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KP RENEWABLES PLC

Renewable Energy
Renewable Energy - Regulatory Framework
Renewable Energy - ROC Market
Renewable Energy - Sustainable Development
Projects for Wind and Biomass
Projects for Carbon Recycling and DWD



Renewable Energy to Reduce Carbon and Greenhouse Gas Emissions and To Produce Green Power


Activity in the Renewable Energy sector in the United Kingdom is accelerating, spurred on by the public`s increasing awareness of climate change issues, and the UK Government`s commitment to reducing carbon emissions by 60% by 2050.

Major UK initiatives are the Renewables Obligation Acts of 2002 and 2005, which set renewable energy targets of 10.4% by 2010 and 15.4% by 2015. In order to help achieve these targets, KP Renewables is focused on the development of renewable energy projects, with the goal of becoming the leading independent renewable energy company in the UK.

KP Renewables` business plan is to develop renewable energy projects either alone or with development partners.

Renewable Energy

Climate change is playing an increasing role in all of our lives. Projections suggest that UK temperatures may increase by 3.5°C over the next 20-50 years with accompanying changes in seasonal weather. Elsewhere the effects may prove more desperate, with increased flooding, reduced crop yields and diseases such as malaria spreading across greater areas.

The challenge of climate change is not going to disappear and a number of measures are being taken in the UK and globally to deal with the challenges which climate change presents.
 
The growing role of renewable energy in the UK is one of the important ways that the UK is responding to this challenge.




Renewable Energy 1

Renewable Energy 2

Renewable Energy Opportunity

Since the Kyoto summit on climate change in 1997, where standards were proposed for developed nations to reduce their level of greenhouse gas emissions, political pressure concerning the preferred use of renewable energy to produce ``green`` power has increased dramatically.

In particular, the EU requires that member states adopt national targets for renewables which are consistent with reaching the Commission`s overall target of 12 per cent of electricity from renewable sources by 2010.

Historically, the UK has generated one of the lowest proportions of renewable energy of any of the major European countries. With the 2005 Amendments to the UK`s renewables legislation, the UK system is now regarded as amongst the most robust in the world, with a legislative framework laid down until 2027.

Commencing in April of 2002, the UK Government introduced a target of 10.4 % of electricity to be generated from renewable energy sources by 2010. This compares with a target of 4.3 % and an actual level of generation of 2.4 % in the year ended 31 March 2004.

In November 2004, the UK Government amended the legislation to increase this target to 15.4 % by 2015 indicating the UK Government`s continued commitment to renewable energy generation in the UK.

KP Renewables has estimated that more than 52.7 million MWh per annum of electricity will be required to be generated from renewable sources by 2016. This compares with an actual level of 7.1 million MWh per annum for the year ended 31 March 2003.

In order to meet these requirements, the market for renewable energy generation in the UK will need to grow substantially.

This is the market which KPR is uniquely positioned to address!




Renewable Energy to Reduce Greenhouse Gas Emissions

Renewable Energy to Produce Green Power

Legislative Background

At Kyoto in 1997, the European Union committed to reducing its carbon emissions by 8%, with the UK committing to a reduction of 12.5% from 1990 levels.

During the 1990s, renewable development in the UK was supported by the Non Fossil Fuel Obligation regime, the Scottish Renewables Obligation (``SRO``) in Scotland and the NI-NFFO in Northern Ireland. Initially introduced to support the nuclear industry, the regime obliged electricity companies to purchase quantities of electricity derived from non-fossil fuels and contracts were awarded through five separate rounds.

In April 2001, the Climate Change Levy was introduced imposing a levy on commercial and industrial energy users in the UK. Electricity generated from eligible renewable sources is exempt from the levy, with Levy Exemption Certificates issued by the UK regulator, OFGEM. Those certificates can then be sold on to those seeking exemption from the Climate Change Levy.

In April 2002 the Renewables Obligation was introduced obliging electricity suppliers to source an escalating percentage of the electricity they supply from qualifying renewable sources. By 2010/11, electricity suppliers will be obliged to source 10.4% of the electricity they supply from renewable sources. The UK Government has committed to the underlying regime remaining in place until 2027.

The Renewables Obligation system is based on suppliers redeeming Renewable Obligation Certificates (``ROCs``) obtained from the qualifying renewable sources and paying a penalty to OFGEM (the ``Buyout Price``) to the extent they fail to meet their obligation. The funds collected by OFGEM are then returned to the suppliers, by way of Recycling Payments, in proportion to the extent to which they meet their renewables obligation.

