due to sorting it is possible to reduce the need of cellulose industry in wood raw material that has a direct environmental effect on conservation of forest lands. 2. As a result of the solid waste sorting and reuse of sorting products the volume of solid waste reaching the disposal of waste at landfills decreases, as the major sorted products are waste with long expansions (PE, HPP and other plastics), decrease of landfill reclamation and return of lands allocated for it to the utility take place. 3. Not a few important effect of reducing the volume of solid waste to be disposed of is to reduce the land needed for landfills for disposal of solid waste and allocation of these areas for agricultural use. 6

7. Sanitary dirt fill Household waste Landfill gas Landfilling Biogas energy complex 1 tons 100 m3 7

8. Incineration level of municipal solid waste in some countries France Italy Austria Germany 20-40% BelgiumSweden 48-50% Japan 70% DenmarkSwitzerland 80% EnglandUSA Russia 2% 10% Moscow 10% 8

9. Waste sorting systems in Russia Tolyatti Belgorod Moscow St. Petersburg Voronezh Ufa Arkhangelsk Barnaul 9

10. Assessment of volumes of MSW and extracted secondary resources for several cities of Russia 10 Note: PE – polyethylene LPP – Low-pressure polyethylene HPP – high-pressure polyethylene

11. Forecasted annual gross revenue for some cities in Russia(euro) 11 Note: MC – waste paper PE – polyethylene LPP – Low-pressure polyethylene HPP – high-pressure polyethylene

12. Cost of services for export of solid waste in some regions of Russia (euro) №CityRate / person / month Rate / person / year Population, person 1Moscow0,374,4210 101 500 2St. Petersburg0,273,254 668 400 3Voronezh0,182,12848 700 4Kursk0,141,69412 600 5Yaroslavl0,141,72613 200 6Ryazan0,202,43521 700 7Lipetsk0,192,23506 000 1212

13. Pilot projects of Rosprirodnadzor in Kemerovo, Belgorod, Kirov and Kaluga Regions Kemerovo region Kaluga region Russian Federation 1313 Belgorod Kirov region

14. Project purpose Improvement of slum populated areas of municipalities of the Kemerovo, Belgorod, Kirov and Kaluga Regions Involvement in recycling of useful components contained in the consumption waste Creation of a modern system of treatment of consumption waste, including transportation, sorting and disposal 1414

15. Project task Modernization of appropriate enterprises of utilities complex in view of the developed complex system of treatment of consumption waste in population Establishment of sanitary epidemiological service meeting the current requirements of the order of operation of landfills for disposal of consumption waste and working conditions of staff Organization of design and construction of efficient waste sorting complex providing deep recycling of consumption waste 1515

16. Source of incomes Payment by business enterprises for acceptance and disposal of solid waste Payment by municipal enterprises of housing and utilities services for acceptance and disposal of solid waste Income from sale of sorted secondary raw materials 1616

17. Project risks MarketingTechnologicalLegal Possible lack of regional municipal rates for acceptance and disposal of solid waste without the appropriate cost-based rates, which may affect the value of sales revenue Less than taken in the project percentage of recycled output, which may be related to morphological composition of MSW of the specific regional project Connected with possibility of increasing expenses and estimated cost of the project relating to implementation of regional projects. At this stage, the risk can be defined as the average because it mainly depends on the expenses connected with the preparatory work and arrangement of land Connected with possibility of non-license or permit under the competence of regional authorities. This kind of risk can be estimated as low, cause in all pilot regions there are letters of the governors about the readiness of territories to participate in pilot projects 1717

18. № п/п SubjectRights holder Purpose of the investment project Expectations Belgorod region, Kaluga region, Kemerovo region, Kirov region 1 Designing and building of block-modular plants of complex processing of MSW Transport company «Ekotrans ltd» Group of companies GRAS Creation of complex system of processing of MSW by a principle of territorial zoning. Capacity of each plant at two-shift work - 40 thousand tons of MSW a year, at three-replaceable – 60-70 thousand tons a year. It will allow to process from 280 to 490 thousand tons of MSW a year. Application of innovative technologies increases selection of secondary raw materials to 30-35 %, division of the remained weight of a waste into 2-3 streams, processed depending on structure in boiler and furnace fuels, carbon, organo-bacterial fertilizer and-or biogas. Decrease volume of nonrecycled waste products in 5-7 times which provides landfills reduction and its negative influence on environment. 2 Designing and building of waste processing plants in synthetic fuel in accordance with euro standards EN 590 on technology "DiNaMo" (Thermolyne Process®) Capacity of each plant at two-shift work 80-87 tons a year that will allow to process about 600 thousand tons of MSW a year. Application of Thermolyne Process, based on connection of well-known processes: thermal cleavage, gasifications, gas purification, Fischer Tropsch synthesis and cleavage in one industrial cycle on kerosene and diesel oil manufacture, allows to receive liquid oil. “Dinamo” works at atmospheric pressure in the closed cycle that excludes emissions in atmosphere hazardous substances (furan dioxins, СО, СО2). The initial raw materials can be in the firm or liquid form that provides joint loading of the mixed waste of different origin. 3 Building of fuel complexes based on deep plasma and hydrogenic processing of organic waste and also on effective processing of oil fractions together with units of selective hydroclearing, ozonizing, fractionization by disperse units to product motor oil in accordance with Euro -4 and Euro- 5 standards (fuel and diesel oil), and also building and road materials (f.e. heaters and cement). Scientific and engineering company «RUSEKOIL» Building non-polluting and competitive fuel complexes with reception of a highly profitable commercial output 1. volume reduction of waste and emissions in atmosphere hazardous substances 2. Additional financial possibilities for realization of social and economic development program of municipalities with fiscals revenues in budgets of all levels. 3. Market saturation with high-quality production 4. involvement of labor 5. Effective use of scientific and industrial potential of Russia in entering foreign markets with products and equipment created within the framework of the project Effectiveness 1818

19. Thank you for your attention! 18