N195, 3015 - 5 Avenue NE May 27, 2009

Calgary, AB T2A 6T8

Phone 403.263.2393
Fax 403.262.9075 VIA EMAIL (azm@jomini-environmental.com) File No.: i17087.00-F
Edmonton
Revised September 16, 2009
Yellowknife Jomini Environmental Inc.
Calgary
Winnipeg Suite 300, 2174 King Road East
Red Deer
Corporate
King City, Ontario L7B1A4

Attention: Andre Mech

Dear Sir:

Subject: COVER LETTER

PROJECT VALIDATION
MUNICIPAL SOLID WASTE TO POWER TECHNOLOGY
UNDEFINED LOCATION

Pursuant to the requirement of the British Columbia Emission Offsets Regulation1, the
validation was conducted by a team that comprised a qualified professional (a
Professional Engineer) and an auditor (a Chartered Accountant). The individuals are
John McKay and Don Schick, and their qualifications are as follows:

Please note that in the absence of the other documentation, it is good practice to follow
established Emissions Offset Regulations. In this Report, we are following the
requirements of the British Columbia Emission Offset Regulation.

The Lead Validator for the above project is John McKay, P.Eng., CMVP. John is a
graduate engineer (1974) and a registered mechanical engineer in Alberta, BC,
Manitoba, Saskatchewan, Ontario and NWT. John has been preparing GHG plans and
reports for municipalities and school districts in BC since 2001. See CSA GHG
registries Voluntary Challenge Registry.

John has completed the Environment Canada and NRCan course on GHG Validations
and Verifications conducted in 2005. John completed the Association of Energy
Engineers course and examination on monitoring and verification in 2006. He has

1:
British Columbia Emission Offsets Regulation is available from www.env.gov.bc.ca

www.williamsengineering.com
Project Validation - Jomini Env. - Municipal Solid Waste To Power Technology
ADWE File No.: 17087.00-F REVISED September 16, 2009
May 27, 2009

completed GHG Validations for 10 projects in Ontario and BC prior to this report.
Areas of specialization include thermal, mechanical and renewable energy projects.
Transportation and mobile emissions projects, plus extensive experience in the design
installation and operation of heat-pumps and ground source heat-pumps are included.
Williams Engineering Canada is one of two independent auditors for VanCity for its
GHG Offset Program.

Don Schick, B.Comm., CA, is Williams Engineering Vice President, Finance,

providing leadership and management at Williams Engineering Canada's corporate
office in Edmonton, Alberta. Previous to joining the Williams Engineering Canada
team, Don was a consultant for six years, as well as spending seven years as Controller
at the Westaim Corporation. Don was born in Saskatchewan but relocated to
Edmonton in 1970, where he became a chartered accountant after attending classes at
the University of Alberta. Following graduation, Don articled at Deloitte. Don is
responsible for reviewing the Audit Plan and process, to ensure adherence to auditing
principles and accepted business practices.

Independence of the auditors is ensured by adherence to the Alberta mandated Permit

to Practice regulations of the APEGGA, and the corporate Permit to Practice
Management Plan. In particular, this ensures internal peer review, and prohibits result
based contingent fees. Staff assigned to carry out or assist in Validations have no
professional or personal stake in any proponents business or related projects. Conflict
of interest forms are routinely processed at the commencement of any employees’
engagement at Williams Engineering Canada Inc.

The Data Management of the Validation project is limited, as no project data for future
projects exist. Benchmarks and records of analysis are kept on the central server in the
Calgary office and backed up nightly in the Edmonton IT system. Hard copies of
projects and reports are maintained for 10 years. Data is confidential to the proponent

Page 2 of 21
N195, 3015 - 5 Avenue NE May 27, 2009
Calgary, AB T2A 6T8

Phone 403.263.2393
Fax 403.262.9075 VIA EMAIL (azm@jomini-environmental.com) File No.: i17087.00-F
Edmonton
REVISED September 16, 2009
Yellowknife
Calgary
Winnipeg Jomini Environmental Inc.
Red Deer
Corporate
Suite 300, 2174 King Road East
King City, Ontario L7B1A4

Attention: Andre Mech

Dear Sir:

Subject: STATEMENT OF ASSURANCE

PROJECT VALIDATION
MUNICIPAL SOLID WASTE TO POWER TECHNOLOGY
UNDEFINED LOCATION

1. The name and address of the Validation Body for this Project is:

Williams Engineering Canada Inc.

