Waste Recycling Fabric Construction Based on Innovative and Efficient 3R Recycling Technology

Project Presentation

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Waste Problem 3R Waste recycling company will be first such company on Dutch waste processing market. We realise that it is important to understand the operational context and opportunities what market provides us. Here we describe Dutch and European situation on primary and waste markets of Plastics, Carton Packaging and Electronic Waste. These three directions we have chosen are the most problematic waste types nowadays: they are not recyclable. These three types of waste we CAN return back to refine materials using 3R Technology. On these types of waste we will based our plant activity, market entree strategy for 3R technology and our challenge for future.

Plastic.

Plastic industry is very successful, almost all of modern products we buy contains it. Industry has grown continuously over last 50 years the worlds demand for plastics increase from 1.5 million tonnes in 1950 to 230 million tonnes in 2009. 1

Majority of plastics are made from crude oil, 10% of the World total oil extraction goes to plastic production industry.2 However, conventional oil reserves have a static lifetime of only 40 years.3

In Europe there five important plastic sorts, the big five, which takes about 75% of the total plastic consumption. There are around 20 distinct groups of plastics, each with numerous grades available to help deliver specific properties for each different application.4

The problem with plastic is, that is does not degrade with time. So all landfills will not disappear for centuries. As lots of waste gets into rivers and oceans, it threatens to damage all eco-system in the World. This picture demonstrates plastic streams (yellow fields) in World Ocean.

1 European Plastic Recyclers. Final Plastics the Facts 2010 2 Wat is kunststofafval precies? www.recyclingnetwerk.org 3 The Society of Petroleum engineers 4 European Recyclers, Final Plastic Facts 2010

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According to Van Gansewinkel CEO, R. Sondag, the Netherlands transport 50% of all plastic garbage to German incinerators to produce energy.5

Each Netherlander produces each year 50 - 60 kg of plastic packaging only 6. In total plastic waste produced by the Netherlands amounts up to 1,35 million ton (15% of 9 million tons of household waste). As we have mentioned before, demand for plastic is constantly growing. As well the oil price is also increasing. The expectations from economist and Shells CEO Sir Voser is that the demand and the price of oil will rise on long terms more than the inflation. 7 Therefore plastic prices will also increase. On the following graphic is demonstrated price increase 2010 2011.

Due to shortage of recourses, price increase and ecological aspects of waste it is essential to recover all waste streams, especially plastics. 3R technology can recycle all types of plastics back to refine quality materials in environmentally friendly way.

5 Millieucentraal, http://www.binnenlandsbestuur.nl/ruimte-en-milieu/nieuws/helft-plastic-afval-verbrand.376408.lynkx 6 Recycling magazine benelux / nr. 1 - februari 2010; http://www.compendiumvoordeleefomgeving.nl/indicatoren/nl0144-Afval-van-huishoudens-per-inwoner.html?i=1-4 7 http://www.cnbc.com/id/46792051/Oil_Price_Set_for_Long_Term_Rise_Shell_CEO; http://www.beursgorilla.nl/het_zwarte_goud.asp

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Carton Packaging (TatraPak)

Each year food industry in the Netherlands is using 72,000 tons of carton packaging, which is about 4,3 kg per inhabitant; and 65,000 tons is later utilized in incinerators. There is no separate collecting system for carton packaging in the Netherlands. Therefore these packages are mixed with the rest household waste and utilized in incinerators for energy and heat production.8. There two kinds of packaging: septic and non-septic packages. Non-aseptic packages, which are used for one-day fresh products, consists of Liquid Packaging Board (LPB; 88% from total weight) en polyethylene (PE; 12%). Aseptic carton are used for long-life products and compose of LPB (75%), PE (20%) and layer of aluminium (5%).9 With 3R technology we can collect the Carton Packaging together with plastic waste. As well as paper pulp and PE and aluminium can be recycled into refined quality materials. Using 3R technology we will be able to save extra expenditures on separate collection system and raw materials: energy and water what is used to produce new paper pulp in packaging industry.

