1. © Clearfleau Advances in Smaller Scale, On-site Anaerobic Digestion - For The Food Industry Dundee - 4 th August 2013 www.clearfleau.com

2. © Clearfleau Process - Liquid residues + solids Market - Current projects include:  Milk & Dairy Products  Confectionery & Food  Distillers & Brewers  Biofuels, Fats & Oils On-site AD - Commercial Benefits  On-site energy supply  Biogas from COD removal  Possible grey water re-use  Revenue and cost reduction  Wider environmental benefits CLEARFLEAU OVERVIEW

3. © Clearfleau UK AD Market - 3 Core Sectors: Municipal:landfill diverted materials diverse feedstocks Farm: slurry and crop residues lower cost technology Industrial: bio-degradable materials on-site heat & power Scottish Food & Drink sector :  Ban on landfill disposal  Escalating energy costs  Treatment capacity limits  Effluent discharge consents  Revenue generation potential EVOLVING MARKETPLACE

4. © Clearfleau On-site Energy Generation  Combat escalating energy costs  Reduce electricity purchase  Also significant heat output Water Recycling & Re-use  Integral digestate treatment  Diageo site - river discharge  Next: on-site use of grey water Carbon Emissions Reduction  Replace aerobic treatment  Remove off site transport  Reduce fossil fuel energy  Recycle nutrients to land Other Technology Options  Composting - energy loss & cost  Aerobic - ROI & carbon footprint  Centralised AD - exporting value  UASB AD - very low solids (brewers)

5. © Clearfleau Carbon Benefits of AD ANAEROBIC DIGESTION PROCESS LOW STRENGTH Divert from Sewer Discharge BIOGAS HEAT SAVING Carbon Reduction POWER SAVING Carbon Reduction DIGESTATE NUTRIENTS Carbon Reduction AEROBIC TREATMENT High Methane Emissions GAS TO CHPGAS TO GRID HEAT SAVING Carbon Reduction HIGH STRENGTH Production Residues and Co-products CO 2

6. © Clearfleau Key Commercial Drivers Landfill Ban from 2014 - but also  Carbon and energy costs  Environmental impact of waste  Customer expectations  Outdated technologies Incentives - FIT FIT - but degression from 2014  15.16p/kWh - <250kW  14.02p/kWh - 250kW to 500kW  9.24p/kWh - >500kW Incentives - RHI Phase 1 - Bio-methane + 200kW heat Phase 2 - larger CHP from April 2014  7.5p/kWht - gas to grid / < 200kW  5.9p/kWht - (2014) 200 - 500kW  2.2p/kWht - (2014) > 500kW.

7. © Clearfleau l UK - Renewable Incentives - p/kW 2011/ 2012 Potential Revenue Apr 2012 Apr 2013 Apr 2014 FIT < 250kW14200kw/h = £220k14.715.1614 FIT 250 to 50013450kw/h = £460k13.714.0213 FIT > 5009.5900kW/h = £675k8.969.248.96 RHI Phase1 6.8199kW = £107k7.17.37.5 RHI Phase 2 -499kW = £232k--5.9

8. © Clearfleau On-site cost reduction  Discharge fees  Energy savings  Operation costs Government support  Renewables incentives  Grants (feasibility only)  Carbon reduction (tax?) Attractive return on investment from incentives & savings. BUT - Development of British AD sector now at risk due to Government plans for degression of under 500kW FITs. Financial Benefits for On-site AD

9. © Clearfleau Distilling & Brewing Conversion of Co-products  Spent grain pressings  Process residues  Wash waters Drivers for Distillery Sites  Sector expansion  Energy consumption  More remote sites Drivers for Brewers  Growth of micro brewers  Energy & carbon  Confined Industrial sites Drivers for Bio-fuels  Energy consumption  High energy residues  Environmental impact

10. © Clearfleau

11. On-Site Digestion for Food Processors Range of Opportunities: Lower solids  Soups and sauces  Food ingredients  Fats processors  Confectionery  Fruit and jams Higher solids  Vegetable growers  Bakery and starch  Meat processors  Ready meals  Food preparation  Some packaging materials

12. © Clearfleau

13. Technology Profile  Demonstration sites  Scale - risk & reward  Industry awareness Wider Benefits  Carbon reduction  On-site energy  Water recycling Future Challenges  Smaller scale  Carbon incentives  Membranes  Microbial fuel cells On site AD - Major Opportunity, not just in UK but across EU DEVELOPING THE SECTOR

14. © Clearfleau Small-scale Solutions Support from WRAP:  Brewery Co-products  Containerised AD unit  Membrane thickening  Plug and play solution  Biogas to on-site boiler Diverse Opportunities  Micro-breweries  Speciality Cheese  Ice cream & desserts  Pharmaceutical  Food ingredients

15. © Clearfleau Industrial digestion systems need to handle liquid and solid residues, plus by-products, including those containing fats and sugars. On-site AD should combines treatment efficiency with significant cost reduction and carbon savings. DairyDistilleriesBio-fuels Opportunities for on-site plants in these sectors: Food and Drink

16. © Clearfleau Innovation and Systems Development

17. © Clearfleau For more information please contact Richard Gueterbock on: t: 00 44 (0) 844 477 6292 m: 00 44 (0) 771 098 6838 e:info@clearfleau.com www.clearfleau.com