Suite N195, Franklin Atium (North)
3015 - 5th Avenue NE, Calgary, Alberta, Canada, T2A 6T8.

2. This Assurance is provided as of May 27, 2009.

3. This Validation is conducted consistent with ISO14064-3 and the British

Columbia Emission Offsets Regulation 905-081.

4. The Validator for this project is John McKay, P.Eng., CMVP., working with our
VP Finance Don Schick, CA.

www.williamsengineering.com
N195, 3015 - 5 Avenue NE May 27, 2009
Calgary, AB T2A 6T8

Phone 403.263.2393
Fax 403.262.9075 VIA EMAIL (azm@jomini-environmental.com) File No.: i17087.00-F
Edmonton
REVISED September 16, 2009
Yellowknife Jomini Environmental Inc.
Calgary
Winnipeg Suite 300, 2174 King Road East
Red Deer
Corporate
King City, Ontario L7B1A4

Attention: Andre Mech

Dear Sir:

Subject: PROJECT VALIDATION

MUNICIPAL SOLID WASTE TO POWER TECHNOLOGY
UNDEFINED LOCATION

Thank you for engaging Williams Engineering Canada Inc. (previously A. D. Williams
Engineering Inc.) to conduct this GHG project validation for your consideration.

Williams Engineering Canada Inc. staff completed the Environment Canada GHG
Validation and Verification training using the ISO14064 standards.

Williams Engineering Canada is involved in tracking and monitoring projects in British

Columbia and was involved in the design and operation of gas and fuel fired boilers for
more than 30 years in both British Columbia and Alberta.

Our complement of mechanical, electrical, and building science professionals allows us

to review and analyze complex transportation, industrial and agricultural systems.

www.williamsengineering.com
Project Validation - Jomini Env. - Municipal Solid Waste To Power Technology
ADWE File No.: 17087.00-F REVISED September 16, 2009
May 27, 2009

PROJECT DESCRIPTION

This project is a reduction project. It features the use of EITI International (EITI)
Municipal Solid Waste to Power Technology (MSW PT) at Municipal Solid Waste
sites, in an Undefined Location. The systems are to be installed/employed after
November 2007.

This validation project entails reviewing one installation of one MSW PT at one
Municipal Solid Waste site, somewhere in an Undefined Location. The installation is
not common practice and yields savings in GHG emissions from standard practice. This
project is a validation of Green House Gas (GHG) reductions providing validation of
the proponent’s assertion, based upon to ISO 14064 Part 3. The deliverable will be an
auditor’s assessment of the rationality of the proponent’s assertion.

PROJECT VALIDATION REPORT

The Validation Report for this project is found herein. If you require this Report in
another format, please contact our office. This validation assessment is for the benefit
of the CSA Clean Projects Registry, as a third party review for their GHG program.
The procedures being presented here are in the absence of corporate specific guidelines
and standards, but based upon the ISO 14064 series of standards.

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PROJECT VALIDATION REPORT

MUNICIPAL SOLID WASTE TO POWER TECHNOLOGY

This project involves the operation of manufactured equipment, known as Municipal

Solid Waste to Power Technology (MSW PT) to be used on an existing Municipal Solid
Waste site, located in an Undefined Location. The equipment is manufactured/owned
by the project proponent: EITI International (EITI), 60 Wilmot St., Suite 11A,
Richmond Hill, Ontario, L4B 1M6.

PROPONENTS ASSERTION

The deliberate selection and use of energy efficient products and systems that are not
economically justified, or common practice, represent measures in addition to
Business-as-Usual in an Undefined Location. There are quantifiable savings in the
operation of these EITI designed MSW PT units, which lead to the ability to vertify, and
transfer, those GHG savings to interested parties.

