Company Presentation

Tallin, February 28, 2008

Erik Pers Berglund
Waste to Energy
The Paradox.
The littering of man kind
gives us the product to a
better life on earth.
Algae infestations in the Baltic
Waste to Energy
By treating our
wastes we do not
only do good for the
environment but also
good business for the
local- and global
economy.
4
Scandinavian Biogas in Brief
Gains made in recent years within biogas technology have led to great flexibility in the
raw materials that can be used for the production of biogas. This, in turn, has led to a
significant reduction in biogas production costs.
Scandinavian Biogas has consolidated Swedens expertise in the biogas sector and
secured a global leadership position with methods that generate biogas more cost-
efficiently than other means currently offered on the market. Additionally, the company
has a unique gas cleansing technology for the production of liquefied biogas (LBG)
The company has achieved considerable attention on both regional and international
levels and Scandinavian Biogas is now poised for rapid growth
The focus is on creating more effective methods for biogas yields in connection with the
production of biodiesel and ethanol, as well as in connection to biowaste, e.g. sludge
Scandinavian Biogas technology is protected via existing patents and patents pending
Number of employees: 28
Company headquarters are located in Uppsala, Sweden
Projects in Sweden, Poland, South Korea, Brazil, Hungary and USA

Introduction to Scandinavian Biogas
5
Business Areas
Scandinavian Biogas offers:
Gas cleansing
Process optimization
Ultrasonic and mechanical upgrade
Functional delivery
Scandinavian Biogas offers:
Basic and detailed project planning
Equipment delivery
Functional delivery
Site supervision
Long service & maintenance contracts
Sewage and Waste

Waste Landfill

Ethanol

Biodiesel

Introduction to Scandinavian Biogas
Cleansing of biogas from existing
landfills

Production of biogas via digestion of
residual product (sludge)

Production of biogas via digestion of
residual product (glycerol)
License-based Sales

Ownership and Operations

Codigestion of sludge and other
organic materials (food waste, etc)

6
Increased demand for renewable energy
Continued high price of oil increases demand for renewable energy
Over time, the demand for oil will outpace the supply, which will lead to
oil prices remaining at a relatively high level
The price of oil has been trending upward nearly continuously since 2001
Global warming is producing political decisions that increase green energy demand
EU objective: 20% of total energy shall be green by 2020
EU objective: 10% of total vehicle fuel consumption shall be green by 2020
USA objective: President Bush intends to reduce vehicle fuel consumption by 20% by 2017
California objective: 20% of total energy shall be green by 2010
Alternative biofuel types
Ethanol & Biodiesel are easy to distribute and enable 0-100% blending
High costs and long lead times required to achieve sufficient capacity
Biogas (Methane gas) is the cleanest alternative and yields enormous capacity
Minimal investment and low production costs
Option to introduce biogas into the natural gas network and then retrieve the same
volume at another time and place in the network, results in significant synergies and
economic benefits
General Market Conditions
The Green Gas Principle
Households
Industry
Vehicles
Natural gas
Biomethane
The possibility to inject produced biogas into the natural gas grid, and then
withdraw a similar volume at another point on the grid provides essential
synergies and economic advantages.

e.g. Southern California Gas
Biogas = Natural Gas
8
Biogas production destruction to energy production
Sludge 1930
Industrial waste together with fertilizers 1990
Household waste 2000
Crops 2005
Residual production from ethanol and biodiesel 2007

Biogas Process
Recent gains made in Sweden within biogas technology have enabled an industrial
production of biogas, and achieved significant reductions in production costs
9
Traditional biogas process waste to energy
Sludge
Glycerol
Crops
Waste
Methanol
Cellulose
P
Pre-treatment Fuel Stage
Fertilizer Stage
Digestion Stage Substrate Stage
P = patent P
P
P
Biogas Process
Source: Hushllningssllskapet, 2007
Steam
10
World leading technology
Ultrasonic treatment yields an increased degree of digestion resulting in
higher biogas yield and enhanced dewatering
Optimization and management of over 20 additives (unique know-how) and
trace minerals ( la Coca-Cola recipe)
The companys technology permits reactors to be loaded 2-3 times more
as the competitors
Results in comparably lower investment costs
Results in lower operating costs
Enables significantly greater biogas production in existing facilities
Remote oversight of the digestion facility via Internet
Patented technology for liquefied biogas (LBG) through 50%-owned JV
Significantly lower transport costs
Lower investment cost in pumps and reduced energy consumption
Store separated carbon dioxide
Additional patents and patents pending
Re-circulation of degraded sludge via ultrasonic treatment
Higher breakdown of organic materials (10-20%), the result of process improvement
Reduced use of processing water (30-50%), the result of process improvement
Biogas Process
11
delivers increased production
Scandinavian Biogas:
Upgraded existing facility: >3,0 Nm
3/
m
3
New facility: >5,0 Nm
3
/m
3
Average production:
Sweden: 1,0 Nm
3
/m
3
South Korea: 0,3 Nm
3
/m
3
Biogas Production in Sweden
Multiple
increase in
production in
the same
facility
Biogas Process
0,0
1,0
2,0
3,0
4,0
5,0
6,0
Average Upgraded Facility New Facility
N
m
3
/
m
3