8 CE Delft, Inzameling van drankenkartons 2010. 9 HEDRA carton packaging content

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Electronic Waste (WEEE) E-waste is one of Worlds biggest waste problems nowadays. It will constantly grow with the prosperity. When 3R technology is proven with a commercial operating plant 3R Waste Management will offer their solution to recycle E-waste.10 11 According to the European Topic Centre on Resource and Waste Management from the European Environmental Agency, WEEE is one of the fastest growing waste streams in the European Union and makes up approximately 4% of municipal waste. The United Nations Environmental Program estimates that each year around the world, 20-50 million tons of e-waste are dumped into landfills around the world.12 Expected growth of e-waste is yearly around 40 million tons.13 14 This means that every year 90% of our electrical and electronic production is burned or dumped in one of the 3rd world countries. Much of it ends up in Africa and Asia. E-waste is being exported, often illegally, to Ghana, Lagos, Karachi, Dehli, Guiyu from Europe, Israel, Japan and US15. Old electronics are dismantled by hands and the toxic waste is dumped in streams and fields, which leads to diseases and toxic pollution of water and soil. In the Netherlands Wecycle is responsible organization for collecting and recycling E-waste.16 In overview of Wecycle stands that from 26,5 kg a citizen only 28.3% (7.5 kg a citizen) are formal recycled by contract. Other 71.7% is not documented or exported/dumped/etc. In 2010 we produced a year almost the same amount of electronic and electrical devices in kg than E - waste. The use of EEE devices in 2010 are climbed up +/- 30% in comparing with 1995. EEE devices consists a lot of precious metals and metals which are listed as critical raw materials what makes recycling of e-waste very important for our economy and environment as well. An estimate of the composition of WEEE arising is shown in table below. 17

It means that we loose great part of raw materials contained in WEEE. Recycling plays a significant role in recovering not only raw materials, but also critical metals and minerals, which are in essential for European economy. 18

10 http://zaplog.nl/zaplog/article/elektronische_afvalbergen_groeien_zienderogene 11 http://www.compendiumvoordeleefomgeving.nl/indicatoren/nl0561-Afgedankte-elektronische-en-elektrische-apparatuur.html?i=1-4 12 How to recycle e-waste 13 http://www.guardian.co.uk/environment/2011/may/16/uk-ewaste-dumped-ghana 14 http://www.bbc.co.uk/news/world-europe-10846395

15 http://news.nationalgeographic.com/news/2005/11/1108_051108_electronic_waste.html 16 http://www.wecycle.nl/ 17 Study on RoHS and WEEE Directives N 30-CE-0095296/00-09 Final report, European Commission 18 Wecycle report on e-waste content 2010

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Europes economy is depending on these critical materials. A lot of industries (like the High Tech and automobile industries) are in need of these raw materials to produce their products. 19 Table below shows list of critical materials, country of its origin and if it can be recycled using 3R technology.

Our 3R WMC project will be an entering strategy for the market of plastic and electronic waste. Plastics and Electronic waste are the most profitable waste types from all others, because the demand is high and it consists from mixture of ferro- en non-ferro metals and plastics, what are good priced on the market. That is why we are able to make this supply chain cheap and convenient for manufactures and private consumers.

19 http://ec.europa.eu/commission_2010-2014/tajani/hot-topics/raw-materials/index_en.htm

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Current Situation in the Netherlands Netherlands always had a reputation of a very diligent country when talking about waste utilization. Amount of landfills dramatically decreased since 1980 till 1% and now incinerating also is slowly recognized as an ineffective way of waste treatment. In general, waste management includes number of following activities: collection, transport, processing, recycling or disposal and monitoring of waste materials. There are some difficulties what we face with current recycling techniques in the Netherlands: Fact 1 - current waste management companies hardly can separate mixed waste, especially combination of plastic/paper, paper/aluminium (from drink packaging, for ex.), they have to do significant part by manual labour. Their best results of separating materials are now 58.1%. 20 Fact 2 - What is presented on the market of waste recycling is actually so called down-cycling. It is still impossible for any existing company recycle waste into refine quality materials. Using those recycled materials in production will demand mixing them with significant amount of raw components. Fact 3 the rest of non-recycled and non-separable components still have to be burned. That are: plastics, mixtures from domestic and industrial waste, wood, cardboard, liquids, dirty particles and many others. Fact 4 - low profit of these companies because range and quality of recovered materials is very poor it does not bring satisfying revenue. As urbanization of the country continuous, amount of municipal solid waste grows faster than urban populations because of the increasing consumption and shortening product life spans. Total waste arisings in the Netherlands in 2009 amounted up to 61,380 kilotonnes. Where from 9 million was household waste. It is about 611 kg per person a year.21 This figure reflects waste composition of household waste in the Netherlands as of 201122: Organic 36%, Paper/Carton 20%, Diapers 5.3%, Plastics 15%, Glass 4.7%, Ferro metals 3.4%, Non-Ferro 1.1%, Others 11,5%.