The proponents’ assertion is that the unit emission reductions are expected to be:

34.01 tonnes 2ERR CO2e per hour, or

816.24 tonnes ERR CO2e per day, or
297,927.6 tonnes ERR CO2e per year per operating unit

This is based on using the 21.80 MSW tonne unit.

2
The above ERR amounts will need to be verified. After verification these ERR amounts could become
VERR’s or Verified Emission Reduction and Removals.

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May 27, 2009

PROJECT ACTIVITY

The overall project activity occurs in one Unidentified Location, generating ongoing
emission reductions for a project.

The activity includes the purchase and operation of an EITI designed MSW PT unit.

The EITI MSW PT unit is designed to reduce the annual emissions that are generated
from a Municipal Solid Waste (MSW) site, while providing an unchanged service level
(outcome) to the respective MSW site owner.

The cost of the supplementary system is above the capital cost of the conventional
system; the paybacks from the reduced gas and operating costs are not sufficient to
amortize the added capital in commercially acceptable periods.

The selected baseline assumes that conventional MSW work continues while the MSW
work to be done remains unchanged.

VALIDATION METHODOLOGY

The validation methodology will be to examine the sources, sinks and reservoirs;
identify the project boundaries; identify the primary and secondary effects; generate
two or more potential baselines; establish the baseline; assess the project activity;
review the uncertainties; review the calculation procedures and assumptions; and make
a determination of the rationality of the proponent’s assertion. This will be done in
accordance with ISO14064 Part 3.

In particular, the documented average use before the project is most appropriate for the
baseline determination, due to the typical production of direct emissions from the fuels.
This will have to be documented at the next phase of this project.

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This project involves the validation of a model for assessing lifecycle greenhouse gas
(GHG) savings from a new approach for reducing the emissions from a MSW site. The
purpose of this model is to provide a comparison between lifecycle GHG emissions of
EITI MSW PT and the conventional landfill storage (business-as-usual) of Municipal
Solid Waste.

The validated model will be used with actual project data to demonstrate quantifiable
and verified emission savings. With the appropriate monitoring data, the GHG savings
can be verified and transferred to interested parties. Emission reductions from each of
these projects will be independently verified.

This model will be used for project assessments in an Unidentified Location, and can
be modified for projects anywhere in the world, given the right input adjustments for
key variables.

PROJECT VALIDATION

This validation step entails reviewing the EITI MSW PT GHG reduction model and
providing validation of the proponent’s assertion, according to ISO 14064 standards.
The deliverable will be an auditor’s assessment of the reasonableness of the
proponent’s assertion.

PROPONENT’S ASSERTION

Worldwide, the solid waste from towns and cities is commonly transported to landfill
locations. EITI MSW PT represents less than 0.001% of the available technology used
to reduce GHG at landfill sites, in the world. While the technology has been available
for more than two decades, the high capital cost of EITI MSW PT technology has been
a significant barrier to its market diffusion.
However, once the technology is in place, emission reductions will occur, which leads
to GHG savings.

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GHG savings from using EITI MSW PT, instead of the business-as-usual practice,
provides an additional revenue stream critical to making the economics of EITI MSW
PT more attractive and enhance the diffusion of this technology. Given the operational
savings in EITI MSW PT, the model presented here requires very few monitored
variables to assure verification of the GHG savings achieved.

PROJECT ACTIVITY

The overall project activity will be to model the life cycle GHG emission savings of
EITI MSW PT projects compared to business-as-usual MSW landfill projects. The
model is designed to, conservatively, quantify and compare GHG emissions throughout
the lifecycle of the MSW PT equipment; from production of raw materials to discarding
of waste materials. The model is specified for a project in an Undefined Location.
With minor modifications in location and sensitive parameter values, the model can be
used to assess the GHG savings from employing EITI MSW PT elsewhere in the world.

VALIDATION METHODOLOGY

The validation methodology will be to examine the sources, sinks, identify the project
boundaries, identify the primary and secondary effects, establish the baseline, assess the
project activity, review the uncertainties, review the calculation procedures and
assumptions, and make a determination of the reasonableness of the proponent’s
assertion. This will be done in accordance with ISO14064 standards.