D
i
g
e
s
t
i
o
n

C
o
n
t
a
i
n
e
r
12
0%
10%
20%
30%
40%
50%
60%
70%
80%
Average Optimized Process Ultrasonic Treatment Combined Solution
Y
i
e
l
d
and higher energy yield
Average Yield:
Sweden: 45%
South Korea: 30%
Scandinavian Biogas:
1. Optimized Yield: 5060%
2. Ultrasonic Treatment: 5065%
1+2. Combined Solution: 6580%
Improved
yield
Biogas Process
Clean and Liquified Bio Gas
Patented
Liquified
Bio Gas
Upgrading process
CBG & LBG Clean Energy
Upgrading process
TCR
Total Contaminant Removal (SOXIA)
TCR Separation of H
2
S & siloxanes
1. Fe2O3(s) + 3H2S(g) Fe2S3(s)+ 3H2O(g)
2. Fe2S3(s) + 3/2O2(g) Fe2O3(s)+ 3S (s)
Upgrading process
GPP
Gastreament Power Package GPP
Separation of LCO
2
Upgrading process
17
Offering to Wastewater Treatment Facilities
Responsibility for process-, mechanical and technical upgrade
Investment in gas cleansing equipment
Split incremental output or entire production
10-15 year contract
Increase acceptance of organic material > 3x
Increase production of biogas by > 5x
Assume responsibility for process & technology
improvements
Invest in gas cleansing
Split the upside
Own customer with 10-15 year contract
Offering to Wastewater Treatment Facilities
18
Himmerfjrden, Sweden
10 years from start of operations
Himmerfjrden, Swedens fourth largest
wastewater treatment facility
Offering to Wastewater Treatment Facilities
Contract Duration
Responsibility
Start of
Operations
Process- & technical improvements
Provide waste, degredation & crops to the
biogas process
Increase biogas production from 3 to 15
million Nm
3
CH
4
/year in two stages
Invest in gas cleansing unit
Split the incremental gas production with
the treatment facility
Production starts Q3, 2008
Negotiations completed on supplier
contract
19
Varberg
Offering to Wastewater Treatment Facilities
15 years Contract Duration
Responsibility
Start of
Operations
Process- & technical improvements
Contribute external materials
Invest in gas cleansing unit
Split gas production with facility
Transition cleaned gas into the main
network
Negotiations underway with local energy
company regarding delivery of gas
Varberg, WWTP where we will inject the upgraded biogas
into the gas grid
20
Ulsan, South Korea
Ulsan delegates visit Sweden,
2629 February
Offering to Wastewater Treatment Facilities
15 years Contract Duration
Responsibility
Start of
Operations
2 digestion containers (7 500m
3
x 2)
Increase input of raw materials with >350%
in existing infrastructure
Revenue streams
Paid for accepting raw materials
May keep 90% of gas
Improve process efficiency
Increase waste management capacity by
350%
Acceptance fee waste
Gas sales
Production starts during Q3, 2008
21
Pre-study regarding large-scale production of
biogas
Governor Schwarzenegger sets the toughest global
emission standards. Scandinavian Biogas is to decide
how to meet the target for the state of California!
First two contract secured (California, USA)
Order I
Order II & III under negotiation 2008
Improved efficiency and gas cleansing at
wastewater treatment facility, Escondido
Build biogas facility together with a biodiesel
production facility

Offering to Wastewater Treatment Facilities
22
Offering to Waste Landfills
15-year contract
Invest in gas cleansing unit
Clean landfill gas to natural gas quality
Cryogen gas cleansing is the only technology that cleans bad landfill gas
Landfill gases are burned in most cases and thus cannot be cleaned
Offering to Waste Landfills
23
Hgbytorp, Sweden

Offering to Waste Landfills
15 year contract has been set with
suppliers and buyers of biogas
Contract Duration
Responsibility
Start of
Production
The company is building a gas cleansing
facility for cleaning waste landfill gas,
8 million Nm3 per year
Scandinavian Biogas technology enables
the cleansing of waste gas that would not
be economically feasible using other
technology
The company will receive 50% of
revenues, ca. SEK 15 million per year
Investment of SEK 30 million
Production begins Q2, 2009
24
Offering to Ethanol- & Biodiesel Production
Basic Engineering and/or Detailed Engineering
License
Mechanical Equipment (ultrasonic, gas cleansing)
Start-up Support
Technical Assistance
Service & Maintenance Contract
Offering to Ethanol- & Biodiesel Production Facilities
25
Gdansk, Poland
Offering to Ethanol- & Biodiesel Production Facilities
15-year contract achieved with suppliers
as well as purchasers of biogas
Contract Duration
Responsibility
Start of
Production
The company is building a complete gas
facility for the digestion of stillage,
10 million Nm3 biogas per year
The company receives stillage from a
distillery. There is no use for stillage as
animal feed after it has been used for the
increased production capacity
The company produces ca 10 million Nm3
biogas/year. Gas is sold without cleansing
to Poland Energy, who produce electricity
from it and sell 50% at fixed price and 50%
tied to the price of oil
Production will begin Q3, 2008
Existing distillery
Expansion
Scandinavian Biogas solves the issue of waste byproduct
EU funding
Contract
Price levels
26
Karlskoga, Sweden 1(2)
24 months Contract Duration
Responsibility
Start of
Production
Scandinavian Biogas has initiated a project
together with Kemab and Chematur to
develop the first entirely green bioethanol
production facility
Karlskoga Biofuels AB was established to
realize this commercial opportunity with
Scandinavian Biogas, Kemab, Chematur
and the Peab Group as joint owners
In addition to having a 5% ownership,
Scandinavian Biogas will provide detailed
engineering, licenses, mechanical
equipment, etc. worth ca. SEK 300 million
Construction will start in 2008 and
operations to begin 2009-2010
Karlskoga, a combined ethanol- and biogas production facility
Offering to Ethanol- & Biodiesel Production Facilities
27
Karlskoga, Sweden 2(2)
Karlskoga Project Biofuels
Offering to Ethanol- & Biodiesel Production Facilities