In 2003 the UK Government published its White Paper ``Our Energy Future - Creating a Low Carbon Economy``. In that paper the Government stated its aim to ``put ourselves on a path to cut the UK`s CO2 emissions by some 60% by 2050, with real progress by 2020``. Building on that, the White Paper included an aspiration to source 20% of electricity supplied from renewable sources by 2020.




enewable Energy - To Reduce Carbon Emissions

Renewable Energy 3

Qualifying Technologies

Under the UK legislation, all the following technologies qualify as `renewable` under the current Renewables Obligation regime:

  • Onshore wind
  • Offshore wind
  • Landfill gas
  • Sewage gas
  • Hydro below 20MW declared net capacity
  • Hydro above 20MW declared net capacity commissioned after 1st April, 2002
  • Geothermal power
  • Tidal and tidal stream power
  • Wave power
  • Photovoltaics
  • Energy crops / Co-firing of biomass
  • Other biomass
  • Energy from waste

Renewable Energy - Waste as Resource

Energy and Waste

Today, the world is struggling with high prices and a burgeoning energy shortage which shows no signs of abating. Although fossil fuels remain an important source of energy, renewable energy and other non-traditional energy sources need to serve an important function in meeting consumers` consumption demands, alleviating energy crises and increasing national security by reducing the dependence on imported fossil fuels.

Energy: Our Dependence

Electricity capacity demand is soaring, both in the UK and abroad.

For example, the USA continues to import about half of its oil supply, yet world oil production is expected to plateau between 2010 and 2020, and could trigger additional price increases in coming years. Fossil fuel supplies are declining globally, and, once consumed, cannot easily be replenished.

Waste: Our Problem

Today`s energy-dependent society creates more than just supply shortages. Consumption of fossil fuels also pollutes our air. Combustion of coal and natural gas to produce electricity emits nearly 2.2 billion tons of carbon dioxide (CO2) into the atmosphere each year. Electricity is, in fact, the single largest source of nitrogen oxide (NOx) emissions, a component of smog that contributes to ground-level ozone.

A more visible problem is the waste we create in massive proportions. The typical European consumer generates 510 kilos of residential waste per year and USA consumers are almost twice as wasteful generating about 950 kilos per person per year.

Indeed the world is awash in a mountain of waste!

Many municipal landfills are forced to close every year having being filled to capacity. Tyres, plastics, industrial waste, demolition debris and agricultural waste all contribute to a major disposal problem that threatens our health, wastes natural resources and litters our landscape with illegal dumping.
 
A Greener Way toward Energy Independence

Unlike most energy technologies which deplete limited resources and contribute to a waste problem already in a state of crisis, KP Renewables` ``Carbon Recycling`` concept uses carbon waste streams as fuel with our technological advanced processes to generate clean energy or fuels with near zero harmful emissions.

Today`s advanced gasification or pyrolysis technologies are environmentally responsible processes that cleanly utilise carbon wastes such as tyres, waste oil and carpet remnants to sewer sludge and even the biomass fraction of municipal solid waste. These innovative technologies can also convert biomass, municipal waste and plastics and other carbon containing waste materials into either renewable fuels or energy in the form of electricity and heat.

Utilising these advanced environmentally friendly technologies, KP Renewable is uniquely positioned to deliver renewable energy for today`s world markets and a cleaner environment for our future.




Sustainable Development

Wind Energy - Wind Turbine

Society has been harnessing the wind`s energy for hundreds of years. From old Holland to farms in the United States, windmills have been used for pumping water or grinding grain. Today, the windmill`s modern equivalent - a wind turbine - can use the wind`s energy to generate electricity.

A wind energy system transforms the kinetic energy of the wind into mechanical or electrical energy that can be harnessed for practical use.

Wind turbines extract the kinetic energy of the wind to produce electricity or into mechanical energy that can be harnessed for practical use, using a rotor fitted with aerodynamic blades.

Mechanical energy is most commonly used for pumping water in rural or remote locations - the ``farm windmill`` still seen in many rural areas is a mechanical wind pumper - but it can also be used for many other purposes (grinding grain, sawing, pushing a sailboat, etc.). Modern Wind turbines generate electricity for homes and businesses and for sale to utilities.

Wind turbines, like windmills, are mounted on a tower to capture the most energy. At 30 meters or more above ground, they can take advantage of faster and less turbulent wind. Turbines catch the wind`s energy with their propeller-like blades. Usually, two or three blades are mounted on a shaft to form a rotor.

A blade acts much like an aeroplane wing. When the wind blows, a pocket of low-pressure air forms on the downwind side of the blade. The low-pressure air pocket then pulls the blade toward it, causing the rotor to turn. This is called lift. The force of the lift is actually much stronger than the wind`s force against the front side of the blade, which is called drag. The combination of lift and drag causes the rotor to spin like a propeller, and the turning shaft spins a generator to make electricity.

The hub is connected to a gearbox and generator which are located inside the nacelle (the large part at the top of the tower where all the electrical components are located).