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ADWE File No.: 17087.00-F REVISED September 16, 2009
May 27, 2009

SOURCES AND SINKS AND RESERVOIRS

The sources, sinks, and reservoirs include the following:

A. Controlled by the Project Proponent

(1) Sources:
(a) MSW PT Manufacture;

(b) MSW PT Installation;

(c) MSW PT Use (Decreased MSW Methane Production);

(d) MSW Delivery;

(e) MSW Handling;

(f) MSW PT Recycling;

(g) MSW PT Disposal; and

(h) MSW PT Power.

(2) Sinks: None.

(3) Reservoirs: None.

B. Related to the GHG Project

(1) Sources
(a) Extraction of Raw Materials for MSW PT Manufacture;

(b) Refinement of Raw Materials for MSW PT Manufacture; and

(c) Delivery of Raw Materials for MSW PT Manufacture.

(2) Sinks: None.

(3) Reservoirs: None.

C. Affected by the GHG Project

(1) Source: None.

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(2) Sinks: None.

(3) Reservoirs: None.

PRIMARY AND SECONDARY EFFECTS

Primary Effect:

Lower amounts of GHG generated at a MSW site are the primary effect. The difference
in project activity and baseline will be the reduction of the emissions. The majority of
the emissions are generated during the waste decomposing process, and the resulting
creation of methane gas that escapes into the environment.

Secondary Effect:

The secondary effect is the generation of electrical power. The EITI MSW PT
technology will use the landfill as the fuel source to produce electricity for the
Unidentified Location’s electric grid system.

The overall magnitude of these secondary effects on GHG use will be highly context
specific and is not quantified in this model, making the stated reductions conservative
(positive leakage).

GHG ASSESSMENT BOUNDARY

The assessment boundary requires a series of site-specific baselines for each project
location to correctly assess the change in lifecycle GHG emissions. Due to the size of
the project, use of the local average emissions coefficient is appropriate, as it the case
here.

BASELINE CANDIDATES

The only current baseline candidate is landfill storage of MSW.

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BASELINE SCENARIO

The Baseline scenario for the project will be the use of a landfill for waste storage.
Site-specific information will be used to reflect the type of waste that is being used as
the fuel for the production of electricity. These project level data will need to be
gathered for each assessment using the model to inform energy and material use, in
both the baseline and the alternative approach of using EITI MSW PT and
consequently, the net GHG savings. It is necessary that the baseline and project case
landfill waste be identical, to eliminate those variables.

ESTIMATED BASELINE EMISSIONS

The model calculates emissions for the MSW landfill baseline scenario, using emission
factors from peer reviewed, published references and project specific parameter values.
The default figures in the model are from existing published studies. For each project
key user inputs could be verified through additional means. The key determinants of net
GHG savings are easily verified.

ADDITIONALITY

EITI MSW PT has a very low market penetration. The significant savings are with
GHG savings. Yet, the high initial cost of EITI MSW PT equipment ($ 10 million CAD)
still necessitates many years of operation, before the savings generated by selling
carbon credits from GHG reductions, can defray higher initial costs.
Presently, landfill storage of MSW is the current practice. There are no legal
requirements promoting EITI MSW PT however as the promotion of the reduction of
GHG increases, the use of this technology will make economic sense to the owners of
MSW landfill sites. The Technology test is relevant to this type of project.

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PRINCIPLES

Relevance
Only data and analysis relevant to the project and the baseline should be included in the
review.

Completeness

The review of sources, sinks and the breadth of review should identify all major effects,
inputs and outputs to identify significance.

Consistency

The review needs to treat the emissions, sources and sinks for the baseline and the
project activity in a consistent manner, for materiality and quantitative analysis.

Transparency

The use of emissions factors input variables and calculations procedures should be
replicable and transparent to the intended users of the data and report.

Accuracy

The accuracy of the input variables and factors should be appropriate to the scale of the
project and the expected future verification procedures.

