January 2005

Joint venture to convert solid waste to electricity

Toronto, Ontario— Plasma Environmental Technologies Inc. has signed a Letter of Intent (LOI) with Turtle Island Recycling Corporation (TI). The purpose of the LOI is to establish a joint venture to develop and install a Plasma Assisted Gasifier (“PAG”) that converts municipal solid waste into electricity, a technology co-owned by Kinectrics Inc.

The PAG is a unique cogeneration system that safely and effectively destroys organic wastes while producing electricity. The PAG incorporates a graphite plasma reactor that gasifies the solids without combustion. As a consequence it is much cleaner than incineration. The PAG converts organic waste into a synthetic gas that is used to produce electricity. The electricity produced can either be sold, or used internally to supplement the PAG’s own operating requirements.

The project with TI will take place in two phases. Phase 1 is the development, installation and testing of a pilot scale PAG system, capable of handling 10 ton/day with a 1000 KW generator. Phase 2 is the development, installation and testing of a commercial scale PAG system, capable of handling up to 60 tons/day.

The PAG has significant applications and commercial potential. It represents a cost-effective, environmentally safe diversion from landfills. It is also of interest to all levels of governments and industry seeking safe, and affordable, solutions for waste disposal. The LOI is a result of TI’s interest in the PAG technology and its potential applications in the municipal waste disposal market.

According to the terms of the LOI, PET will provide the PAG and related technology. TI will assist PET in setting up a suitable operating site, obtaining the necessary permits and approvals. TI will also provide the waste feedstock consisting primarily of sorted municipal solid waste.

TI will pay PET for disposal of the waste at a rate per ton comparable to market prices for waste disposal and they will assist PET in the final design of material handling and movement of the waste to optimize the performance of the PAG. TI and PET will work together to establish customers for the excess energy that will be produced with the commercial PAG System.

Turtle Island Recycling is headquartered in Toronto, and is Ontario’s largest multi material recycling company with over 1,800 industrial and commercial customers and over 150,000 residential customers. TI processes waste streams of paper, glass, metal and plastic.


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