1. Reconstruction of K4 Boiler for Biomass Combustion

2. Martinská teplárenská, a.s.: The company Martinská teplárenská (MT, a.s.) is a heat source which produces heat together with electric energy, and supplies it into the central heating supply system. Installed performance of main heat equipment: Boilers Performance (MW th ) K4 (fuel 100% wood chips or 100% natural gas) 60.0 K5 (fuel 100% brown coal or 100% natural gas) 60.0 K6 (fuel brown coal, stabilization with natural gas to 30%) 119.0 K7 (fuel brown coal, stabilization with natural gas to 30%) 119.0 In total358.0 Annual electric power production: approx. 60 000 MWh Annual heat supply to the distribution system: 1 116 797 GJ Reconstruction of K4 Boiler for Biomass Combustion

3. Reason:Reduction of emissions, SO 2 primarily - harmonization with legislation - year  2003design intent  2004feasibility study  2005 project for building permit  2005application for financing by the Structural Funds of the Ministry of Environment of the Slovak Republic - rejected two times  2008proposed financing from the sale of CO 2 saving and privileged price of electric power produced from renewable energy sources  2010 completion and delivery of the construction into use Reconstruction of K4 Boiler for Biomass Combustion

4. Division of the Project: A boiler reconstruction B biomass fuel management VO ensured by means of the journal of European Union ZOD for reconstruction of the boiler II.Q./2009 – Metso Power OY ZODfor biomass fuel management IV.Q./2009 – Váhostav-SK, a.s.

5. Reconstruction of K4 Boiler for Biomass Combustion K4 before reconstruction: 75 t/hr., 60 MW, 450 °C, 5.7 MPa  high-pressure steam boiler  fuel: brown coal, powder combustion  100% performance also with natural gas

6. Reconstruction of K4 Boiler for Biomass Combustion Heating plant thermal diagram.

7. K4 after reconstruction  parameters unchanged, the only change concerns the fuel, brown coal is to be replaced by wood chips.  the boiler is reconstructed for fluid combustion in bubbling fluid layer  Stoker HYBEX Reconstruction of K4 Boiler for Biomass Combustion

8. Operation of the boiler K4:  throughout the summer season  transitional period up to maximum performance  in the winter season (January, February) with a big coal boiler  expected consumption 60-70 th. tons of wood chips = compensation for 1/3 of coal  basis for delivery – long-term contract with the state enterprise Lesy SR, š.p. Reconstruction of K4 Boiler for Biomass Combustion

10. BFB CFB Reconstruction of K4 Boiler for Biomass Combustion

12. Emissions: before after (mg/m 3 )(mg/m 3 ) TZL 40 30 * SO 2 1700 200 NO x 600 400 CO 250 250 TOC 50 * /polluting solid substances/ **/total organic carbon/ The Project does not solve TZL, the adjustment shall be proposed in line with the actual state CO 2 from biomass is not included, it is neutral Reconstruction of K4 Boiler for Biomass Combustion

13. Disassembly of combustion chamber

14. Reconstruction of K4 Boiler for Biomass Combustion Disassembly of steam superheater

15. Reconstruction of K4 Boiler for Biomass Combustion Disassembly of drying shafts

16. Reconstruction of K4 Boiler for Biomass Combustion Disassembly

17. Foundations for biomass container

18. Area ready for storing place – before the action commencement Reconstruction of K4 Boiler for Biomass Combustion

19. Area for storing place – before completion

20. Reconstruction of K4 Boiler for Biomass Combustion Area for access road

21. Reconstruction of K4 Boiler for Biomass Combustion Works on the new entrance for bringing wood chips at the beginning

22. Reconstruction of K4 Boiler for Biomass Combustion Works on the new entrance for bringing wood chips before completion

23. Reconstruction of K4 Boiler for Biomass Combustion Works on the new entrance for bringing wood chips before completion

24. Reconstruction of K4 Boiler for Biomass Combustion Aerial view on the construction site before completion

25. Completion of the reconstruction by April 30, 2010 Completion of the reconstruction by April 30, 2010 Elaborated by: Ing. Miroslav Kadlec Trade, Development and Strategy Manager Martinská teplárenská, a.s., www.mtas.sk e-mail: miroslav.kadlec@mtas.sk, e-mail: miroslav.kadlec@mtas.sk, Tel. No. +421 905567723 Tel. No. +421 905567723 In Martin November 18, 2010 Thank you for your attention. Thank you for your attention. Reconstruction of K4 Boiler for Biomass Combustion