Conservativeness

Where there are large uncertainties or dynamic factors, the principle of

conservativeness should be applied. The largest uncertainty in the project is the
landfill's waste temperature, at the time of the project.

Higher ambient temperature can increase the rate of creation of methane gas from the
decomposing waste in the landfill. The model uses a low average ambient temperature,
providing a very conservative estimate of net GHG savings.

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The exclusion of a number of additional minor savings opportunities, such as office

consumables, is insignificant, in comparison to the overall GHG savings and the
conservative emission rates assumed in the model.

STAKEHOLDER CONSULTATION

The stakeholders in this project are the EITI MSW PT equipment manufacturers, the
EITI MSW PT operating contractors, and the contracting party, typically the public
sector. These parties are commercially linked, rely on performance standards and do
not require or expect consultation on other than common commercial basis.

The stakeholders have not been approached to confirm or accept or transfer ownership
of the indirect emissions. International protocols do not yet exist between Canadian
provinces, for ownership transfer of GHG emissions reductions.

OWNERSHIP OF GHG REDUCTIONS

The owner-operator of the EITI MSW PT technology owns the GHG savings, unless
otherwise transferred to a third party, due to the purchase and consumption (through
combustion) of the various fuels and materials.

UNCERTAINTY

Uncertainty in the model is identified at several levels: the assumption of emission

factors, fuel economy, efficiency of logistic management, and distances.

CONFIDENTIALITY

EITI International has the sole right to the information, conclusions and
recommendations, and may distribute the information to others as they choose.

PROJECT TYPOLOGY

This is a GHG reduction project. Verification will be accomplished through factors

specified in the landfill contract (ie. landfill waste area to be removed) and receipts for
fuel, and electricity purchases.

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SECTOR-SPECIFIC GUIDANCE

This project is not part of the major project classification, and there has been no sector-
specific guidance issued by either ISO or WRI.

UPSTREAM AND DOWNSTREAM EFFECTS

The model accounts for upstream and downstream emissions. The upstream emissions
take into account all emissions associated with production of the materials and energy
needed for EITI MSW PT manufacture, preparation, and transportation to site.
Downstream emissions include repair and recycling of equipment parts.

GHG EMISSIONS REDUCTIONS

The overall emissions reductions, for the use of one (1) EITI MSW PT , for one (1)
project, were calculated to be 268,275 tonnes of CO2e per year.

The proponent’s assertion that the overall emissions reductions are expected to be
735 tonnes of CO2e per day was determined to have an uncertainty level of +/- 10 %.

Please see the attached Appendix A, "Summary of GHG Reductions", (Verification

phase).

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APPENDIX A

Summary of GHG Reductions

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Appendix A - Summary of GHG Reductions

Analysis of Carbon Credits
Project Title: Jomini Environmental MSW to Power Technology
Project Number: 17087.00

Type of EITI MSW PT 21.80 tonnes per hour

Life of EITI Equipment 40 years

Time of Start of Operation After November 2008

Emissions Revised Revised Revised Calculated

(tonnes Emissions Emissions Emissions Emissions
Description CO2e/hour) (tonnes (tonnes ( tonnes (tonnes
CO2e/hour) CO2e/day) CO2e/year) CO2e/year)

MSW Landfill Disposal __ __ __

4.46683 4.4668
(1.818)
Baseline

__ __ __
EITI MSW PT Use (1.818) 1.66074 1.66074

__ __ __
EITI MSW PT Power (1.818) 0.03053 0.03053

ERR, (1.818) operating 2.83662 2.83662 68.08 24,848.79

Project ERR, (21.80) operating 34.01 34.01 816.35 297,966.8 268,275

Note 1. Baseline EITI MSW PT unit, installed at a MSW site, was a 1.818 tonne unit, shown as (1.818).
Note 2. The Project unit is a 21.80 MSW tonne unit, and is shown in brackets as (21.80).
Note 3. The Proponent has assumed that the Baseline results are scaleable to the 21.80 MSW tonne unit.
Note 4. The uncertainty in the Proponents calculations was found to be +/- 10 %.

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