Recovered Energy, Inc. Presents the
         Recovered Energy System TM

WHERE CAN I SEE AN OPERATING PLANT?

One of the first questions asked regarding the Recovered Energy System is where a person can observe a similar operating plant.

  1. There are as many as 100 plants around the world that use plasma systems to process a variety of materials. Most of these plants are used to vitrify incinerator ash. Others are used to process medical waste, hazardous waste, PCB's and other difficult types of waste. Others are used in the steel industry for melting iron. The industry has tested every conceivable type of waste in various pilot plants. The technical viability of plasma has been well proven for many years!

  2. There are only 3 plasma gasification plants in the world that have or are operating on municipal solid waste (MSW). These plants are located in Japan and were built by Hitachi using the Westinghouse Plasma Corporation plasma gasification process. The largest plant has a capacity of 300 tpd of MSW.

  3. Regardless of what anyone else says from any other company, there is no other plasma gasification process anywhere in the world currently processing MSW other than the plants built by Hitachi. REI cannot show you an operating plant at this time.


If Plasma Gasification is the best solution, the obvious question is WHY aren't there more plants processing MSW using plasma? There are 100 plants operating on numerous different types of waste-why not MSW? The answer is simple. The capital cost is very high, MSW has very low tipping fees and no one has ever worked out the economics in the past, UNTIL NOW! REI has developed a total model that overcomes the economic barriers that have existed in the past.

REI has determined that the following factors are necessary in order for a plant to be economically viable processing MSW:
  1. The larger the plant the better the economics become. The ideal size for a plant, considering factors such as transportation, operating cost, supervision cost, maintenance cost, etc. is 3,000-5,000 tons per day of MSW (other types of waste will vary).
  2. In order to maximize the production of electricity, the process should use a combined cycle gas/steam turbine to produce power. Unfortunately, the power industry has a small selection of turbines that are designed to run on low BTU synfuel. The ideal power plant that matches best with the existing turbines and other plant operating conditions is the GE 7FA or GE 9FA turbines or the Siemens V84.3 or V94.3 turbines. These turbines have a capacity of approximately 250 mWh for the 60 cycle turbines and 360 mWh for the 50 cycle turbines. REI believes that the best option is the GE 7 or 9 FA turbines.
  3. There has to be some form of subsidy. The subsidy can be in the form of higher tipping fees or favorable financing terms. REI has developed a funding source that provides subsidized financing that allows the tipping fees and power rates to be normal. The REI funding program also takes away any risk from the Licensee or the municipality.
  4. Based on all the factors considered by REI the optimum size of plant is a 3,000-5000 tpd plant producing between 250-360 mWh of electricity (at sea level). Smaller plants can technically be built but the economics for them will not be good and the fees will go up. REI can finance up to 3,000 tpd.


REI recognizes that there is a PERCEIVED technical risk associated with the Recovered Energy System™ because REI has not built a plant yet and no one has built a large plant. REI has considered all the technical issues very carefully and has done the following to assure the Licensee that the technical risks have been addressed:
  1. The plasma gasifier was designed based on the largest gasifier that Westinghouse has built in the past. The REI gasifier has been designed based on a plant built by Westinghouse for General Motors and which operated continuously for 13 years. GM used the system to melt iron but the reactor base design, torch design and power supply are identical. Each gasifier module is capable of processing 500 tons of MSW per day.
  2. The power plant is the identical plant that has been used for many years in the coal gasification industry, with almost identical synfuel.
  3. The gas cooling system is standard off-the-shelf equipment that has operated for many years with identical conditions.
  4. The gas cleanup system is standard off-the-shelf equipment that has operated for many years with identical conditions.
  5. The gas compression equipment is standard off-the-shelf equipment that has operated for many years with identical conditions.
  6. The water treatment system is standard off-the-shelf equipment that has operated for many years with identical conditions.
  7. The tipping floor is a standard tipping floor with conventional material handling equipment.
  8. The Recovered Energy Team includes Westinghouse Plasma Corporation, the patent holder and developer of the plasma gasification process; General Electric, the largest turbine supplier in the world; Innovative Steam Technologies, the world leader for once-through steam generators and the subsidiary of the largest construction company in Canada; TurboSonic, an affiliated company with Hamon, Research Cotrell, the largest pollution control company in the world; Kobelco, the largest gas compression company in the world and Power Engineers, one of the top 10 engineering companies in the US. The actual construction and installation of the plant will be done by a large general contractor, preferably one that is local. REI has assembled a dynamic and powerful construction team to insure that everything goes smoothly.

REI and its Project Team have taken every precaution possible to verify and make sure all the components compliment each other and work together properly and efficiently. REI and other members of the Project Team have performed thousands of computer models and have researched numerous items of equipment to make sure that the plant design is complete and accurate.

REI cannot guarantee that there will be no startup bugs to work out. Every major project has startup issues to solve. However, REI has designed a system that is relatively simple, uses standard components, uses known and proven suppliers and has been tested in numerous similar applications.

The Licensee and the local municipality should consider the Recovered Energy System™ primarily a power plant with an alternative fuel source. The power plant can run on either natural gas or synfuel or a combination of the two.

Solely for the sake of due diligence analysis (even though it is impossible), lets assume that the worst possible thing happens to the plant. There is no question about the power plant or the water distillation plant (if this option is selected), since these systems have thousands of installations worldwide. Lets say, however, that the gasification plant doesn't work at all. What is the outcome of this scenario? The outcome is that the plant continues to produce power and distilled water (if this option is selected). The plant will be profitable and will still employ a large number of people. The community is still the beneficiary of other humanitarian funding and the Licensee still makes a significant profit. The waste problem would be unsolved but without a Recovered Energy System the waste problem will be unsolved anyway because there is no other process currently known that can solve the problem. Now the worst case is not going to happen and the plant will work. The gasification process has been tested in too many situations and is currently operating successfully in other locations.

The REI business model takes away any risk to the municipality and Licensee because REI provides all the financing. The REI model provides the following benefits to the municipality and Licensee:
  1. Provides complete funding for the project in a way that has zero repayment risk or chance for foreclosure. The funding is subsidized.
  2. Provides hundreds of construction jobs and permanent jobs.
  3. Solves a waste problem.
  4. Provides a stable source of electricity.
  5. Provides a significant income to the Licensee and funding for community projects.
  6. Current tipping fees and power rates are generally not significantly changed from their current positions.


The Recovered Energy Team has not yet built a RES plant. At the same time every component in the plant has a proven track record in similar applications. It is somewhat like building the subway in Athens or the Empire State Building, or the Golden Gate Bridge, or the Hoover Dam or any other significant project. Every country has numerous structures that are unique and one of a kind. Did that stop these projects from happening? NO! Good engineering firms applied sound engineering principles using the experience of other similar projects and designed the facility.

So in summary, while REI cannot show you an operating plant, you can be assured that the system will work, that it will provide significant benefits to the Licensee and municipality and that the risk to the Licensee and municipality is insignificant. There is no better system or financial offer currently available from any other supplier in the world.

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