And only few amounts of waste are effectively recycled or reused. 3.2 million tons per year are utilized by incinerating.23 The rest 3.3 million tons are partly recycled. And only 1% of household waste is dumped on landfills in some municipalities.24

20 Annual report 2011, Van Gansewinkel Group 21 http://www.milieurapport.be/nl/feitencijfers/MIRA-T/milieuthemas/afval/productie-van-afval-door-huishoudens/hoeveelheid-huishoudelijk-afval/ ; Centraal Bureau voor de Statistiek, press-release 22 Samenstelling van het huishoudelijke afval 2011 23 Agentschap NL 24 Compendium

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Unique Technology In contrast to all current waste management technologies, the waste treatment of 3R can recover all types of polymers and bring them back to community. The process of 3R is patented and is unique, we can not reveal details of the process, but can name key differences: *No pre-sorting needed before or on the plant.

* All the processes are highly automated; no human labour is used to sort the waste.

* Recycling reaches 100%. 95% of the waste-input gets transformed into raw materials of refined quality. This means that 100 kilograms of waste will be transformed into 95 kilograms of raw materials and the remaining 5% of dirt can be used to create energy by using fermentation.

* Allows extracting raw materials without loosing quality, cradle to cradle.

* First and the only technology which recovers all sorts of synthetic polymers and cleans them to primary materials. * Technology is CO2 neutral and it also reduces CO2 in a passive way - by recovering raw materials and reducing primary production, which is accompanied by CO2 emissions.

* 3R do not pollute atmosphere with ashes and gases. No dirty water dumping due to using closed cleaning cycle and reusing recourses all over again.

* No left-over which need to be dumped.

* Plant uses own energy produced by energy units.

* Produce several times more energy with bio-gas fermentation due to effective equipment use.

* Work with all types of waste (plastic, metals, paper, glass, wood, etc.), also from landfills.

* Generates great returns due to selling primary quality recycled materials.

* Easy to rise up plant capacity due to separate modules, what can be easily changed.

General processing scheme:

Materials what could be recovered from mixed waste*:

All kinds of synthetic polymers of refine quality: PET, PP, PE, LDPE, PVC, HP, HDPE, PUR, ABS

and etc.; Wood chips, Paper, Cardboard; Glass: brown, transparent, green; Metals and minerals: Graphite, Fluorite, Mercury, Wolfram, Tantalum, Rare Earth Element,

Platinum, Niobium, Magnesium, Indium, Germanium, Cobalt, Beryllium, Gallium, Antimony, Copper, Steel, Aluminium, Gold, Zink, Nickel, Silver.

Biogas, Synthetic gas and Fuel; Energy and Heat; Mineral granulate (Earths crust quality) and etc.

* Depending on the waste content.

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Documents 3R recycling process was completely and successfully tested by following organizations and institutes: o EPC Group, Construction and Engineering bureau; o RWTV GmbH , German quality control organization; o TU Wageningen; 3R technology became a winner of Red Herring TOP-100 Asia Awards 2010 (represented in Asia by Powerful Technology). 3R Technology Worldwide Patent:

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Project Description The 3R Waste Management Company will guide the construction and manage the pilot plant with yearly capacity of 50,000 tons, located in province Gelderland, the Netherlands. Using innovative recycling process and equipment, combining the latest developments in waste recycling, we will present the most optimal solution nowadays for polymer recovery. The potential market has a lot of opportunities for future development of our project. But in short perspective our interest is dedicated to plastic recovery abilities of the 3R Technology. With its help 3R WMC will be able to enter market of plastic waste. Later, when the plant will hit its stride, we plan to enlarge recycling capacity and orient ourselves on e-waste problem. The pilot 3R plant will serve two purposes: commercial and demonstrational. The facilities will be specially designed that everybody can visit 3R plant and witness the recycling process from inside. This will help to promote 3R technology over the globe, gain trust and reliability, and also attract investments for own 3R WMC network of recycling plants. Very important is that 3R WMC team will consist from management team and engineers of the 3R technology, who will be able to develop and update their technology and equipment constantly. The purpose of the 3R WMC project is: - Demonstrate new technology of waste recycling in action; - Attract attention of community and stakeholders; - Sell out 3R technology to other waste recycling companies all over the world. Purpose of the pilot 3R waste recycling plant is: - Operate as a commercial plant and generate revenue by selling raw materials; - Cumulate own funds for other innovative inventions from our engineers team; - Become a demonstration platform for 3R technology and latest innovations in waste recycling; - Launch production lines for innovative materials within 5 years after start up of the 3R plant. Innovative materials will be produced fully from recycled plastic waste.