Today, wind turbines can range in capacity from under 100 watts (W) to several megawatts (MW). Turbines of between 100W and 10kilowatts (kW) have rotor diameters of 5-10 metres and towers of 6-15 metres in height. Commercial scale electricity wind turbines typically range from 0.6MW to 2.75MW and have rotor diameters of 44 to 80m, and hub heights of 40 to 80m. There has been a trend in recent years towards the use of larger turbines, at the upper end of this range, and commercial scale wind turbines are now capable of delivering large amounts of electricity at a competitive cost.

Wind turbines can be used as stand-alone applications, or they can be connected to a utility power grid or even combined with a photovoltaic (solar cell) system. For utility-scale sources of wind energy, a large number of wind turbines are usually built close together to form a wind farm. Several electricity providers today use wind plants to supply power to their customers.

Stand-alone wind turbines are typically used for water pumping or communications. However, home owners, farmers, and ranchers in windy areas can also use wind turbines as a way to cut their electric bills.

Small wind systems also have potential as distributed energy resources. Distributed energy resources refer to a variety of small, modular power-generating technologies that can be combined to improve the operation of the electricity delivery system. Such small on site and building-mounted systems offer many benefits for households and communities who want to generate their own electricity.

Biomass

The Carbon Cycle

Biomass energy has the potential to greatly reduce greenhouse gas emissions because using biomass as a feedstock releases about the same amount of carbon dioxide as burning fossil fuels. However, fossil fuels release carbon dioxide captured by photosynthesis millions of years ago - an essentially ``new`` greenhouse gas.

Biomass, on the other hand, releases carbon dioxide that is largely balanced by the carbon dioxide captured in its own growth (depending how much energy was used to grow, harvest, and process the fuel). In Nature there is an equilibrium which exists when the rate at which atmospheric carbon is fixed by photosynthesising plants such as trees matches that at which respiring organisms and combustion processes emit carbon into the atmosphere.

The recent rise in GHG CO2 levels present in the Earth`s atmosphere is mainly attributed to massive deforestation of our rain forests coupled with the release of carbon deposits from society`s combustion of fossil fuels.

Biomass has the environmental advantage in that it is a renewable supply of carbon fuel as biomass resources can be replenished at the same rate as they are consumed.

Carbon neutrality is reached when biomass we use as fuel releases into the atmosphere the CO2 that was absorbed whilst it was growing.

Even after taking into account the energy used for harvesting, transport and processing, the CO2 emissions from use of Biomass as fuel in a power station is significantly lower than the CO2 emissions for Fossil Fuel-fired power stations (the feedstock which also requires energy for its production, transport and processing).

Biomass does not add carbon dioxide to the atmosphere as it is utilised and a further advantage is that it can be used to generate electricity with the same equipment or power plants that are now burning fossil fuels.

Biomass is an important source of energy and the most important fuel worldwide after coal, oil and natural gas. The use of biomass can reduce dependence on foreign oil because bio-fuels are the only renewable transportation fuels available.

In the developed world biomass is again becoming important for applications such as combined heat and power generation. In addition, biomass energy is gaining significance as a source of clean energy for domestic heating and community heating applications.

Instead of burning the loose biomass fuel directly, it is more practical to compress it into briquettes (compressing the biomass through a process to form blocks of different shapes) and thereby improve its utility and convenience of use. Such biomass in the dense briquetted form can either be used directly as fuel instead of coal in traditional furnaces or processed in a gasifier. A gasifier converts solid fuel into a more convenient-to-use gaseous form of fuel called producer gas.

Advantages of Biomass Power

KP Renewables is developing the next generation of cost effective, environmentally friendly biomass power stations to recycle Carbon waste streams which will reduce our dependence on foreign oil, improve our air quality, and support rural economies through growing and using dedicated energy crops, such as fast-growing trees and grasses, that can grow sustainably on land that will not support intensive food crops.

Unlike renewable energy technologies such as Wind or Solar, Biomass power stations are not subject to the unpredictability of the weather and thus do not require back-up from fossil fuel power stations. Biomass power stations are base load plants, producing electricity on a predictable and constant basis.




Wind Energy System

Biomass

Carbon Recycling

According to UK government statistics, in England and Wales, the average person creates around 515kg of waste each year (2001/02 DTI Statistics) and, as the population and the quality of consumer lifestyles continues to grow, volumes of waste are expected to increase by 2-3% per year.

Historically in the UK, the primary method of disposing of waste has been to landfill because it has been the cheapest and most readily available disposal solution.

Approximately 66 million tons of commercial, industrial and municipal waste produced in England and Wales are sent to landfill each year. It is increasingly recognised that this dependence on landfill disposal is not sustainable. In addition, there is increasing environmental concern about the impact of landfill disposal on the environment.