Business model:

Mission:

Demonstrate and convince experts, politicians, nature organisations and recycling companies worldwide to use profitable and efficient way of waste treatment and therefore act in consideration with principals of the vision PEOPLE, PLANET, PROFIT. Sell before 2020 worldwide minimum thirty plants operating with 3R technology. Business Goals: The 3R WMC business goals are:

Establish a fully CO2 neutral and ecologically friendly waste recycling plant. Be the first to apply innovative and perspective technology for plastic waste recycling. Operate business with minimum of 25% ROI. Benefit from selling high quality raw materials, environment and land clearance, job creation, from

the plant and its operations.

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To manage the 3R WMC according to the ISO 9000 standards. Develop, apply and act according to standards of Corporative Social Responsibility and

Environment.

Corporative Social Responsibility We consider developing principals of corporative social responsibility to be essential for sustainable development, especially for business which claims to be innovative and perspective. First of all, the 3R project by itself is already dedicated to help the society and environment by recycling waste in ecological way and cleaning landfills/waste fields in the sea. How 3R plant operation will support our CSR strategy in practice: Reducing pollution by zero waste recycling cycle; Reducing CO2 pollution by recovering raw materials from waste, so fewer CO2 processes are involved in new material production. No industrial water dumping. Reduced water pollution by generating water from humid waste and cleaning and reusing it in a closed cycle. No emission of pollution ashes. Polymers recovery - refine quality of polymers will reduce capacity of toxic polymer production. Moreover, 3R WMC will develop and apply principals of CSR strategy within first years of operating. It will require devotion from 5% till 7% from yearly gross profit for social and environmental programs worldwide: Support ecological programs; Providing benefits to employees of 3R WMC, such as refunding health insurance and sport abonnement. 3R WMC will provide good and health working environment for its employees.

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Benefits for community

3R Waste Recycling project will bring us one step closer to sustainable society and lifestyle. Everybody will benefit from our project: people, government, economy and nature.

Government:

1. Reducing unnecessary costs for separate waste collection and preparation. 2. Waste collecting costs will decrease. This money can be invested in other projects. 3. Citizens will reduce their costs for municipality services and rise up purchasing abilities in other directions. 4. Project and technology is ahead norms of the government in recycling and pollution levels.

Economy:

1. Generating materials from waste will satisfy part of global market demand. 2. Supporting local economy by trading raw materials and indirectly creating jobs in industrial sector. 3. Directly creating working places for 50 employees. 4. Generating energy flow by using an environment friendly technology. 5. 3R technology will become an export product from the Netherlands. 6. Netherlands can become a trade country in synthetic polymers materials.

Environment and Community:

1. Reducing CO2 emission: - By reducing primary materials production and saving nature sources. - By operating CO2 neutral technology on the 3R plant. 2. Reducing toxic pollution of environment from incinerators and landfills. 3. Less raw materials need to be taken from nature. 4. Science and knowledge development.

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Project Implementation General contractor, German company EPC Group 25, will build 3R pilot plant turn-key. They provide full range service: consulting, pre-engineering, turn-key construction, equipment, range of guarantees and services during and after the construction. Turn-key construction period is approximately 2 years, where 6 month is pre-engineering, 6 months plant design and 1 year construction of the 3R plant and educating of employees.

Produced raw materials will provide the main ROI of the 3R plant and will be purchased through Trade Company EPENION (Daughter Company of EPC Group), by minimum 10 years contract.

Revenue Generating Activities. The main revenue of the 3R plant will be based on trading followed recovered materials to range of industries all kinds of synthetic polymers of refine quality: PET, PP, PE, LDPE, PVC, HP, PUR, HDPE, ABS and etc. And later, metals and minerals refine quality: Fluorite, Graphite, Mercury, Wolfram, Tantalum, Rare Earth Element, Platinum, Niobium, Magnesium, Indium, Germanium, Cobalt, Beryllium, Gallium, Antimony, Copper, Steel, Aluminium, Gold, Zink, Nickel, Silver.

25 http://www.epc.com/

Pre-engineering Design Construction and education 6 months 6 months 12 months

Licenses Contract for ground

Contract for purchasing raw materials and energy

Hire and educate employees

Profit from selling raw materials

Start operating