In order to find an alternative to the UK`s dependence on landfill, KP Renewable`s parent, (Kwikpower International) has successfully developed the concept of ``Carbon Recycling`` which is the recycling of carbon waste streams at the molecular level.

Just like conventional recycling, ``Carbon Recycling`` utilises waste as a material resource. Carbon containing wastes are broken down through gasification into Carbon (predominantly in the form of carbon monoxide and Carbon dioxide) and Hydrogen. The liberated Carbon and Hydrogen can then either be re-assembled to produce chemicals and fuels, or utilised as the fuel to produce power (and/or steam) to supply green energy.

Traditional Waste Management

Integrated waste management companies dominate the waste disposal market in the UK. Unfortunately, they rely almost exclusively on the traditional technologies and disposal methods such as landfill, which is going out of favour and will be generally unsustainable over the longer term. (The next 10 to 15 years) The value of the traditional industry is being eroded by legislation and environmental policy hampering these practices.

New Waste Management Solutions

Carbon Recycling as a Disposal Solution will revolutionise the waste industry by offering a waste disposal solution that will allow compliance with new legislative initiatives and environmental policies.

We believe that this innovative concept of ``Carbon Recycling``, (recycling carbon containing wastes at the molecular level), offers an innovative and cost effective commercial solution to the management of waste within these new guidelines.

Local government authorities, as well as the major waste disposal contractors, are looking to expand their markets and are looking at a broad cross section of environmental and recycling systems and technologies.

Since the early 1990s there has been considerable consolidation and integration within the waste disposal market in the UK due to changing legislation and accompanying regulation which has increased the costs of waste handling and processing.

As a result of these legislative and regulatory changes, permits for landfill development or expansion have become more difficult to acquire. There is a world-wide agreement regarding emissions from industry and incineration (The Kyoto Protocol) and general recognition that traditional disposal methods such as landfill and incineration do not represent sustainable waste policies for governments.

Benefits of Carbon Recycling 

  • It reduces the volume of waste by up to 98%, thus avoiding heavy transport costs, gate fees and minimising environmental damage
  • It can generate substantial amounts of electricity, which can be used on-site to replace bought-in electricity or fed into the grid for local use, thus avoiding expensive transmission costs
  • Carbon Recycling typically produces zero NOx, SOx and dioxins, thus minimising any environmental impacts or objections to developing projects on environmental grounds.
  • The residual ash is inert and sterile and has a range of valuable uses.
  • The technology underlying Carbon Recycling is tried and tested, having first powered blast furnaces over 200 years ago.
  • Operation can be fully automatic or with minimal low labour costs.
  • One key tenet of KPR`s business model is that, typically, the small modular plant will be situated inside the fence at industrial sites thus avoiding, or at least minimising, planning controls.

The range of its plants from its technology partners which are already in operation demonstrates the overall credibility in this business.

For KP Renewables, the benefit of using carbon waste streams as a biomass feedstock is the multiple revenue streams from the technology. These include revenues from fees for the sale of electricity as well as fees from the disposal of the waste.

We believe that the concept of Carbon Recycling in small modular systems can provide a highly cost-effective solution for the conversion of waste carbon materials into green energy. The cost of a typical module today ranges from a high of $3,000/KWh down to $1,500 of rated output for different technology modules. It should be noted that we expect the price to fall to around $1,000/KWh as mass production begins.

Distributed Waste Disposal

The concept of Carbon Recycling has been expanded to include ``Distributed Waste Disposal`` (or DWD for short) where waste disposal solutions are modular, and located directly at the waste site, thus removing the necessity to transport the waste long distances. The electricity generated can be used on site or exported to the electricity grid. In this way it reduces both customer`s energy bills and waste disposal costs. Each project thereby benefits from both renewable energy premiums as well as tipping fees from the avoidance of disposal to landfill.

Typically, the smaller units can be housed in a standard 40ft ISO shipping container, and comprises the waste pre-treatment (if any) a reactor unit, a scrubber unit and the engine generator set or micro-turbine.

Using a DWD, we install modular waste processing units at the site of the waste generation, each ranging in output from a small size of 125kW up to 1,000kW, mid-size modules of 2 to 3MW and larger modules of 5 to 6MW. Larger plants of 10, 20, and 30MW can be constructed from stacking of multiple units.

Optionally, depending on the type of waste, a waste drier may be added. Each DWD Process Unit is connected to a computer system that provides monitoring and automatic operation of the tasks.

KP Renewable`s strategy is technology independent and in this regard, it has access to advanced technology for Carbon Recycling which has been developed by not only Kwikpower and KP Wellman but by a number of third party technology partners.




Carbon Recycling

Distributed Waste Disposal
Visit our website for further information about our company.       
 

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